DoD Awards $422M Contract to Bell Helicopter for Aircraft Manufacturing, Facing Limited Competition

Contract Overview

Contract Amount: $422,251,923 ($422.3M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2005-07-29

End Date: 2011-01-17

Contract Duration: 1,998 days

Daily Burn Rate: $211.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200512!005332!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0234 !A!N! !Y! ! !20050729!20080930!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000025662497!N!N!000000000000!AC15!RDTE/AIRCRAFT-ENG/MANUF DEVELOP !A1A!AIRFRAMES AND SPARES !000 !* !336411!E! !3! ! ! ! ! !20200930!B! ! !B! !A!N!V!2!002!B! !Z!Y!Z! ! !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 $422.3 million to BELL TEXTRON INC for work described as: 200512!005332!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0234 !A!N! !Y! ! !20050729!20080930!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARR… Key points: 1. The contract awarded to Bell Helicopter Textron Inc. is valued at over $422 million. 2. Competition was limited, raising potential concerns about price discovery and value for taxpayer money. 3. The sector is Defense, specifically aircraft manufacturing and development, a critical area for national security. 4. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract value of $422 million for aircraft manufacturing and development appears substantial. Benchmarking against similar complex defense contracts is difficult without more specific details on the scope of work, but the limited competition raises questions about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under limited competition, which can restrict the number of bidders and potentially lead to higher prices than if it were fully and openly competed. The impact on price discovery is likely negative, as fewer proposals may have been submitted.

Taxpayer Impact: Limited competition can result in higher costs for taxpayers compared to a fully competitive process, potentially leading to less efficient use of public funds.

Public Impact

Taxpayers may be paying more due to limited competition in this significant defense contract. The contract supports critical aircraft manufacturing and development for the U.S. Army. Oversight is crucial to ensure Bell Helicopter Textron Inc. delivers value and manages costs effectively under the incentive fee structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Incentive Fee contract type
Potential for cost overruns

Positive Signals

Supports critical defense capabilities
Long-term contract duration

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aircraft manufacturing and development. Spending in this area is substantial and driven by national security needs. Benchmarks are highly variable based on aircraft type and technological complexity.

Small Business Impact

There is no explicit indication in the provided data whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The contract's duration and cost-plus nature necessitate robust oversight from the Department of Defense to ensure performance, cost control, and adherence to contract terms. Accountability for meeting milestones and managing expenses is paramount.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may lead to higher costs.
Cost Plus Incentive Fee contracts carry inherent risks of cost overruns.
Lack of transparency on small business subcontracting.
Potential for reduced innovation due to limited bidder pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $422.3 million to BELL TEXTRON INC. 200512!005332!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0234 !A!N! !Y! ! !20050729!20080930!062923321!062923321!001338979!N!BELL HELICOPTER TEXTRON INC !600 E HURST BLVD !HURST !TX!76053!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000025662497!N!N!000000000000!AC15!RDTE/AIRCRAFT-ENG/MANUF DEVELOP !A1A!AIRFRAMES AND SPARES !000 !* !336411!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 $422.3 million.

What is the period of performance?

Start: 2005-07-29. End: 2011-01-17.

What specific aircraft or components does this contract cover, and how does its scope compare to similar contracts awarded under full and open competition?

The data indicates the contract is for 'Aircraft Manufacturing' and 'Airframes and Spares' within RDTE/AIRCRAFT-ENG/MANUF DEVELOP. Without specific details on the aircraft type or the exact nature of the development work, a direct comparison to contracts awarded under full and open competition is challenging. However, limited competition generally suggests a less favorable pricing environment for the government.

What are the key performance indicators and cost control mechanisms within this Cost Plus Incentive Fee contract to mitigate risks of overspending?

The Cost Plus Incentive Fee (CPIF) structure implies that both the contractor and the government share in cost savings or overruns relative to target costs, with incentives for the contractor to meet or exceed performance targets. Specific KPIs and cost control mechanisms would be detailed in the contract's statement of work and financial clauses, requiring detailed review to assess their effectiveness.

How does the limited competition impact the long-term technological advancement and cost-effectiveness of the U.S. aviation and missile command's procurement strategy?

Limited competition can stifle innovation by reducing the number of companies incentivized to develop cutting-edge solutions. While it might ensure continuity with an incumbent, it could lead to higher long-term costs and slower adoption of new technologies compared to a more competitive landscape that fosters diverse approaches and drives down prices.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 3255 BELL HELICOPTER BLVD, FORT WORTH, TX, 76118

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline