DoD Awards $33.6M Contract to Bell Textron Inc. for PBL Services, Raising Oversight Questions

Contract Overview

Contract Amount: $33,639,340 ($33.6M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2023-09-28

Contract Duration: 364 days

Daily Burn Rate: $92.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8509386930!PBL SERVICE BELL

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $33.6 million to BELL TEXTRON INC for work described as: 8509386930!PBL SERVICE BELL Key points: 1. Contract awarded to a single, established prime contractor. 2. Limited competition due to the nature of PBL services. 3. Potential for cost overruns if performance metrics are not met. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: fair

The contract value of $33.6M for a 364-day period appears reasonable for specialized Performance-Based Logistics (PBL) services. Benchmarking against similar PBL contracts for complex aerospace systems is difficult without more detailed service breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, likely due to the specialized nature of PBL services requiring specific contractor expertise and existing system knowledge. This lack of competition limits price discovery and potentially increases costs.

Taxpayer Impact: Taxpayer funds are used for this contract. The lack of competition may lead to higher costs than if it were fully competed, impacting overall value for money.

Public Impact

Ensures continued operational readiness for critical defense assets. Supports a major defense contractor and its supply chain. Potential for increased costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost creep
Limited transparency on performance metrics

Positive Signals

Supports critical defense systems
Long-term contractor relationship

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely based on defense needs and technological advancements. Benchmarks are difficult without specific component data.

Small Business Impact

The contract was awarded to Bell Textron Inc., a large prime contractor. There is no indication of small business participation in this specific award, which is common for large, specialized defense contracts.

Oversight & Accountability

The contract was not competed, suggesting a reliance on existing relationships or specialized capabilities. Oversight will be crucial to ensure performance metrics are met and costs remain justified, especially given the lack of competitive pressure.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for cost escalation
Limited transparency on performance metrics
Sole reliance on incumbent contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to BELL TEXTRON INC. 8509386930!PBL SERVICE BELL

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 $33.6 million.

What is the period of performance?

Start: 2022-09-29. End: 2023-09-28.

What specific performance metrics are in place to ensure the value of these PBL services?

The contract details do not explicitly outline the specific performance metrics tied to the PBL services. Effective oversight requires clear, measurable, and achievable performance standards that directly link contractor actions to desired outcomes, ensuring the $33.6M investment delivers tangible operational benefits and justifies the cost.

How is the risk of cost overruns managed in this non-competed contract?

Given the contract is not competed, the primary risk is cost overruns due to a lack of competitive pressure. Robust oversight by the Defense Contract Management Agency is essential. This includes rigorous monitoring of expenditures, validation of performance against established benchmarks, and proactive negotiation to mitigate any potential price increases.

What is the long-term strategic value of this PBL contract for the Department of Defense?

The long-term strategic value lies in ensuring the sustained readiness and operational availability of critical aircraft systems supported by Bell Textron. PBL contracts aim to shift risk to the contractor and improve system performance over the lifecycle, potentially reducing total ownership costs and enhancing mission effectiveness.

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

Pricing Type: FIRM FIXED PRICE (J)

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: $33,639,340

Exercised Options: $33,639,340

Current Obligation: $33,639,340

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRPA120D9401

IDV Type: IDC

Timeline