DoD Awards $1.22 Billion for Aircraft Manufacturing to Bell Textron Inc

Contract Overview

Contract Amount: $1,223,355,383 ($1.2B)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2017-02-07

End Date: 2026-08-31

Contract Duration: 3,492 days

Daily Burn Rate: $350.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LOT 15 AAC

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $1.22 billion to BELL TEXTRON INC for work described as: LOT 15 AAC Key points: 1. Significant contract value of over $1.2 billion awarded to a single large business. 2. Sole-source award raises questions about competition and potential price discovery. 3. Long contract duration (2017-2026) suggests a sustained need for these aircraft. 4. Focus on Aircraft Manufacturing (NAICS 336411) indicates a specialized defense procurement.

Value Assessment

Rating: questionable

The contract value of $1.22 billion is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar aircraft manufacturing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract impacts budget planning and resource allocation. Dependence on a single supplier for critical aircraft manufacturing could pose supply chain risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Long contract duration
Sole-source award

Positive Signals

Clear contract type (Firm Fixed Price)
Defined performance period

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industry. Spending benchmarks for this sector are often high due to specialized requirements and R&D.

Small Business Impact

This contract was awarded to Bell Textron Inc., a large business. There is no indication of small business participation in this sole-source award, suggesting limited opportunities for small businesses.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure fair pricing and effective performance. Accountability mechanisms should be robust given the significant taxpayer investment.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competition
High contract value
Long contract duration
Potential for cost overruns
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $1.22 billion to BELL TEXTRON INC. LOT 15 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 $1.22 billion.

What is the period of performance?

Start: 2017-02-07. End: 2026-08-31.

What justification was provided for the sole-source award, and how does it align with federal procurement regulations for non-competitive contracts?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This often occurs due to unique capabilities, proprietary technology, or urgent needs. The justification must be documented and approved by appropriate authorities, demonstrating that a competitive process is not feasible or not in the government's best interest. Compliance with FAR Part 6 is crucial.

How does the unit cost of these aircraft compare to similar platforms acquired through competitive means, if available?

Without access to specific unit cost breakdowns and comparable competitive contracts, a direct comparison is challenging. However, the absence of competition inherently raises concerns that the unit cost may be higher than what could be achieved through a competitive bidding process. Further analysis would require benchmarking against publicly available data for similar aircraft.

What are the potential risks associated with a sole-source contract of this magnitude and duration for the Department of Defense?

The primary risks include inflated costs due to lack of price competition, potential for vendor lock-in, and reduced incentive for the contractor to innovate or improve efficiency. There's also a risk of supply chain disruption if the sole provider faces issues. Furthermore, it limits opportunities for other capable manufacturers to enter the market or contribute.

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

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: $1,223,445,681

Exercised Options: $1,223,355,383

Current Obligation: $1,223,355,383

Actual Outlays: $314,519,436

Subaward Activity

Number of Subawards: 1803

Total Subaward Amount: $341,087,353

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline