DoD awards $32.4M to Bell Textron for Aircraft Manufacturing ELS, no competition

Contract Overview

Contract Amount: $32,421,666 ($32.4M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2024-01-02

End Date: 2025-12-31

Contract Duration: 729 days

Daily Burn Rate: $44.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: H-1 ENGINEERING AND LOGISTICS SUPPORT (ELS) FOR ACQUISITION AND SUSTAINMENT FOR CY2024.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to BELL TEXTRON INC for work described as: H-1 ENGINEERING AND LOGISTICS SUPPORT (ELS) FOR ACQUISITION AND SUSTAINMENT FOR CY2024. Key points: 1. Significant contract value for engineering and logistics support. 2. Sole-source award to Bell Textron Inc. raises competition concerns. 3. Focus on acquisition and sustainment for CY2024. 4. Potential for cost overruns due to Cost Plus Fixed Fee contract type.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar contracts for aircraft manufacturing support 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 to Bell Textron Inc. The lack of competition limits price discovery and potentially increases costs for the government.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these services.

Public Impact

Ensures continued operational readiness for naval aircraft. Supports critical acquisition and sustainment functions. Potential impact on future contract competition strategies.

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 acquisition
Ensures aircraft sustainment

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically supporting acquisition and sustainment. Spending in this area is critical for national defense, but competitive bidding is generally preferred to ensure value.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

Oversight will be crucial to ensure Bell Textron Inc. manages costs effectively under the Cost Plus Fixed Fee structure and delivers the required engineering and logistics support.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type increases risk of cost overruns.
Lack of small business participation.
Potential for reduced price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to BELL TEXTRON INC. H-1 ENGINEERING AND LOGISTICS SUPPORT (ELS) FOR ACQUISITION AND SUSTAINMENT FOR CY2024.

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 $32.4 million.

What is the period of performance?

Start: 2024-01-02. End: 2025-12-31.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. Without further details, it's difficult to assess if alternative competitive strategies were thoroughly explored or if this was the only viable option for the Department of Defense.

How will the Cost Plus Fixed Fee structure be monitored to prevent cost overruns and ensure fair pricing?

Effective monitoring of a Cost Plus Fixed Fee contract requires robust government oversight, including detailed cost audits, performance reviews, and adherence to established fee structures. Regular communication and clear performance metrics are essential to ensure the contractor remains incentivized to control costs while meeting program objectives.

What is the long-term strategy for ensuring competitive sourcing for similar aircraft sustainment and acquisition support services?

The long-term strategy should involve market research to identify potential competitors, breaking down large sole-source requirements into smaller, more competitive packages, and fostering an environment where new entrants can develop the necessary expertise. Proactive planning and a commitment to competition are key to avoiding future sole-source awards.

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: $46,832,466

Exercised Options: $41,043,344

Current Obligation: $32,421,666

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $561,243

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