Textron Aviation Defense LLC awarded $104.8M for JPATS post-production sustaining engineering and program management

Contract Overview

Contract Amount: $104,774,810 ($104.8M)

Contractor: Textron Aviation Defense LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-13

End Date: 2021-05-12

Contract Duration: 1,521 days

Daily Burn Rate: $68.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF ACAT 1C JPATS POST PRODUCTION SUSTAINING ENGINEERING&PROGRAM MANAGMENT

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67207

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $104.8 million to TEXTRON AVIATION DEFENSE LLC for work described as: IGF::OT::IGF ACAT 1C JPATS POST PRODUCTION SUSTAINING ENGINEERING&PROGRAM MANAGMENT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. The contract duration of 1521 days suggests a long-term commitment to sustaining engineering services. 3. The use of a Cost Plus Fixed Fee (CPFF) pricing structure can incentivize cost escalation if not closely monitored. 4. The absence of small business set-asides indicates a focus on large prime contractors for this specialized service. 5. The contract falls under the Aircraft Manufacturing NAICS code, aligning with Textron's core competencies. 6. The significant award value suggests a critical role in maintaining the readiness of JPATS aircraft.

Value Assessment

Rating: fair

The contract value of $104.8 million over approximately four years for sustaining engineering and program management for JPATS aircraft appears substantial. Without specific benchmarks for similar sustaining engineering contracts or detailed cost breakdowns, it is difficult to definitively assess value for money. The CPFF structure, while common for complex services, carries inherent risks of cost growth if not managed rigorously. Benchmarking against industry standards for aircraft sustainment would be necessary for a more precise evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, proprietary knowledge, or when urgency dictates a rapid award. The lack of competition means that taxpayers did not benefit from potential price reductions or innovative solutions that might have emerged from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiaries are the U.S. military branches utilizing JPATS (Joint Primary Aircraft Training System) aircraft, ensuring their continued operational readiness. The services delivered include essential sustaining engineering and program management, crucial for the long-term viability and performance of the training aircraft fleet. The contract is primarily based in Kansas (ST: KS, SN: KANSAS), indicating a concentration of work and potential economic impact in that region. The contract supports specialized technical roles within Textron Aviation Defense LLC, contributing to the skilled workforce in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not managed effectively.
Long contract duration (1521 days) requires sustained oversight to ensure continued value.
Lack of small business participation may limit broader economic benefits and subcontracting opportunities.

Positive Signals

Awarded to Textron Aviation Defense LLC, a known entity in aircraft manufacturing and support.
Focus on sustaining engineering and program management addresses critical long-term operational needs.
Contract is for a specific, likely specialized, set of services essential for JPATS aircraft.
The contract is definitive, suggesting a clear scope and commitment.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, significant R&D investment, and long product lifecycles. Sustaining engineering and program management are critical functions within this sector, ensuring that complex platforms like the JPATS remain operational and effective throughout their service life. The market for such services is often dominated by original equipment manufacturers or specialized support contractors. Comparable spending benchmarks for sustaining engineering contracts can vary widely based on the platform's complexity, age, and the scope of services required.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by 'sb': false. Consequently, there are no direct subcontracting requirements mandated for small businesses within this specific award. This suggests that the prime contractor, Textron Aviation Defense LLC, is expected to perform the majority of the work. The absence of set-asides means that opportunities for small businesses to participate in this particular contract are limited, potentially impacting the broader small business ecosystem that relies on government subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for contract administration. The specific oversight mechanisms would depend on the terms of the Cost Plus Fixed Fee contract, likely involving regular reviews of cost proposals, performance metrics, and adherence to program management plans. Transparency is generally maintained through contract reporting requirements, but the sole-source nature might limit public visibility into the justification for the award and pricing negotiations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

JPATS Program Management
Aircraft Sustaining Engineering
Defense Logistics Agency Support Contracts
Naval Air Systems Command (NAVAIR) Contracts
Air Force Sustainment Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee pricing structure
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $104.8 million to TEXTRON AVIATION DEFENSE LLC. IGF::OT::IGF ACAT 1C JPATS POST PRODUCTION SUSTAINING ENGINEERING&PROGRAM MANAGMENT

Who is the contractor on this award?

The obligated recipient is TEXTRON AVIATION DEFENSE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $104.8 million.

What is the period of performance?

Start: 2017-03-13. End: 2021-05-12.

What is the historical spending pattern for JPATS post-production sustaining engineering and program management, and how does this award compare?

Historical spending data for this specific contract line item (JPATS post-production sustaining engineering and program management) is not readily available in the provided data snippet. However, the current award of $104.8 million over approximately four years represents a significant investment. To compare, one would need to analyze past contracts awarded for similar services on the JPATS platform or comparable training aircraft programs. Factors such as inflation, changes in operational tempo, and evolving sustainment requirements would influence year-over-year spending. A detailed analysis would require access to historical contract databases to identify trends and anomalies in spending for JPATS sustainment.

What is Textron Aviation Defense LLC's track record with similar sole-source contracts, particularly in sustaining engineering?

Textron Aviation Defense LLC, as a successor to Beechcraft Defense Company, has a long history of supporting military aircraft. While specific details on their track record with sole-source sustaining engineering contracts for JPATS are not provided, the company's extensive experience in aircraft manufacturing and modification suggests a capability to perform such services. Sole-source awards are often granted based on a contractor's unique qualifications, historical performance, or proprietary knowledge related to the specific platform. A comprehensive review would involve examining past performance evaluations and contract awards to Textron and its predecessors for similar services across various defense platforms.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for sustaining engineering and program management contracts, typical KPIs often include metrics related to aircraft availability, maintenance turnaround times, cost control, schedule adherence for engineering changes, and responsiveness to technical issues. Performance measurement would likely involve regular reporting by Textron Aviation Defense LLC against these defined metrics, with oversight from the Defense Contract Management Agency (DCMA). The effectiveness of the program management aspect would be assessed through milestones, budget adherence, and overall project execution.

What is the risk assessment associated with the Cost Plus Fixed Fee (CPFF) contract type for this service?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks, primarily the potential for cost overruns. While the 'fixed fee' provides a defined profit margin for the contractor, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial estimates, the total contract value can increase significantly. For sustaining engineering and program management, where technical challenges and unforeseen issues can arise, this risk is amplified. Effective mitigation requires robust government oversight, detailed cost tracking, and stringent auditing of contractor expenditures to ensure costs remain reasonable and allocable.

How does the $104.8 million award compare to the overall budget or spending on the JPATS program?

Without access to the total budget or annual spending figures for the entire JPATS program, it is challenging to place the $104.8 million award in context. This figure represents a significant portion of funding dedicated to the sustainment and management of the JPATS fleet over its contract period. To understand its proportion, one would need to compare it against the total lifecycle cost of the JPATS program or the annual budget allocated for aircraft maintenance, repair, and overhaul (MRO) across the Department of Defense. This contract likely represents a substantial, but not necessarily the entirety, of the sustainment funding.

What are the potential implications of this sole-source award on future competition for JPATS sustainment services?

A sole-source award, especially for a long-term service contract like this, can potentially limit future competition. If Textron Aviation Defense LLC develops unique expertise, proprietary processes, or deep integration with the JPATS platform during the contract period, it may become the de facto sole provider for subsequent contracts. This can create a barrier to entry for potential competitors who may lack the same level of institutional knowledge or access. To foster future competition, contracting agencies often include provisions for data rights, technology transfer, or phased transitions to encourage new entrants or maintain a competitive landscape.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 201 S GREENWICH, WICHITA, KS, 67207

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $256,031,158

Exercised Options: $204,739,872

Current Obligation: $104,774,810

Actual Outlays: $3,468,888

Subaward Activity

Number of Subawards: 51

Total Subaward Amount: $18,393,670

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline