DoD's $35.3M contract for aircraft drive units awarded to Bell Textron Inc. raises value and competition questions

Contract Overview

Contract Amount: $35,274,585 ($35.3M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2018-10-22

End Date: 2020-06-30

Contract Duration: 617 days

Daily Burn Rate: $57.2K/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 $35.3 million to BELL TEXTRON INC for work described as: DRIVE UNIT,AIRCRAFT Key points: 1. The contract's value proposition is unclear due to a lack of competitive bidding and limited performance data. 2. Sole-source awards can lead to inflated pricing and reduced innovation. 3. The duration of the contract (617 days) suggests a significant need for these aircraft components. 4. Performance context is missing, making it difficult to assess if the delivered units met expectations. 5. The contract falls within the broader 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. 6. Oversight mechanisms for sole-source contracts are crucial to ensure fair pricing and prevent waste.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the pricing for these aircraft drive units against market rates. The raw dollar amount of $35.3 million for a 617-day contract does not inherently indicate good or bad value. However, the lack of competition suggests potential for overpayment. A comparison to similar contracts for comparable components, if available, would be necessary for a more definitive assessment of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Bell Textron Inc., was considered. This significantly limits the opportunity for price discovery and negotiation that typically occurs in a full and open competition. The absence of multiple bids suggests that either no other vendors were capable of providing the required drive units or the solicitation process did not effectively reach potential competitors.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not benefit from the most competitive pricing available in the market.

Public Impact

The primary beneficiaries are likely the U.S. Navy, which utilizes these aircraft drive units, and Bell Textron Inc. as the sole contractor. The services delivered involve the provision of critical components for aircraft operation and maintenance. The geographic impact is primarily within Texas, where Bell Textron Inc. is located, and wherever the Navy operates the affected aircraft. Workforce implications include employment at Bell Textron Inc. and potentially its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Absence of performance metrics makes value assessment difficult.
Sole-source awards can reduce market pressure for innovation.
Limited transparency in the procurement process.

Positive Signals

Contract awarded to an established aerospace manufacturer (Bell Textron Inc.).
Contract addresses a specific need for aircraft components.
Fixed-price contract type can provide cost certainty if well-defined.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a critical component of the broader aerospace industry. This sector supplies essential parts that ensure the airworthiness and operational readiness of aircraft. Spending in this area is often driven by defense procurement and commercial aviation needs. Benchmarking this contract's value is challenging without more specific data on the drive units themselves and comparable market prices, especially given the sole-source nature of the award.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a sole-source award to a large prime contractor, it is unlikely that significant subcontracting opportunities for small businesses were mandated or actively pursued through this specific procurement vehicle. The impact on the small business ecosystem is therefore minimal for this particular contract.

Oversight & Accountability

Oversight for this sole-source contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would rely on the terms of the firm-fixed-price contract and any pre-award justifications for the sole-source designation. Transparency is limited due to the non-competitive nature of the award, making independent assessment of fairness and value more challenging.

Related Government Programs

Aircraft Parts Manufacturing
Defense Procurement
Aerospace Components
Navy Aviation Support
Sole-Source Contracts

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Limited performance data makes value assessment difficult.
Potential for cost overruns due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 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 $35.3 million.

What is the period of performance?

Start: 2018-10-22. End: 2020-06-30.

What is the specific type and function of the 'DRIVE UNIT, AIRCRAFT' procured under this contract?

The provided data indicates the item is a 'DRIVE UNIT, AIRCRAFT'. While the exact model or specific function is not detailed, aircraft drive units are typically critical components within the power transmission system of an aircraft. They are responsible for transferring rotational power from an engine or motor to other components, such as rotors, propellers, or accessory systems. The precise nature of these units would dictate their complexity, cost, and criticality to the aircraft's operation. Further technical specifications would be required to fully understand their role and justify the contract's scope.

What was the justification for awarding this contract on a sole-source basis to Bell Textron Inc.?

The justification for a sole-source award typically stems from specific circumstances where only one responsible source can satisfy the agency's needs. Common reasons include unique capabilities, proprietary technology, urgent and compelling needs where competition is impractical, or if the contract is a follow-on to a previously competed effort where only the original contractor possesses the necessary knowledge or tooling. Without the specific justification document (often referred to as a Justification and Approval or J&A), it is impossible to determine the precise rationale. However, for a company like Bell Textron, it could relate to proprietary designs of their aircraft systems or specialized manufacturing processes.

How does the $35.3 million contract value compare to historical spending on similar aircraft drive units by the Department of the Navy?

Comparing this $35.3 million contract value to historical spending requires access to detailed historical procurement data for similar aircraft drive units. The provided data does not include historical context or specific part numbers that would allow for a direct comparison. However, given that this is a sole-source award over a period of 617 days (approximately 20 months), the value appears substantial. A thorough analysis would involve identifying comparable components procured by the Navy, whether through competitive or sole-source means, and analyzing their unit costs and total contract values over similar timeframes to assess if this award represents a reasonable expenditure.

What performance metrics or quality standards were stipulated in the contract, and how was compliance monitored?

The provided data indicates the contract type is 'FIRM FIXED PRICE' (FFP) and the award date was '2018-10-22' with an end date of '2020-06-30'. While FFP contracts aim to establish a firm price regardless of the contractor's cost, they still require defined performance standards and quality assurance clauses. Specific performance metrics and quality standards are not detailed in the summary data. Typically, such contracts would reference military specifications (Mil-Specs), industry standards (e.g., AS9100 for aerospace quality management), or specific technical data packages. Compliance would be monitored through source inspections, acceptance testing, and potentially contractor quality control reports, overseen by the Navy's quality assurance representatives.

What is Bell Textron Inc.'s track record with the Department of Defense, particularly for aircraft components?

Bell Textron Inc. has a long and significant history as a major defense contractor, particularly in the aerospace sector. They are well-known for designing and manufacturing a wide range of military aircraft, including helicopters (like the V-22 Osprey, UH-1Y Venom, AH-1Z Viper) and tiltrotor aircraft. Their involvement with the Department of Defense extends to providing not only complete aircraft but also critical components, sustainment services, and upgrades. Given their established role and expertise in military aviation, their track record for delivering aircraft components is generally considered extensive, though specific performance on individual contracts would require detailed review.

Are there any known risks associated with the supply chain or manufacturing of these specific aircraft drive units?

Without specific details on the 'DRIVE UNIT, AIRCRAFT', identifying precise supply chain or manufacturing risks is challenging. However, general risks in aerospace component manufacturing include reliance on specialized raw materials, complex multi-stage manufacturing processes, potential for obsolescence of technology, and the need for highly skilled labor. For a sole-source award, there's an inherent risk that the contractor may not be actively seeking alternative suppliers or investing in process improvements driven by competitive pressure. If these drive units are for legacy aircraft, supply chain risks might increase due to component availability. If they are for new platforms, integration and testing risks could be present.

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: $35,274,585

Exercised Options: $35,274,585

Current Obligation: $35,274,585

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $1,412,137

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