Defense contract for aircraft parts awarded to Bell Textron Inc. for over $19.3 million in 2021

Contract Overview

Contract Amount: $19,341,065 ($19.3M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2021-01-01

End Date: 2022-02-28

Contract Duration: 423 days

Daily Burn Rate: $45.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ELS CY21

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to BELL TEXTRON INC for work described as: ELS CY21 Key points: 1. The contract's value of over $19.3 million represents a significant investment in aircraft parts. 2. Competition dynamics were limited, with the contract being awarded on a sole-source basis. 3. Risk indicators are moderate, given the sole-source nature and the specific nature of aircraft parts. 4. Performance context is tied to the delivery order for aircraft parts, suggesting an ongoing need. 5. Sector positioning is within the Defense industry, specifically supporting aircraft maintenance and operations.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without comparable sole-source contracts for similar aircraft parts. The cost-plus-fixed-fee structure allows for cost reimbursement plus a predetermined profit, which can lead to cost overruns if not closely monitored. However, for specialized parts, this structure might be necessary to ensure availability and quality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This suggests that Bell Textron Inc. was likely the only or primary provider of these specific aircraft parts, potentially due to proprietary technology, existing system integration, or urgent need. The lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding, as the government did not benefit from potential price reductions that could arise from multiple offers.

Public Impact

The primary beneficiaries are the Department of Defense, ensuring the operational readiness of aircraft. Services delivered include the provision of essential aircraft parts and auxiliary equipment. Geographic impact is primarily within Texas, where the contractor is located. Workforce implications include supporting jobs in the aerospace manufacturing sector in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Cost-plus-fixed-fee contract type requires diligent oversight to manage costs effectively.
Lack of transparency in the justification for sole-source award could obscure potential alternatives.

Positive Signals

Ensures availability of critical aircraft parts for defense operations.
Supports a key defense contractor, maintaining specialized manufacturing capabilities.
Contract duration aligns with operational needs for aircraft maintenance.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized technology, and significant government procurement. Contracts for aircraft parts are crucial for maintaining fleet readiness. Bell Textron Inc. is a major player in this sector. Comparable spending benchmarks for aircraft parts can vary widely based on the specific components and aircraft platforms involved.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a large prime contractor, there is no direct indication of subcontracting opportunities for small businesses within this specific award. The overall impact on the small business ecosystem would depend on Bell Textron's broader subcontracting practices.

Oversight & Accountability

Oversight for this contract would fall under the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and auditing of costs. Transparency is limited by the sole-source nature of the award, but contract performance data should be available through federal procurement databases.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics Agency Contracts
Aerospace Manufacturing Support
Department of Defense Maintenance, Repair, and Overhaul

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to BELL TEXTRON INC. ELS CY21

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 $19.3 million.

What is the period of performance?

Start: 2021-01-01. End: 2022-02-28.

What is Bell Textron Inc.'s track record with similar sole-source contracts for aircraft parts?

Bell Textron Inc. has a long history of contracting with the Department of Defense for various aircraft components and services. While specific data on their sole-source contracts for aircraft parts is not detailed here, their extensive experience suggests a familiarity with the requirements and potential challenges. Analyzing past sole-source awards to Bell Textron for similar items could reveal patterns in pricing, performance, and justification for non-competitive procurement. It is important to review the specific justifications provided for each sole-source award to understand why competition was deemed impractical or impossible, and whether this has led to consistently higher prices compared to potentially competitive scenarios.

How does the $19.3 million value compare to other aircraft parts contracts awarded by the DoD?

The $19.3 million value for this specific delivery order is moderate within the context of overall Department of Defense spending on aircraft parts. The DoD procures billions of dollars worth of aircraft components annually, ranging from individual fasteners to complex engine systems. A single delivery order of this size is not exceptionally large but represents a significant investment for a specific need. To provide a more precise comparison, one would need to analyze contracts for similar types of aircraft parts (e.g., airframes, avionics, engines) and for comparable aircraft platforms. However, it is safe to say that this amount falls within the typical range for specialized component procurement for military aviation assets.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for aircraft parts?

The primary risks associated with a sole-source, cost-plus-fixed-fee (CPFF) contract for aircraft parts are twofold. Firstly, the sole-source nature eliminates competitive pressure, which can lead to inflated pricing as the contractor faces no direct incentive to offer the lowest possible cost. The government does not benefit from the price discovery mechanism inherent in competitive bidding. Secondly, the CPFF structure carries inherent risks of cost escalation. While the fixed fee provides the contractor with a predictable profit margin, the government bears the risk of all allowable costs. If cost controls are weak or if unforeseen issues arise during production or delivery, the total contract cost can significantly exceed initial estimates. Diligent oversight and robust cost accounting standards are crucial to mitigate these risks.

What is the expected program effectiveness or outcome of this contract?

The expected program effectiveness of this contract is to ensure the availability of critical aircraft parts necessary for maintaining the operational readiness of specific Department of Defense aircraft. By procuring these parts from Bell Textron Inc., the DoD aims to prevent mission degradation, reduce aircraft downtime, and support ongoing flight operations. The success of the program will be measured by the timely delivery of high-quality parts that meet all specifications, thereby contributing to the overall effectiveness and safety of the military aviation fleet. The contract's duration and the specific parts procured are designed to address identified maintenance and operational requirements.

What are historical spending patterns for aircraft parts procured by the DoD from Bell Textron Inc.?

Historical spending patterns for aircraft parts procured by the DoD from Bell Textron Inc. likely show a consistent and substantial relationship, given Bell's role as a major aerospace manufacturer. Bell Textron has historically supplied components for various military aircraft platforms, including helicopters and fixed-wing aircraft. Spending would fluctuate based on fleet modernization programs, maintenance cycles, and the introduction of new aircraft. Analyzing historical data would reveal trends in the types of parts procured, the average cost per part, and the proportion of sole-source versus competitively awarded contracts. This contract, valued at over $19.3 million in 2021, fits within this established pattern of significant, ongoing procurement to support military aviation assets.

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: $22,084,588

Exercised Options: $21,669,409

Current Obligation: $19,341,065

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $180,008

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