DoD awards $11.1M for System Configuration Sets to Bell Textron Inc., a sole-source contract

Contract Overview

Contract Amount: $11,068,604 ($11.1M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-16

End Date: 2023-09-30

Contract Duration: 379 days

Daily Burn Rate: $29.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SYSTEM CONFIGURATION SETS

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to BELL TEXTRON INC for work described as: SYSTEM CONFIGURATION SETS Key points: 1. Significant award value of over $11 million for specialized aircraft parts. 2. Sole-source award to Bell Textron Inc. raises questions about competition. 3. Contract duration of 379 days indicates a medium-term project. 4. Focus on 'Other Aircraft Parts' suggests a niche but critical sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar sole-source contracts for specialized aircraft parts is difficult without more data.

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 and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $11.1 million contract may result in a higher cost to taxpayers than if multiple vendors had vied for the work.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. Reliance on a single supplier could create supply chain vulnerabilities. The specific nature of 'System Configuration Sets' suggests a critical component for military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competition

Positive Signals

Award to established defense contractor
Specific need for specialized parts

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is vital for national defense, providing specialized components. Spending in this niche area is often characterized by high technical requirements and limited vendor pools, making sole-source awards more common but also necessitating careful oversight.

Small Business Impact

This contract was awarded to Bell Textron Inc., a large corporation, with no indication of small business participation. Future contracts in this area should explore opportunities for small businesses to contribute.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost creep. The Department of the Navy should document the justification for not competing this requirement.

Related Government Programs

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

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract
Lack of competition
Potential for price inflation
Limited visibility into cost drivers

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to BELL TEXTRON INC. SYSTEM CONFIGURATION SETS

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 $11.1 million.

What is the period of performance?

Start: 2022-09-16. End: 2023-09-30.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. To ensure a fair and reasonable price, the agency should conduct thorough market research, obtain cost breakdowns from the contractor, and potentially use historical pricing data or independent government cost estimates as benchmarks. Independent cost analysis is crucial in sole-source situations.

What are the potential risks associated with relying on a single supplier for these critical aircraft parts, especially concerning long-term availability and maintenance?

Relying on a single supplier for critical aircraft parts poses risks such as potential supply chain disruptions due to the vendor's operational issues, limited negotiation leverage for future procurements, and the possibility of price increases over time. Long-term availability could be jeopardized if the vendor decides to discontinue the product line or faces financial instability. This necessitates proactive inventory management and contingency planning by the procuring agency.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact the government's ability to control costs for these system configuration sets?

The Cost Plus Fixed Fee (CPFF) structure means the government reimburses the contractor for allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can still escalate if allowable costs increase significantly. This structure incentivizes the contractor to control costs to maximize their fee, but it requires robust government oversight to scrutinize allowable costs and prevent inefficiencies from driving up the overall contract price.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6893622R0006

Pricing Type: COST PLUS FIXED FEE (U)

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: $15,895,290

Exercised Options: $15,895,290

Current Obligation: $11,068,604

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $175,129

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6893622D0039

IDV Type: IDC

Timeline