DoD's $38.4M Blade Assembly Contract Awarded Sole-Source to Bell Textron Inc

Contract Overview

Contract Amount: $38,409,420 ($38.4M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2014-04-23

End Date: 2018-05-31

Contract Duration: 1,499 days

Daily Burn Rate: $25.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BLADE ASSEMBLY,AIRC

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $38.4 million to BELL TEXTRON INC for work described as: BLADE ASSEMBLY,AIRC Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. Bell Textron Inc. is the sole manufacturer of these specific blade assemblies, indicating a potential single point of failure for critical defense needs. 3. The contract duration of nearly 5 years suggests a long-term reliance on this specific component and supplier. 4. The firm fixed-price contract type offers some cost certainty, but the absence of competition limits the government's ability to negotiate favorable terms. 5. The contract was awarded to a Texas-based company, potentially impacting regional economic development within the defense sector. 6. The lack of competition may lead to higher unit costs compared to a scenario with multiple bidders.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specialized nature of the 'BLADE ASSEMBLY,AIRC' product. Without competitive bids, it's difficult to ascertain if the $38.4 million awarded represents a fair market price. The government's reliance on a single supplier for such a critical component suggests a lack of alternative sourcing options, which can often lead to higher costs over time. Further analysis would require access to historical pricing data for similar components or internal cost estimates from the Defense Logistics Agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. Bell Textron Inc. is identified as the sole manufacturer of these specific aircraft blade assemblies. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple vendors. While sole-source awards can be justified in specific circumstances, such as when only one vendor possesses the necessary capabilities or intellectual property, they inherently limit price discovery and can reduce the government's leverage in negotiations.

Taxpayer Impact: Taxpayers may be paying a premium for these blade assemblies due to the absence of competitive bidding. The lack of alternative suppliers means the government cannot benefit from potential cost savings that competition usually drives.

Public Impact

The primary beneficiaries are the U.S. Army and potentially other branches of the Department of Defense that utilize aircraft requiring these specific blade assemblies. The contract ensures the continued availability of critical aircraft components, supporting ongoing military operations and readiness. The geographic impact is primarily centered around Bell Textron Inc.'s operations in Texas, contributing to the local economy and defense industrial base. The contract supports specialized manufacturing jobs within the aerospace and defense sector, particularly in the area of component production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Reliance on a single supplier creates a risk of supply chain disruption if Bell Textron Inc. faces production issues.
Lack of competition hinders the government's ability to explore potentially more cost-effective alternative solutions or suppliers.
The specialized nature of the component may make it difficult to find alternative suppliers even if desired.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Bell Textron Inc. is an established defense contractor with a track record in aircraft manufacturing.
Ensures the availability of a critical component for defense aircraft, supporting operational readiness.

Sector Analysis

The aerospace and defense manufacturing sector is characterized by high barriers to entry, significant R&D investment, and often long production cycles. Contracts for specialized aircraft components like blade assemblies are typically awarded to established manufacturers with proven capabilities and certifications. The market for such components is often niche, with a limited number of qualified suppliers. This specific contract falls under the broader category of aircraft parts manufacturing, a segment that is crucial for maintaining the operational readiness of military fleets. Comparable spending benchmarks would likely involve other sole-source or limited-competition awards for highly specialized aerospace components.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature and the specialized product, it is unlikely that small businesses would be primary awardees. However, Bell Textron Inc. may engage small businesses as subcontractors for certain parts or services, though this information is not detailed in the provided data. The impact on the broader small business ecosystem is likely minimal unless significant subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA) and the Defense Logistics Agency (DLA) quality assurance representatives. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified goods at the agreed-upon price. Transparency is limited due to the sole-source award; however, contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics Agency Procurement
Sole-Source Defense Contracts
Bell Textron Inc. Contracts
Military Aircraft Maintenance and Repair

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 million to BELL TEXTRON INC. BLADE ASSEMBLY,AIRC

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 $38.4 million.

What is the period of performance?

Start: 2014-04-23. End: 2018-05-31.

What is Bell Textron Inc.'s track record with the Department of Defense for similar aircraft components?

Bell Textron Inc. has a long-standing and extensive history of contracting with the Department of Defense, particularly in the realm of rotorcraft and fixed-wing aircraft. They are a major manufacturer of military helicopters, including the V-22 Osprey and the AH-1Z Viper attack helicopter. Their contracts often involve the production of entire aircraft, as well as major sub-assemblies and components like rotor blades, transmissions, and airframes. Historical data indicates a pattern of significant contract awards, often through competitive processes but also including sole-source awards for specialized or proprietary parts. The Defense Logistics Agency, in particular, frequently procures spare parts and sustainment services from prime manufacturers like Bell Textron to ensure fleet readiness. While specific data on 'BLADE ASSEMBLY,AIRC' contracts with Bell Textron is not detailed here, their overall profile suggests a deep integration into the DoD's supply chain for critical aircraft components.

How does the $38.4 million contract value compare to similar sole-source awards for aircraft blade assemblies?

Direct comparison of this $38.4 million sole-source award for 'BLADE ASSEMBLY,AIRC' to similar contracts is difficult without more specific product details and market intelligence. Aircraft blade assemblies vary significantly in complexity, material, size, and the type of aircraft they are designed for, leading to wide price discrepancies. Sole-source awards, by their nature, lack the price discovery mechanism of competition, making external benchmarking inherently less reliable. However, for highly specialized, proprietary, or safety-critical components where only one manufacturer possesses the necessary design, tooling, and certification (as is likely the case with Bell Textron for specific assemblies), prices can be substantially higher than comparable, more commoditized parts. The duration of the contract (nearly 5 years) and the number of units implied by the total value would be key factors in assessing unit cost reasonableness if more data were available.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with this sole-source award are financial and operational. Financially, the absence of competition means the government cannot be assured it is receiving the best possible price. Bell Textron Inc. faces no direct competitive pressure to lower its costs or improve its profit margins, potentially leading to higher overall expenditure for the taxpayer. Operationally, the reliance on a single supplier creates a significant supply chain risk. Any disruption at Bell Textron's facility—whether due to production issues, labor disputes, natural disasters, or geopolitical events—could directly impact the availability of these critical blade assemblies, potentially grounding aircraft and affecting military readiness. Furthermore, the lack of competition can stifle innovation, as there is less incentive for the incumbent supplier to invest in developing more advanced or cost-effective alternatives.

How does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code relate to this specific contract?

The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' broadly categorizes establishments primarily engaged in manufacturing aircraft parts and auxiliary equipment, except engines, engine parts, propellers, and landing gear. This specific contract for 'BLADE ASSEMBLY,AIRC' fits squarely within this classification. Blade assemblies are critical components of an aircraft's propulsion and lift systems, and their manufacturing requires specialized knowledge, materials, and processes. While NAICS 336413 is a broad category, it encompasses the production of a wide array of components beyond just blades, including fuselage sections, wings, landing gear components (though sometimes separated), and various other structural and functional parts. The 'Other' designation suggests it captures parts not specifically itemized in more granular subcategories within the aircraft manufacturing sector.

What is the historical spending pattern for aircraft blade assemblies by the Defense Logistics Agency?

Historical spending patterns for aircraft blade assemblies by the Defense Logistics Agency (DLA) are likely substantial and consistent, reflecting the ongoing need to maintain a large and diverse military aviation fleet. The DLA is responsible for providing logistics support, including spare parts, to all branches of the U.S. military. Contracts for components like blade assemblies are often awarded through a mix of competitive and sole-source mechanisms, depending on the specificity, proprietary nature, and availability of suppliers. Spending can fluctuate based on fleet modernization programs, operational tempo, and the retirement or introduction of new aircraft types. Analyzing DLA's historical spending would reveal trends in demand for specific types of components, the average price points achieved through different contracting methods, and the key suppliers dominating the market. Without access to specific DLA procurement databases filtered for 'blade assemblies,' a precise historical spending figure is unavailable, but it is reasonable to assume it represents a significant portion of the DLA's overall aviation parts procurement budget.

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: $38,409,420

Exercised Options: $38,409,420

Current Obligation: $38,409,420

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W58RGZ12G0001

IDV Type: BOA

Timeline