DoD Awards $145.8M for 8 Cabin Conversions to Bell Textron Inc

Contract Overview

Contract Amount: $145,829,234 ($145.8M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2010-10-27

End Date: 2016-02-28

Contract Duration: 1,950 days

Daily Burn Rate: $74.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8 CABIN CONVERSIONS BASIC FY10

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $145.8 million to BELL TEXTRON INC for work described as: 8 CABIN CONVERSIONS BASIC FY10 Key points: 1. Significant contract value for aircraft modifications. 2. Sole-source award to Bell Textron Inc., a major aerospace manufacturer. 3. Potential for higher costs due to lack of competition. 4. Spending concentrated in the Other Aircraft Parts manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $145.8M for 8 cabin conversions appears high, especially given the lack of competition. Benchmarking against similar, competitively awarded aircraft modification contracts would be necessary to assess true value.

Cost Per Unit: $18,228,654.28

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may lead to inflated costs for the government.

Taxpayer Impact: The lack of competitive bidding likely resulted in taxpayers paying a premium for these cabin conversions.

Public Impact

Military readiness may be impacted by the availability and cost of these specialized aircraft modifications. The sole-source nature of this award raises questions about efficient use of taxpayer funds. Bell Textron Inc. benefits from a significant, non-competitive contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High per-unit cost
Lack of competition

Positive Signals

Award to established manufacturer
Definitive contract

Sector Analysis

This contract falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector. Spending in this sector can be highly variable, influenced by defense needs and technological advancements. Benchmarks are difficult without specific comparable modification data.

Small Business Impact

The award went to Bell Textron Inc., a large aerospace company, indicating no direct benefit or subcontracting opportunity for small businesses in this specific award.

Oversight & Accountability

The sole-source nature of this contract warrants scrutiny from oversight bodies to ensure the government received fair value and that competition was appropriately waived.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks transparency and competitive pricing.
High per-unit cost suggests potential overpayment.
Limited information on the specific nature of the 'cabin conversions'.
Long contract duration (1950 days) increases risk of cost overruns or scope creep.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $145.8 million to BELL TEXTRON INC. 8 CABIN CONVERSIONS BASIC FY10

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 $145.8 million.

What is the period of performance?

Start: 2010-10-27. End: 2016-02-28.

What was the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific documentation, it's impossible to confirm the exact reasoning. However, the absence of competition suggests that either no other vendors could meet the requirements or a deliberate decision was made to bypass the competitive process, potentially impacting cost-effectiveness.

How does the per-unit cost of these cabin conversions compare to industry standards for similar modifications?

The per-unit cost of approximately $18.2 million is substantial. Without access to proprietary data or specific details of the modifications, a direct comparison is challenging. However, this figure is significantly higher than typical aircraft maintenance or minor interior upgrades, suggesting complex or specialized work was involved. Further analysis would require benchmarking against contracts for similar aircraft types and modification scopes.

What is the long-term strategic value or necessity of these specific cabin conversions for the Department of the Army?

The long-term strategic value hinges on the intended use of these converted cabins. If they are critical for specific mission requirements, intelligence gathering, or troop transport in challenging environments, the investment may be justified despite the cost. However, if the conversions are for non-essential upgrades or could have been achieved through less expensive means, the strategic necessity is questionable, raising concerns about resource allocation.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ10R0008

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: $145,829,234

Exercised Options: $145,829,234

Current Obligation: $145,829,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline