Department of Defense awards $140M+ for T-6C+ aircraft manufacturing, with Textron Aviation Defense LLC as the sole contractor

Contract Overview

Contract Amount: $140,280,246 ($140.3M)

Contractor: Textron Aviation Defense LLC

Awarding Agency: Department of Defense

Start Date: 2017-04-25

End Date: 2023-12-31

Contract Duration: 2,441 days

Daily Burn Rate: $57.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF ARGENTINA T-6C+

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67206

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $140.3 million to TEXTRON AVIATION DEFENSE LLC for work described as: IGF::OT::IGF ARGENTINA T-6C+ Key points: 1. Value for money is difficult to assess without detailed cost breakdowns and comparisons to similar aircraft manufacturing contracts. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and innovation. 3. Risk indicators include the long contract duration and the sole-source nature, which can reduce leverage. 4. Performance context is tied to the T-6C+ trainer aircraft, a critical asset for pilot training. 5. Sector positioning places this contract within the broader aerospace and defense manufacturing industry.

Value Assessment

Rating: fair

The contract value of over $140 million for aircraft manufacturing is substantial. However, without specific details on the number of aircraft, associated services, or a breakdown of costs (labor, materials, overhead), a direct value-for-money assessment is challenging. Benchmarking against similar sole-source contracts for specialized aircraft manufacturing would be necessary to determine if the pricing is competitive. The firm fixed-price nature provides cost certainty but relies heavily on the initial negotiation's fairness.

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 responsible source is available or when there is a compelling justification for not seeking competitive proposals. The lack of competition means that taxpayers did not benefit from potential cost savings or innovative solutions that might have emerged from a competitive bidding process.

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

Public Impact

The primary beneficiaries are the U.S. Air Force and allied nations utilizing the T-6C+ trainer aircraft for pilot training. Services delivered include the manufacturing and potentially support of T-6C+ aircraft. The geographic impact is primarily centered around the contractor's facilities in Kansas, but the ultimate impact is on Air Force pilot readiness nationwide. Workforce implications include employment at Textron Aviation Defense LLC and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Long contract duration (2017-2023) may indicate potential for cost overruns if not managed tightly.
Lack of detailed public cost breakdowns hinders value-for-money assessment.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established defense contractor suggests a degree of reliability in production.
Focus on trainer aircraft supports critical pilot training missions.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, a significant segment of the U.S. economy. The T-6C+ is a turboprop trainer aircraft used for basic flight training. The market for military trainer aircraft is specialized, often dominated by a few key manufacturers. Comparable spending benchmarks would involve looking at other contracts for similar trainer aircraft or specialized defense manufacturing programs.

Small Business Impact

The data indicates that small business participation (sb: false) was not a primary consideration or requirement for this specific contract award. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, Textron Aviation Defense LLC, is likely handling the majority of the work internally or with large business partners, potentially limiting subcontracting opportunities for small businesses within this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified aircraft. Transparency is limited due to the sole-source nature and the proprietary information typically associated with defense manufacturing. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

T-6 Texan II Program
Primary Pilot Training Aircraft Contracts
Defense Aircraft Manufacturing
Aerospace Industry Spending

Risk Flags

Sole-source award
Lack of competition
Long contract duration
Limited public cost transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $140.3 million to TEXTRON AVIATION DEFENSE LLC. IGF::OT::IGF ARGENTINA T-6C+

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $140.3 million.

What is the period of performance?

Start: 2017-04-25. End: 2023-12-31.

What is the historical spending trend for T-6C+ aircraft manufacturing by the Department of Defense?

Historical spending data for T-6C+ aircraft manufacturing by the Department of Defense is not readily available in a consolidated public format for this specific contract. The provided data indicates a single definitive contract awarded in April 2017 with an end date of December 2023, totaling over $140 million. To understand historical trends, one would need to analyze prior contracts for the T-6C+ or its predecessors, looking at award dates, values, and contractor performance over time. This would involve searching federal procurement databases for related contract actions and analyzing the cumulative spending on this aircraft type across different fiscal years and administrations. Without this broader context, it's difficult to determine if the $140 million represents an increase, decrease, or stable level of investment in T-6C+ production.

How does the per-unit cost of the T-6C+ aircraft under this contract compare to market rates or similar trainer aircraft?

Determining the per-unit cost of the T-6C+ aircraft under this contract is challenging without knowing the exact number of aircraft procured. The total contract value is over $140 million. If, for example, 10 aircraft were procured, the per-unit cost would be approximately $14 million. Benchmarking this against market rates or similar trainer aircraft requires access to pricing data for comparable platforms. The T-6C+ is a specialized military trainer, and its cost is influenced by factors such as advanced avionics, performance specifications, and production volume. Sole-source awards, like this one, often lack the transparency needed for direct cost comparisons. However, general market intelligence suggests that advanced turboprop trainer aircraft can range from several million to over ten million dollars per unit, depending on configuration and capabilities. A detailed analysis would involve comparing the T-6C+'s specifications and features against other aircraft like the Embraer EMB 314 Super Tucano or the Beechcraft T-6B Texan II (if this contract is for a specific variant).

What are the specific risks associated with a sole-source award for aircraft manufacturing?

Sole-source awards for aircraft manufacturing present several risks. Primarily, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-reduction pressures inherent in a competitive bidding process. This can result in taxpayers paying more than necessary for the aircraft. Secondly, it can stifle innovation. Without the incentive to outperform competitors, the sole contractor may have less motivation to invest in developing more efficient manufacturing processes or advanced features. Thirdly, it reduces the government's leverage in negotiations. The contractor knows they are the only option, which can weaken the government's position when discussing terms, delivery schedules, or modifications. Finally, there's a risk of complacency or reduced responsiveness from the contractor, as they face no immediate threat of losing future business to a competitor for this specific platform.

What is Textron Aviation Defense LLC's track record with Department of Defense contracts, particularly for aircraft manufacturing?

Textron Aviation Defense LLC, and its predecessor entities, have a significant track record with the Department of Defense, particularly in the realm of aircraft manufacturing and support. They are well-known for producing the Beechcraft T-6 Texan II trainer aircraft, which this contract appears to be related to (T-6C+). The company has a long history of delivering military aircraft, including trainers, light attack, and special mission platforms. Their performance on previous contracts would be a key factor in the justification for a sole-source award. A review of their contract history would likely reveal numerous awards, modifications, and delivery orders, providing insights into their production capabilities, on-time delivery rates, and adherence to quality standards. However, specific performance metrics for past contracts, such as cost overruns or schedule delays, are not detailed in the provided data.

How does the duration of this contract (2017-2023) impact the assessment of its effectiveness and value?

The contract duration of approximately six years (from April 2017 to December 2023) for T-6C+ aircraft manufacturing suggests a long-term production requirement. From an effectiveness standpoint, a longer duration can allow for economies of scale in production and a more stable manufacturing base, potentially leading to more consistent quality and predictable delivery schedules. It also allows the contractor to amortize setup costs over a larger number of units. However, a long duration also increases the risk of obsolescence if technology advances rapidly, or if the operational needs of the Air Force change significantly during the contract period. For value assessment, a longer contract can be beneficial if the price per unit remains stable or decreases over time due to efficiencies gained. Conversely, it can be detrimental if costs escalate due to inflation, unforeseen production challenges, or if the government fails to renegotiate terms effectively over the years. The firm fixed-price nature mitigates some cost escalation risk for the government, but the initial price must be robust enough to cover potential fluctuations over such a long period.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $140,861,145

Exercised Options: $140,280,246

Current Obligation: $140,280,246

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $6,514,820

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline