DoD Awards $56.8M for Helicopter Logistics Support to Bell Textron Inc

Contract Overview

Contract Amount: $56,864,690 ($56.9M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2012-03-30

End Date: 2026-12-30

Contract Duration: 5,388 days

Daily Burn Rate: $10.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF CONTRACTOR LOGISTICS SUPPORT (CLS) FOR 3 TRAINING (T) HELICOPTERS AND 27 IRAQI ARMED (IA) HELICOPTERS.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $56.9 million to BELL TEXTRON INC for work described as: IGF::OT::IGF CONTRACTOR LOGISTICS SUPPORT (CLS) FOR 3 TRAINING (T) HELICOPTERS AND 27 IRAQI ARMED (IA) HELICOPTERS. Key points: 1. Contract awarded to sole incumbent provider, Bell Textron Inc. 2. Significant contract duration of nearly 15 years. 3. High dollar value for specialized technical consulting services. 4. Potential for cost savings through competitive bidding if re-competed.

Value Assessment

Rating: fair

The contract's value is substantial, but without competitive benchmarking, assessing its pricing fairness is difficult. The firm fixed-price structure offers some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these logistics services.

Public Impact

Ensures continued operational readiness for Iraqi and training helicopters. Supports critical maintenance and logistics functions for aviation assets. Impacts the long-term sustainment strategy for specific helicopter fleets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Sole-source award

Positive Signals

Firm fixed-price contract
Supports critical defense operations

Sector Analysis

This contract falls under Other Scientific and Technical Consulting Services, a broad category. The spending benchmark for this specific niche of helicopter logistics support is not readily available, but the value is significant for specialized services.

Small Business Impact

The data indicates no specific set-aside for small businesses. The prime contractor, Bell Textron Inc., is a large aerospace company, suggesting limited direct opportunities for small businesses on this prime contract.

Oversight & Accountability

Oversight is crucial given the sole-source nature and long duration. Regular performance reviews and cost audits would be essential to ensure value for money and accountability.

Related Government Programs

Other Scientific and Technical Consulting Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits price competition.
Long contract duration may lead to cost creep.
Lack of transparency in pricing justification.
Potential for vendor lock-in.
Limited opportunities for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.9 million to BELL TEXTRON INC. IGF::OT::IGF CONTRACTOR LOGISTICS SUPPORT (CLS) FOR 3 TRAINING (T) HELICOPTERS AND 27 IRAQI ARMED (IA) HELICOPTERS.

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 $56.9 million.

What is the period of performance?

Start: 2012-03-30. End: 2026-12-30.

What is the justification for the sole-source award, and has it been reviewed for potential competition?

The justification for a sole-source award is typically based on unique capabilities, proprietary technology, or the incumbent's established infrastructure. Without a competitive process, it's essential to verify that the agency has thoroughly explored all avenues for competition and that the sole-source justification remains valid throughout the contract's life to ensure fair pricing and avoid unnecessary costs.

How does the cost of this contract compare to similar logistics support contracts for comparable aircraft?

Benchmarking this contract's cost against similar logistics support agreements for comparable helicopter types is challenging without access to detailed pricing data and market intelligence. A comprehensive cost analysis would require comparing unit costs for parts, labor rates, and overhead allocations against industry standards and other government contracts to identify potential overpricing or efficiencies.

What are the risks associated with a nearly 15-year contract awarded without competition?

The primary risks include potential cost escalation due to the lack of competitive pressure, vendor lock-in, and reduced incentive for innovation. Over this extended period, market conditions, technology, and operational needs can change significantly, making the original pricing and service scope potentially outdated or inefficient, leading to suboptimal value for taxpayers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 3255 BELL HELICOPTER 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: $83,587,324

Exercised Options: $56,864,690

Current Obligation: $56,864,690

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $14,306,610

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline