DoD Awards Bell Textron $54.2M for AH-1Z Helicopter Component Upgrades

Contract Overview

Contract Amount: $54,170,498 ($54.2M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-27

End Date: 2028-12-31

Contract Duration: 1,191 days

Daily Burn Rate: $45.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: H-1 SIEPU TIME CRITICAL PARTS: RSCUS, AC GENERATORS, GCUS, TUBE ASSEMBLIES. REPAIR AND UPGRADE OF 9 AH-1W WHISKEY C-BOXES AND 2 UH-1Y/AH-1Z RETROGRADE CONDITION C-BOXES TO AH-1Z SIEPU C-BOXES.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $54.2 million to BELL TEXTRON INC for work described as: H-1 SIEPU TIME CRITICAL PARTS: RSCUS, AC GENERATORS, GCUS, TUBE ASSEMBLIES. REPAIR AND UPGRADE OF 9 AH-1W WHISKEY C-BOXES AND 2 UH-1Y/AH-1Z RETROGRADE CONDITION C-BOXES TO AH-1Z SIEPU C-BOXES. Key points: 1. This contract focuses on critical component upgrades for AH-1W and UH-1Y/Z helicopters, enhancing the AH-1Z fleet. 2. Bell Textron Inc. is the sole awardee, indicating a specialized capability or existing relationship. 3. The contract is firm-fixed-price, providing cost certainty for the government. 4. The upgrade aims to modernize aging aircraft components, extending their operational life and capability.

Value Assessment

Rating: fair

The award amount of $54.2 million for 9 AH-1W and 2 UH-1Y/Z upgrades to AH-1Z standard appears reasonable given the complexity of aviation component retrofitting. Benchmarking is difficult without specific component details, but similar aviation modernization efforts can range significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, likely due to Bell Textron's unique expertise and proprietary knowledge related to the AH-1Z platform and its specific components. This limits price discovery through competitive bidding.

Taxpayer Impact: Taxpayer funds are being used for essential military aircraft modernization. While sole-source awards can sometimes lead to higher costs, the necessity of maintaining and upgrading critical defense assets justifies the expenditure.

Public Impact

Enhances the combat readiness and survivability of the US Marine Corps' attack helicopter fleet. Extends the service life of valuable military assets, potentially delaying costly new aircraft procurements. Supports specialized manufacturing jobs within the aerospace sector, particularly in Texas. Ensures continued operational capability for a key component of naval aviation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Potential for cost overruns if unforeseen technical challenges arise.
Long contract duration increases exposure to market fluctuations.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Upgrades critical defense assets, enhancing national security.
Leverages existing platform knowledge for modernization.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft component upgrades. Spending in this area is driven by defense modernization priorities and the need to maintain aging fleets. Benchmarks for similar complex aviation retrofits are highly variable.

Small Business Impact

This contract was awarded directly to Bell Textron Inc., a large aerospace manufacturer. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct small business involvement.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure proper execution and accountability.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits price competition.
Potential for schedule delays due to complex technical integration.
Reliance on a single contractor for critical upgrades.
Long-term contract duration may expose to economic volatility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.2 million to BELL TEXTRON INC. H-1 SIEPU TIME CRITICAL PARTS: RSCUS, AC GENERATORS, GCUS, TUBE ASSEMBLIES. REPAIR AND UPGRADE OF 9 AH-1W WHISKEY C-BOXES AND 2 UH-1Y/AH-1Z RETROGRADE CONDITION C-BOXES TO AH-1Z SIEPU C-BOXES.

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 $54.2 million.

What is the period of performance?

Start: 2025-09-27. End: 2028-12-31.

What is the specific technical justification for the sole-source award, and were alternative solutions considered?

The sole-source justification likely stems from Bell Textron's exclusive rights to the AH-1Z design and proprietary upgrade technology. While alternatives might exist for general component repair, a direct upgrade to the AH-1Z SIEPU standard is probably unique to the original equipment manufacturer. Further documentation would clarify if any market research was conducted to confirm this exclusivity.

How does the per-unit cost of this upgrade compare to historical upgrades or similar platforms?

Without a specific per-unit cost breakdown or access to comparable contract data for similar helicopter upgrades, a precise benchmark is not feasible. The total award of $54.2 million spread across 11 aircraft (9 AH-1W, 2 UH-1Y/Z) suggests a significant investment per airframe, reflecting the complexity of avionics and structural retrofitting required for modernization.

What are the key performance metrics and delivery milestones to ensure timely and effective completion of the upgrades?

The contract specifies a completion date of December 31, 2028, indicating a multi-year timeline. Key performance metrics would likely include adherence to technical specifications, successful integration of upgraded components, and meeting delivery schedules for each retrofitted aircraft. The Department of the Navy's quality assurance representatives will monitor progress.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001924R0094

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: $54,170,498

Exercised Options: $54,170,498

Current Obligation: $54,170,498

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