Bell Textron Inc. awarded $85M for UH-1Y Flight Training Device, a sole-source contract

Contract Overview

Contract Amount: $84,985,545 ($85.0M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2012-09-25

End Date: 2017-02-23

Contract Duration: 1,612 days

Daily Burn Rate: $52.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UH-1Y FLIGHT TRAINING DEVICE 2F196B-2

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $85.0 million to BELL TEXTRON INC for work described as: UH-1Y FLIGHT TRAINING DEVICE 2F196B-2 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed, raising questions about potential price overruns and lack of market pressure. 3. The duration of the contract (over 4 years) suggests a long-term need for the training device. 4. The award was made to Bell Textron Inc., the likely original equipment manufacturer, suggesting a sole-source situation. 5. The contract value of $85M for a flight training device warrants benchmarking against similar systems. 6. The absence of competition may limit opportunities for innovation and cost reduction through market forces.

Value Assessment

Rating: fair

The contract value of $85 million for a UH-1Y Flight Training Device is substantial. Without specific details on the device's capabilities and complexity, direct comparison to similar contracts is challenging. However, the lack of competition suggests that the government may not have achieved the best possible pricing. Benchmarking against other advanced flight simulators for comparable aircraft types would be necessary to assess value for money. The firm-fixed-price structure provides cost certainty, but the absence of competition could mean the price is higher than it might have been in a more open market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This typically occurs when only one responsible source can provide the required supplies or services, often due to proprietary technology or unique capabilities. The lack of multiple bidders means there was no direct price comparison or negotiation driven by competitive pressure. This can lead to higher costs for the government as the contractor faces less incentive to offer the lowest possible price.

Taxpayer Impact: Taxpayers may have paid a premium for this training device due to the absence of competitive bidding. The government missed the opportunity to leverage market forces to secure a potentially lower price or better value.

Public Impact

The primary beneficiaries are U.S. Marine Corps pilots who will utilize the UH-1Y Venom helicopter. The contract delivers a critical flight training device essential for pilot proficiency and mission readiness. The training device is located in Texas, impacting the local economy and workforce in that region. This contract supports specialized manufacturing and technical expertise within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
Sole-source awards can limit innovation and technological advancement.
Long contract duration without competition could lead to cost creep if not managed effectively.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an established manufacturer like Bell Textron suggests a high likelihood of technical capability.
The training device is crucial for maintaining pilot proficiency for a key military asset.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically related to simulation and training equipment. The market for advanced flight simulators is characterized by high barriers to entry due to technological complexity and specialized knowledge. Bell Textron Inc. is a major player in this space, particularly for platforms they manufacture. Comparable spending benchmarks would involve analyzing the cost of similar high-fidelity simulators for other military aircraft, which can range from tens to hundreds of millions of dollars depending on complexity and features.

Small Business Impact

There is no indication that this contract included small business set-asides. As a sole-source award to a large prime contractor, it is unlikely that significant subcontracting opportunities for small businesses were mandated or actively pursued through competitive means. The impact on the small business ecosystem is likely minimal unless Bell Textron voluntarily engages small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm-fixed-price contract type, which caps the government's financial liability. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competed contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

UH-1Y Venom Helicopter Program
Military Flight Training Systems
Aerospace Simulation and Training Equipment
Defense Contractor Performance

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher cost due to lack of competition.
Long contract duration without competition requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.0 million to BELL TEXTRON INC. UH-1Y FLIGHT TRAINING DEVICE 2F196B-2

Who is the contractor on this award?

The obligated recipient is BELL TEXTRON INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $85.0 million.

What is the period of performance?

Start: 2012-09-25. End: 2017-02-23.

What is the specific capability and complexity of the UH-1Y Flight Training Device 2F196B-2?

The UH-1Y Flight Training Device (FTD) 2F196B-2, manufactured by Bell Textron Inc., is a high-fidelity simulator designed to replicate the operational environment and flight characteristics of the UH-1Y Venom helicopter. Its capabilities likely include a full cockpit replica, advanced visual systems simulating various terrains and weather conditions, motion systems to provide realistic G-force sensations, and integrated communication and sensor systems. These devices are crucial for training pilots in normal flight operations, emergency procedures, tactical maneuvers, and mission-specific scenarios without the risks and costs associated with actual flight time. The complexity is indicated by its substantial contract value of $84,985,545 and its designation as a critical training asset for the U.S. Marine Corps.

How does the $85 million contract value compare to similar flight training devices?

Benchmarking the $85 million contract value for the UH-1Y Flight Training Device requires comparison with similar advanced simulators. High-fidelity, full-mission simulators for complex military aircraft can range significantly in price, often from $20 million to over $100 million, depending on the aircraft type, the level of simulation fidelity (e.g., motion systems, visual systems, specific avionics replication), and the number of devices procured. Given that the UH-1Y is a modern attack/utility helicopter, a price point around $85 million for a single, advanced device is within the expected range for such specialized military equipment. However, without knowing the exact specifications and the number of units procured under this contract, a precise value-for-money assessment is difficult. The lack of competition further complicates direct price comparisons.

What are the risks associated with a sole-source award for this training device?

The primary risk associated with this sole-source award is the potential for inflated pricing. When a contract is not competed, the government lacks the benefit of competitive pressure that typically drives down costs and encourages innovation. Bell Textron Inc., as the likely sole provider (potentially due to proprietary technology or being the original equipment manufacturer), may not have had the same incentive to offer the lowest possible price. Other risks include a potential lack of urgency in addressing technical issues or incorporating upgrades, as there is no competitive threat. Furthermore, the government is dependent on a single supplier, which can create vulnerabilities if that supplier faces financial difficulties or production issues. The long duration of the contract (over 4 years) exacerbates these risks if not managed diligently.

What is Bell Textron Inc.'s track record with government contracts, particularly for training systems?

Bell Textron Inc. has a long and established track record as a major defense contractor, particularly in helicopter manufacturing and support. They are the original equipment manufacturer for the UH-1Y Venom and its predecessor, the AH-1Z Viper. Their history includes numerous government contracts for aircraft production, sustainment, and training systems. Bell has consistently delivered complex aviation platforms and associated support equipment to the U.S. military. While specific details on past training system contracts require deeper analysis, their role as the OEM for the UH-1Y strongly suggests they possess the necessary expertise and infrastructure to develop and maintain its associated flight training devices. Their extensive experience generally indicates a capability to meet performance requirements, though contract specifics like pricing and competition vary.

How has federal spending on flight training devices evolved over the past decade?

Federal spending on flight training devices (FTDs) has generally remained robust, driven by the continuous need for pilot training and readiness across all military branches. Over the past decade, there has been a trend towards increasing the use of simulators and FTDs to reduce the costs and risks associated with live flight training. This includes investments in more sophisticated, higher-fidelity simulators that can replicate a wider range of scenarios and aircraft systems. While overall defense budgets fluctuate, spending on simulation and training is often prioritized due to its cost-effectiveness compared to actual flight hours. Contracts for individual devices, like the UH-1Y FTD, represent significant investments, but the aggregate spending across numerous platforms and training needs constitutes a substantial portion of the defense training budget. Data from sources like the GAO and defense budget analyses would show consistent, significant outlays in this category.

What are the implications of the 'Other Commercial and Service Industry Machinery Manufacturing' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 333319, 'Other Commercial and Service Industry Machinery Manufacturing,' is somewhat broad and might not perfectly capture the highly specialized nature of military flight training device manufacturing. While it encompasses the production of various types of machinery, military simulators often involve highly advanced electronics, software, and motion systems that could arguably fit into other, more specific categories like 'Aerospace Product and Parts Manufacturing' (NAICS 33641). The use of this code suggests that the primary classification focused on the machinery aspect of the device's production. For this specific contract, it implies that Bell Textron is manufacturing a complex piece of machinery, but the code itself doesn't inherently reveal details about the military application or the high level of technological integration specific to defense training systems.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6134011R0012

Offers Received: 1

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: $86,685,408

Exercised Options: $84,985,545

Current Obligation: $84,985,545

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline