DoD Spends $23M on Rotary Wing Parts from Bell Textron, Lacking Competition

Contract Overview

Contract Amount: $23,016,555 ($23.0M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2015-03-20

End Date: 2019-07-01

Contract Duration: 1,564 days

Daily Burn Rate: $14.7K/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 $23.0 million to BELL TEXTRON INC for work described as: BLADE,ROTARY WING Key points: 1. Significant spending on a single supplier for critical aircraft components. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. Long contract duration (1564 days) may indicate a need for more agile procurement. 4. Geographic concentration in Texas for this specific contract.

Value Assessment

Rating: questionable

The total award of $23,016,555 for rotary wing parts lacks a clear per-unit cost benchmark. Without competitive bidding, it's difficult to assess if the pricing is reasonable compared to market alternatives or similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as the government may not be leveraging the most cost-effective options available.

Taxpayer Impact: The absence of competition likely results in higher costs for taxpayers, as there was no market pressure to drive down prices for these essential aircraft parts.

Public Impact

Military readiness could be impacted if parts are not procured efficiently. Taxpayers may be overpaying for essential defense components. Potential for reduced innovation in aircraft parts manufacturing due to lack of market competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Sole-Source Award
Limited Transparency on Pricing

Positive Signals

Essential Component for Rotary Wing Aircraft
Long-Term Contractual Relationship

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is critical for defense readiness. Spending benchmarks for this category are highly variable, but significant sole-source awards warrant scrutiny to ensure fair pricing and access to a competitive market.

Small Business Impact

The data indicates this contract was awarded to Bell Textron Inc., a large corporation. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency. Further oversight would involve reviewing the justification for the sole-source award and ensuring adherence to procurement regulations to protect taxpayer interests.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment due to lack of market pressure.
Limited transparency on procurement justification.
Long contract duration may not reflect current market dynamics.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2015-03-20. End: 2019-07-01.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative procurement strategies considered?

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 access to the contract's detailed justification documents, it's impossible to confirm the specific reasons or if alternatives were explored. This lack of transparency hinders a full assessment of the procurement's value.

How does the unit cost of these rotary wing parts compare to similar components purchased competitively by the DoD or other agencies?

Without a competitive bidding process, establishing a direct unit cost comparison is challenging. Benchmarking would require access to pricing data from similar, competitively awarded contracts for comparable aircraft parts. The absence of this data, coupled with the sole-source nature, raises concerns about potential price inflation and inefficient use of taxpayer funds.

What is the long-term strategy for ensuring a competitive market for these critical aircraft parts to avoid future sole-source procurements?

A long-term strategy might involve market research to identify potential new suppliers, encouraging innovation through R&D contracts, or breaking down large requirements into smaller, more competitive lots. The DoD could also explore strategic partnerships or incentivize existing suppliers to develop more cost-effective solutions to foster competition.

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: 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: $23,408,277

Exercised Options: $23,408,277

Current Obligation: $23,016,555

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W58RGZ12G0001

IDV Type: BOA

Timeline