DoD's $163M H-1 PBL Delivery Order to Bell Textron Inc. for Aircraft Parts Faced No Competition

Contract Overview

Contract Amount: $163,000,008 ($163.0M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2020-01-01

End Date: 2020-12-31

Contract Duration: 365 days

Daily Burn Rate: $446.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: H-1 PBL DELIVERY ORDER FOR PERIOD OF PERFORMANCE 1 (01/01/2020 - 12/31/2020)

Place of Performance

Location: RICHLAND HILLS, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $163.0 million to BELL TEXTRON INC for work described as: H-1 PBL DELIVERY ORDER FOR PERIOD OF PERFORMANCE 1 (01/01/2020 - 12/31/2020) Key points: 1. The contract represents a significant expenditure for aircraft parts, highlighting the reliance on established suppliers for specialized components. 2. The absence of competition raises questions about potential price overruns and the government's ability to secure the best value. 3. Performance context is limited to a single year, making long-term trend analysis difficult. 4. The contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code, a niche but critical sector for defense readiness. 5. The firm-fixed-price structure aims to transfer some risk to the contractor, but the lack of competition may negate this benefit.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids. The obligated amount of $163 million for a single year of performance suggests a substantial investment. Without comparable contract data or market analysis for similar 'Other Aircraft Parts' from competing manufacturers, it's difficult to definitively assess if this price represents fair market value. The government may be paying a premium due to the sole-source nature of the award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source can provide the required supplies or services. The lack of competition means the Department of the Navy did not solicit bids from multiple vendors, potentially limiting price discovery and negotiation leverage.

Taxpayer Impact: Taxpayers may be paying a higher price than they would in a competitive environment. The absence of bids prevents the government from leveraging market forces to achieve cost savings.

Public Impact

The primary beneficiaries are the Department of the Navy, which receives critical aircraft parts, and Bell Textron Inc., the sole contractor. The services delivered include the provision of parts essential for the maintenance and operation of H-1 helicopters. The geographic impact is primarily within Texas, where Bell Textron Inc. is located, and at naval aviation facilities where the parts are utilized. Workforce implications include the continued employment of personnel at Bell Textron involved in the manufacturing and delivery of these specialized parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can reduce government negotiation power.
Limited transparency into the pricing justification.
Potential for vendor lock-in with specialized parts.

Positive Signals

Firm-fixed-price contract type can provide cost certainty if managed effectively.
Bell Textron Inc. is an established defense contractor with relevant experience.
Delivery order structure allows for phased funding and execution.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a specialized segment of the aerospace industry. This contract falls under the broader defense industrial base, which relies on a network of manufacturers for critical components. The market size for such specialized parts is often driven by government procurement needs, and competition can be limited due to proprietary technology, high entry barriers, and long-standing relationships. Spending in this area is crucial for maintaining fleet readiness.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits opportunities for small business participation through subcontracting. This could mean a missed opportunity to leverage the small business industrial base for parts manufacturing or support services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would include contract performance reviews and financial audits. Transparency is limited due to the sole-source nature, with justifications for the award likely residing within internal DoD documentation. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

H-1 Helicopter Program
Naval Aviation Maintenance Programs
Defense Logistics Agency (DLA) Parts Procurement
Aerospace Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for price non-competitiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $163.0 million to BELL TEXTRON INC. H-1 PBL DELIVERY ORDER FOR PERIOD OF PERFORMANCE 1 (01/01/2020 - 12/31/2020)

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 $163.0 million.

What is the period of performance?

Start: 2020-01-01. End: 2020-12-31.

What is Bell Textron Inc.'s track record with the Department of Defense, particularly concerning H-1 helicopter components?

Bell Textron Inc. has a long-standing relationship with the Department of Defense, particularly as a prime contractor for various helicopter platforms, including the H-1 series (like the AH-1Z Viper and UH-1Y Venom). Their track record involves extensive experience in design, manufacturing, and sustainment of these aircraft. Historically, they have received numerous contracts for parts, upgrades, and maintenance services. While specific performance metrics for this particular delivery order are not detailed, Bell's overall history suggests a deep understanding of the H-1 platform's requirements. However, as with any large defense contractor, past performance reviews and contract close-outs would provide a more granular assessment of their reliability, cost-effectiveness, and adherence to schedules across their portfolio of work with the DoD.

How does the $163 million cost for one year of H-1 PBL delivery compare to similar contracts or market rates for aircraft parts?

Direct comparison of the $163 million cost for one year of H-1 PBL delivery is difficult without access to a broader dataset of similar sole-source contracts for specialized aircraft parts or detailed market analyses. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category is broad, and the specific components procured under this delivery order are critical for the H-1 platform. Given the sole-source nature, it is plausible that the price is higher than what might be achieved through a competitive bidding process. Benchmarking would ideally involve comparing the unit cost of specific parts against industry standards or prices paid by other government agencies for comparable items. Without this granular data, assessing 'value for money' remains challenging, but the significant sum indicates a substantial investment in maintaining the H-1 fleet's operational readiness.

What are the primary risks associated with a sole-source award of this magnitude for aircraft parts?

The primary risks associated with a sole-source award of this magnitude ($163 million) for aircraft parts include: 1. **Price Inflation:** Without competition, the contractor may not have sufficient incentive to offer the lowest possible price, potentially leading to overpayment. 2. **Reduced Innovation:** A lack of competitive pressure can stifle innovation in product development or service delivery. 3. **Vendor Lock-in:** The government may become dependent on a single supplier, making it difficult and costly to switch providers in the future, especially for specialized components. 4. **Limited Oversight Effectiveness:** While oversight mechanisms exist, the absence of competing proposals means there's no external benchmark to validate the contractor's claims or pricing. 5. **Potential for Substandard Quality:** Although unlikely with established contractors, the lack of competitive alternatives could theoretically reduce the pressure to maintain the highest quality standards if not rigorously monitored.

What is the historical spending pattern for H-1 helicopter parts or similar aircraft components by the Department of the Navy?

Historical spending patterns for H-1 helicopter parts and similar aircraft components by the Department of the Navy typically show consistent, significant investment due to the operational demands of maintaining a fleet. The Navy procures a wide range of parts, from basic consumables to highly specialized, proprietary components, often through a mix of competitive and sole-source contracts. Spending can fluctuate based on fleet readiness requirements, modernization programs, and the lifecycle of the aircraft. For platforms like the H-1 series, which are integral to naval aviation, sustained funding for parts and sustainment is a necessity. Analysis of past years would likely reveal multi-million dollar annual expenditures for H-1 sustainment, with a portion allocated to sole-source awards for unique or critical components where competition is not feasible or cost-effective.

What are the implications of this contract being a 'Delivery Order' under a larger contract vehicle?

This contract being a 'Delivery Order' implies it was issued under a pre-existing contract vehicle, such as a Basic Ordering Agreement (BOA) or Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The primary implication is that the foundational terms, conditions, and potentially some pricing structures were already established when the larger vehicle was awarded, likely through a competitive process. However, this specific delivery order was 'NOT COMPETED,' meaning the competition for this particular task order was waived. This suggests that while the overall contract vehicle might have been competed, the justification for not competing this specific order was made separately. Delivery orders allow the government flexibility to order specific quantities of goods or services as needed over a period, often simplifying the procurement process for individual requirements but requiring careful justification when competition is bypassed.

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 (UEI: 001338979)

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: $163,000,008

Exercised Options: $163,000,008

Current Obligation: $163,000,008

Subaward Activity

Number of Subawards: 317

Total Subaward Amount: $72,320,560

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038320DW201

IDV Type: IDC

Timeline