DoD's $46.2M Bell 407 Helicopter Contract Awarded Sole-Source to Bell Textron Inc

Contract Overview

Contract Amount: $46,238,905 ($46.2M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2013-11-14

End Date: 2017-11-15

Contract Duration: 1,462 days

Daily Burn Rate: $31.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BELL 407 ANALOG HELICOPTER

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $46.2 million to BELL TEXTRON INC for work described as: BELL 407 ANALOG HELICOPTER Key points: 1. The contract for Bell 407 analog helicopters represents a significant investment in aviation assets. 2. Sole-source award to Bell Textron Inc. limits competitive pricing and potential cost savings. 3. The firm-fixed-price structure aims to control costs, but the lack of competition is a risk. 4. Aircraft manufacturing sector spending is substantial, with this contract contributing to that.

Value Assessment

Rating: questionable

The contract value of $46.2M for 1 Bell 407 analog helicopter over 4 years appears high. Benchmarking against similar sole-source procurements or commercial sales of comparable aircraft is difficult without more data, but the lack of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Bell Textron Inc. This method bypasses competitive bidding, potentially leading to higher prices and reduced price discovery compared to an open market approach.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the Bell 407 helicopters.

Public Impact

Military aviation readiness is supported by the acquisition of these helicopters. The significant contract value could impact the budget allocation for other defense priorities. Dependence on a single supplier for specialized aircraft can create long-term strategic risks. The use of analog helicopters may indicate specific operational requirements or legacy system integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
High contract value without clear justification.
Potential for overpayment due to lack of competitive bidding.
Long-term reliance on a single manufacturer.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Addresses a specific defense need for aviation assets.

Sector Analysis

The Department of Defense's spending in the aircraft manufacturing sector is substantial. This contract for Bell 407 helicopters falls within this category, contributing to the overall defense industrial base. Benchmarks for similar specialized aircraft procurements vary widely based on configuration and quantity.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, either as prime contractors or significant subcontractors. This award does not appear to support small business participation goals.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny regarding the justification for not competing the requirement. Oversight should focus on ensuring the price paid is fair and reasonable given the lack of competition.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for inflated costs due to no competition.
Limited transparency in price justification.
Risk of vendor lock-in.
No small business participation evident.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.2 million to BELL TEXTRON INC. BELL 407 ANALOG HELICOPTER

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 $46.2 million.

What is the period of performance?

Start: 2013-11-14. End: 2017-11-15.

What was the specific justification for awarding this contract sole-source to Bell Textron Inc. instead of pursuing a competitive process?

The justification for a sole-source award typically centers on unique capabilities, urgent needs, or the unavailability of alternatives from other sources. For this contract, the specific rationale would need to be documented by the Department of the Navy, likely detailing why only Bell Textron Inc. could fulfill the requirement for the Bell 407 analog helicopter within the specified timeframe and technical parameters.

How does the per-unit cost of this Bell 407 analog helicopter compare to commercially available models or previous government procurements?

Without specific unit cost breakdowns or access to commercial pricing for comparable analog configurations, a direct comparison is challenging. The contract value of $46.2M for one unit over four years suggests a high per-unit cost. A thorough analysis would require benchmarking against similar sole-source awards or commercial sales data, considering any unique modifications or support included in the government contract.

What are the long-term implications of relying on a sole-source provider for critical aviation assets like the Bell 407?

Sole-source reliance can lead to increased costs over time due to a lack of competitive pressure, potential supply chain vulnerabilities if the sole provider faces issues, and reduced leverage in negotiating future upgrades or maintenance. It also limits the government's ability to explore alternative technologies or suppliers that might emerge in the market.

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

Solicitation ID: N0001913R0113

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,361,223

Exercised Options: $46,238,905

Current Obligation: $46,238,905

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline