DoD Awards $80M for BACN Global 6000 Aircraft Manufacturing, No Competition Identified

Contract Overview

Contract Amount: $80,152,971 ($80.2M)

Contractor: Learjet Inc

Awarding Agency: Department of Defense

Start Date: 2024-04-20

End Date: 2024-10-27

Contract Duration: 190 days

Daily Burn Rate: $421.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BATTLEFIELD AIRBORNE COMMUNICATIONS 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 $80.2 million to LEARJET INC for work described as: BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) GLOBAL 6000 AIRCRAFT Key points: 1. Significant contract value of $80.15M for specialized aircraft manufacturing. 2. Sole-source award to Learjet Inc. raises questions about competition and potential price discovery. 3. Contract duration of 190 days suggests a focused, potentially urgent requirement. 4. The 'Aircraft Manufacturing' NAICS code indicates a focus on production rather than services.

Value Assessment

Rating: questionable

The award of $80.15M for aircraft manufacturing without competition makes a direct pricing assessment difficult. Benchmarking against similar sole-source aircraft production contracts would be necessary to evaluate value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Learjet Inc. The lack of competition limits price discovery and may result in a higher cost to the government.

Taxpayer Impact: The absence of competition for this $80.15M contract could lead to increased costs for taxpayers.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding. The specific use of the BACN Global 6000 aircraft for military communications is critical for operational effectiveness. Dependence on a single supplier for this specialized asset could pose a long-term risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Specific aircraft type identified
Clear delivery order

Sector Analysis

The Department of Defense frequently procures specialized aircraft for communication and surveillance. Spending in this sector can be substantial, with significant R&D and manufacturing costs.

Small Business Impact

This contract is unlikely to involve small businesses directly, as aircraft manufacturing is typically dominated by large, specialized corporations. Subcontracting opportunities for small businesses are not specified.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. The Department of the Air Force should provide justification for the lack of competition.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
Dependency on a single supplier.
Limited transparency on pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.2 million to LEARJET INC. BATTLEFIELD AIRBORNE COMMUNICATIONS 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 $80.2 million.

What is the period of performance?

Start: 2024-04-20. End: 2024-10-27.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. The Department of the Air Force should have documented these reasons. Fair and reasonable pricing is assessed through cost analysis, comparison to similar contracts, or market research, even in sole-source situations, to mitigate potential overspending.

What are the risks associated with relying on a single manufacturer for the BACN Global 6000 aircraft, particularly in terms of future sustainment and upgrades?

Sole reliance on one manufacturer creates significant risks, including potential supply chain disruptions, limited negotiation leverage for future sustainment or upgrades, and vulnerability if the manufacturer faces financial or operational difficulties. This could lead to increased long-term costs and reduced operational readiness for the critical BACN system.

How does the $80.15M investment in BACN Global 6000 aircraft contribute to the Department of Defense's overall communication and battlefield effectiveness?

The BACN program provides critical airborne network connectivity, extending communication ranges and enabling data sharing across diverse platforms in contested environments. Investing in these aircraft directly enhances battlefield situational awareness, command and control, and the overall effectiveness of joint military operations by ensuring robust communication links.

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: $80,152,971

Exercised Options: $80,152,971

Current Obligation: $80,152,971

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872621D0006

IDV Type: IDC

Timeline