DoD awards $31.7M to Bell Textron for aircraft production support, with no competition

Contract Overview

Contract Amount: $31,656,539 ($31.7M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2022-01-03

End Date: 2023-12-31

Contract Duration: 727 days

Daily Burn Rate: $43.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROGRAM MANAGEMENT AND SUSTAINING ENGINEERING IN SUPPORT OF LOT 16 DOMESTIC PRODUCTION, COUNTRY OF BAHRAIN PRODUCTION AIRCRAFT AND COUNTRY OF CZECH REPUBLIC PRODUCTION AIRCRAFT.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $31.7 million to BELL TEXTRON INC for work described as: PROGRAM MANAGEMENT AND SUSTAINING ENGINEERING IN SUPPORT OF LOT 16 DOMESTIC PRODUCTION, COUNTRY OF BAHRAIN PRODUCTION AIRCRAFT AND COUNTRY OF CZECH REPUBLIC PRODUCTION AIRCRAFT. Key points: 1. Contract awarded to Bell Textron Inc. for program management and sustaining engineering. 2. Focuses on Lot 16 domestic, Bahrain, and Czech Republic production aircraft. 3. No competition was utilized for this contract award. 4. The contract type is Cost Plus Fixed Fee. 5. This is a Delivery Order under an existing contract.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.

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.

Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors had vied for the contract, impacting taxpayer value.

Public Impact

Supports critical aircraft production for domestic and international partners. Ensures continued operational readiness for key defense assets. Potential for increased costs due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns

Positive Signals

Supports critical defense production
Long-term sustainment engineering

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically supporting production and sustainment. Spending benchmarks in this niche area are highly dependent on specific aircraft types and program maturity.

Small Business Impact

The awardee is Bell Textron Inc., a large business. There is no indication of small business participation in this specific contract.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency. Oversight will be crucial to ensure cost control and performance given the sole-source and CPFF nature.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition and potentially increases cost.
Cost Plus Fixed Fee contract type carries risk of cost overruns.
Lack of transparency in cost breakdown makes value assessment difficult.
Potential for contractor inefficiencies to drive up costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.7 million to BELL TEXTRON INC. PROGRAM MANAGEMENT AND SUSTAINING ENGINEERING IN SUPPORT OF LOT 16 DOMESTIC PRODUCTION, COUNTRY OF BAHRAIN PRODUCTION AIRCRAFT AND COUNTRY OF CZECH REPUBLIC PRODUCTION AIRCRAFT.

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 $31.7 million.

What is the period of performance?

Start: 2022-01-03. End: 2023-12-31.

What is the justification for the sole-source award, and how does it ensure fair and reasonable pricing?

The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or prior investments that make competition impractical. Without specific details on the justification, it's difficult to assess how fair and reasonable pricing is ensured. Agencies often rely on historical pricing, independent government cost estimates, and negotiation strategies to achieve reasonable prices in sole-source situations.

What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?

The primary risk with CPFF is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. If costs escalate due to inefficiencies or poor management, the government bears the financial burden. This can lead to costs exceeding initial estimates, especially in complex engineering and production programs where unforeseen challenges may arise.

How will the effectiveness of the program management and sustaining engineering be measured and ensured?

Effectiveness is typically measured through performance metrics defined in the contract, such as on-time delivery, quality of work, adherence to budget (for the fixed fee portion), and successful resolution of technical issues. The Defense Contract Management Agency (DCMA) will likely monitor these metrics and contractor performance closely to ensure the program meets its objectives and delivers the required support.

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: 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: $37,073,264

Exercised Options: $35,243,448

Current Obligation: $31,656,539

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $479,456

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001921G0012

IDV Type: BOA

Timeline