DoD Spends $37.4M on Aircraft Gearbox Assembly, Sole-Sourced from Bell Textron

Contract Overview

Contract Amount: $37,369,944 ($37.4M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2018-04-13

End Date: 2021-01-06

Contract Duration: 999 days

Daily Burn Rate: $37.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GEARBOX ASSY,MAIN R

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76101

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $37.4 million to BELL TEXTRON INC for work described as: GEARBOX ASSY,MAIN R Key points: 1. Significant expenditure on a critical aircraft component. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (999 days) may indicate ongoing need or lack of alternatives. 4. No small business participation noted.

Value Assessment

Rating: questionable

The award amount of $37.4M for a single delivery order is substantial. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess value. The 'NOT COMPETED' status suggests potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This method limits price discovery and competition, potentially leading to higher costs for taxpayers. The justification for sole-sourcing is not provided.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the GEARBOX ASSY,MAIN R.

Public Impact

Impacts military readiness by supplying essential aircraft parts. Potential for taxpayer funds to be used inefficiently due to sole-source award. Lack of transparency in the procurement process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
No small business participation

Positive Signals

Essential component for aircraft
Long-term contract provides stability

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for components like gearbox assemblies. Spending benchmarks for such specialized parts can vary widely based on complexity and volume. The $37.4M figure for a single order is notable.

Small Business Impact

The contract explicitly states that small businesses were not involved (sb: false). This indicates a missed opportunity to support small businesses within the defense supply chain for this procurement.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-sourcing was valid and that fair pricing was achieved. Accountability for the procurement decision rests with the Defense Logistics Agency.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
No small business participation.
Long contract duration without clear competition.
Lack of transparency in procurement justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to BELL TEXTRON INC. GEARBOX ASSY,MAIN R

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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $37.4 million.

What is the period of performance?

Start: 2018-04-13. End: 2021-01-06.

What was the justification for awarding this contract on a sole-source basis, and were alternative suppliers or competitive options explored?

The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough review would require access to the contract file to ascertain the specific justification, such as unique capabilities, urgent need, or lack of market availability. Without this information, it's impossible to confirm if competitive options were adequately considered or if this was the only viable path.

How does the per-unit cost of this gearbox assembly compare to industry benchmarks or previous similar procurements?

The data does not provide a per-unit cost, only a total award amount of $37.4M for one delivery order with a duration of 999 days. To assess value, a breakdown of units and their associated costs would be necessary. Benchmarking against similar gearbox assemblies from other manufacturers or historical data from Bell Textron would be crucial for a comprehensive cost analysis.

What is the potential risk to operational readiness if this sole-source supplier faces production issues or price increases?

A sole-source contract presents a significant risk to operational readiness. If Bell Textron encounters production delays, quality issues, or imposes substantial price increases, the Department of Defense has limited recourse. This dependency could disrupt aircraft maintenance schedules and impact mission capabilities, highlighting the strategic vulnerability of relying on a single supplier for critical components.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 3255 BELL HELICOPTER 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: $37,369,944

Exercised Options: $37,369,944

Current Obligation: $37,369,944

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $350,614

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPRPA116G001W

IDV Type: BOA

Timeline