DoD's $140.9M logistics consulting contract with Bell Textron Inc. awarded non-competitively

Contract Overview

Contract Amount: $140,938,653 ($140.9M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2015-08-08

End Date: 2023-05-12

Contract Duration: 2,834 days

Daily Burn Rate: $49.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SUPPORT FOR IRAQ - IGF::CT::IGF

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $140.9 million to BELL TEXTRON INC for work described as: SUPPORT FOR IRAQ - IGF::CT::IGF Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Long performance period of 2834 days suggests a sustained need for services. 3. Sole-source award raises questions about price reasonableness and market competition. 4. Contractor is a major defense manufacturer, potentially limiting independent consulting perspectives. 5. Services focus on logistics, a critical but often complex area for military operations. 6. Texas-based award may have limited geographic distribution of economic benefits.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a sole-source award, makes a direct value-for-money assessment challenging without detailed cost breakdowns. Benchmarking against similar logistics consulting services is difficult due to the lack of competitive bidding. The extended duration and significant total value suggest a substantial investment, but the absence of competition raises concerns about whether the government achieved the best possible price and service quality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates it was 'NOT AVAILABLE FOR COMPETITION.' This approach bypasses the standard procurement process where multiple vendors submit bids, which typically drives down prices and encourages innovation. Without competition, there is a reduced incentive for the contractor to offer the most cost-effective solution.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the price reductions and service improvements that competitive bidding usually provides. This can lead to higher overall spending for the government.

Public Impact

The Department of the Army benefits from specialized logistics consulting services. Services aim to improve process, physical distribution, and logistics operations. The primary geographic impact is likely within the contractor's operational base in Texas. The contract supports specialized consulting roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Cost-plus-fixed-fee contract type can incentivize higher spending.
Sole-source award limits opportunities for small businesses to compete.
Extended contract duration may indicate a lack of market alternatives or vendor lock-in.

Positive Signals

Contract addresses critical logistics and distribution needs for the Department of Defense.
Bell Textron Inc. is a well-established entity with significant experience in defense contracting.
The fixed-fee component provides some level of cost predictability compared to pure cost-plus.

Sector Analysis

The defense consulting sector is characterized by specialized expertise and long-term relationships. Contracts often involve complex logistical, technical, or strategic support. While specific market size data for logistics consulting within the DoD is not provided, the overall defense spending landscape is vast. This contract fits within the broader category of professional services procured by the military, where competition can be influenced by security clearances, specialized knowledge, and existing relationships.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no indication of subcontracting to small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract. This means the direct economic benefits for the small business ecosystem from this particular award are likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Accountability measures are inherent in the contract terms, particularly the fixed-fee component. Transparency is limited due to the sole-source nature and the proprietary nature of consulting services. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Logistics Support Contracts
Military Consulting Services
Process Improvement Contracts
Physical Distribution Services Contracts

Risk Flags

Sole-source award lacks competition
Cost-plus-fixed-fee contract type carries inherent cost overrun risk
Extended contract duration may indicate potential for vendor lock-in or lack of market alternatives
Limited transparency due to non-competitive nature

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $140.9 million to BELL TEXTRON INC. SUPPORT FOR IRAQ - IGF::CT::IGF

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 $140.9 million.

What is the period of performance?

Start: 2015-08-08. End: 2023-05-12.

What is the track record of Bell Textron Inc. in fulfilling similar government contracts, particularly regarding cost performance and adherence to schedule?

Bell Textron Inc. has a long history as a major defense contractor, primarily known for manufacturing aircraft and related systems. While specific data on their performance in logistics consulting contracts is not detailed here, their extensive experience in the defense sector suggests a capacity to manage complex projects. However, cost performance on cost-plus-fixed-fee contracts can vary widely, and without specific metrics on this contract or comparable ones, it's difficult to definitively assess their cost control effectiveness. Historical data on their on-time delivery and budget adherence across all contract types would be needed for a comprehensive evaluation.

How does the pricing structure (Cost Plus Fixed Fee) of this contract compare to industry standards for similar logistics consulting services, especially considering the sole-source award?

Cost Plus Fixed Fee (CPFF) contracts are common in government procurement, especially for services where the scope may evolve or is difficult to define precisely upfront. The fixed fee provides the contractor with a predetermined profit margin, while the government covers allowable costs. However, CPFF contracts can incentivize contractors to incur more costs, as their profit is fixed regardless of the total cost. For a sole-source award, benchmarking against industry standards is challenging because competitive pressures that drive down prices are absent. Typically, competitive bids would provide a clearer indication of fair market value. Without comparative data from similar sole-source CPFF logistics consulting contracts, assessing the reasonableness of Bell Textron's pricing is difficult.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for logistics consulting services, and how are they mitigated?

The primary risks associated with this contract type are cost overruns and a lack of price competition. Since the contract is sole-source, there's no competitive pressure to ensure the government receives the best possible price. The CPFF structure means the government bears the risk of cost increases, while the contractor's profit is guaranteed by the fixed fee. Mitigation strategies typically involve robust government oversight, detailed cost monitoring, clear performance metrics, and strong negotiation of the fixed fee and indirect rates. However, the effectiveness of these mitigations depends heavily on the government's resources and diligence in managing the contract.

What is the expected effectiveness of the logistics consulting services provided by Bell Textron Inc. in improving the Department of the Army's process, physical distribution, and logistics operations

The effectiveness of the services hinges on the specific expertise Bell Textron brings to bear on the Army's unique logistical challenges. Given Bell's background in defense manufacturing, they likely possess deep insights into military supply chains and operational requirements. The contract's long duration suggests a significant and ongoing need for these improvements. However, the ultimate effectiveness will depend on the clarity of the defined objectives, the quality of the recommendations provided by the consultants, and the Army's subsequent implementation of those recommendations. Without performance metrics or post-contract evaluations, assessing effectiveness remains speculative.

How has historical spending on logistics consulting services by the Department of the Army evolved, and does this contract represent a significant deviation in terms of value or duration?

Analyzing historical spending trends for logistics consulting within the Department of the Army would require access to comprehensive historical contract databases. This specific contract, valued at approximately $140.9 million over a period of roughly 7.7 years (2834 days), represents a substantial investment. Whether it deviates significantly depends on the typical scale and duration of similar sole-source or competed logistics consulting contracts awarded by the Army in the past. Without comparative historical data, it's difficult to ascertain if this contract is an outlier in terms of its financial commitment or its extended performance timeline.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ14R0072

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $168,637,907

Exercised Options: $141,687,907

Current Obligation: $140,938,653

Subaward Activity

Number of Subawards: 77

Total Subaward Amount: $15,767,270

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline