DoD's $497M H-1 Program Lot 14 Contract Awarded to Bell Textron Inc

Contract Overview

Contract Amount: $497,271,405 ($497.3M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2016-03-01

End Date: 2020-12-17

Contract Duration: 1,752 days

Daily Burn Rate: $283.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: H-1 PROGRAM LOT 14 AAC

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $497.3 million to BELL TEXTRON INC for work described as: H-1 PROGRAM LOT 14 AAC Key points: 1. Significant contract value of $497.3 million for aircraft manufacturing. 2. Sole-source award to Bell Textron Inc. raises questions about competition. 3. Contract duration of 1752 days suggests a long-term commitment. 4. Focus on aircraft manufacturing within the defense sector.

Value Assessment

Rating: questionable

The contract value of $497.3 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar aircraft manufacturing contracts.

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 limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than necessary for the aircraft.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation if alternative solutions were not explored. Ensuring the delivered aircraft meet all specified requirements is crucial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Lack of transparency in pricing.
Potential for cost overruns without oversight.

Positive Signals

Award to established manufacturer.
Contract addresses critical defense needs.

Sector Analysis

This contract falls under the Aircraft Manufacturing sector, specifically for the Department of the Navy. Defense spending in this area is critical for national security, but often involves high costs and complex procurement processes.

Small Business Impact

The contract was awarded to Bell Textron Inc., a large corporation, and there is no indication of small business participation. This suggests a missed opportunity to support small businesses in the aerospace supply chain.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government receives the best value and that all contract terms are met. Accountability for cost and performance is essential.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award.
Lack of competitive bidding.
Potential for inflated costs.
Limited transparency.
No small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $497.3 million to BELL TEXTRON INC. H-1 PROGRAM LOT 14 AAC

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 $497.3 million.

What is the period of performance?

Start: 2016-03-01. End: 2020-12-17.

What was the justification for awarding this contract on a sole-source basis, and were any alternatives considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without further documentation, it's unclear why competition was bypassed. Agencies must demonstrate that competition was not feasible or would not be in the government's best interest, often requiring extensive market research and justification.

How does the cost of this contract compare to similar aircraft manufacturing contracts awarded competitively?

Benchmarking this contract's cost against competitively awarded contracts is challenging due to its sole-source nature. A thorough cost analysis, including review of Bell Textron's proposed costs, should be conducted by the Department of Defense to ensure reasonableness. Independent cost estimates and comparisons with similar platforms, if available, would be necessary for a definitive assessment.

What mechanisms are in place to ensure the effectiveness and timely delivery of the H-1 Program Lot 14 aircraft?

Effectiveness and timely delivery are typically managed through contract clauses, performance metrics, and regular progress reviews. For this contract, the Department of the Navy should have established key performance indicators (KPIs) and milestones. Oversight would involve monitoring production schedules, quality control processes, and conducting regular program management reviews to identify and mitigate any potential delays or issues.

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: N0001916R0003

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $497,271,405

Exercised Options: $497,271,405

Current Obligation: $497,271,405

Subaward Activity

Number of Subawards: 490

Total Subaward Amount: $991,576,644

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline