Navy Aviation Spends $130M on H-1 Helicopter Parts in Year 2, Sole-Sourced from Bell Textron

Contract Overview

Contract Amount: $129,611,688 ($129.6M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2021-01-01

End Date: 2021-12-31

Contract Duration: 364 days

Daily Burn Rate: $356.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NAVY AVIATION - H-1 PBL YEAR 2 DELIVERY ORDER

Place of Performance

Location: RICHLAND HILLS, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $129.6 million to BELL TEXTRON INC for work described as: NAVY AVIATION - H-1 PBL YEAR 2 DELIVERY ORDER Key points: 1. Significant spending on aircraft parts highlights ongoing sustainment needs. 2. Sole-source award to Bell Textron raises questions about price competition. 3. Lack of competition may lead to higher costs for taxpayers. 4. This contract falls under the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The total award of $129.6 million for one year of deliveries is substantial. Without competitive bids, it's difficult to assess if this price is fair market value compared to similar contracts for aviation parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to Bell Textron Inc. This limits price discovery and potentially increases costs for the government.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these aircraft parts, as there was no market pressure to drive down prices.

Public Impact

Taxpayers fund critical aviation sustainment for the Navy. Dependence on a single supplier can create long-term cost vulnerabilities. The contract supports jobs in aircraft parts manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Supports critical Navy aviation needs
Contract awarded to established manufacturer

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military readiness, but competitive procurement is key to cost efficiency.

Small Business Impact

This contract was awarded directly to Bell Textron Inc. and does not indicate any subcontracting opportunities for small businesses within this specific delivery order.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Further review of the justification for not competing is recommended.

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 price competition.
Potential for inflated costs due to lack of bidding.
No clear indication of small business participation.
Oversight needed to ensure fair pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $129.6 million to BELL TEXTRON INC. NAVY AVIATION - H-1 PBL YEAR 2 DELIVERY ORDER

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 $129.6 million.

What is the period of performance?

Start: 2021-01-01. End: 2021-12-31.

What is the justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, such justifications might include proprietary technology, urgent need, or lack of alternative sources. A thorough review would require access to the contract's justification documentation to understand why competition was deemed impractical or impossible.

What is the historical cost trend for similar H-1 PBL parts from Bell Textron?

Without access to historical pricing data or a benchmark of similar contracts, it is impossible to determine the cost trend. Analyzing year-over-year price changes for the same parts, or comparing prices to those paid by other entities for comparable components, would be necessary to assess cost efficiency over time.

Are there plans to introduce competition for future H-1 PBL sustainment efforts?

The data does not specify future competition plans. Given the sole-source nature of this award, it is crucial for the Department of the Navy to explore options for fostering competition in subsequent contract actions to ensure better value and potentially lower costs for taxpayers.

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 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: $129,611,688

Exercised Options: $129,611,688

Current Obligation: $129,611,688

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038320DW201

IDV Type: IDC

Timeline