DoD Awards $86.7M Bell Helicopter Contract for Rotary Wing Aircraft Parts

Contract Overview

Contract Amount: $86,724,311 ($86.7M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2004-03-24

End Date: 2020-08-12

Contract Duration: 5,985 days

Daily Burn Rate: $14.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200408!002401!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0123 !A!N! !N! ! !20040324!20080331!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON, INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000018205744!N!N!000000000000!1520!AIRCRAFT ROTARY WING !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $86.7 million to BELL TEXTRON INC for work described as: 200408!002401!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0123 !A!N! !N! ! !20040324!20080331!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 to Bell Helicopter Textron, Inc. for aircraft parts. 2. Significant value of $86.7 million over a long duration. 3. Procurement method was 'Not Competed', raising potential value concerns. 4. Sector is Defense, specifically Army aviation and missile command. 5. No small business participation noted.

Value Assessment

Rating: questionable

The contract value of $86.7 million for aircraft parts appears high, especially given the 'Not Competed' award. Benchmarking against similar contracts for rotary wing airframes and spares is difficult without more detailed specifications, but the lack of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis ('Not Competed'). This limits price discovery and competition, potentially leading to higher costs for the government compared to a fully competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these aircraft parts.

Public Impact

Impacts Army aviation readiness and maintenance capabilities. Potential for higher costs due to sole-source award. Lack of transparency in the procurement process. No direct benefit to small businesses in this award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
No small business participation

Positive Signals

Supports critical defense needs
Established contractor with relevant experience

Sector Analysis

This contract falls within the Defense sector, specifically supporting Army aviation and missile command. Spending on aircraft parts and maintenance is a significant component of the defense budget, with benchmarks varying widely based on aircraft type and part complexity.

Small Business Impact

The contract data indicates no small business participation (sb: false). This suggests that the prime contractor, Bell Helicopter Textron, Inc., is handling the entire scope of work, and opportunities for subcontracting to small businesses were not identified or pursued.

Oversight & Accountability

The 'Not Competed' status warrants further oversight to ensure the government received fair and reasonable pricing. Accountability for the justification of a sole-source award should be reviewed.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition may lead to inflated prices.
Potential for reduced value for taxpayer money.
Limited transparency in the procurement process.
No small business subcontracting opportunities identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.7 million to BELL TEXTRON INC. 200408!002401!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0123 !A!N! !N! ! !20040324!20080331!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON, INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000018205744!N!N!000000000000!1520!AIRCRAFT ROTARY WING !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !3! ! ! ! ! !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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $86.7 million.

What is the period of performance?

Start: 2004-03-24. End: 2020-08-12.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without specific documentation, it's impossible to determine the exact reason. However, the 'Not Competed' status raises concerns about whether all avenues for competition were fully explored, potentially impacting the government's ability to secure the best possible price and value.

How does the unit cost of these aircraft parts compare to industry benchmarks, given the sole-source nature of the award?

Directly comparing unit costs is challenging without specific part numbers and detailed specifications. However, sole-source contracts inherently limit price discovery mechanisms found in competitive bidding. This often leads to higher unit costs than would be achieved in a competitive environment. Further analysis would require access to detailed pricing data and comparable market rates for similar components.

What is the long-term impact on the Army's operational readiness and budget due to this contract's structure?

The long-term impact depends on the criticality of the parts supplied and the sustained need for them. While ensuring supply chain continuity for essential rotary wing aircraft parts is vital for readiness, the sole-source nature and significant value suggest a potential for inflated costs over the contract's duration. This could strain the Army's budget and potentially divert funds from other critical areas if not managed effectively.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $6,253

Exercised Options: $6,253

Current Obligation: $86,724,311

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline