DoD awards $71.3M contract to Textron Systems for aircraft manufacturing engineering services

Contract Overview

Contract Amount: $71,336,091 ($71.3M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2011-06-16

End Date: 2013-10-31

Contract Duration: 868 days

Daily Burn Rate: $82.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $71.3 million to TEXTRON SYSTEMS CORPORATION for work described as: ENGINEERING SERVICES Key points: 1. Significant contract value of over $71 million awarded to a single vendor. 2. Sole-source award raises questions about competition and potential price discovery. 3. Contract duration of 868 days suggests a substantial, long-term requirement. 4. Focus on aircraft manufacturing engineering services within the Defense sector.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The absence of competition for a $71.3 million contract likely means taxpayers are not receiving the best possible price for these engineering services.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The long-term nature of the contract could lock in potentially inefficient practices. Limited transparency into the justification for a sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Specific engineering services for aircraft manufacturing
Awarded by Department of Defense

Sector Analysis

This contract falls under the Defense sector, specifically related to aircraft manufacturing. Spending in this area is critical for national security, but competitive procurement is essential to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and that costs are reasonable, despite the lack of competition.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Lack of competition
Cost-plus contract type
Potential for cost overruns
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.3 million to TEXTRON SYSTEMS CORPORATION. ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $71.3 million.

What is the period of performance?

Start: 2011-06-16. End: 2013-10-31.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation, it's impossible to determine the exact reason. However, sole-source contracts often bypass the price discovery benefits of competition, potentially leading to higher costs for the government and taxpayers.

How does the Cost Plus Fixed Fee (CPFF) structure impact the risk of cost overruns for this contract?

The CPFF structure shifts some cost risk to the government. While the contractor's profit is fixed, they are reimbursed for allowable costs. If costs exceed estimates, the government pays more. Effective oversight is crucial to manage costs and prevent overruns, especially in long-term contracts where initial estimates may become outdated.

What is the potential impact on future aircraft manufacturing capabilities if this sole-source contract limits broader industry innovation?

Sole-source awards can stifle innovation by not exposing a broader range of companies to government requirements. This can limit the adoption of new technologies and approaches. Over time, this could lead to a less dynamic and competitive industrial base, potentially impacting the military's access to cutting-edge solutions.

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: W58RGZ10R0321

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 124 INDUSTRY LN, HUNT VALLEY, MD, 21030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,336,091

Exercised Options: $71,336,091

Current Obligation: $71,336,091

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline