DoD awards $24.5M contract to Textron Systems for ordnance manufacturing, awarded without competition
Contract Overview
Contract Amount: $24,459,813 ($24.5M)
Contractor: Textron Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-25
End Date: 2012-10-31
Contract Duration: 1,497 days
Daily Burn Rate: $16.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PHASE II TAS::21 2020::TAS
Place of Performance
Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $24.5 million to TEXTRON SYSTEMS CORPORATION for work described as: PHASE II TAS::21 2020::TAS Key points: 1. Significant contract value of $24.5 million awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract falls within the ordnance manufacturing sector, a critical defense area. 4. Long contract duration of nearly 5 years suggests a substantial, ongoing need.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. Without competitive bidding, it's difficult to benchmark pricing against similar contracts to ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The absence of competition for a $24.5 million contract potentially leads to taxpayer funds being used less efficiently.
Public Impact
Taxpayers may be paying more than necessary due to the lack of competitive bidding. The defense sector relies on efficient procurement; non-competitive awards can hinder this. Limited transparency into the pricing justification for this significant award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Awarded to established company
- Supports critical defense manufacturing
Sector Analysis
This contract is within the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector. Spending in this area is crucial for national defense, but competitive procurement is vital to ensure cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. The prime contractor, Textron Systems Corporation, is a large entity.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential oversight gaps. Further review is needed to understand why this contract was not opened to competitive bidding and if adequate justification exists.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated costs
- Limited transparency
- Cost-plus contract type
- Long contract duration
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.5 million to TEXTRON SYSTEMS CORPORATION. PHASE II TAS::21 2020::TAS
Who is the contractor on this award?
The obligated recipient is TEXTRON SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $24.5 million.
What is the period of performance?
Start: 2008-09-25. End: 2012-10-31.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without specific documentation, it's impossible to determine the exact reason. However, the absence of competition for a $24.5 million contract warrants scrutiny to ensure taxpayer funds are protected and that competition was not feasible for valid reasons.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns in this ordnance contract?
Cost Plus Fixed Fee (CPFF) contracts carry a risk of cost overruns because the contractor is reimbursed for actual costs incurred, plus a fixed fee. While the fee is fixed, the contractor has less incentive to control costs compared to fixed-price contracts. For an ordnance contract, where material and production costs can fluctuate, this structure could lead to the government paying more than anticipated if costs are not rigorously monitored and controlled.
What is the potential impact on future defense procurement strategies given this non-competitive award?
Sole-source awards, especially for significant amounts, can set a precedent and potentially reduce future competition if not carefully managed. Agencies should actively seek opportunities to introduce competition where feasible. Over-reliance on non-competitive contracts can lead to higher prices, reduced innovation, and a less robust industrial base. This specific award highlights the need for consistent application of competition requirements.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Textron Inc
Address: 124 INDUSTRY LN, HUNT VALLEY, MD, 21030
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,630,334
Exercised Options: $29,630,334
Current Obligation: $24,459,813
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-25
Current End Date: 2012-10-31
Potential End Date: 2012-10-31 00:00:00
Last Modified: 2025-01-31
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