DoD awards $14.2M for helicopter rotor blades and components to Bell Helicopter Textron, Inc

Contract Overview

Contract Amount: $14,229,689 ($14.2M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2004-04-02

End Date: 2007-08-31

Contract Duration: 1,246 days

Daily Burn Rate: $11.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200412!4P2518!1700!JA103 !NAVAL INVENTORY CONTROL POINT !DAAH2302G0008 !A!N! !N!GB1C ! !20040402!20061231!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON, INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000014250000!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !4! ! ! ! ! !99990909!B! ! !N!A!D!U!J!1!001!N!2A!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! !N00383!0001! !

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to BELL TEXTRON INC for work described as: 200412!4P2518!1700!JA103 !NAVAL INVENTORY CONTROL POINT !DAAH2302G0008 !A!N! !N!GB1C ! !20040402!20061231!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON, INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARR… Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Significant contract value for specialized aircraft components. 3. Performance period spans over two years, indicating a sustained need. 4. Contractor has a track record with the Department of Defense. 5. Geographic concentration of contractor in Texas. 6. Focus on critical helicopter components suggests operational importance.

Value Assessment

Rating: fair

The contract value of $14.2 million for helicopter rotor blades and components appears substantial. Without direct comparable contracts or detailed cost breakdowns, it is difficult to definitively assess value for money. However, sole-source awards often carry a premium due to the lack of competitive pressure. Benchmarking against industry standards for similar components would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This approach is typically used when a unique product or service is required, or when there is insufficient time for full and open competition. The lack of multiple bidders limits the opportunity for price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process.

Public Impact

The primary beneficiary is the Department of Defense, specifically naval aviation units requiring these helicopter components. Services delivered include the provision of helicopter rotor blades, drive mechanisms, and related components. The geographic impact is primarily within the operational theaters where the supported helicopters are deployed. Workforce implications are likely concentrated at the contractor's facility in Hurst, Texas, and potentially at military maintenance depots.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Lack of transparency in pricing due to single bidder.
Potential for cost overruns without competitive checks.

Positive Signals

Contract awarded to a known entity with experience in the field.
Focus on critical components for operational readiness.
Long-term performance period suggests reliability.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized helicopter components is often characterized by a limited number of qualified manufacturers, especially for unique or proprietary designs. Spending in this sub-sector is driven by military readiness requirements and the lifecycle of existing aircraft platforms. Comparable spending benchmarks would typically be found within other DoD contracts for similar aircraft parts and maintenance.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of helicopter rotor blades and drive mechanisms, it is likely that only a few large, established aerospace manufacturers possess the capability to produce these components. Subcontracting opportunities for small businesses may exist within the contractor's supply chain, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense's contract management and inspection processes, likely managed by the Defense Contract Management Agency (DCMA). Accountability measures would include adherence to contract specifications, delivery schedules, and quality standards. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Aviation Maintenance
Helicopter Component Procurement
Aerospace Parts Manufacturing
Defense Logistics Agency Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price escalation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to BELL TEXTRON INC. 200412!4P2518!1700!JA103 !NAVAL INVENTORY CONTROL POINT !DAAH2302G0008 !A!N! !N!GB1C ! !20040402!20061231!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON, INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000014250000!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !4! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is BELL TEXTRON INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2004-04-02. End: 2007-08-31.

What is the specific type of helicopter these rotor blades and components are intended for?

The provided data indicates the contract is for 'HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON' under the Product Service Code (PSC) A1A, which relates to 'AIRFRAMES AND SPARES'. While the specific helicopter model is not explicitly stated in the abbreviated data, the contractor, Bell Helicopter Textron, Inc., is a major manufacturer of various military and commercial helicopters, including models like the V-22 Osprey, UH-1Y Venom, and AH-1Z Viper. Therefore, these components are likely intended for one or more of these Bell-manufactured platforms utilized by the Navy or Marine Corps.

How does the $14.2 million contract value compare to historical spending on similar components?

Direct historical spending comparisons for this specific contract are challenging with the provided data alone. The contract value is $14,229,688.67. To establish a benchmark, one would need to analyze prior contracts awarded by the Department of Defense for similar helicopter rotor blades and drive mechanisms, ideally for the same or comparable aircraft models. Factors such as inflation, technological advancements, and changes in demand would need to be considered. The sole-source nature of this award suggests that direct price comparisons might be less relevant than assessing the contractor's cost justification.

What are the primary risks associated with a sole-source award for critical helicopter components?

The primary risks associated with a sole-source award for critical helicopter components include a lack of price competition, potentially leading to inflated costs for the government. There is also a reduced incentive for the contractor to innovate or improve efficiency, as there is no direct competitor. Furthermore, reliance on a single supplier can create supply chain vulnerabilities; if the contractor experiences production issues or financial difficulties, it could significantly impact the availability of essential parts for military operations. Ensuring robust oversight and fair pricing justification becomes paramount in such scenarios.

What is Bell Helicopter Textron, Inc.'s track record with the Department of Defense?

Bell Helicopter Textron, Inc. (now Bell Textron Inc.) has a long-standing and extensive track record as a primary contractor for the Department of Defense. They are a major manufacturer of military helicopters, including the Huey, Cobra, and V-22 Osprey families, and have consistently secured contracts for aircraft production, upgrades, maintenance, and spare parts. Their history with the DoD indicates a deep understanding of military requirements and established relationships, though it also means they are a significant player whose pricing and performance are critical to DoD operations.

What is the significance of the PSC code A1A (Airframes and Spares) in this context?

The Product Service Code (PSC) A1A, 'Airframes and Spares,' signifies that this contract is for major structural components or spare parts related to the airframe of an aircraft. In this specific case, it covers helicopter rotor blades and drive mechanisms, which are critical structural and functional parts of the helicopter's airframe. This classification indicates the contract's focus on hardware essential for the aircraft's operation and maintenance, rather than services like repair or overhaul, although spares are inherently linked to maintenance activities.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 600 E HURST BLVD, HURST, TX, 76053

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAH2302G0008

IDV Type: IDC

Timeline