DoD awards $39.5M contract to Bell Textron for PBL Material, raising concerns about limited competition

Contract Overview

Contract Amount: $39,519,444 ($39.5M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2025-02-28

Contract Duration: 518 days

Daily Burn Rate: $76.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8510143969!PBL MATERIAL BELL

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $39.5 million to BELL TEXTRON INC for work described as: 8510143969!PBL MATERIAL BELL Key points: 1. Contract value of $39.5M for aircraft parts. 2. Sole-source award to Bell Textron Inc. limits competition. 3. Potential risk due to lack of competitive bidding. 4. Spending falls within the Defense sector, specifically aircraft parts manufacturing.

Value Assessment

Rating: questionable

The contract value of $39.5M for PBL Material is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Bell Textron Inc., was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these aircraft parts.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on a single supplier for critical aircraft materials. Limited transparency in pricing for essential defense components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Contract supports critical defense logistics
Firm fixed price contract provides cost certainty

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military readiness, but competitive procurement is vital to ensure cost-effectiveness.

Small Business Impact

The awardee, Bell Textron Inc., is a large corporation, and there is no indication that small businesses were involved in this sole-source procurement. Opportunities for small business participation appear limited.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that the justification for not competing the contract was sound.

Related Government Programs

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

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Limited transparency in cost justification.
Dependency on a single supplier.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.5 million to BELL TEXTRON INC. 8510143969!PBL MATERIAL 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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $39.5 million.

What is the period of performance?

Start: 2023-09-29. End: 2025-02-28.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further details, it's difficult to ascertain the specific rationale, but it's a critical factor in assessing the necessity and fairness of the procurement process.

What are the potential long-term risks of relying on a sole-source supplier for critical aircraft parts?

Long-term reliance on a sole-source supplier can lead to price escalation, reduced innovation, and supply chain vulnerabilities. The government may become dependent on a single entity, potentially facing higher costs and limited options if the supplier experiences production issues or changes its business strategy.

How does the firm fixed price (FFP) contract type mitigate risks in this sole-source scenario?

A firm fixed price contract provides cost certainty for the government, as the price is set and generally not subject to adjustment based on the contractor's cost experience. While this mitigates cost overrun risk for the government, it does not address the fundamental issue of whether the initial fixed price was competitive or fair in the absence of bidding.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: $39,519,444

Exercised Options: $39,519,444

Current Obligation: $39,519,444

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