DoD Awards Bell Textron $57.1M for Structural and Electrical Upgrades to Navy Aircraft

Contract Overview

Contract Amount: $57,155,499 ($57.2M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2022-11-14

End Date: 2027-10-31

Contract Duration: 1,812 days

Daily Burn Rate: $31.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: STRUCTURAL IMPROVEMENTS AND ELECTRICAL POWER UPGRADES PHASE 2.3

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $57.2 million to BELL TEXTRON INC for work described as: STRUCTURAL IMPROVEMENTS AND ELECTRICAL POWER UPGRADES PHASE 2.3 Key points: 1. Significant contract value for specialized aircraft manufacturing and upgrades. 2. Sole-source award raises questions about competition and potential price discovery. 3. Long contract duration (5 years) suggests complex, multi-phase work. 4. Focus on structural and electrical systems indicates critical maintenance and modernization needs.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not closely monitored. Without competitive bidding, it's difficult to assess if the $57.1M price is optimal compared to market rates for similar aircraft upgrade services.

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 result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this substantial contract raises concerns about the efficient use of taxpayer funds.

Public Impact

Ensures continued operational readiness of Navy aircraft through essential structural and electrical upgrades. Supports a major defense contractor, potentially impacting jobs in the aerospace sector. Long-term investment in aircraft longevity and modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Long contract duration

Positive Signals

Addresses critical aircraft maintenance needs
Supports national defense capabilities

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks for aircraft upgrades vary widely based on complexity, but large sole-source contracts warrant scrutiny for cost-effectiveness.

Small Business Impact

The awardee, Bell Textron Inc., is a large business. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific contract.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight from the Department of the Navy to ensure cost controls and adherence to contract terms, mitigating risks associated with non-competitive procurements.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for inflated costs due to sole-source award.
Risk of cost overruns with CPFF contract type.
Lack of transparency in the procurement process.
Long duration may increase exposure to changing requirements or economic conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.2 million to BELL TEXTRON INC. STRUCTURAL IMPROVEMENTS AND ELECTRICAL POWER UPGRADES PHASE 2.3

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 $57.2 million.

What is the period of performance?

Start: 2022-11-14. End: 2027-10-31.

What justification was provided for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Without specific details on the justification, it's difficult to assess if the government fully explored competitive options. A thorough review would examine the market research conducted and the rationale for concluding that only Bell Textron could meet the requirement.

How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure value for money?

Managing a Cost Plus Fixed Fee (CPFF) contract requires stringent oversight. The government must actively monitor incurred costs, ensure they are reasonable and allocable, and manage the fixed fee component. Clear performance metrics and regular audits are crucial to incentivize efficiency and prevent scope creep or unnecessary expenses, thereby safeguarding taxpayer funds.

What are the specific performance metrics and deliverables for these structural and electrical upgrades, and how will their successful completion be measured?

Successful completion hinges on clearly defined performance metrics and deliverables. These should include specific technical standards for structural integrity and electrical system functionality, as well as timelines for each phase. The government's quality assurance personnel must rigorously inspect and test the work against these criteria to ensure the upgrades meet all requirements and enhance aircraft safety and performance.

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

Solicitation ID: N0001921R0012

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: $57,155,499

Exercised Options: $57,155,499

Current Obligation: $57,155,499

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $1,213,526

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