DoD's $382.6M UH-1Y Aircraft Contract with Bell Textron Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $382,598,908 ($382.6M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2009-03-27

End Date: 2018-08-31

Contract Duration: 3,444 days

Daily Burn Rate: $111.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LOT VI UH-1Y A/C

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $382.6 million to BELL TEXTRON INC for work described as: LOT VI UH-1Y A/C Key points: 1. Significant spending on aircraft manufacturing, primarily with a single vendor. 2. The contract's duration and value suggest a substantial, long-term commitment. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. The sector is critical for defense readiness, but procurement methods impact value. 5. Oversight is crucial to ensure taxpayer funds are used efficiently.

Value Assessment

Rating: questionable

The total award of $382.6M over nearly a decade for UH-1Y aircraft manufacturing appears high given the lack of competitive bidding. Benchmarking against similar sole-source or limited-competition aircraft contracts would be necessary to definitively assess value, but the absence of competition inherently limits price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Bell Textron Inc., was considered. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for the government compared to a fully competed procurement.

Taxpayer Impact: The lack of competition in this large contract likely results in higher costs for taxpayers, as there was no market pressure to drive down prices.

Public Impact

Taxpayers may be paying a premium for UH-1Y aircraft due to the absence of competitive bidding. The long-term nature of the contract could lock the government into a specific technology or vendor, limiting future flexibility. Dependence on a single supplier for critical defense assets poses a potential supply chain risk. The Department of the Navy's procurement strategy here warrants closer examination for efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Long contract duration
No small business participation indicated

Positive Signals

Essential defense asset acquisition
Long-term program stability

Sector Analysis

The Aircraft Manufacturing sector (NAICS 336411) is a high-value, technologically intensive industry critical for national defense. Spending benchmarks in this sector are often high due to R&D and specialized production, but competitive contracting is vital to ensure value for money.

Small Business Impact

The data indicates this contract did not involve small businesses (SB: false). Large sole-source contracts like this often bypass small business participation unless specifically subcontracted, which is not detailed here. This represents a missed opportunity for small business engagement in defense manufacturing.

Oversight & Accountability

The sole-source nature of this large contract necessitates robust oversight to ensure Bell Textron is meeting all performance requirements and that pricing remains justifiable throughout the contract's life. Audits and regular performance reviews are critical for accountability.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition may lead to inflated prices.
Sole-source award limits market-driven innovation.
Potential for vendor lock-in.
No indication of small business participation.
Long contract duration increases risk exposure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $382.6 million to BELL TEXTRON INC. LOT VI UH-1Y A/C

Who is the contractor on this award?

The obligated recipient is BELL TEXTRON INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $382.6 million.

What is the period of performance?

Start: 2009-03-27. End: 2018-08-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without specific documentation, it's difficult to ascertain the exact reasoning. However, for a contract of this magnitude and duration, a thorough review of the justification is warranted to ensure it was truly the only viable option and that competitive avenues were exhausted or deemed impractical.

How does the per-unit cost of the UH-1Y aircraft under this contract compare to similar military helicopters procured through competitive means?

Direct per-unit cost comparison is challenging without access to specific contract line item details and comparable competitive contracts. However, the absence of competition inherently suggests a higher likelihood of inflated costs. A detailed cost analysis, potentially involving independent government cost estimates and benchmarking against other platforms, would be necessary to quantify the cost premium, if any.

What measures are in place to ensure the long-term effectiveness and maintainability of the UH-1Y fleet acquired under this contract?

Ensuring long-term effectiveness and maintainability typically involves performance-based requirements within the contract, lifecycle support agreements, and potentially follow-on contracts for sustainment and upgrades. The Department of the Navy would be responsible for establishing these measures, including spare parts provisioning, technical data rights, and training programs, to guarantee the operational readiness of the UH-1Y aircraft over its service life.

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

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, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $385,036,867

Exercised Options: $382,750,152

Current Obligation: $382,598,908

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline