DoD's $31.8M contract for DRIVE UNIT,AIRCRAFT awarded to Bell Textron Inc. faces limited competition

Contract Overview

Contract Amount: $31,768,819 ($31.8M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2017-10-27

End Date: 2026-01-08

Contract Duration: 2,995 days

Daily Burn Rate: $10.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DRIVE UNIT,AIRCRAFT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to BELL TEXTRON INC for work described as: DRIVE UNIT,AIRCRAFT Key points: 1. Significant contract value of $31.8M for a critical aircraft component. 2. Sole-source award to Bell Textron Inc. raises concerns about price discovery. 3. Long contract duration (2017-2026) may impact adaptability to market changes. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The contract's pricing is difficult to assess due to the sole-source nature and lack of publicly available benchmarks for this specific drive unit. Without competitive bids, it's challenging to determine if the $31.8M represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may lead to higher costs for taxpayers as there was no opportunity for multiple vendors to bid.

Taxpayer Impact: The sole-source award potentially results in higher costs for taxpayers due to the absence of competitive pressure to lower prices.

Public Impact

Taxpayers may be overpaying for a critical aircraft component due to the lack of competition. The long-term nature of the contract could mean the government is locked into potentially outdated technology or pricing. Limited visibility into the specific use and necessity of this drive unit for naval aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
No small business participation

Positive Signals

Essential component for naval aircraft
Awarded to established manufacturer

Sector Analysis

The aerospace and defense sector, particularly aircraft parts manufacturing, often involves complex, high-value components. Benchmarks for specialized parts like drive units can vary widely, making direct comparisons difficult without detailed specifications and competitive data.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that opportunities for small businesses in this specialized aircraft parts manufacturing sector may be limited or that outreach efforts were insufficient.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the pricing is justified and that future procurements explore competitive options where feasible. Accountability for the justification of the sole-source decision is crucial.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for overpayment due to lack of competitive bidding.
Long contract duration may lead to technological obsolescence.
No small business participation noted.
Lack of transparency in pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to BELL TEXTRON INC. DRIVE UNIT,AIRCRAFT

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 $31.8 million.

What is the period of performance?

Start: 2017-10-27. End: 2026-01-08.

What is the justification for the sole-source award of this critical aircraft component, and were alternative competitive strategies considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can meet requirements. For this DRIVE UNIT,AIRCRAFT contract, the Department of the Navy would need to provide documentation detailing why Bell Textron Inc. was the only viable option. Alternative competitive strategies, such as market research to identify potential competitors or phased procurements, should have been explored to ensure the best value for the government.

How does the $31.8M contract value compare to industry benchmarks for similar aircraft drive units, considering the sole-source nature?

Directly comparing the $31.8M contract value to industry benchmarks for similar aircraft drive units is challenging due to the sole-source award and the specificity of the component. Without competitive bids, it's difficult to ascertain if this price reflects fair market value. Industry benchmarks for highly specialized, custom-manufactured parts can vary significantly based on performance requirements, materials, and production volume. The lack of competition inherently limits the ability to validate the pricing against market norms.

What is the potential impact of the long contract duration (2017-2026) on technological relevance and cost-effectiveness for the Department of Defense?

A long contract duration, such as the one ending in 2026, carries risks of technological obsolescence and reduced cost-effectiveness. Aircraft technology evolves rapidly, and a drive unit procured in 2017 might not represent the most efficient or advanced option by 2026. Furthermore, market prices for components and manufacturing can fluctuate over time. The government may be locked into a price that becomes uncompetitive as newer, potentially cheaper, or superior alternatives emerge in the market.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 3255 BELL HELICOPTER 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: $31,768,819

Exercised Options: $31,768,819

Current Obligation: $31,768,819

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038317DBA01

IDV Type: IDC

Timeline