DoD Awards $52.3M H-1 PBL Delivery Order to Bell Textron Inc. for Aircraft Parts

Contract Overview

Contract Amount: $52,259,134 ($52.3M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2024-12-31

Contract Duration: 365 days

Daily Burn Rate: $143.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: H-1 PBL DELIVERY ORDER POP 5

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $52.3 million to BELL TEXTRON INC for work described as: H-1 PBL DELIVERY ORDER POP 5 Key points: 1. Significant award to a single, established contractor in the aerospace sector. 2. Sole-source nature raises questions about price discovery and potential overpayment. 3. Focus on aircraft parts suggests a critical component for naval aviation readiness. 4. The contract's firm-fixed-price structure aims to control costs, but competition is key.

Value Assessment

Rating: fair

The award amount of $52.3M for a one-year delivery order is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar aircraft parts. Benchmarking against other sole-source awards for comparable components would be necessary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Bell Textron Inc. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms, potentially leading to higher costs.

Taxpayer Impact: Taxpayer funds are being used for this award. The absence of competition means there's a heightened risk of paying a premium, impacting the overall value for taxpayer money.

Public Impact

Ensures continued availability of critical H-1 helicopter parts for the Navy. Supports a major defense contractor, potentially impacting jobs and the aerospace supply chain. Lack of competition may lead to higher costs for taxpayers compared to a competed contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Potential for cost overruns due to lack of market pressure.
Limited transparency on pricing justification.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Award to established contractor likely ensures quality and timely delivery.
Supports critical defense readiness for naval aviation.

Sector Analysis

This award falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation fleets. Benchmarks for sole-source awards in this specific niche are difficult to establish without more granular data, but generally, competitive procurements yield better pricing.

Small Business Impact

The contract was awarded to Bell Textron Inc., a large business. There is no indication of subcontracting opportunities for small businesses within this specific award notice, suggesting limited direct impact on the small business sector for this particular transaction.

Oversight & Accountability

The Department of the Navy is the awarding agency. Oversight should focus on ensuring the justification for the sole-source award is robust and that Bell Textron Inc. meets all contractual obligations regarding quality, delivery, and reporting.

Related Government Programs

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

Risk Flags

Lack of competition may result in inflated pricing.
Potential for cost overruns if initial price negotiation is not optimal.
Dependence on a single supplier for critical components.
Limited visibility into the contractor's cost structure.
Risk of supply chain disruptions affecting delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.3 million to BELL TEXTRON INC. H-1 PBL DELIVERY ORDER POP 5

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 $52.3 million.

What is the period of performance?

Start: 2024-01-01. End: 2024-12-31.

What is the justification for awarding this contract sole-source, and how does it align with federal procurement regulations for non-competitive awards?

The justification for a sole-source award typically stems from factors like unique capabilities, urgent needs, or lack of viable alternatives. Federal regulations (like FAR Part 6) outline specific criteria under which non-competitive procurements are permissible. A thorough review would require access to the Justification and Approval (J&A) document to confirm the rationale and ensure compliance.

How does the firm-fixed-price structure mitigate risks associated with a sole-source award for aircraft parts?

A firm-fixed-price (FFP) contract establishes a ceiling price that the contractor must not exceed, shifting most of the risk to the contractor. While this provides cost certainty for the government, it doesn't inherently guarantee the 'best' price. The initial price negotiation is critical, and without competition, the government relies heavily on its negotiation team's expertise and available market intelligence to set a fair price.

What is the potential impact on H-1 helicopter operational readiness if these parts are not delivered on time or meet quality standards?

A delay or failure in delivering critical H-1 helicopter parts could significantly impact the operational readiness of naval aviation units. This could lead to grounded aircraft, mission cancellations, and increased maintenance costs as the Navy seeks alternative solutions or faces extended downtime. Ensuring robust quality assurance and delivery schedules is paramount.

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: $52,259,134

Exercised Options: $52,259,134

Current Obligation: $52,259,134

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