Air Force awards $24M for Cessna C208B aircraft and spares, a sole-source procurement

Contract Overview

Contract Amount: $23,998,813 ($24.0M)

Contractor: Cessna Aircraft Company

Awarding Agency: Department of Defense

Start Date: 2016-09-21

End Date: 2017-09-30

Contract Duration: 374 days

Daily Burn Rate: $64.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY16 2282/CTPF - C208B AIRCRAFT, SPARE ENGINE, AND SPARES

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to CESSNA AIRCRAFT COMPANY for work described as: FY16 2282/CTPF - C208B AIRCRAFT, SPARE ENGINE, AND SPARES Key points: 1. Spending of $24M on aircraft and spares. 2. Sole-source procurement limits competitive pricing. 3. Risk of overpayment due to lack of competition. 4. Aircraft manufacturing sector spending.

Value Assessment

Rating: questionable

The contract value of $23,998,813 for a C208B aircraft, spare engine, and spares appears high given the lack of competition. Benchmarking against similar sole-source procurements or commercial sales would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Cessna Aircraft Company, was solicited. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: Taxpayer funds may be used inefficiently due to the absence of competitive bidding, potentially resulting in a higher overall cost for the aircraft and associated parts.

Public Impact

Procurement of essential aircraft for Air Force operations. Potential for increased costs due to sole-source award. Limited transparency in pricing due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Definitive contract awarded
Specific aircraft type procured

Sector Analysis

This contract falls within the Aircraft Manufacturing sector. Spending in this sector can vary significantly based on defense needs and technological advancements. Benchmarks for similar sole-source aircraft procurements are difficult to establish without further data.

Small Business Impact

The contract was awarded to Cessna Aircraft Company, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the price paid is fair and reasonable, even without competition, and exploring opportunities for future competitive procurements.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Limited transparency in cost justification.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to CESSNA AIRCRAFT COMPANY. FY16 2282/CTPF - C208B AIRCRAFT, SPARE ENGINE, AND SPARES

Who is the contractor on this award?

The obligated recipient is CESSNA AIRCRAFT COMPANY.

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 $24.0 million.

What is the period of performance?

Start: 2016-09-21. End: 2017-09-30.

What is the justification for the sole-source award of this aircraft and spares contract?

The provided data does not specify the justification for the sole-source award. Typically, sole-source procurements are justified by factors such as unique capabilities, urgent needs, or the unavailability of alternatives. A thorough review of the contract file would be required to ascertain the specific rationale.

How does the price of this contract compare to market rates for similar aircraft and spares?

Without access to market rate data or details on the specific configuration and condition of the aircraft and spares, a direct price comparison is challenging. However, sole-source contracts inherently carry a higher risk of being priced above market rates due to the absence of competitive pressure.

What is the long-term strategy for acquiring these aircraft and spares to ensure cost-effectiveness?

The long-term strategy is unclear from this single contract. Future acquisitions should ideally transition to competitive bidding processes to leverage market forces and achieve better pricing. If sole-sourcing is unavoidable, robust price negotiation and justification are critical.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: ONE CESSNA BLVD, WICHITA, KS, 67215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,998,813

Exercised Options: $23,998,813

Current Obligation: $23,998,813

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline