DoD Awards $75M for Battlefield Airborne Communication Node Aircraft Manufacturing

Contract Overview

Contract Amount: $75,226,345 ($75.2M)

Contractor: Learjet Inc

Awarding Agency: Department of Defense

Start Date: 2022-03-18

End Date: 2023-11-30

Contract Duration: 622 days

Daily Burn Rate: $120.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BATTLEFIELD AIRBORNE COMMUNICATION NODE (BACN) GLOBAL 6000 AIRCRAFT

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67209

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $75.2 million to LEARJET INC for work described as: BATTLEFIELD AIRBORNE COMMUNICATION NODE (BACN) GLOBAL 6000 AIRCRAFT Key points: 1. Significant contract value for specialized aircraft manufacturing. 2. Limited competition raises questions about cost-effectiveness. 3. Potential risks associated with sole-source procurement. 4. Defense sector spending on advanced communication systems.

Value Assessment

Rating: questionable

The contract value of $75.2M for a single delivery order is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar specialized aircraft manufacturing contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant award means taxpayers may not be receiving the best possible value, potentially increasing overall defense spending.

Public Impact

Enhances battlefield communication capabilities for military operations. Supports advanced airborne intelligence, surveillance, and reconnaissance (ISR). Ensures reliable data links in contested environments. Contributes to the modernization of military air assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Sole-source award risks

Positive Signals

Critical mission capability
Advanced technology integration

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is crucial for maintaining military readiness and technological superiority, but often involves high costs due to specialized requirements.

Small Business Impact

The data indicates no specific set-aside for small businesses. The prime contractor, Learjet Inc., is a large entity, suggesting limited direct opportunities for small businesses in this particular award.

Oversight & Accountability

The award is a delivery order under a larger contract, implying some level of pre-existing oversight. However, the sole-source nature warrants close scrutiny to ensure fair pricing and performance.

Related Government Programs

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

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for cost inefficiencies
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.2 million to LEARJET INC. BATTLEFIELD AIRBORNE COMMUNICATION NODE (BACN) GLOBAL 6000 AIRCRAFT

Who is the contractor on this award?

The obligated recipient is LEARJET INC.

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 $75.2 million.

What is the period of performance?

Start: 2022-03-18. End: 2023-11-30.

What is the justification for the sole-source award of the BACN Global 6000 aircraft contract?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of alternative sources. Without further details from the Department of Defense, it is difficult to ascertain the specific reasons. This lack of transparency can hinder a thorough assessment of the procurement's necessity and value.

What are the potential risks associated with the lack of competition for this $75M contract?

The primary risk is inflated pricing, as the absence of competitive bids removes the incentive for the contractor to offer the most cost-effective solution. There's also a risk of reduced innovation and potentially lower quality if the contractor faces no pressure from competitors. This can ultimately lead to inefficient use of taxpayer funds.

How does the BACN system contribute to the overall effectiveness of military operations?

The Battlefield Airborne Communication Node (BACN) system is critical for extending communication and data links across vast distances and challenging terrains. It enables seamless information sharing between different military branches and platforms, enhancing situational awareness, command and control, and the overall effectiveness of combat operations in complex environments.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bombardier Inc

Address: 1 LEARJET WAY, WICHITA, KS, 67209

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

Financial Breakdown

Contract Ceiling: $75,226,345

Exercised Options: $75,226,345

Current Obligation: $75,226,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872621D0006

IDV Type: IDC

Timeline