Army awards $41.6M for two Bell 412EP helicopters, with potential for one more

Contract Overview

Contract Amount: $41,616,502 ($41.6M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2010-04-30

End Date: 2012-09-30

Contract Duration: 884 days

Daily Burn Rate: $47.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE OF 2 WITH AN OPTION FOR 1 ADDITIONAL BELL 412EP HELICOPTERS IN STANDARD CONFIGURATION WITH OPTIONAL EQUIPMENT AND COMPLIMENTARY PILOT AND MAINTAINER TRAINING.

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $41.6 million to BELL TEXTRON INC for work described as: PURCHASE OF 2 WITH AN OPTION FOR 1 ADDITIONAL BELL 412EP HELICOPTERS IN STANDARD CONFIGURATION WITH OPTIONAL EQUIPMENT AND COMPLIMENTARY PILOT AND MAINTAINER TRAINING. Key points: 1. The contract value represents a significant investment in specialized aviation assets. 2. Competition dynamics were limited, raising questions about potential price optimization. 3. The acquisition includes essential training for pilots and maintenance personnel. 4. This purchase aligns with the Army's ongoing need for versatile rotary-wing aircraft. 5. The contractor, Bell Textron Inc., is a well-established player in the aerospace manufacturing sector.

Value Assessment

Rating: fair

The total contract value of $41.6 million for two Bell 412EP helicopters, including training, appears to be within a reasonable range for this type of specialized equipment. However, without detailed breakdowns of the optional equipment and training packages, a precise value-for-money assessment is challenging. Benchmarking against similar recent procurements of this specific model or comparable utility helicopters would provide a clearer picture of pricing efficiency.

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 specific capability or product is required that only one source can provide, or in cases of urgent need. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government may not achieve the most competitive pricing available in the market.

Public Impact

The primary beneficiaries are the Department of the Army, which gains critical aviation capabilities. The services delivered include the provision of two advanced utility helicopters and associated training. The geographic impact is primarily within the operational areas of the Army units receiving the aircraft. Workforce implications include the need for trained pilots and maintenance crews to operate and sustain the new helicopters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs.
Lack of competitive bidding may reduce opportunities for innovative solutions.
Dependence on a single supplier for critical assets can create long-term risks.

Positive Signals

Acquisition of advanced, reliable helicopter platforms enhances operational readiness.
Inclusion of pilot and maintenance training ensures immediate operational capability.
Bell Textron Inc. has a strong track record in helicopter manufacturing.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, significant research and development costs, and long product lifecycles. Aircraft manufacturing, a sub-sector, involves complex engineering and stringent regulatory requirements. The market for military helicopters is often dominated by a few major global players. This contract for Bell 412EP helicopters fits within the broader defense aviation market, where specialized platforms are procured to meet specific military operational needs.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to a large prime contractor, Bell Textron Inc., the opportunities for small businesses would likely be through subcontracting. The extent to which the prime contractor utilizes small business subcontractors is not detailed in this award information, but it is a common practice in the aerospace industry.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the contract terms, including delivery schedules and specifications. Transparency is generally maintained through contract award databases, though detailed performance metrics and cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Military Helicopter Procurement
Aviation Manufacturing
Rotary-Wing Aircraft
Defense Logistics

Risk Flags

Sole-source award
Potential for higher cost due to lack of competition
Limited transparency on specific equipment and training costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.6 million to BELL TEXTRON INC. PURCHASE OF 2 WITH AN OPTION FOR 1 ADDITIONAL BELL 412EP HELICOPTERS IN STANDARD CONFIGURATION WITH OPTIONAL EQUIPMENT AND COMPLIMENTARY 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $41.6 million.

What is the period of performance?

Start: 2010-04-30. End: 2012-09-30.

What is the historical spending pattern for Bell 412EP helicopters by the Department of Defense?

Analyzing historical spending on Bell 412EP helicopters by the Department of Defense requires access to comprehensive contract databases. While this specific award in 2010 for $41.6 million is documented, understanding the broader pattern involves looking at previous and subsequent procurements of this model or similar configurations. Factors such as the number of units purchased, the inclusion of optional equipment, training packages, and sustainment contracts over time would paint a clearer picture. Without this broader historical data, it's difficult to ascertain if this $41.6 million award represents a typical investment, an outlier, or part of a larger, ongoing acquisition strategy for this type of aircraft. Trends in military aviation needs, technological advancements, and budget allocations would influence these historical spending patterns.

How does the per-unit cost of this Bell 412EP acquisition compare to market rates for similar utility helicopters?

Determining the precise per-unit cost requires isolating the aircraft price from the optional equipment and training components within the $41.6 million total. The Bell 412EP is a medium utility helicopter, and its market rate can fluctuate based on configuration, new vs. refurbished status, and vendor pricing. Benchmarking against civilian market prices or other government procurements of similar utility helicopters (e.g., Black Hawk variants, Leonardo AW139) would be necessary. Given the sole-source nature of this award, it's plausible that the price may not reflect the most competitive market rate achievable through open competition. A detailed cost analysis comparing the negotiated price against industry benchmarks and other government contracts would be essential for a definitive assessment of value.

What are the specific risks associated with a sole-source procurement of critical aviation assets like these helicopters?

A sole-source procurement of critical aviation assets like helicopters carries several inherent risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures of a bidding process. Secondly, it can limit the government's access to the latest technological innovations or alternative solutions that might be offered by other manufacturers. Thirdly, it creates a dependency on a single supplier for acquisition, spare parts, maintenance, and upgrades, which can be problematic if that supplier faces financial difficulties, changes its product line, or experiences production delays. This dependency can also weaken the government's negotiating position in future dealings. Finally, sole-source awards can sometimes face greater scrutiny regarding justification and fairness, potentially leading to protests or public criticism.

What is the track record of Bell Textron Inc. in fulfilling government contracts for similar helicopter platforms?

Bell Textron Inc. has a long and extensive track record of supplying helicopters to various government agencies, including the U.S. Department of Defense. They are a major manufacturer known for platforms like the Huey family, the V-22 Osprey tiltrotor, and various other military and commercial helicopters. Their experience with the Bell 412 model specifically, which has seen service in military, law enforcement, and civilian roles globally, suggests a strong understanding of the platform's capabilities and operational requirements. Government contract databases and performance reviews would provide more granular detail on their past performance regarding on-time delivery, adherence to specifications, and overall contract management for similar procurements. Generally, Bell is considered a reliable and experienced supplier in this domain.

What are the potential implications for operational readiness and mission effectiveness with the addition of these two helicopters?

The addition of two Bell 412EP helicopters, configured for standard operations and accompanied by pilot and maintainer training, is expected to enhance the Army's operational readiness and mission effectiveness. The Bell 412EP is a versatile utility helicopter capable of performing a range of missions, including troop transport, cargo movement, search and rescue, medical evacuation, and reconnaissance. Acquiring these platforms directly addresses a need for such capabilities, potentially filling gaps in existing fleets or replacing aging assets. The inclusion of comprehensive training ensures that personnel are proficient in operating and maintaining the aircraft from the outset, minimizing downtime and maximizing utilization. This procurement likely supports specific operational requirements, contributing to the overall effectiveness of deployed units or specialized task forces.

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: W58RGZ10R0290

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 600 E HURST BLVD, HURST, TX, 24

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: $41,616,502

Exercised Options: $41,616,502

Current Obligation: $41,616,502

Contract Characteristics

Cost or Pricing Data: NO

Timeline