DoD awards $67.8M for aircraft parts, with Bell Textron Inc. as sole provider

Contract Overview

Contract Amount: $67,881,244 ($67.9M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2009-02-27

End Date: 2023-01-31

Contract Duration: 5,086 days

Daily Burn Rate: $13.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SEP LOT 12

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $67.9 million to BELL TEXTRON INC for work described as: SEP LOT 12 Key points: 1. Contract awarded to a single vendor suggests limited market competition. 2. Long contract duration of over 13 years may indicate a stable, long-term need. 3. Firm Fixed Price contract type shifts risk to the contractor. 4. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a specialized sector. 5. Geographic location of the contractor in Texas is noted.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the parts procured and their market rates. The total award amount of $67.8 million over more than 13 years averages to approximately $5.2 million annually. This figure needs to be compared against the specific needs and quantities of aircraft parts required by the Department of the Army. Given the sole-source nature, there's a potential for less competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Bell Textron Inc. The data indicates it was 'NOT COMPETED.' This means the agency determined that only one responsible source was available or that the urgency of the need did not permit a competitive procurement. Without a competitive process, it's difficult to assess the full range of market capabilities or pricing.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the benefit of competition in driving down prices is lost.

Public Impact

The Department of Defense, specifically the Department of the Army, is the primary beneficiary, receiving essential aircraft parts. This contract supports the operational readiness and maintenance of military aircraft. The services delivered are critical for ongoing aviation operations. The contract's impact is primarily on the defense sector's supply chain and operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a competed contract.
Long contract duration could potentially lock the government into a less optimal solution if market conditions change.
Sole-source awards can reduce transparency in pricing and vendor selection.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Long-term award suggests a consistent and critical need for these specific parts.
Award to an established contractor like Bell Textron Inc. may indicate reliability and expertise in this niche.

Sector Analysis

The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry (NAICS 336413). This sector is vital for the aerospace and defense industries, providing specialized components for aircraft. The total federal spending in this sector can be substantial, supporting military readiness and commercial aviation. Benchmarking this specific contract's value against broader sector spending requires detailed analysis of the specific parts procured and their market dynamics.

Small Business Impact

The data indicates this contract was not competed and does not specify any small business set-aside or subcontracting requirements. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem through this specific award. Further investigation into Bell Textron Inc.'s subcontracting practices would be needed to assess any indirect impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. The specific contract type (Firm Fixed Price) and its long duration suggest regular performance reviews and payment audits would be in place. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics
Aerospace Manufacturing Contracts
Department of the Army Aviation Support

Risk Flags

Sole-source award lacks competitive pricing pressure.
Long contract duration may limit flexibility for future technological adoption.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.9 million to BELL TEXTRON INC. SEP LOT 12

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 $67.9 million.

What is the period of performance?

Start: 2009-02-27. End: 2023-01-31.

What specific aircraft parts are covered under this $67.8 million contract?

The provided data does not specify the exact aircraft parts covered under contract number SEP LOT 12. It falls under the broader category of 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413). To understand the value and necessity of this contract, a detailed breakdown of the specific components, their quantities, and their role in maintaining specific military aircraft would be required. Without this granular information, it is difficult to assess if the $67.8 million award represents a fair price for the goods provided over its 13-year duration.

Why was this contract awarded on a sole-source basis to Bell Textron Inc.?

The data explicitly states the contract was 'NOT COMPETED' and awarded as a 'sole-source' to Bell Textron Inc. This typically occurs when a contracting agency determines that only one responsible source can provide the required goods or services, or when there's a compelling justification for excluding competition, such as urgency or unique capabilities. For this specific contract, the agency likely assessed that Bell Textron Inc. was the only entity capable of supplying the necessary specialized aircraft parts, possibly due to proprietary technology, existing integration with specific aircraft platforms, or unique manufacturing expertise. Further documentation from the Department of Defense would be needed to confirm the precise justification for the sole-source award.

How does the $67.8 million total award compare to typical spending on aircraft parts by the Department of the Army?

Comparing the $67.8 million total award to the Department of the Army's overall spending on aircraft parts requires context regarding the specific types of parts and the duration of the contract. This contract spans over 13 years (from February 27, 2009, to January 31, 2023), averaging approximately $5.2 million per year. The Department of the Army procures a vast array of aircraft parts for its diverse fleet, including helicopters and fixed-wing aircraft. Without knowing the criticality and uniqueness of the parts supplied by Bell Textron Inc. under this contract, it's challenging to definitively benchmark this amount against the Army's total annual aircraft parts expenditure, which can run into billions of dollars across all categories.

What are the potential risks associated with a sole-source contract of this duration?

A sole-source contract, especially one spanning over 13 years, carries several potential risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no market pressure to offer the most cost-effective solution. Secondly, the government may become overly reliant on a single supplier, creating vulnerability if that supplier experiences financial difficulties, production issues, or decides to discontinue the product line. Thirdly, technological advancements in the market might be overlooked, as the government is locked into a contract with a specific provider, potentially missing out on more efficient or capable alternatives that could emerge during the contract's long term. Finally, transparency in pricing and performance can be reduced compared to a competitively bid contract.

What is Bell Textron Inc.'s track record with government contracts, particularly for aircraft parts?

Bell Textron Inc. is a well-established and significant player in the aerospace and defense industry, with a long history of developing and manufacturing military and commercial aircraft, including helicopters. As such, they are a frequent recipient of government contracts, particularly from the Department of Defense. Their track record typically involves supplying aircraft, components, and support services. While this specific contract (SEP LOT 12) was sole-source, Bell Textron Inc. likely holds numerous other contracts, both competed and sole-source, for various aircraft parts and systems. A comprehensive review of their contract history would reveal their performance, delivery reliability, and pricing trends across different contract vehicles.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,881,244

Exercised Options: $67,881,244

Current Obligation: $67,881,244

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline