DoD awards $25.6M for Huey II helicopters to Yemen via FMS, with Bell Textron as sole provider

Contract Overview

Contract Amount: $25,647,795 ($25.6M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-28

End Date: 2013-06-30

Contract Duration: 1,006 days

Daily Burn Rate: $25.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF 4 HUEY II HELICOPTERS AND ASSOCIATED SUPPLIES AND SERVICES TO THE REPUBLIC OF YEMEN GOVERNMENT, FMS CASE: G7-B-UAV.

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to BELL TEXTRON INC for work described as: PROCUREMENT OF 4 HUEY II HELICOPTERS AND ASSOCIATED SUPPLIES AND SERVICES TO THE REPUBLIC OF YEMEN GOVERNMENT, FMS CASE: G7-B-UAV. Key points: 1. This contract is for Foreign Military Sales (FMS) to Yemen, indicating a specific international security cooperation effort. 2. Bell Textron Inc. is the sole provider, raising questions about competition and potential price inflation. 3. The contract value of $25.6 million is significant for aircraft procurement, especially in a non-competed scenario. 4. The sector is Aircraft Manufacturing, a critical defense industry with high barriers to entry.

Value Assessment

Rating: questionable

The contract value of $25.6 million for four helicopters and associated services is difficult to benchmark without specific configuration details. However, the lack of competition suggests potential for overpricing compared to similar FMS procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award likely due to the nature of FMS and specific aircraft requirements. This limits price discovery and potentially increases costs for the recipient nation and U.S. taxpayers.

Taxpayer Impact: Taxpayer funds are utilized for FMS programs, and non-competed contracts can lead to higher overall costs, impacting the efficiency of aid delivery.

Public Impact

This procurement directly supports the Republic of Yemen's military capabilities through U.S. foreign assistance. The delivery of Huey II helicopters can enhance Yemen's operational capacity for various missions. As a sole-source award, it highlights potential inefficiencies in the FMS process for certain equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for price escalation

Positive Signals

Supports allied military capabilities
Specific aircraft type requested

Sector Analysis

The Aircraft Manufacturing sector is characterized by high R&D costs, complex supply chains, and significant regulatory oversight. Spending benchmarks for military aircraft vary widely based on type, quantity, and customization.

Small Business Impact

The data indicates the prime contractor is Bell Textron Inc., a large aerospace manufacturer. There is no information provided regarding small business participation in this specific contract.

Oversight & Accountability

Foreign Military Sales are subject to oversight by both the Department of Defense and Congress to ensure proper use of funds and alignment with U.S. foreign policy objectives. The lack of competition warrants scrutiny.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated pricing due to lack of competition.
Foreign Military Sales can be complex and costly.
Geopolitical instability in Yemen may impact effectiveness and sustainability.
Lack of transparency on specific services and support included.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to BELL TEXTRON INC. PROCUREMENT OF 4 HUEY II HELICOPTERS AND ASSOCIATED SUPPLIES AND SERVICES TO THE REPUBLIC OF YEMEN GOVERNMENT, FMS CASE: G7-B-UAV.

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 $25.6 million.

What is the period of performance?

Start: 2010-09-28. End: 2013-06-30.

What is the justification for the sole-source award of these specific Huey II helicopters to Yemen under FMS?

The justification for a sole-source award typically stems from unique capabilities, existing platform familiarity, or specific government-to-government agreements within the FMS framework. Without further details, it's presumed that either Bell Textron is the only entity capable of providing these specific configurations or there are established reasons within the FMS case that preclude open competition.

How does the $25.6 million price compare to similar FMS helicopter procurements or domestic sales of Huey IIs?

Benchmarking this price is challenging without detailed specifications and the exact configuration of the four Huey II helicopters and associated services. However, non-competed FMS contracts often carry a premium compared to competitively bid domestic sales due to factors like specialized support, training, and administrative overhead. A thorough review against similar FMS cases would be necessary to assess value.

What is the long-term effectiveness and sustainability of providing these helicopters to Yemen, considering the ongoing conflict and stability concerns?

The long-term effectiveness is contingent on Yemen's ability to maintain, operate, and effectively employ the helicopters, which is significantly challenged by the ongoing conflict and instability. Sustainability is further impacted by the availability of spare parts, trained personnel, and secure operating bases. The U.S. government's oversight should include assessments of these factors to ensure the aid remains impactful.

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: W58RGZ10R0409

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 600 E HURST BLVD, HURST, TX, 76053

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: $25,647,795

Exercised Options: $25,647,795

Current Obligation: $25,647,795

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline