DoD's $15.2M Logistics Engineering Services Contract with Bell Textron Inc. Awarded via Sole Source

Contract Overview

Contract Amount: $15,179,099 ($15.2M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2007-12-31

End Date: 2013-06-30

Contract Duration: 2,008 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LOGISTICS ENGINEERING TECHNICAL SERVICE REPRESENTATIVES (LETSR)

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $15.2 million to BELL TEXTRON INC for work described as: LOGISTICS ENGINEERING TECHNICAL SERVICE REPRESENTATIVES (LETSR) Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Services provided by Bell Textron Inc., a major defense contractor with extensive experience. 3. Contract duration spans over five years, indicating a long-term need for these services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. Engineering services are critical for maintaining complex defense logistics. 6. Awarded by the Defense Contract Management Agency, suggesting a focus on oversight and execution.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. However, given the sole-source nature and the duration, it's difficult to ascertain if competitive pricing was achieved. The firm fixed-price structure provides some cost certainty, but the absence of competition raises questions about whether the government secured the best possible value. Further analysis would require comparing the per-unit cost of services or the overall cost against similar sole-source engineering support contracts within the DoD.

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 Textron Inc., was solicited. This approach is typically used when a unique capability or proprietary technology is required, or when only one responsible source is available. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a competed contract. The justification for a sole-source award would need to be robust to ensure taxpayer funds are used efficiently.

Taxpayer Impact: The absence of competition means taxpayers did not benefit from potential cost reductions that could arise from multiple vendors bidding for the contract. This could result in a higher overall expenditure for the services rendered.

Public Impact

Benefits the Department of Defense by ensuring continued logistics engineering support for critical defense systems. Delivers essential technical services to maintain operational readiness and efficiency of military logistics. Geographic impact is likely concentrated around DoD facilities where Bell Textron Inc. provides support. Workforce implications include employment for specialized logistics engineers and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency on the justification for sole-source award.
Potential for cost overruns if not closely managed due to lack of competitive benchmarking.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Bell Textron Inc. is an established contractor with relevant expertise.
Long-term contract suggests a sustained and critical need for these services.

Sector Analysis

The engineering services sector within the defense industry is highly specialized, focusing on complex technical support for military platforms and systems. This contract falls under engineering services (NAICS 541330), a segment characterized by high barriers to entry and significant reliance on specialized knowledge and experience. The market size for such services is substantial, driven by the continuous need for maintenance, upgrades, and operational support of advanced defense equipment. Bell Textron Inc.'s role as a major defense manufacturer positions them well to provide these specialized logistics engineering services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Bell Textron Inc. is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Bell Textron Inc. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. As a definitive contract, it likely includes specific clauses and reporting requirements. Transparency regarding the sole-source justification and ongoing performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Logistics Support Services
Engineering and Technical Services
Defense Contractor Support
Military Logistics Modernization

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of detailed performance metrics in provided data hinders full assessment.
Long contract duration without clear performance benchmarks requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.2 million to BELL TEXTRON INC. LOGISTICS ENGINEERING TECHNICAL SERVICE REPRESENTATIVES (LETSR)

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 $15.2 million.

What is the period of performance?

Start: 2007-12-31. End: 2013-06-30.

What is the specific justification provided by the Department of Defense for awarding this contract on a sole-source basis to Bell Textron Inc.?

The provided data indicates the contract was awarded as 'NOT COMPETED' and 'sole-source'. While the specific justification is not detailed in the abbreviated data, sole-source awards are typically granted when only one responsible source can satisfy the agency's needs. This could be due to unique capabilities, proprietary technology, or a lack of adequate competition. For a contract of this magnitude and duration, the Department of Defense would have had to document a compelling reason, such as Bell Textron Inc. being the only entity capable of providing the specialized logistics engineering technical service representatives (LETSR) required for specific defense systems they manufacture or support. Without access to the full contract file or justification documentation, the precise rationale remains unconfirmed, but it implies a critical need that could not be met through a competitive bidding process.

How does the $15.2 million contract value compare to similar logistics engineering support contracts within the Department of Defense?

Comparing the $15.2 million value requires context regarding the scope, duration, and specific services rendered. This contract spans from December 31, 2007, to June 30, 2013, a period of over five years. The average annual value is approximately $2.5 million. While Bell Textron Inc. is a major defense contractor, the value itself is moderate for a sole-source engineering services contract within the DoD. Benchmarking would involve identifying other sole-source or competed contracts for similar 'Logistics Engineering Technical Service Representatives' or comparable engineering support roles within defense agencies. Factors like the complexity of the systems supported, the required skill sets, and geographic locations of service delivery would influence comparability. Without more granular data on specific deliverables and market rates for such specialized personnel, a precise value comparison is difficult, but it appears to be within a plausible range for long-term, specialized technical support.

What are the primary risks associated with a sole-source contract of this nature and duration?

The primary risks associated with a sole-source contract like this include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best possible value for their money since market forces are not driving down costs. Furthermore, there's a risk of vendor lock-in, where the government becomes dependent on a single provider, making it difficult to switch even if performance or pricing becomes unsatisfactory. The absence of competition can also limit opportunities for other capable firms, potentially hindering the broader defense industrial base. Robust oversight and performance management are crucial to mitigate these risks.

What is the track record of Bell Textron Inc. in fulfilling similar logistics engineering support contracts for the Department of Defense?

Bell Textron Inc. has a long-standing and extensive track record as a major defense contractor, particularly in the aerospace and defense sectors. They are known for manufacturing helicopters and other aircraft systems. Their involvement in providing logistics engineering technical service representatives (LETSR) suggests a deep understanding of the complex support requirements for these sophisticated platforms. While specific performance data for this particular $15.2 million contract isn't detailed here, Bell Textron Inc. generally holds numerous contracts with the DoD across various service and supply categories. Their established presence and history indicate a capacity to deliver on such requirements, though the success of any specific contract depends on detailed performance metrics and oversight.

How does the Firm Fixed Price (FFP) contract type influence cost control and risk allocation for this logistics engineering services contract?

The Firm Fixed Price (FFP) contract type significantly influences cost control and risk allocation by placing the majority of the financial risk on the contractor, Bell Textron Inc. Under an FFP agreement, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs incurred. This incentivizes the contractor to manage their expenses efficiently and complete the work within budget. For the government, this provides cost certainty, as the total expenditure is known upfront, assuming no contract modifications. However, if the contractor underestimates costs or encounters unforeseen issues, they bear the loss. Conversely, if they manage costs effectively, they retain any savings, which can be a strong motivator for performance. This structure is generally preferred for services where the scope of work is well-defined and technical risks are manageable.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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: 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: $15,179,099

Exercised Options: $15,179,099

Current Obligation: $15,179,099

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline