DoD awards $19.5M aircraft maintenance contract to Bell Textron Inc. for 1,194 days

Contract Overview

Contract Amount: $19,489,184 ($19.5M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-01

End Date: 2026-12-08

Contract Duration: 1,194 days

Daily Burn Rate: $16.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIRCRAFT MAINTENANCE AND CETS SERVICES

Plain-Language Summary

Department of Defense obligated $19.5 million to BELL TEXTRON INC for work described as: AIRCRAFT MAINTENANCE AND CETS SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Sole-source award raises questions about potential lack of competitive pricing. 3. Long duration of nearly four years suggests a critical, ongoing need. 4. Focus on aircraft maintenance points to essential operational support for the Navy. 5. No small business set-aside indicates potential for larger prime contractor benefits.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source aircraft maintenance agreements. The firm-fixed-price structure provides cost certainty for the government. However, the absence of competition means there's no direct market comparison to assess if the pricing is optimal or if taxpayers received the best possible value. Further analysis would require access to historical pricing data for similar services provided by Bell Textron or other qualified vendors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, proprietary technology, or when urgency dictates a rapid award. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the most cost-effective solution.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to offer the lowest price. This necessitates strong internal oversight to ensure the awarded price is fair and reasonable.

Public Impact

The primary beneficiaries are the Department of the Navy, ensuring continued operational readiness of its aircraft fleet. Services delivered include essential maintenance and support for aircraft, critical for mission accomplishment. The geographic impact is likely concentrated where the Navy operates its aircraft, potentially globally. Workforce implications may include direct employment at Bell Textron and potentially indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an established contractor like Bell Textron suggests a focus on reliability and expertise.
Contract duration indicates a long-term commitment to essential aircraft support.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and support services. The market for such services is substantial, driven by the significant investments governments and commercial entities make in aviation. Bell Textron Inc. is a major player in this industry, known for its rotorcraft and fixed-wing aircraft. Comparable spending benchmarks would involve analyzing other large-scale maintenance contracts within the DoD for similar aircraft types.

Small Business Impact

The contract data indicates that this was not competed with a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the prime contract is likely to be performed by Bell Textron Inc. directly, with limited direct opportunities for small businesses to participate as subcontractors under this specific award. The overall impact on the small business ecosystem for aircraft maintenance would depend on Bell Textron's broader subcontracting practices.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be embedded in the contract's performance standards and delivery schedules. Transparency is limited due to the sole-source nature of the award, but contract details are typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Component Repair and Overhaul
Aviation Logistics Support
Defense Contractor Services
Naval Aviation Maintenance Programs

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns without competitive pressure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to BELL TEXTRON INC. AIRCRAFT MAINTENANCE AND CETS SERVICES

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 $19.5 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-12-08.

What is Bell Textron Inc.'s track record with the Department of the Navy for aircraft maintenance services?

Bell Textron Inc. has a long-standing relationship with the Department of the Navy, providing a range of aircraft and support services. Their history includes manufacturing and maintaining various helicopter and tiltrotor platforms utilized by the Navy. Analyzing past contracts awarded to Bell Textron by the Navy for similar maintenance and support services would provide insight into their performance, reliability, and adherence to schedules and budgets. This historical data is crucial for assessing the risk associated with this current sole-source award and for validating the government's decision to rely on their established capabilities.

How does the $19.5 million value compare to similar aircraft maintenance contracts awarded by the DoD?

Direct comparison of the $19.5 million value is difficult without knowing the specific aircraft type, scope of services, and duration of comparable contracts. However, for a nearly four-year period (1194 days), this figure suggests a substantial commitment to maintaining a fleet or specific critical assets. Larger, more complex aircraft or extensive depot-level maintenance would naturally command higher values. Without more granular data on the services included and the number of aircraft supported, it's challenging to benchmark this against other DoD maintenance contracts. The sole-source nature further complicates direct value-for-money comparisons.

What are the primary risks associated with this sole-source contract for aircraft maintenance?

The primary risk is the lack of competitive pricing, which could result in the government paying more than necessary. Another risk is potential vendor lock-in, where the government becomes overly reliant on Bell Textron, making future transitions difficult or costly. Performance risk also exists; while Bell Textron is an established contractor, any sole-source award carries the inherent risk that the contractor may not perform to expectations without the pressure of competition. Finally, there's a risk of insufficient oversight if the government doesn't rigorously monitor performance and costs due to the absence of competitive benchmarking.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this aircraft maintenance service?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for services where the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, Bell Textron Inc., providing the government with cost certainty. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For routine maintenance and support services with predictable requirements, FFP is a strong choice. However, if unforeseen technical issues or scope changes arise, managing those through an FFP contract can become complex and may require contract modifications.

What are the historical spending patterns for aircraft maintenance and support services within the Department of the Navy?

Historical spending patterns for aircraft maintenance and support within the Department of the Navy are substantial, reflecting the significant operational costs associated with maintaining a large and diverse aviation fleet. Annual expenditures often run into billions of dollars, encompassing everything from routine servicing and component repair to depot-level overhauls and depot maintenance. Spending can fluctuate based on fleet readiness requirements, modernization programs, and the introduction of new aircraft platforms. Analyzing these patterns reveals a consistent and significant investment in ensuring aviation readiness, with contracts often awarded to both original equipment manufacturers (OEMs) like Bell Textron and specialized third-party maintenance providers.

What is the justification provided for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for this sole-source award. Typically, sole-source justifications are required under federal acquisition regulations (FAR) and must demonstrate that only one responsible source can satisfy the agency's needs. Common reasons include proprietary data rights, unique technical capabilities, urgent and compelling needs where competition is not feasible, or when a specific system requires support from its original manufacturer. Without the official justification document, it is impossible to ascertain the precise rationale behind awarding this contract exclusively to Bell Textron Inc.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: $19,489,184

Exercised Options: $19,489,184

Current Obligation: $19,489,184

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $8,141,606

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