Navy Aviation Parts Contract Awarded to Bell Textron Inc. for Over $24.8 Million

Contract Overview

Contract Amount: $24,836,649 ($24.8M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2008-08-29

End Date: 2010-01-15

Contract Duration: 504 days

Daily Burn Rate: $49.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVY AVIATION

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to BELL TEXTRON INC for work described as: NAVY AVIATION Key points: 1. Contract awarded on a firm fixed-price basis, indicating clear cost expectations. 2. Sole-source award suggests potential limitations in competitive pricing. 3. Contract duration of 504 days provides a defined period for delivery. 4. Awarded by the Defense Logistics Agency, a key procurement arm for military supplies. 5. The North American Industry Classification System (NAICS) code 336413 points to aircraft parts manufacturing. 6. The contract value represents a significant investment in aviation sustainment.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable sole-source awards for similar aviation parts. The firm fixed-price structure provides cost certainty for the government, but the lack of competition may have led to a higher price than a competed contract. The awarded amount of over $24.8 million for a 504-day period suggests a substantial need for these specific parts. Further analysis would require understanding the criticality and uniqueness of the parts supplied by Bell Textron Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Bell Textron Inc., was solicited. This approach is typically used when a specific part or service is only available from a single source, or in cases of urgent need where competition is not feasible. The lack of competition means there was no direct price comparison through multiple bids, potentially impacting the government's ability to secure the lowest possible price.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

Naval aviation units benefit from the availability of critical aircraft parts. Ensures the operational readiness and maintenance of Navy aircraft fleets. Supports the supply chain for defense aviation components. Maintains employment within the aerospace manufacturing sector, specifically for Bell Textron Inc. employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher-than-market price.
Sole-source awards can limit opportunities for other suppliers to enter the market.
Dependence on a single supplier can create supply chain risks.

Positive Signals

Firm fixed-price contract provides cost predictability.
Award ensures continued availability of essential aviation parts.
Bell Textron Inc. is an established manufacturer with a track record in aviation.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized aviation components is often characterized by high barriers to entry due to complex engineering, stringent quality requirements, and proprietary technology. Bell Textron Inc. is a significant player in this industry. Comparable spending benchmarks would involve analyzing other sole-source or competed contracts for similar high-value, specialized aircraft components within the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a large prime contractor, there is no direct indication of subcontracting opportunities for small businesses within this specific award. The impact on the small business ecosystem would depend on Bell Textron Inc.'s internal subcontracting policies and whether they engage small businesses for any part of the manufacturing or supply chain for these components.

Oversight & Accountability

Oversight for this contract would primarily reside with the Defense Logistics Agency (DLA) and the Department of the Navy. Contract administration, performance monitoring, and payment approvals are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Navy Aircraft Maintenance and Repair
Defense Aviation Parts Procurement
Aerospace Manufacturing Contracts
Sole-Source Defense Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to BELL TEXTRON INC. NAVY AVIATION

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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2008-08-29. End: 2010-01-15.

What is Bell Textron Inc.'s track record with the Department of Defense for similar aviation parts contracts?

Bell Textron Inc. has a long-standing relationship with the Department of Defense, particularly in the realm of helicopter and aircraft manufacturing and support. Their track record includes numerous contracts for new aircraft, as well as sustainment, maintenance, repair, and parts for existing fleets across various branches of the military. For aviation parts specifically, Bell Textron Inc. often acts as the original equipment manufacturer (OEM), supplying critical components for their own aircraft platforms. Analyzing their historical performance on similar sole-source or competitively awarded parts contracts would involve reviewing delivery performance, quality metrics, and any past disputes or contract modifications. This specific contract, awarded in 2008, falls within a period where Bell Textron Inc. was actively supporting various Navy aviation programs.

How does the awarded price of over $24.8 million compare to market rates for similar aircraft parts?

Directly comparing the awarded price to 'market rates' for specialized, sole-sourced aviation parts is complex. Unlike commercial off-the-shelf items, these parts are often proprietary and manufactured under strict military specifications. The 'market' for such items is typically limited to the OEM or authorized distributors. Without a competitive bidding process, it's difficult to ascertain if the price reflects optimal value. Benchmarking would require access to pricing data from other sole-source awards for comparable parts, or internal cost analyses by the Defense Contract Audit Agency (DCAA) if conducted. The firm fixed-price nature suggests the government accepted Bell Textron's proposed price as reasonable for the scope of work and duration.

What are the primary risks associated with this sole-source contract for aviation parts?

The primary risks associated with this sole-source contract include potential overpricing due to the lack of competition, and supply chain vulnerability. Without competing bids, the government may not achieve the most cost-effective price. Furthermore, reliance on a single supplier, Bell Textron Inc., for critical aviation parts can create a risk if the supplier experiences production issues, financial instability, or decides to discontinue a particular part. This could lead to significant delays in aircraft maintenance and reduced operational readiness for the Navy. There's also a risk of vendor lock-in, making it difficult and costly to switch suppliers in the future.

What is the expected program effectiveness or outcome of this contract for Navy aviation?

The expected outcome of this contract is to ensure the continued operational readiness and maintainability of specific Navy aviation platforms. By providing essential replacement parts, the contract directly supports the maintenance, repair, and overhaul (MRO) activities necessary to keep aircraft flying. This contributes to the Navy's ability to conduct its missions effectively. The effectiveness is measured by the timely delivery of high-quality parts that meet stringent military specifications, thereby minimizing aircraft downtime and ensuring the safety and performance of the fleet. The contract's duration of 504 days suggests a sustained need for these parts over a significant period.

How has historical spending by the Department of Defense on aircraft parts from Bell Textron Inc. trended?

Historical spending by the Department of Defense on aircraft parts from Bell Textron Inc. has likely been substantial and consistent, given Bell's role as a major Original Equipment Manufacturer (OEM) for various military aircraft, particularly helicopters. Spending trends would typically correlate with the lifecycle of the aircraft platforms they support. Early in an aircraft's life, spending might focus on initial provisioning and spares. As platforms age, spending often increases for sustainment, depot-level maintenance, and the procurement of legacy parts. Analyzing historical data would reveal patterns of demand, potential spikes related to major fleet overhauls or upgrades, and the proportion of spending on sole-source versus competed contracts for parts.

What is the strategic importance of this contract within the broader context of Navy aviation readiness?

This contract holds significant strategic importance as it directly addresses the sustainment of Navy aviation assets. Reliable access to critical parts is fundamental to maintaining aircraft availability, which is a cornerstone of operational readiness. The Navy's ability to project power, conduct surveillance, perform search and rescue, and execute various other missions is contingent upon its aircraft being flight-worthy. By ensuring the supply of necessary components, this contract supports the long-term viability and effectiveness of specific Navy aviation programs, contributing to national security objectives and maintaining a credible defense posture.

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 (UEI: 001338979)

Address: 600 E HURST BLVD, HURST, TX, 24

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,836,649

Exercised Options: $24,836,649

Current Obligation: $24,836,649

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ06G0003

IDV Type: IDC

Timeline