DoD Awards $120M for H-1 PBL Delivery Order to Bell Textron Inc

Contract Overview

Contract Amount: $120,451,012 ($120.5M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2023-12-31

Contract Duration: 364 days

Daily Burn Rate: $330.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: H-1 PBL DELIVERY ORDER IN SUPPORT OF POP 3

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $120.5 million to BELL TEXTRON INC for work described as: H-1 PBL DELIVERY ORDER IN SUPPORT OF POP 3 Key points: 1. Significant contract value of $120.45 million for aircraft parts. 2. Sole-source award to Bell Textron Inc. raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The $120.45 million award for H-1 PBL delivery order is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal compared to similar contracts or market rates for aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating no competition. This method limits price discovery and may result in less favorable pricing for the government.

Taxpayer Impact: The lack of competition for this $120.45 million contract could lead to taxpayers paying a premium for the required aircraft parts.

Public Impact

Supports critical H-1 helicopter fleet maintenance and readiness. Ensures availability of specialized parts for a key defense asset. Impacts the supply chain for military aviation components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Lack of transparency in pricing due to no-bid contract.
Potential for cost overruns without competitive pressure.

Positive Signals

Supports essential military aircraft operations.
Contract awarded to a known manufacturer with relevant expertise.

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is crucial for maintaining military aviation capabilities, but competitive procurement is vital to ensure cost-effectiveness.

Small Business Impact

The award was made directly to Bell Textron Inc. and there is no indication of small business subcontracting in the provided data. Further analysis would be needed to determine if small businesses were involved or could have been.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that competitive options were appropriately considered.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $120.5 million to BELL TEXTRON INC. H-1 PBL DELIVERY ORDER IN SUPPORT OF POP 3

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 $120.5 million.

What is the period of performance?

Start: 2023-01-01. End: 2023-12-31.

What is the justification for the sole-source award, and were alternative competitive strategies explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear if other competitive strategies were explored. A thorough review would examine the specific circumstances and market research conducted to determine if competition was truly not feasible or if the sole-source path was chosen for convenience.

How does the pricing of this contract compare to industry benchmarks for similar aircraft parts?

Assessing the pricing requires access to detailed cost breakdowns and comparison with market data for similar components. Given this is a sole-source award, direct price comparisons are challenging. An independent cost analysis or review of historical pricing for similar parts from competitive contracts would be necessary to determine if the $120.45 million represents fair value.

What is the long-term impact on the H-1 helicopter program's budget and operational readiness?

The long-term impact depends on the necessity and pricing of these parts. If essential for readiness and priced competitively, the impact is positive. However, if overpriced due to lack of competition, it could strain future budgets and potentially divert funds from other critical areas, impacting overall program effectiveness and readiness.

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: $120,451,012

Exercised Options: $120,451,012

Current Obligation: $120,451,012

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,290,523

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038320DW201

IDV Type: IDC

Timeline