DoD awards $26.8M contract for aircraft accessories and components to Bell Helicopter Textron, Inc

Contract Overview

Contract Amount: $26,803,975 ($26.8M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2004-08-31

End Date: 2008-12-31

Contract Duration: 1,583 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: 200412!000017!1700!AC523 !NAVAL AIR SYSTEMS COMMAND !N0001903G0001 !A!N! !N!W110 ! !20040831!20081203!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON, INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000037000000!Y!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336411!E! !4! ! ! ! ! !99990909!B! ! !N!Z!D!U!J!1!001!N!1A!Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to BELL TEXTRON INC for work described as: 200412!000017!1700!AC523 !NAVAL AIR SYSTEMS COMMAND !N0001903G0001 !A!N! !N!W110 ! !20040831!20081203!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON, INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARR… Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns. 2. The contract duration of over four years suggests a significant need for these components. 3. The specific product code for 'Aircraft Manufacturing' indicates a focus on defense aviation. 4. The award was not competed, potentially limiting opportunities for other suppliers and impacting cost savings. 5. The firm fixed-price contract type aims to control costs, but the lack of competition is a concern. 6. The contractor, Bell Helicopter Textron, Inc., is a known entity in the aerospace industry.

Value Assessment

Rating: fair

The contract value of $26.8 million for aircraft accessories and components appears to be within a reasonable range for a multi-year defense contract. However, without specific details on the exact components or quantities, a direct comparison to similar contracts is difficult. The lack of competition is a significant factor that could have inflated the price, making it harder to benchmark against market rates or other competitive bids. The firm fixed-price nature of the contract suggests an attempt to cap costs, but the absence of competitive pressure means the value for money is less certain.

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 among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means there were no other bidders to compare against, and it limits the government's ability to leverage market forces to achieve the best possible price. This raises concerns about whether the government secured the most cost-effective solution.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for goods or services, as there was no competitive pressure to drive down prices. This can lead to less efficient use of public funds.

Public Impact

The primary beneficiaries are likely the U.S. military branches that utilize aircraft requiring these specific accessories and components. The contract delivers essential parts for aircraft maintenance and operation, ensuring fleet readiness. The geographic impact is primarily centered around the contractor's facilities in Texas, with potential ripple effects on the local economy. The contract supports jobs within the aerospace manufacturing sector, particularly at Bell Helicopter Textron, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency in pricing.
Dependence on a single supplier could pose supply chain risks.

Positive Signals

Firm fixed-price contract type helps to cap costs.
Contract awarded to an established aerospace manufacturer.
Contract duration indicates a sustained need for the components.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, a significant segment of the U.S. economy. The market for aircraft accessories and components is driven by military and commercial aviation demand. Given the 'Defense Contract Management Agency' as the servicing agency and the 'NAVAL AIR SYSTEMS COMMAND' as the issuing command, this spending is clearly directed towards military aviation needs. Comparable spending benchmarks would typically involve analyzing other contracts for similar aircraft parts awarded to major defense contractors.

Small Business Impact

There is no indication that this contract involved small business set-asides. As a sole-source award to a large prime contractor, Bell Helicopter Textron, Inc., it is unlikely that significant subcontracting opportunities for small businesses were mandated or actively pursued through this specific award mechanism. The focus appears to be on direct procurement from the prime.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and quality standards. The contract's firm fixed-price nature implies a focus on delivery and adherence to specifications. Transparency is limited due to the sole-source nature, but contract award data is publicly available through federal procurement databases.

Related Government Programs

Naval Air Systems Command Contracts
Department of Defense Aircraft Procurement
Aerospace Component Manufacturing
Defense Contractor Support Services

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to BELL TEXTRON INC. 200412!000017!1700!AC523 !NAVAL AIR SYSTEMS COMMAND !N0001903G0001 !A!N! !N!W110 ! !20040831!20081203!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON, INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000037000000!Y!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336411!E! !4! ! ! ! ! !999

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 $26.8 million.

What is the period of performance?

Start: 2004-08-31. End: 2008-12-31.

What specific aircraft accessories and components are covered under this contract?

The provided data indicates the contract is for 'MSL AIRCRAFT ACCESSORIES AND COMPONENTS' under Product Service Code (PSC) '1680'. While the specific list of components is not detailed in the summary data, PSC 1680 generally covers items such as aircraft air conditioning systems, aircraft auxiliary power units, aircraft cabin furnishings, aircraft cargo handling equipment, aircraft control systems, aircraft engine accessories, aircraft fuel systems, aircraft hydraulic systems, aircraft instruments, aircraft lighting systems, aircraft maintenance equipment, aircraft oxygen systems, aircraft power plant components, aircraft propellers, aircraft seats, aircraft signaling equipment, aircraft structural components, aircraft survival equipment, aircraft testing equipment, aircraft tires, aircraft tools, aircraft ventilation systems, and aircraft warning systems. The contract value of $26.8 million suggests a substantial quantity or a range of high-value components.

What is the track record of Bell Helicopter Textron, Inc. with the Department of Defense?

Bell Helicopter Textron, Inc., now part of Bell Textron Inc., has a long and extensive history of contracting with the Department of Defense. As a major aerospace manufacturer, they have been a key supplier of military helicopters and aircraft components for decades. Their track record includes numerous contracts for various defense platforms, research and development, and sustainment services. While this specific contract was sole-source, Bell's overall engagement with the DoD is typically characterized by large-scale, complex procurements. A deeper analysis would involve reviewing their performance history on other contracts, including any past issues with delivery, quality, or cost overruns, to provide a comprehensive view of their reliability and value.

How does the $26.8 million contract value compare to similar sole-source awards for aircraft components?

Benchmarking the $26.8 million value of this sole-source contract for aircraft accessories and components against similar awards is challenging without more specific details on the exact nature of the components and their quantities. However, for a multi-year contract (over four years) awarded to a prime defense contractor like Bell Helicopter Textron, Inc., this value is not unusually high. Sole-source awards, by their nature, lack direct price competition, which can lead to higher prices compared to competed contracts. To assess value for money, one would ideally compare the unit prices and total cost to historical data for the same or highly similar components, or to prices paid by other government agencies or commercial entities for comparable items, adjusted for contract duration and volume.

What are the potential risks associated with a sole-source award for critical aircraft components?

The primary risk associated with a sole-source award for critical aircraft components is the potential for inflated pricing due to the absence of competitive bidding. Without competing offers, the government may not achieve the best possible price, leading to less efficient use of taxpayer funds. Another risk is reduced transparency in cost justification. Furthermore, relying on a single supplier can create supply chain vulnerabilities; if the sole-source contractor experiences production issues, delays, or financial instability, it could directly impact the availability of critical components and, consequently, the readiness of military aircraft. This also limits the government's leverage in negotiating future contracts or addressing performance issues.

What is the historical spending pattern for aircraft accessories and components by the Naval Air Systems Command?

The Naval Air Systems Command (NAVAIR) historically spends billions of dollars annually on aircraft, including a significant portion allocated to procurement and sustainment of aircraft components, accessories, and related services. Spending patterns vary year to year based on fleet modernization programs, maintenance schedules, and specific platform requirements. NAVAIR's budget typically includes substantial allocations for fixed-wing and rotary-wing aircraft sustainment, which encompasses the procurement of a wide array of parts. Analyzing NAVAIR's historical spending data for PSC 1680 and related categories would reveal trends in total expenditure, the prevalence of sole-source versus competed contracts, and the average contract values for similar items, providing context for the $26.8 million award.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 600 E HURST BLVD, HURST, TX, 24

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001903G0001

IDV Type: IDC

Timeline