Navy awards $11.1M for aircraft drive units, with Bell Textron Inc. as the sole source contractor

Contract Overview

Contract Amount: $11,129,569 ($11.1M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2019-06-19

End Date: 2025-09-30

Contract Duration: 2,295 days

Daily Burn Rate: $4.8K/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 $11.1 million to BELL TEXTRON INC for work described as: DRIVE UNIT,AIRCRAFT Key points: 1. The contract value of $11.1 million for aircraft drive units represents a significant investment in specialized aviation components. 2. Sole-source procurement raises questions about potential price inflation and the absence of competitive pressure. 3. The extended performance period through September 2025 suggests a long-term need for these critical parts. 4. The contract is categorized under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicating a niche but essential market segment. 5. The award to Bell Textron Inc., a known entity in the aerospace sector, suggests reliance on established expertise.

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging due to its sole-source nature and specialized component. Without competitive bids, it's difficult to ascertain if the $11.1 million price reflects fair market value. Comparisons to similar sole-source procurements for specialized aircraft parts would be necessary for a more robust assessment, but such data is often proprietary or not publicly available. The lack of competition inherently limits the ability to confirm optimal value for taxpayer dollars.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Bell Textron Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and potentially lead to higher costs compared to a fully competed contract.

Taxpayer Impact: The absence of competition means taxpayers may not be receiving the most cost-effective solution, as there was no market pressure to drive down prices.

Public Impact

The primary beneficiaries are likely the military personnel and operations relying on the aircraft equipped with these drive units. The services delivered involve the manufacturing and supply of critical aircraft components, ensuring operational readiness. The geographic impact is centered around the Department of the Navy's operations, with potential implications for maintenance and supply chains. Workforce implications may include specialized manufacturing roles within Bell Textron Inc. and supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for over-reliance on a single supplier, creating supply chain vulnerabilities.
Difficulty in independently verifying the fairness of the contract price without market comparison.

Positive Signals

Award to an established contractor (Bell Textron Inc.) suggests reliability and expertise in aircraft components.
Long contract duration indicates a stable and predictable supply of essential parts.
Specific component (drive unit) points to a focused and critical need within aviation operations.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant R&D investment. Contracts for specialized aircraft components like drive units fall within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector. The market for such components is often dominated by a few key players due to stringent quality and performance requirements. Spending in this area is critical for maintaining military aviation readiness and technological superiority.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business) flag is also false. This suggests that the primary award was not directed towards small businesses, and there is no explicit indication of subcontracting opportunities for small businesses within the provided data. The focus is on a large, established prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which places the risk of cost overruns on the contractor. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Parts Manufacturing
Aviation Component Supply
Defense Procurement
Sole-Source Contracts
Department of the Navy Contracts

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 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 $11.1 million.

What is the period of performance?

Start: 2019-06-19. End: 2025-09-30.

What is the historical spending pattern for aircraft drive units by the Department of the Navy?

Analyzing historical spending patterns for specific components like aircraft drive units requires access to detailed procurement databases over multiple fiscal years. Without this granular data, it's challenging to provide a precise historical context for the $11.1 million award. However, general trends in defense spending on aviation components are influenced by fleet modernization programs, operational tempo, and the lifecycle of existing aircraft. Sole-source awards, like this one, can skew historical averages if they represent a significant portion of spending in a given period for a particular part. A comprehensive review would involve tracking awards for similar components, identifying the primary contractors, and noting any shifts in procurement strategies or pricing over time.

What are the specific technical requirements for these aircraft drive units?

The provided data does not detail the specific technical requirements for the 'DRIVE UNIT,AIRCRAFT'. These requirements would typically be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Such specifications often include performance metrics, material composition, operating conditions (temperature, pressure, vibration), lifespan expectations, and compatibility with specific aircraft models. For critical components like drive units, adherence to stringent military specifications (Mil-Specs) and rigorous testing and certification processes are usually mandatory to ensure flight safety and operational reliability. The sole-source nature of this award suggests Bell Textron Inc. possesses unique capabilities or proprietary technology that meets these demanding technical specifications.

What is Bell Textron Inc.'s track record with sole-source defense contracts?

Bell Textron Inc. has a long history of contracting with the U.S. Department of Defense, including numerous sole-source awards. As a major aerospace manufacturer, they often possess specialized knowledge, intellectual property, or unique manufacturing capabilities for specific aircraft systems and components. Sole-source awards to established prime contractors like Bell Textron are common when a particular part or system is integral to a platform they developed or maintain, or when there are limited alternative suppliers capable of meeting the stringent military requirements. While sole-source contracts can raise concerns about competition, they are often justified by factors such as technical expertise, existing infrastructure, and the need for seamless integration with existing platforms.

How does the $11.1 million contract value compare to similar procurements for aircraft drive units?

Directly comparing the $11.1 million contract value for these specific aircraft drive units to similar procurements is difficult without access to a comprehensive database of comparable sole-source or competed contracts for identical or highly similar components. The value is influenced by factors such as the quantity ordered, the complexity and criticality of the drive unit, the specific aircraft platform it serves, and the contractor's cost structure. Given this is a sole-source award to Bell Textron Inc., it is presumed that the pricing was negotiated directly. A thorough value assessment would require benchmarking against historical data for similar sole-source awards or, ideally, against prices achieved in a competitive bidding environment for comparable parts, which is not publicly available in this instance.

What are the potential risks associated with a sole-source award for critical aircraft components?

The primary risks associated with a sole-source award for critical aircraft components like drive units include a lack of competitive pricing, potentially leading to higher costs for the government and taxpayers. There's also a reduced incentive for the sole contractor to innovate or improve efficiency beyond what is contractually required. Furthermore, reliance on a single supplier can create supply chain vulnerabilities; any disruption in the contractor's operations could significantly impact aircraft availability and readiness. Without competition, there's also less transparency in the pricing structure and potentially less leverage for the government during negotiations. Ensuring robust oversight and performance management becomes even more critical in sole-source situations.

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: $11,129,569

Exercised Options: $11,129,569

Current Obligation: $11,129,569

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