DoD Spends $52.2M on Huey II Helicopters from Bell Textron Inc. in Sole-Source Contract

Contract Overview

Contract Amount: $52,238,119 ($52.2M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2016-09-26

End Date: 2018-12-31

Contract Duration: 826 days

Daily Burn Rate: $63.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF HUEY II HELICOPTERS

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $52.2 million to BELL TEXTRON INC for work described as: PROCUREMENT OF HUEY II HELICOPTERS Key points: 1. Significant investment in aircraft manufacturing, with a substantial portion allocated to a single supplier. 2. Lack of competition raises questions about potential price inflation and limited market exploration. 3. The firm-fixed-price contract structure aims to control costs, but the absence of competition is a key risk. 4. This procurement falls within the broader Defense sector's ongoing need for rotary-wing aircraft.

Value Assessment

Rating: fair

The contract value of $52.2M for one Huey II helicopter appears high, especially considering the lack of competitive bidding. Benchmarking against similar sole-source procurements or publicly available pricing for comparable aircraft is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to Bell Textron Inc. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The absence of competition in this $52.2M contract means taxpayers may have overpaid due to the lack of market pressure to achieve the lowest possible price.

Public Impact

Taxpayers may have incurred higher costs due to the sole-source nature of the procurement. The Department of Defense's reliance on a single supplier for this specific aircraft type could impact future acquisition strategies. The long-term operational readiness and maintenance costs associated with these helicopters warrant public scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Potential for overpayment due to lack of competitive bidding.
Limited transparency on the justification for sole-source award.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Procurement addresses a specific defense need for rotary-wing aircraft.

Sector Analysis

This procurement falls under the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often driven by national security requirements, but competitive practices are crucial for fiscal responsibility.

Small Business Impact

The data indicates no specific provisions or set-asides for small businesses in this particular contract. Further investigation would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The Department of Defense's Contract Management Agency oversaw this procurement. Robust oversight is essential, particularly for sole-source contracts, to ensure fair pricing and adherence to procurement regulations.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing
Limited transparency on justification
High unit cost without competitive benchmark

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.2 million to BELL TEXTRON INC. PROCUREMENT OF HUEY II 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $52.2 million.

What is the period of performance?

Start: 2016-09-26. End: 2018-12-31.

What was the specific justification provided by the Department of Defense for awarding this contract on a sole-source basis, and was a market research report conducted to confirm the necessity of a so

The provided data does not include the specific justification for the sole-source award. Typically, agencies must document extensive market research to demonstrate that only one source can fulfill the requirement. This justification is crucial for ensuring the procurement process is fair and that taxpayers are not disadvantaged by the lack of competition.

How does the $52.2 million price for one Huey II helicopter compare to the estimated market value or prices of similar aircraft procured competitively or through other means?

Without access to detailed cost breakdowns or comparable contract data, it is difficult to definitively assess the value. However, $52.2 million for a single helicopter, especially without competitive pressure, raises concerns. Benchmarking against publicly available data for similar military helicopters or previous competitive procurements of the Huey II would be necessary to establish a fair price range.

What are the long-term sustainment and operational costs associated with the procured Huey II helicopters, and how do these costs compare to alternative aircraft options?

The provided data focuses solely on the initial procurement cost and does not offer insights into long-term sustainment or operational expenses. Understanding these lifecycle costs is critical for a comprehensive assessment of the overall value and effectiveness of this acquisition. Future analysis should include projected maintenance, parts, and training expenses.

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: W58RGZ16R0191

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

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: $52,238,119

Exercised Options: $52,238,119

Current Obligation: $52,238,119

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline