DoD awards $16.7M contract to Bell Helicopter for aircraft parts, raising competition concerns

Contract Overview

Contract Amount: $16,721,183 ($16.7M)

Contractor: Bell Helicopter Textron Inc

Awarding Agency: Department of Defense

Start Date: 2001-12-11

End Date: 2011-03-31

Contract Duration: 3,397 days

Daily Burn Rate: $4.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200203!008276!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833502C3125 !A!N! !N! !20011211!20011211!620162602!062923321!001338979!N!BELL HELICOPTER TEXTRON INC !1235 J DAVIS HWY CRYSTAL !ARLINGTON !VA!22202!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000005893205!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !336413!E! !3! ! ! ! ! !99990909!B! ! !N!Z!D!U!U!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79111

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to BELL HELICOPTER TEXTRON INC for work described as: 200203!008276!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833502C3125 !A!N! !N! !20011211!20011211!620162602!062923321!001338979!N!BELL HELICOPTER TEXTRON INC !1235 J DAVIS HWY CRYSTAL !ARLINGTON !VA!22202!03000!013!51!ARLINGTON !ARLIN… Key points: 1. The contract value is $16.7 million, awarded to Bell Helicopter Textron Inc. 2. The procurement method was 'NOT COMPETED', indicating a lack of competitive bidding. 3. The contract type is 'COST PLUS FIXED FEE', which can lead to cost overruns. 4. The sector is Defense, specifically 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.

Value Assessment

Rating: questionable

The contract value of $16.7 million for aircraft parts appears high given the lack of competition and the cost-plus-fixed-fee structure, which historically can lead to higher final costs than fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition and the cost-plus-fixed-fee contract type may result in taxpayers paying more than necessary for these aircraft parts.

Public Impact

Taxpayers may be overpaying for essential aircraft components due to a lack of competitive bidding. The reliance on a single supplier for critical parts could pose a risk to supply chain stability. The cost-plus-fixed-fee structure incentivizes higher spending rather than cost efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus-fixed-fee contract type
Potential for cost overruns

Positive Signals

Award to established contractor
Long contract duration

Sector Analysis

This contract falls within the Defense sector, specifically in the manufacturing of aircraft parts. Spending in this area is critical for military readiness, but competitive sourcing is crucial to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this procurement, as the award went to a large prime contractor, Bell Helicopter Textron Inc.

Oversight & Accountability

The 'NOT COMPETED' designation warrants further investigation into the justification for bypassing competitive procedures. Oversight should focus on ensuring the necessity of sole-source awards and the reasonableness of costs.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding
Cost-plus-fixed-fee contract type
Potential for cost overruns
Limited transparency in pricing
Sole-source award justification required

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to BELL HELICOPTER TEXTRON INC. 200203!008276!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833502C3125 !A!N! !N! !20011211!20011211!620162602!062923321!001338979!N!BELL HELICOPTER TEXTRON INC !1235 J DAVIS HWY CRYSTAL !ARLINGTON !VA!22202!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000005893205!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !336413!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is BELL HELICOPTER 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 $16.7 million.

What is the period of performance?

Start: 2001-12-11. End: 2011-03-31.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical. Agencies must demonstrate that only one responsible source can provide the supplies or services, or that exceptional circumstances preclude full and open competition. Without this justification, taxpayers are exposed to potentially inflated prices and reduced innovation.

How were the fixed fees determined in this Cost Plus Fixed Fee (CPFF) contract to ensure they were reasonable and incentivized efficiency?

In a CPFF contract, the fixed fee is negotiated upfront and represents the contractor's profit. Agencies must ensure this fee is reasonable based on the complexity, risk, and contractor's performance expectations. Inadequate negotiation of the fee can lead to excessive profits for the contractor without corresponding benefits to the government.

What mechanisms are in place to monitor and control costs under this CPFF contract, given its inherent risk of overruns?

Effective oversight of CPFF contracts requires robust cost monitoring systems. This includes regular reviews of incurred costs, performance metrics, and contractor's financial reporting. Agencies must actively manage the contract to prevent scope creep and ensure that costs remain within projected levels, holding the contractor accountable for efficient performance.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1235 J DAVIS HWY CRYSTAL, ARLINGTON, VA, 22202

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline