DoD's $447M contract with Bell Textron Inc. for aircraft parts shows long-term commitment

Contract Overview

Contract Amount: $447,375,402 ($447.4M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2003-12-29

End Date: 2015-10-13

Contract Duration: 4,306 days

Daily Burn Rate: $103.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $447.4 million to BELL TEXTRON INC for work described as: Key points: 1. This contract represents a significant, long-term investment in specialized aircraft parts manufacturing. 2. The duration of the contract suggests a critical need for sustained supply chain support. 3. The firm fixed-price structure aims to provide cost certainty for the Department of Defense. 4. Competition was conducted after excluding sources, indicating potential specific requirements or prior relationships. 5. The contract's value places it among substantial procurements within the defense sector. 6. Performance is managed by the Defense Contract Management Agency, ensuring oversight. 7. The North American Industry Classification System (NAICS) code 336413 points to a focus on aircraft parts manufacturing.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the aircraft components or services procured. The $447 million over a 12-year period averages approximately $37 million annually, which could be reasonable for specialized defense manufacturing. However, without comparable contract data or detailed cost breakdowns, a definitive value-for-money assessment is difficult. The firm fixed-price nature suggests an attempt to control costs, but the long duration might obscure potential savings or overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while competition was intended, certain sources were excluded, possibly due to specialized capabilities, existing security clearances, or prior integration with existing systems. The exact reasons for exclusion are not detailed, making it difficult to assess the breadth of the competition. A limited competition can sometimes lead to higher prices if the pool of eligible bidders is small.

Taxpayer Impact: The exclusion of sources means taxpayers may not have benefited from the lowest possible price achievable through broader competition. The final price reflects the outcome of a restricted bidding process.

Public Impact

The primary beneficiaries are the U.S. military branches relying on the specific aircraft parts supplied by Bell Textron Inc. This contract ensures the continued availability of critical components for maintaining and operating specific aircraft fleets. The contract's impact is primarily within the defense industrial base, supporting specialized manufacturing capabilities. Workforce implications include sustained employment for skilled manufacturing and technical personnel at Bell Textron Inc. and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation.
The long contract duration (over 12 years) increases the risk of obsolescence or the need for costly modifications if technology or requirements change.
Lack of detailed public information on the specific parts and their necessity makes independent value assessment difficult.

Positive Signals

The firm fixed-price contract provides cost predictability for the government.
The sustained nature of the contract indicates a stable demand for essential defense components.
Awarding to a known entity like Bell Textron Inc. suggests a reliance on established expertise and quality.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The defense sector is characterized by long procurement cycles, high technological requirements, and significant government investment. Bell Textron Inc. is a major player in this industry. Comparable spending benchmarks would involve other large, long-term contracts for aircraft components or systems within the Department of Defense, which often run into hundreds of millions or billions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Bell Textron Inc. is a large corporation. There is no direct information provided on subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve a tiered supply chain where small businesses can participate.

Oversight & Accountability

Oversight is provided by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet contractual requirements. The firm fixed-price contract type offers a degree of accountability by placing the cost risk on the contractor. Transparency is limited by the nature of defense procurement and the 'exclusion of sources' competition method, with specific details on the procurement process and cost justifications not publicly available.

Related Government Programs

Aircraft Manufacturing
Defense Procurement
Aerospace Components
Long-Term Supply Contracts
Military Aircraft Support

Risk Flags

Limited Competition
Long Contract Duration
Potential for Cost Overruns
Risk of Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $447.4 million to BELL TEXTRON INC. See the official description on USAspending.

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 $447.4 million.

What is the period of performance?

Start: 2003-12-29. End: 2015-10-13.

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

Bell Textron Inc. has a long and established history of contracting with the Department of Defense, particularly in the realm of rotorcraft and fixed-wing aircraft manufacturing and support. While specific data on all past contracts is extensive, their role as a major defense contractor suggests a significant volume of work involving aircraft components, systems, and full aircraft platforms. Analyzing their performance on previous, similar contracts would involve reviewing delivery timeliness, quality metrics, and any documented disputes or contract modifications. Without access to a comprehensive database of their past DoD performance, a detailed assessment is limited, but their continued presence as a prime contractor indicates a generally satisfactory performance history.

How does the $447 million value compare to other long-term aircraft parts contracts awarded by the DoD?

The $447 million awarded to Bell Textron Inc. over approximately 12 years places this contract within the range of significant, long-term sustainment and component supply agreements within the Department of Defense. Large-scale aircraft programs, whether for new platforms or sustainment of existing fleets, frequently involve contracts of this magnitude or even larger. For instance, contracts for engine overhauls, avionics upgrades, or major component manufacturing for fighter jets, bombers, or transport aircraft can easily reach hundreds of millions or billions of dollars over their lifecycles. This specific contract's value appears commensurate with the sustained supply of specialized parts for a particular aircraft type or fleet over an extended period, reflecting the high costs associated with defense aerospace manufacturing and maintenance.

What are the primary risks associated with a firm fixed-price contract of this duration?

The primary risks associated with a firm fixed-price (FFP) contract of this duration (over 12 years) include potential cost escalation for the contractor that erodes profit margins, leading to potential quality compromises or contractor default if not managed carefully. For the government, the risk is paying a premium upfront to lock in a price that might become uncompetitive if market prices for materials or labor decrease significantly over time. Furthermore, unforeseen technical challenges or design changes required during the contract's long life could lead to costly change orders or disputes, negating the intended price certainty. Obsolescence of the parts or the technology they support is also a significant risk over such an extended period, potentially requiring expensive redesigns or replacements.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause imply for program effectiveness?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause implies a complex procurement strategy. While aiming for broad competition initially, the subsequent exclusion of specific sources suggests that only a subset of potential bidders met certain stringent criteria. This could be due to requirements for specialized technology, security clearances, existing integration with government systems, or unique manufacturing capabilities. Program effectiveness could be enhanced if these exclusions ensure that only highly qualified contractors capable of meeting demanding specifications are considered, thereby reducing the risk of performance failures. However, it also carries the risk of limiting the competitive pool, potentially leading to less innovative solutions or higher prices than if a truly open competition had been feasible.

How has historical spending on aircraft parts manufacturing by the DoD trended in recent years?

Historical spending by the Department of Defense on aircraft parts manufacturing has generally trended upwards, driven by modernization efforts, sustainment of aging fleets, and the development of new platforms. The defense budget allocates substantial resources to aviation systems, encompassing procurement, research and development, and maintenance. Factors influencing this trend include geopolitical stability, technological advancements, and the operational tempo of military forces. While specific year-over-year figures fluctuate based on program cycles and budget appropriations, the overall demand for aircraft components and related manufacturing services remains a significant and consistent component of the DoD's overall expenditure.

What are the potential implications of this contract on the broader aerospace supply chain?

This contract, valued at $447 million and spanning over a decade, has significant implications for the broader aerospace supply chain. It provides a substantial, long-term demand signal for Bell Textron Inc. and, by extension, its network of suppliers. This stability can encourage investment in specialized manufacturing capabilities, workforce training, and research and development within the supply chain. However, the 'exclusion of sources' aspect might concentrate benefits among a limited number of pre-qualified suppliers, potentially limiting opportunities for new entrants or smaller firms not already part of the established ecosystem. The long duration also means that suppliers must be prepared for sustained production and potential technological evolution over many years.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 3255 BELL FLIGHT BLVD, FORT WORTH, TX, 76118

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline