Department of Defense awards $139M contract for T-6C aircraft production to Textron Aviation Defense LLC

Contract Overview

Contract Amount: $138,987,571 ($139.0M)

Contractor: Textron Aviation Defense LLC

Awarding Agency: Department of Defense

Start Date: 2022-08-12

End Date: 2026-09-30

Contract Duration: 1,510 days

Daily Burn Rate: $92.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BUILDING PARTNERSHIP CAPACITY T-6C AIRCRAFT PRODUCTION

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67206

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $139.0 million to TEXTRON AVIATION DEFENSE LLC for work described as: BUILDING PARTNERSHIP CAPACITY T-6C AIRCRAFT PRODUCTION Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of approximately 1510 days suggests a long-term production requirement. 3. Awarded to a single contractor, raising questions about the extent of competition. 4. The contract is for aircraft manufacturing, a critical component of defense readiness. 5. The geographic location of performance is Kansas, potentially impacting the local economy and workforce.

Value Assessment

Rating: fair

The contract value of $139 million for T-6C aircraft production is significant. Without specific benchmarks for T-6C unit costs or comparable contracts for similar trainer aircraft, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure aims to control costs. Further analysis would require comparing the per-unit cost to historical data for this aircraft type or similar platforms, and understanding the scope of work included in the production.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple potential bidders. This approach is typically used when only one responsible source can provide the required goods or services. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that might arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially 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 potentially allied nations requiring T-6C trainer aircraft for pilot training. The contract delivers essential aircraft manufacturing services, contributing to national defense capabilities. Performance is located in Kansas, likely creating or sustaining jobs in the aerospace manufacturing sector within that state. The production of trainer aircraft supports the development of a skilled aviation workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source award limits opportunities for other aerospace manufacturers.
Dependence on a single contractor for critical aircraft production.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Long-term contract ensures sustained production of essential training aircraft.
Award to an established defense contractor with experience in aircraft manufacturing.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, significant research and development costs, and long production cycles. This contract for T-6C aircraft production falls within the aircraft manufacturing sub-sector. The market for military trainer aircraft is relatively concentrated, often involving a few key prime contractors. Spending in this area is driven by defense modernization efforts and the need for advanced training platforms.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses detailed in the provided data. The award to a large prime contractor like Textron Aviation Defense LLC suggests that any small business involvement would likely be through the prime's supply chain, rather than direct set-aside awards. This could limit direct opportunities for small businesses to participate in this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specific aircraft at an agreed-upon price. Transparency may be limited due to the sole-source nature of the award, but contract modifications and performance reports would be subject to internal review and potentially Inspector General oversight if issues arise.

Related Government Programs

Military Trainer Aircraft Programs
Aerospace Manufacturing Contracts
Department of the Air Force Procurement
Fixed-Wing Aircraft Production

Risk Flags

Sole-source award
Potential for cost overruns due to lack of competition
Long-term contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $139.0 million to TEXTRON AVIATION DEFENSE LLC. BUILDING PARTNERSHIP CAPACITY T-6C AIRCRAFT PRODUCTION

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 $139.0 million.

What is the period of performance?

Start: 2022-08-12. End: 2026-09-30.

What is the historical spending trend for T-6C aircraft production or similar trainer aircraft by the Department of Defense?

Analyzing historical spending for T-6C aircraft or comparable trainer platforms is crucial for contextualizing the current $139 million award. Without specific historical data, it's difficult to determine if this contract represents an increase, decrease, or stable level of investment. Generally, the Department of Defense procures trainer aircraft in cycles tied to fleet modernization, pilot training needs, and budget allocations. Fluctuations in spending can be influenced by geopolitical events, changes in training requirements, and the availability of competing aircraft programs. A review of past contracts for T-6C or similar aircraft, such as the T-7 Red Hawk or other turboprop trainers, would reveal trends in contract values, quantities, and award types (competitive vs. sole-source) over time, providing a baseline for assessing the current contract's significance.

What is the typical unit cost for a T-6C aircraft, and how does this contract's implied unit cost compare?

Determining the precise unit cost for the T-6C aircraft under this $139 million contract requires knowing the number of aircraft being procured. If, for example, the contract is for 20 aircraft, the implied unit cost would be approximately $6.95 million per aircraft ($139,000,000 / 20). This figure needs to be benchmarked against publicly available data for T-6C unit costs from previous procurements or industry estimates. Factors such as configuration, avionics, and support packages can significantly influence unit price. A comparison against the T-7 Red Hawk, a more advanced trainer, would likely show a higher cost per unit, but comparing against similar turboprop trainers would be more relevant. Without the exact quantity, a definitive comparison is not possible, but the $6.95 million figure serves as a starting point for further investigation into value for money.

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

A sole-source award for critical aircraft production, such as the T-6C, carries several inherent risks. Primarily, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures that a competitive bidding process typically generates. This can result in a lower value for taxpayer money. Secondly, there's a risk of contractor complacency; without the threat of losing future business to competitors, the incumbent contractor may have less incentive to innovate, improve efficiency, or maintain the highest quality standards. Thirdly, sole-source awards can create a dependency on a single supplier, making the supply chain vulnerable to disruptions caused by the contractor's financial instability, production issues, or geopolitical factors affecting their operations. Finally, it limits opportunities for other capable small and large businesses to enter or expand their presence in the defense aerospace market.

What is Textron Aviation Defense LLC's track record with T-6C aircraft production and similar defense contracts?

Textron Aviation Defense LLC, a subsidiary of Textron Inc., has a well-established track record in military aircraft manufacturing, particularly with the T-6 Texan II family of aircraft, which includes the T-6C variant. They have been a primary producer and sustainer of these trainer aircraft for the U.S. Air Force, Navy, and numerous international partners for many years. Their experience encompasses not only initial production but also upgrades, modifications, and support services. This long-standing relationship and demonstrated capability in producing and delivering T-6 aircraft suggest a low performance risk for this specific contract. Their history indicates familiarity with the aircraft's design, manufacturing processes, and the specific requirements of military training platforms, making them a logical choice for continued production, albeit under a sole-source justification.

How does this contract align with the Department of the Air Force's overall strategy for pilot training and fleet modernization?

This $139 million contract for T-6C aircraft production aligns with the Department of the Air Force's (DAF) ongoing need for robust pilot training capabilities. The T-6C is a foundational trainer used in the primary flight training phase for pilots across various Air Force and Navy specialties. Awarding this contract ensures the continued availability of these essential training platforms, supporting the DAF's objective to produce a sufficient number of qualified aviators. While the DAF is also investing in more advanced trainers like the T-7 Red Hawk for the next generation of pilots, the T-6C remains critical for foundational training. This contract likely supports the sustainment and modernization of the existing T-6 fleet and ensures sufficient aircraft are available to meet current training throughput demands, complementing rather than replacing future advanced training initiatives.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA861722R6238

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 10511 E CENTRAL AVE, WICHITA, KS, 67206

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: $138,987,571

Exercised Options: $138,987,571

Current Obligation: $138,987,571

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $11,504,768

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline