DoD awards $61M contract for 4 H-1 Flight Training Devices to Bell Textron Inc

Contract Overview

Contract Amount: $61,186,943 ($61.2M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2014-09-05

End Date: 2018-06-08

Contract Duration: 1,372 days

Daily Burn Rate: $44.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS PROCUREMENT IS FOR THE H-1 LOT 4 EFFORT, WHICH PROCURES 3 FLIGHT TRAINING DEVICES UNDER THE BASE CONTRACT AND 1 FTD UNDER AN OPTION.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $61.2 million to BELL TEXTRON INC for work described as: THIS PROCUREMENT IS FOR THE H-1 LOT 4 EFFORT, WHICH PROCURES 3 FLIGHT TRAINING DEVICES UNDER THE BASE CONTRACT AND 1 FTD UNDER AN OPTION. Key points: 1. Contract awarded to a single, established vendor for critical training equipment. 2. Sole-source nature raises questions about price discovery and potential overpayment. 3. Limited competition may restrict innovation and access for other manufacturers. 4. Procurement falls under the 'Other Commercial and Service Industry Machinery Manufacturing' sector.

Value Assessment

Rating: questionable

The contract value of $61.2M for 4 flight training devices appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the price is reasonable compared to similar procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery mechanisms and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The absence of competition likely resulted in a higher price than a competed procurement, impacting taxpayer value.

Public Impact

Ensures continued training capabilities for H-1 helicopter pilots. Supports a key defense contractor, Bell Textron Inc. Potential for higher costs due to lack of competitive bidding. Limited opportunity for smaller businesses to participate in this specific award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Positive Signals

Procures essential training equipment
Supports existing platform capabilities

Sector Analysis

This procurement falls within the 'Other Commercial and Service Industry Machinery Manufacturing' sector. Spending benchmarks for specialized training devices are not readily available, but the sole-source nature suggests potential for above-market pricing.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). The sole-source nature further limits opportunities for small businesses to participate in this specific procurement.

Oversight & Accountability

The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight would focus on contract performance and delivery, but the lack of competition limits price oversight effectiveness.

Related Government Programs

Other Commercial and Service Industry Machinery Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for overpayment due to lack of market validation.
Limited opportunities for small business participation.
Absence of clear justification for sole-source award in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.2 million to BELL TEXTRON INC. THIS PROCUREMENT IS FOR THE H-1 LOT 4 EFFORT, WHICH PROCURES 3 FLIGHT TRAINING DEVICES UNDER THE BASE CONTRACT AND 1 FTD UNDER AN OPTION.

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 $61.2 million.

What is the period of performance?

Start: 2014-09-05. End: 2018-06-08.

What was the justification for the sole-source award, and was a market research conducted to confirm the absence of viable alternatives?

The justification for a sole-source award is critical for understanding the necessity of bypassing competition. Without detailed market research documentation, it's difficult to ascertain if alternatives were truly unavailable or if the government accepted the vendor's assertion without sufficient due diligence. This lack of transparency impacts the assessment of value for money.

How does the per-unit cost of these flight training devices compare to industry benchmarks or previous sole-source procurements for similar equipment?

Without a competitive process, establishing a fair price is challenging. A thorough analysis would involve comparing the unit cost to similar training devices procured competitively or to historical sole-source awards, adjusted for inflation and specific features. If this contract's pricing significantly exceeds benchmarks, it indicates a potential overpayment and a risk to taxpayer funds.

What measures are in place to ensure the effectiveness and timely delivery of these training devices, given the sole-source nature of the contract?

While the sole-source award might streamline the acquisition process by dealing with a known entity, it necessitates robust oversight to ensure performance. The government must actively monitor Bell Textron's progress, adherence to specifications, and delivery schedules. Performance metrics and clear contractual remedies for delays or deficiencies are crucial to mitigate risks associated with a lack of competitive pressure.

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: N6134014R1000

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: $61,186,943

Exercised Options: $61,186,943

Current Obligation: $61,186,943

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline