DoD awards $54.5M to Bell Textron for H-1 ELS, raising concerns about competition and taxpayer value

Contract Overview

Contract Amount: $54,481,761 ($54.5M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2018-12-20

End Date: 2022-07-31

Contract Duration: 1,319 days

Daily Burn Rate: $41.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: H-1 ENGINEERING AND LOGISTICS SUPPORT FOR ACQUISITION AND SUSTAINMENT (ELS) CY2019

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $54.5 million to BELL TEXTRON INC for work described as: H-1 ENGINEERING AND LOGISTICS SUPPORT FOR ACQUISITION AND SUSTAINMENT (ELS) CY2019 Key points: 1. Significant contract value of $54.5M for engineering and logistics support. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Potential risk of inflated costs due to sole-source award. 4. Sector context: Defense manufacturing, specifically aircraft parts and auxiliary equipment.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can incentivize higher costs. Without competitive bidding, it's difficult to assess if the $54.5M price is reasonable compared to market rates for similar engineering and logistics support.

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 lead to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a $54.5M contract suggests potential for reduced taxpayer value and increased costs compared to a competitively awarded contract.

Public Impact

Taxpayers may be paying more than necessary due to the absence of competitive bidding. The long duration (over 3 years) of this sole-source contract warrants close scrutiny. Ensuring effective oversight is crucial to manage costs and performance on this significant award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing

Positive Signals

Supports critical defense acquisition and sustainment needs
Long-term engagement with a known entity

Sector Analysis

This contract falls within the Defense sector, specifically supporting the manufacturing of aircraft parts and auxiliary equipment. Spending benchmarks in this niche area are hard to establish without competitive data, but large sole-source awards warrant careful review.

Small Business Impact

This contract was awarded to Bell Textron Inc., a large business. There is no indication of small business participation in this specific award, which is common for sole-source, specialized contracts.

Oversight & Accountability

The Department of Defense awarded this contract. Given the sole-source nature and cost-plus contract type, robust oversight from the Defense Contract Management Agency is essential to ensure cost control and performance.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee can incentivize higher costs.
Potential for reduced taxpayer value.
Lack of transparency in pricing without competition.
Long contract duration without competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.5 million to BELL TEXTRON INC. H-1 ENGINEERING AND LOGISTICS SUPPORT FOR ACQUISITION AND SUSTAINMENT (ELS) CY2019

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 $54.5 million.

What is the period of performance?

Start: 2018-12-20. End: 2022-07-31.

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

Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of the justification document is necessary to determine if the rationale provided by the Department of Defense meets these stringent criteria and adequately explains why competition was not feasible or practicable.

What mechanisms are in place to ensure cost reasonableness and prevent potential cost overruns given the Cost Plus Fixed Fee contract structure?

With a Cost Plus Fixed Fee (CPFF) contract, the government pays the contractor's actual costs plus a fixed fee. Oversight mechanisms should include rigorous auditing of incurred costs, detailed review of the contractor's performance against milestones, and clear communication channels to address any deviations or potential cost increases promptly. The Defense Contract Management Agency plays a critical role in this oversight.

How will the effectiveness of the engineering and logistics support be measured and evaluated throughout the contract period to ensure mission accomplishment?

Effectiveness will likely be measured through key performance indicators (KPIs) tied to the acquisition and sustainment of H-1 systems. This could include metrics such as on-time delivery of support, system availability rates, reduction in maintenance downtime, and successful integration of engineering changes. Regular performance reviews and feedback loops between the government and Bell Textron are crucial for ongoing assessment.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $72,620,583

Exercised Options: $65,874,251

Current Obligation: $54,481,761

Actual Outlays: $13,047,501

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $1,495,681

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001916G0012

IDV Type: BOA

Timeline