DoD's $21.8M contract for AERONET system upgrades awarded to Textron Aviation Defense LLC

Contract Overview

Contract Amount: $21,779,947 ($21.8M)

Contractor: Textron Aviation Defense LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-29

End Date: 2026-09-30

Contract Duration: 731 days

Daily Burn Rate: $29.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS ACQUISITION INCLUDES SUPPLIES AND SERVICES NEEDED FOR A SUCCESSFUL AERONET SYSTEM AFTER LESSONS LEARNED FROM CONTINUED LIGHT ATTACK EXPERIMENT. SUPPLIES REQUIRED INCLUDE HARDWARE, SOFTWARE, TECHNICAL ORDERS, TEST REPORTS AND DRAWINGS.

Plain-Language Summary

Department of Defense obligated $21.8 million to TEXTRON AVIATION DEFENSE LLC for work described as: THIS ACQUISITION INCLUDES SUPPLIES AND SERVICES NEEDED FOR A SUCCESSFUL AERONET SYSTEM AFTER LESSONS LEARNED FROM CONTINUED LIGHT ATTACK EXPERIMENT. SUPPLIES REQUIRED INCLUDE HARDWARE, SOFTWARE, TECHNICAL ORDERS, TEST REPORTS AND DRAWINGS. Key points: 1. Contract aims to enhance the AERONET system based on operational feedback. 2. Includes critical hardware, software, and technical documentation for system improvement. 3. Awarded as a sole-source contract, limiting competitive price discovery. 4. Firm Fixed Price contract type suggests defined scope and cost certainty. 5. Duration of 731 days indicates a medium-term project. 6. Focus on lessons learned suggests a responsive approach to operational needs.

Value Assessment

Rating: fair

The contract value of $21.8 million for AERONET system upgrades appears to be within a reasonable range for specialized defense systems, though direct comparisons are difficult without more specific scope details. The firm fixed-price structure provides cost predictability. However, the lack of competition raises concerns about whether the government secured the best possible value. Benchmarking against similar system upgrade contracts would be necessary for a more definitive assessment of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Textron Aviation Defense LLC, was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple companies submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they limit the government's ability to leverage competition to drive down prices and ensure the most innovative solutions are explored.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings and potentially superior solutions that a competitive bidding process could have yielded. This could result in a higher overall cost for the AERONET system upgrades.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, who will receive an improved AERONET system. The contract delivers essential supplies and services for the AERONET system, including hardware and software. The geographic impact is likely within military operational areas where the AERONET system is deployed. Workforce implications may include specialized technical personnel for system integration and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if scope is not tightly managed due to limited competition.

Positive Signals

Focus on incorporating lessons learned suggests a commitment to improving system effectiveness.
Firm Fixed Price contract provides cost certainty for the government.
Award to Textron Aviation Defense LLC leverages existing expertise in aircraft systems.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government procurement. Contracts for specialized systems like AERONET are common, often involving unique requirements that can lead to sole-source awards. The market for aircraft parts and auxiliary equipment manufacturing is substantial, but specific system upgrades often fall to incumbent or specialized providers. Benchmarking this contract's value against other similar system upgrade programs within the DoD would provide further context.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the specialized nature of the AERONET system and its upgrade requirements, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or readily available, unless Textron Aviation Defense LLC proactively seeks them for specific components or services.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified goods and services within the agreed-upon price. Transparency may be limited due to the sole-source nature of the award, but contract performance reports and milestone reviews should provide insight into progress and adherence to the contract.

Related Government Programs

Aeronautical Systems
Defense Communications Systems
Air Force Logistics Support
Aircraft Modernization Programs

Risk Flags

Sole-source award may limit cost-effectiveness.
Lack of detailed public information on 'lessons learned'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to TEXTRON AVIATION DEFENSE LLC. THIS ACQUISITION INCLUDES SUPPLIES AND SERVICES NEEDED FOR A SUCCESSFUL AERONET SYSTEM AFTER LESSONS LEARNED FROM CONTINUED LIGHT ATTACK EXPERIMENT. SUPPLIES REQUIRED INCLUDE HARDWARE, SOFTWARE, TECHNICAL ORDERS, TEST REPORTS AND DRAWINGS.

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 $21.8 million.

What is the period of performance?

Start: 2024-09-29. End: 2026-09-30.

What is the specific nature of the 'lessons learned' from the 'continued light attack experiment' that necessitated these AERONET system upgrades?

The provided data indicates that the acquisition is intended to address 'lessons learned from continued light attack experiment' for the AERONET system. However, the specific details of these lessons are not elaborated upon in the provided text. Typically, such lessons in a light attack context could relate to operational deficiencies, communication gaps, data processing limitations, or integration issues with other platforms or sensors experienced during experimental operations. Understanding these specific issues would be crucial to fully assess the necessity and scope of the upgrades, and whether the procured hardware and software directly address identified shortcomings. Without this granular detail, the justification for the $21.8 million investment remains somewhat abstract.

How does the $21.8 million cost compare to previous upgrades or similar system enhancements within the Air Force or other branches?

Direct cost comparison for this specific AERONET system upgrade is challenging without access to historical spending data for similar systems or detailed breakdowns of the current contract's components. The $21.8 million figure represents the total value over the contract's duration. To benchmark effectively, one would need to identify comparable system upgrade contracts, ideally for similar complexity and function within the Department of Defense, and analyze their total cost, duration, and scope. Factors like inflation, technological advancements, and the specific nature of the upgrades (e.g., software vs. hardware intensive) would need to be considered. The sole-source nature of this award also complicates direct value-for-money comparisons, as competitive bidding often drives down costs.

What are the key performance indicators (KPIs) or metrics that will be used to measure the success of these AERONET system upgrades?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or metrics for evaluating the success of the AERONET system upgrades. In a typical defense acquisition context, success metrics for such a system would likely focus on improvements in operational effectiveness, reliability, maintainability, and interoperability. For an AERONET system, this could translate to enhanced data transmission rates, reduced system downtime, improved situational awareness for users, successful integration with other command and control systems, and compliance with cybersecurity standards. The contract's firm fixed-price nature implies that the contractor is obligated to meet certain performance standards, but the specific benchmarks would be detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

What is Textron Aviation Defense LLC's track record with similar complex system integration or upgrade contracts for the Department of Defense?

Textron Aviation Defense LLC, as a subsidiary of Textron Inc., has a significant history in the aerospace and defense industry, including work on various aircraft platforms and related systems. While the provided data focuses on this specific AERONET contract, Textron's broader portfolio likely includes experience with complex integration and upgrade projects. Assessing their track record for similar defense system contracts would involve reviewing past performance evaluations, contract awards, and any reported issues or successes on previous projects of comparable scope and technical requirements. Their established presence suggests a level of capability, but a detailed review of their specific performance on prior defense system upgrades would be necessary for a comprehensive assessment.

Given the sole-source nature, what steps has the Air Force taken to ensure fair and reasonable pricing for this contract?

When a sole-source contract is awarded, the procuring agency, in this case, the Department of the Air Force, is required to undertake specific steps to ensure fair and reasonable pricing. This typically involves conducting a thorough cost analysis of the contractor's proposed price. This analysis may include reviewing the contractor's cost accounting data, evaluating labor rates, material costs, overhead, and profit margins. The agency might also conduct market research to establish independent government cost estimates or compare pricing with similar commercial items if applicable. In some cases, certified cost or pricing data may be required from the contractor. The justification for the sole-source award itself must also be documented and approved, often requiring higher-level review.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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

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: $21,779,947

Exercised Options: $21,779,947

Current Obligation: $21,779,947

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $3,398,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline