DoD's $51.4M Bell Helicopter Contract for 412EP Aircraft and Support Awarded Sole Source

Contract Overview

Contract Amount: $51,393,250 ($51.4M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2009-06-01

End Date: 2010-12-31

Contract Duration: 578 days

Daily Burn Rate: $88.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BELL HELICOPTER 412EP AIRCRAFTS, OPTIONAL EQUIPMENT, LOGISTICAL SUPPORT, SPARE PARTS, SPECIAL TOOLS, AND PILOT AND MAINTAINER TRAINING

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $51.4 million to BELL TEXTRON INC for work described as: BELL HELICOPTER 412EP AIRCRAFTS, OPTIONAL EQUIPMENT, LOGISTICAL SUPPORT, SPARE PARTS, SPECIAL TOOLS, AND PILOT AND MAINTAINER TRAINING Key points: 1. Contract awarded to Bell Textron Inc. for specialized aircraft and support services. 2. The contract value is approximately $51.4 million. 3. Services include aircraft, optional equipment, logistical support, spare parts, tools, and training. 4. The contract was not competed, raising questions about price discovery. 5. The duration of the contract is 578 days. 6. The contract falls under the Aircraft Manufacturing NAICS code. 7. The contract was awarded as a definitive contract with a firm fixed price. 8. The contract was awarded by the Defense Contract Management Agency.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar sole-source procurements. The firm fixed-price structure offers some cost certainty, but the lack of competition means there's no direct market comparison to assess if the price represents optimal value for money. The inclusion of a broad range of support services, from spare parts to training, suggests a comprehensive package, but the overall cost-effectiveness hinges on the necessity and pricing of each component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential suppliers. This approach is typically used when only one source is capable of meeting the government's needs, often due to proprietary technology, unique capabilities, or urgent requirements. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. Without a competitive bidding process, the government relies heavily on the awarded contractor's pricing and justification.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical aircraft and support. Services delivered include the provision of Bell 412EP aircraft, essential equipment, and ongoing logistical support. The contract supports aviation readiness and operational capabilities within the defense sector. Workforce implications include potential demand for specialized maintenance, logistics, and training personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if pricing is not rigorously scrutinized due to lack of competition.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Comprehensive package including aircraft, parts, and training addresses multiple needs.
Award to a known manufacturer (Bell Textron) suggests established product support.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized manufacturing processes, and significant R&D investment. Contracts for military aircraft and their associated support are a substantial part of this sector. Bell Textron Inc. is a major player in the helicopter manufacturing market. This contract for Bell 412EP aircraft and support fits within the broader category of military aircraft procurement, which often involves complex, high-value, and long-term agreements.

Small Business Impact

This contract does not appear to include specific small business set-aside provisions. As a sole-source award to a large prime contractor, the primary impact on small businesses would likely be through potential subcontracting opportunities. The extent of small business involvement would depend on Bell Textron's subcontracting plan and the availability of qualified small businesses capable of providing specialized parts, services, or training.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm fixed-price nature of the contract provides a degree of accountability for cost. Transparency regarding the justification for the sole-source award and the specific performance metrics would be key to assessing overall accountability.

Related Government Programs

Department of Defense Aircraft Procurement
Military Helicopter Acquisition
Defense Logistics and Support Services
Aerospace Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.4 million to BELL TEXTRON INC. BELL HELICOPTER 412EP AIRCRAFTS, OPTIONAL EQUIPMENT, LOGISTICAL SUPPORT, SPARE PARTS, SPECIAL TOOLS, AND PILOT AND MAINTAINER TRAINING

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 $51.4 million.

What is the period of performance?

Start: 2009-06-01. End: 2010-12-31.

What is the historical spending pattern for Bell 412EP aircraft and related support by the Department of Defense?

Analyzing historical spending on Bell 412EP aircraft and associated support by the Department of Defense requires access to comprehensive contract databases. Without specific historical data for this particular model and its support packages, it's difficult to establish a precise trend. However, military aircraft procurement and sustainment are typically characterized by significant, recurring investments. Sole-source awards for specialized platforms like the 412EP can indicate a long-standing requirement or a unique capability that the DoD has consistently relied upon. Further investigation into past contracts awarded to Bell Textron for similar platforms would be necessary to identify any patterns in spending, contract duration, and scope of services.

What specific justification was provided for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from circumstances where only one responsible source can satisfy the agency's needs. For aircraft and specialized support, this could be due to proprietary technology, unique manufacturing capabilities, existing fleet commonality requiring specific parts and training, or urgent and compelling requirements that preclude a competitive solicitation. Without direct access to the contract's justification documentation (e.g., a Justification and Approval document), the precise reasons remain unknown. However, common rationales for sole-sourcing complex aerospace systems include the need for interoperability with existing platforms, specialized maintenance expertise held by the original manufacturer, or the unavailability of alternative solutions that meet stringent performance specifications.

How does the firm fixed-price (FFP) structure mitigate risks for the government in this sole-source contract?

A Firm Fixed-Price (FFP) contract structure is generally advantageous for the government, especially in sole-source situations, as it shifts the risk of cost overruns to the contractor. Under an FFP agreement, the contractor agrees to a set price for the specified goods or services, regardless of their actual costs incurred. This provides budget certainty for the government and incentivizes the contractor to manage its costs efficiently to maximize profit. While it doesn't eliminate the risk of the price being too high due to lack of competition, it does protect the government from unexpected increases in the contractor's expenses related to labor, materials, or overhead during the contract performance period.

What are the potential performance risks associated with this sole-source contract for aircraft support?

Performance risks in a sole-source aircraft support contract can arise from several factors. Since there's no competitive pressure, the contractor might have less incentive to proactively address potential issues or exceed performance expectations. Specific risks include potential delays in delivery of spare parts or equipment, suboptimal maintenance quality if oversight is lax, or inadequate training provided to personnel. Furthermore, if the contractor faces unforeseen technical challenges or supply chain disruptions, the government's recourse might be limited without competitive alternatives. Robust contract management, clear performance metrics, and diligent oversight by the contracting agency are crucial to mitigating these risks.

Can the value of this contract be benchmarked against similar sole-source procurements for military helicopters?

Benchmarking the value of this $51.4 million contract for Bell 412EP aircraft and support against similar sole-source procurements is challenging without access to detailed comparative data. Sole-source contracts are inherently difficult to benchmark because they lack direct market comparisons. However, one could look at other sole-source awards for similar types of helicopters (e.g., other utility or light attack helicopters) or for comprehensive support packages (logistics, parts, training) from other manufacturers. Factors like aircraft age, specific mission requirements, quantity, and the scope of support services would need to be closely matched. The duration of the contract (578 days) and the firm fixed-price nature are also important variables for comparison.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ09R0409

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 3255 BELL HELICOPTER 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: $51,393,250

Exercised Options: $51,393,250

Current Obligation: $51,393,250

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline