DoD Awards Bell Textron $58.8M for SIEPU Phase 2.2 Aircraft Parts

Contract Overview

Contract Amount: $58,855,322 ($58.9M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2020-08-03

End Date: 2025-10-31

Contract Duration: 1,915 days

Daily Burn Rate: $30.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SIEPU PHASE 2.2

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76101

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $58.9 million to BELL TEXTRON INC for work described as: SIEPU PHASE 2.2 Key points: 1. Significant award to Bell Textron for specialized aircraft parts. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (1915 days) may impact cost control. 4. Focus on 'Other Aircraft Parts' suggests a niche but critical component.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive bids, it's difficult to benchmark pricing against similar contracts.

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 potentially leads to higher costs for taxpayers as there is no market pressure to reduce prices.

Taxpayer Impact: The lack of competition for this $58.8 million contract means taxpayers may be paying a premium for these aircraft parts.

Public Impact

Potential for inflated costs due to sole-source nature. Impact on military readiness if parts are critical and overpriced. Lack of transparency in pricing due to no competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long contract duration

Positive Signals

Award to established defense contractor
Supports critical aircraft parts

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is often driven by military readiness requirements and can involve complex, high-value components.

Small Business Impact

The awardee, Bell Textron Inc., is a large business. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. The Department of the Navy must ensure robust monitoring of expenditures.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition.
Cost-plus contract type can incentivize higher spending.
Long contract duration increases exposure to cost changes.
Lack of transparency in pricing.
Potential for contractor inefficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.9 million to BELL TEXTRON INC. SIEPU PHASE 2.2

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 $58.9 million.

What is the period of performance?

Start: 2020-08-03. End: 2025-10-31.

What is the justification for the sole-source award, and how was the fixed fee determined?

The justification for a sole-source award typically involves unique capabilities or urgent needs. The fixed fee in a Cost Plus Fixed Fee contract is negotiated upfront and represents the contractor's profit. Without competition, ensuring this fee is fair and reasonable requires thorough cost analysis by the agency.

What are the risks associated with a Cost Plus Fixed Fee contract for specialized aircraft parts?

Cost Plus Fixed Fee contracts carry risks of cost overruns if the government doesn't adequately monitor expenses, as the contractor is reimbursed for costs plus a fixed profit. For specialized parts, defining 'allowable costs' and ensuring efficiency can be challenging, potentially leading to higher overall expenditure than anticipated.

How does this contract contribute to the overall effectiveness of the Navy's aircraft operations?

This contract supports the procurement of 'Other Aircraft Parts and Auxiliary Equipment,' which are crucial for maintaining the operational readiness and effectiveness of Navy aircraft. Ensuring a steady supply of these components, even through a sole-source award, is vital for flight safety and mission accomplishment.

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: $58,855,322

Exercised Options: $58,855,322

Current Obligation: $58,855,322

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $10,879,295

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001916G0012

IDV Type: BOA

Timeline