DoD Awards $228.5M Contract to Bell Textron for Nigerian AH-1Z Helicopters

Contract Overview

Contract Amount: $228,537,392 ($228.5M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2024-03-12

End Date: 2028-07-31

Contract Duration: 1,602 days

Daily Burn Rate: $142.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: UCA FOR 12 NIGERIAN FMS AH-1ZS AND ASSOCIATED SEPM

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76101

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $228.5 million to BELL TEXTRON INC for work described as: UCA FOR 12 NIGERIAN FMS AH-1ZS AND ASSOCIATED SEPM Key points: 1. Significant investment in foreign military sales aircraft. 2. Sole-source award to Bell Textron, a key defense contractor. 3. Potential for cost overruns given fixed-price incentive structure. 4. Aircraft manufacturing sector sees substantial contract value.

Value Assessment

Rating: fair

The contract value of $228.5 million for 12 AH-1Z helicopters is substantial. Benchmarking against similar foreign military sales or sole-source contracts for advanced attack helicopters is difficult without more specific data on configuration and support packages.

Cost Per Unit: $19,044,782.67

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in a higher price than if multiple vendors had competed.

Taxpayer Impact: Taxpayer funds are being used for a foreign military sale, impacting the overall defense budget and potentially diverting resources from domestic priorities.

Public Impact

Enhances the military capabilities of a foreign partner. Supports U.S. foreign policy objectives through military aid. Contributes to the U.S. defense industrial base and jobs. Potential for increased regional stability or conflict depending on the recipient's actions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Fixed-price incentive contract carries risk of cost overruns.
Foreign military sales can be complex and politically sensitive.
Long contract duration increases exposure to changing requirements.

Positive Signals

Supports a key U.S. defense contractor.
Provides advanced military equipment to an allied nation.
Strengthens diplomatic ties through security assistance.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for advanced attack helicopters. Spending in this sector is often characterized by high R&D costs, long production cycles, and significant government procurement, particularly for defense applications.

Small Business Impact

The prime contractor, Bell Textron Inc., is a large aerospace company. There is no indication in the provided data whether small businesses will be significantly involved as subcontractors on this specific contract.

Oversight & Accountability

Oversight will be crucial given the sole-source nature and fixed-price incentive structure. The Department of the Navy is responsible for contract administration, ensuring performance and managing potential cost escalations.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition may lead to inflated prices.
Potential for cost overruns due to incentive contract structure.
Foreign military sales are subject to geopolitical risks and policy changes.
Long-term sustainment and training costs are not detailed.
Dependence on a single supplier for critical defense assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $228.5 million to BELL TEXTRON INC. UCA FOR 12 NIGERIAN FMS AH-1ZS AND ASSOCIATED SEPM

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 $228.5 million.

What is the period of performance?

Start: 2024-03-12. End: 2028-07-31.

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

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or specific interoperability requirements that only one contractor can meet. The Department of Defense would need to provide documentation detailing why competition was not feasible or advantageous for this specific acquisition of AH-1Z helicopters for Nigeria.

What are the specific incentive targets and sharing arrangements in the fixed-price incentive contract?

Understanding the incentive targets, ceiling price, and cost-sharing ratios is critical to assessing the risk of cost overruns. A higher government share of cost savings or a lower government share of cost overruns would indicate greater contractor incentive to control costs, but also greater risk to the contractor if costs exceed targets.

How does the unit cost compare to similar platforms acquired through competitive processes or for domestic use?

A comparative analysis against similar attack helicopters, considering factors like age, capabilities, and support packages, is essential. If this sole-source contract's unit price significantly exceeds benchmarks from competitive procurements, it raises concerns about value for money and the effectiveness of the price negotiation process.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001923R0160

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 3255 BELL FLIGHT BOULEVARD, 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: $455,000,000

Exercised Options: $455,000,000

Current Obligation: $228,537,392

Subaward Activity

Number of Subawards: 323

Total Subaward Amount: $65,510,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline