DoD awards $31M contract for aircraft manufacturing training to Cessna Aircraft Company

Contract Overview

Contract Amount: $30,977,854 ($31.0M)

Contractor: Cessna Aircraft Company

Awarding Agency: Department of Defense

Start Date: 2009-06-11

End Date: 2010-12-31

Contract Duration: 568 days

Daily Burn Rate: $54.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRAINING

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to CESSNA AIRCRAFT COMPANY for work described as: TRAINING Key points: 1. The contract value is $30,977,853.98. 2. Cessna Aircraft Company is the sole awardee. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Aircraft Manufacturing within the Defense industry.

Value Assessment

Rating: questionable

The contract was awarded on a firm-fixed-price basis. Without competitive bidding, it is difficult to assess if the pricing is optimal or reflects market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for this training service.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The Department of the Army received specialized training services. The contract duration was 568 days.

Waste & Efficiency Indicators

Waste Risk Score: 30 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpayment

Positive Signals

Firm-fixed-price contract
Specific training service provided

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is critical for military readiness and technological advancement. Benchmarks for similar training contracts are difficult to ascertain without competitive data.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award. The focus appears to be on a specific, potentially specialized, training requirement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received fair value. Further review of the justification for not competing the contract is recommended.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency in price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to CESSNA AIRCRAFT COMPANY. TRAINING

Who is the contractor on this award?

The obligated recipient is CESSNA AIRCRAFT COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $31.0 million.

What is the period of performance?

Start: 2009-06-11. End: 2010-12-31.

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

The provided data does not specify the justification for the sole-source award. Typically, such awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent need. A thorough review would be needed to validate this justification and ensure it was appropriate.

What is the benchmark cost for similar aircraft manufacturing training services?

Without competitive bidding data or access to similar government contracts, establishing a precise benchmark for this specific training is challenging. The lack of competition makes it difficult to determine if the $30.9 million price is reasonable compared to market rates or other government procurements.

What is the long-term impact of sole-source training contracts on military readiness?

While sole-source contracts can ensure specialized training is delivered, over-reliance can stifle innovation and lead to higher costs, potentially impacting overall readiness budgets. Ensuring competitive processes where feasible helps maintain cost-effectiveness and encourages a broader base of capable training providers.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ09R0331

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: ONE CESSNA BLVD, WICHITA, KS, 04

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: $30,977,854

Exercised Options: $30,977,854

Current Obligation: $30,977,854

Timeline