DoD awards $211.5M for rotary wing parts, with Bell Textron Inc. as sole provider

Contract Overview

Contract Amount: $21,150,000 ($21.1M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2013-08-28

End Date: 2017-01-31

Contract Duration: 1,252 days

Daily Burn Rate: $16.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BLADE,ROTARY WING

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to BELL TEXTRON INC for work described as: BLADE,ROTARY WING Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Significant duration of contract (1252 days) suggests a long-term need for these parts. 3. Awarded by the Defense Logistics Agency, indicating a focus on sustainment and readiness. 4. The contract's value is substantial, highlighting the importance of rotary wing aircraft to defense operations. 5. Fixed-price contract type aims to control costs, but sole-source nature limits negotiation leverage.

Value Assessment

Rating: questionable

The contract value of $211.5 million for rotary wing parts is significant. However, without a competitive bidding process, it is difficult to benchmark the value for money. The firm fixed-price structure is a positive indicator for cost control, but the lack of competition means taxpayers may not be receiving the best possible price. Further analysis would require comparing this to similar sole-source awards for comparable parts or assessing the contractor's historical pricing trends.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Bell Textron Inc., was solicited. This approach bypasses the standard competitive procurement process. While sole-source awards can be justified for unique capabilities or essential sole-provider items, they inherently limit price discovery and potentially lead to higher costs for the government compared to a fully competed contract with multiple bidders.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from the downward price pressure that multiple bids typically generate. This could result in a higher overall expenditure for these critical aircraft parts.

Public Impact

Benefits military branches relying on rotary wing aircraft for various operational needs. Ensures the availability of essential parts for maintaining the readiness and operational capability of helicopters. Geographic impact is primarily within Texas where the contractor is located, but the parts support a national defense asset. Workforce implications include supporting jobs at Bell Textron Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the bidding process due to sole-source nature.
Long contract duration could mask inefficiencies if not closely monitored.
Dependence on a single supplier for critical components poses a supply chain risk.

Positive Signals

Firm fixed-price contract type helps to establish cost certainty.
Awarded by the Defense Logistics Agency, which specializes in efficient supply chain management.
Ensures availability of critical parts for rotary wing aircraft, supporting national security.
Contractor is an established entity with experience in this specific aircraft type.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized aircraft components, particularly for military platforms, is often characterized by high barriers to entry due to technical expertise, certifications, and established relationships. Bell Textron Inc. is a major player in the helicopter manufacturing and support industry. Spending benchmarks for such specialized parts are difficult to establish publicly due to proprietary information and the unique nature of military requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded to a large prime contractor, Bell Textron Inc. There is no explicit information regarding subcontracting plans for small businesses within this award. The sole-source nature of the award limits opportunities for small businesses to participate directly as prime contractors or potentially as subcontractors if the prime had been required to compete and identify diverse suppliers.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency (DLA) and potentially the Department of Defense's Inspector General. DLA is responsible for ensuring contract compliance, delivery schedules, and quality standards. The firm fixed-price nature of the contract provides some cost oversight, but the sole-source aspect means that the government's primary oversight is on performance and adherence to the agreed-upon terms rather than price negotiation. Transparency is limited due to the non-competitive award.

Related Government Programs

DoD Rotary Wing Aircraft Sustainment
Defense Logistics Agency Aircraft Parts Procurement
Bell Helicopter Support Contracts
Military Aircraft Component Manufacturing

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to BELL TEXTRON INC. BLADE,ROTARY WING

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 $21.1 million.

What is the period of performance?

Start: 2013-08-28. End: 2017-01-31.

What is the historical spending pattern for rotary wing parts from Bell Textron Inc. by the Department of Defense?

Historical spending data for rotary wing parts from Bell Textron Inc. by the Department of Defense is extensive, reflecting the long-standing reliance on Bell helicopters across various military branches. While specific aggregate figures for 'rotary wing parts' are not readily available without deep database queries, individual contract awards for sustainment, upgrades, and spare parts for platforms like the UH-1 Iroquois, AH-1 Cobra, and V-22 Osprey have cumulatively amounted to billions of dollars over decades. The $211.5 million awarded in this specific instance represents a significant, but not unprecedented, investment in maintaining these critical assets. Analyzing past awards would reveal trends in pricing, contract types (often sole-source or limited competition for specialized parts), and the duration of sustainment efforts, underscoring the continuous need for such components throughout an aircraft's lifecycle.

How does the $211.5 million contract value compare to other similar sole-source awards for aircraft parts?

Comparing the $211.5 million contract value for rotary wing parts to other sole-source awards requires access to detailed contract databases and specific part classifications. However, in the defense aerospace sector, sole-source awards in the tens to hundreds of millions of dollars for critical components, sustainment, or specialized systems are not uncommon, especially when dealing with legacy platforms or proprietary technologies where only one manufacturer can provide the necessary items. For instance, sole-source contracts for engine components, avionics, or airframe structures for major military aircraft can reach similar or even higher values. The key differentiator is often the criticality of the part and the limited availability of alternative suppliers. Without specific comparable part data, it's challenging to definitively state if this award is high or low, but it falls within a range expected for significant sole-source defense procurements.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of $211.5 million are significant. Firstly, the lack of competition means the government likely paid a premium, as there was no incentive for Bell Textron Inc. to offer the lowest possible price. This represents a potential financial risk to taxpayers. Secondly, there's a strategic risk related to supply chain dependency; the DoD becomes reliant on a single entity for critical components, which could be exploited through price increases or supply disruptions. Thirdly, without competitive benchmarking, it's harder to assess the true market value and ensure efficient use of funds. Finally, the absence of a competitive process can sometimes mask underlying issues with product quality or delivery timelines, as the government has fewer leverage points to enforce stringent performance standards compared to a competitive scenario.

What is the expected program effectiveness given this contract structure?

The expected program effectiveness hinges on the criticality of the parts supplied and the performance of Bell Textron Inc. As this is a sole-source award for rotary wing parts, the primary goal is to ensure the operational readiness and sustainment of DoD helicopters. The firm fixed-price contract structure provides cost certainty, which is beneficial for budgeting. However, the effectiveness in terms of 'value for money' is questionable due to the lack of competition. If Bell Textron Inc. delivers high-quality parts on time and meets all specifications, the program will be effective in its core mission of supporting aircraft availability. Conversely, if pricing is inflated or delivery is inconsistent, the effectiveness in terms of resource utilization will be compromised, despite meeting basic contractual obligations.

How does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code relate to the specific parts being procured?

The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' is a broad category that encompasses establishments primarily engaged in manufacturing aircraft parts and auxiliary equipment, except engines, engine parts, propellers, and landing gear. This specific code is appropriate for the procurement of a wide range of rotary wing components that do not fall under more specialized categories. It suggests that the $211.5 million contract covers various parts such as airframes, rotor blades (as indicated by the data 'BLADE,ROTARY WING'), avionics components, hydraulic systems, and other essential auxiliary equipment necessary for the operation and maintenance of helicopters. The breadth of this code implies a comprehensive supply of parts needed for sustainment.

What is the track record of Bell Textron Inc. in fulfilling similar defense contracts?

Bell Textron Inc. has a long and extensive track record of fulfilling defense contracts, particularly related to rotary wing aircraft. As a major helicopter manufacturer, they are responsible for the design, production, and sustainment of numerous platforms used by the U.S. military and allied nations for decades. Their history includes contracts for major programs like the V-22 Osprey, UH-1Y Venom, and AH-1Z Viper. While specific performance metrics for all past contracts are not publicly detailed, Bell Textron Inc. is generally recognized as a capable and experienced supplier within the defense industry. However, like any large contractor, they may have faced scrutiny or challenges on specific contracts regarding cost, schedule, or performance, which are typical in complex, long-term defense procurements.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 600 EAST HURST BLVD, HURST, TX, 76053

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: $21,150,000

Exercised Options: $21,150,000

Current Obligation: $21,150,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ12G0001

IDV Type: BOA

Timeline