DoD's $18.8M contract for MH-60R airframe components awarded to Bell Helicopter Textron Inc

Contract Overview

Contract Amount: $18,804,820 ($18.8M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2004-11-29

End Date: 2009-11-30

Contract Duration: 1,827 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200502!001026!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0032 !A!N! !N! ! !20041129!20080131!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000001597115!N!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !191 !MH-60R !336413!E! !3! ! ! ! ! !20200930!B! ! !A! !D!N!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76101

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to BELL TEXTRON INC for work described as: 200502!001026!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0032 !A!N! !N! ! !20041129!20080131!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 for airframe structural components for MH-60R helicopters. 2. Bell Helicopter Textron Inc. is the sole recipient of this contract. 3. The contract duration spans over 4 years, from late 2004 to late 2009. 4. The total value of the contract is approximately $18.8 million. 5. This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry. 6. The contract was not competed, raising questions about potential cost efficiencies.

Value Assessment

Rating: fair

The contract value of $18.8 million for airframe structural components appears reasonable given the duration and the nature of specialized aerospace manufacturing. However, without direct comparable contracts for the same components or a competitive bidding process, a definitive value-for-money assessment is challenging. The pricing is fixed, which provides some cost certainty, but the lack of competition means there's no external benchmark to ensure the most economical price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Bell Helicopter Textron Inc., was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple companies submitting proposals. While sole-source awards can be justified for unique capabilities or existing systems, they limit price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competition, as the government did not benefit from potential cost savings that could arise from multiple bids.

Public Impact

The primary beneficiaries are the U.S. Navy, as the MH-60R is a key naval helicopter platform. The contract delivers essential structural components crucial for the operational readiness of MH-60R helicopters. The geographic impact is primarily centered around Bell Helicopter Textron Inc.'s facilities in Texas. This contract supports specialized manufacturing jobs within the aerospace sector, particularly at the contractor's location.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices.
Sole-source award limits opportunities for other suppliers.
Potential for cost overruns if not closely monitored due to lack of competitive pressure.

Positive Signals

Ensures supply of critical components for a key military asset (MH-60R).
Fixed-price contract provides cost predictability.
Contract awarded to an established manufacturer with likely relevant expertise.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft components. The market for such specialized parts is often dominated by a few key manufacturers due to high barriers to entry, including technological expertise, regulatory compliance, and established supply chains. The total value of $18.8 million is moderate for a defense contract of this nature, reflecting the specific components and duration. Comparable spending in this sub-sector would involve other airframe parts or specialized systems for military aircraft.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a large prime contractor, there is no explicit mechanism within this contract to ensure subcontracting opportunities for small businesses. The prime contractor's internal subcontracting policies would determine any flow-down to small businesses, which is not detailed here. This limits the direct positive impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and the Department of Defense contracting command responsible for aviation procurement. Accountability measures are inherent in the firm-fixed-price structure, which shifts some risk to the contractor. Transparency is limited due to the sole-source nature, but contract modifications and performance reports would be subject to internal DoD review and potentially Inspector General oversight if performance issues arise.

Related Government Programs

MH-60R Helicopter Program
Naval Aviation Procurement
Aerospace Component Manufacturing
Defense Contractor Spending

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 $18.8 million to BELL TEXTRON INC. 200502!001026!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0032 !A!N! !N! ! !20041129!20080131!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000001597115!N!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !191 !MH-60R !336413!E! !3! ! ! ! ! !202

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 $18.8 million.

What is the period of performance?

Start: 2004-11-29. End: 2009-11-30.

What is Bell Helicopter Textron Inc.'s track record with similar sole-source contracts for MH-60R components?

Bell Helicopter Textron Inc. (now Bell Textron Inc.) has a long history as a primary manufacturer and support provider for various helicopter platforms, including the H-1 and H-60 families. Their track record with sole-source contracts for specific components often stems from their original equipment manufacturer (OEM) status and proprietary knowledge. While specific data on past sole-source awards for MH-60R airframe components isn't detailed here, their established role suggests a pattern of being the go-to supplier for such critical parts. Historical performance on other sole-source contracts would need to be reviewed for delivery timeliness, quality, and adherence to negotiated prices to fully assess their reliability in this context.

How does the per-unit cost of these airframe structural components compare to market rates or similar contracts?

A direct per-unit cost comparison is challenging without knowing the exact quantity and specific part numbers included in the $18.8 million contract. Furthermore, the sole-source nature of this award means there isn't a competitive benchmark readily available. Generally, sole-source procurements tend to have higher costs than competitively bid ones because the government lacks the leverage of multiple offers. To assess value, one would need to compare the negotiated price against historical pricing for the same components (if available), prices for similar components on different platforms, or benchmark against industry standards for aerospace manufacturing, factoring in the specialized nature and certifications required.

What are the primary risks associated with this sole-source contract for airframe components?

The primary risks associated with this sole-source contract include potential cost overruns if pricing was not adequately negotiated, reduced incentive for the contractor to innovate or improve efficiency due to lack of competition, and a potential delay in delivery if the contractor faces production issues without competitive pressure to mitigate them. There's also a risk of vendor lock-in, making it difficult and costly to switch suppliers in the future. Ensuring robust oversight and performance metrics is crucial to mitigate these risks. The government must actively manage the contract to ensure it receives fair value and timely delivery despite the absence of a competitive environment.

How effective has the MH-60R program been, and how does this component contract contribute to its overall success?

The MH-60R Seahawk is a highly effective multi-mission naval helicopter, widely regarded as a cornerstone of U.S. Navy maritime operations. It excels in anti-submarine warfare (ASW), anti-surface warfare (ASuW), and search and rescue (SAR) missions. This contract, by ensuring the supply of critical airframe structural components, directly contributes to the operational readiness and longevity of the MH-60R fleet. Without these essential parts, the helicopters could not be maintained or repaired, directly impacting the Navy's ability to conduct its missions. Therefore, the timely and quality delivery of these components is vital for the program's continued success.

What are the historical spending patterns for airframe structural components for the MH-60R program?

Historical spending patterns for MH-60R airframe structural components would likely show consistent, albeit fluctuating, investment over the program's lifecycle. Early years might involve higher spending for initial fleet build-up, followed by sustained spending for sustainment, upgrades, and replacement parts. Contracts like this $18.8 million award represent a portion of that ongoing sustainment cost. Analyzing past spending would reveal trends in contract types (competitive vs. sole-source), average contract values, and the primary suppliers. A review of historical data could indicate if this $18.8 million award is in line with previous expenditures for similar component procurements or if it represents a significant deviation.

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: 600 E HURST BLVD, HURST, TX, 24

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline