DoD Awards $20.35M for UAS Contractor Logistics Support to Textron Systems

Contract Overview

Contract Amount: $20,352,428 ($20.4M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2019-05-06

End Date: 2020-02-07

Contract Duration: 277 days

Daily Burn Rate: $73.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS CONTRACT IS AWARDED FOR CONTRACTOR LOGISTICS SUPPORT FOR UNMANED AIRCRAFT SYSTEMS.

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to TEXTRON SYSTEMS CORPORATION for work described as: THIS CONTRACT IS AWARDED FOR CONTRACTOR LOGISTICS SUPPORT FOR UNMANED AIRCRAFT SYSTEMS. Key points: 1. Contract awarded for contractor logistics support of Unmanned Aircraft Systems (UAS). 2. Textron Systems Corporation is the sole awardee. 3. The contract is a Delivery Order under an existing contract. 4. The contract duration is 277 days. 5. The contract type is Cost Plus Fixed Fee.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar logistics support contracts for UAS is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a Delivery Order, indicating it may be part of a larger, pre-competed contract. However, the specific competition method for this order is not detailed, and the 'NOT AVAILABLE FOR COMPETITION' status suggests limited or no new competition for this specific award.

Taxpayer Impact: Taxpayer funds are being used for essential logistics support for critical defense assets. The effectiveness of the spending depends on efficient service delivery and cost control.

Public Impact

Ensures operational readiness of Unmanned Aircraft Systems through dedicated logistics support. Supports the Department of the Army's aviation capabilities. Potential for technology advancement in UAS maintenance and support. Impacts the defense industrial base through contract awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Limited competition may result in suboptimal pricing.
Short contract duration may indicate a need for future, potentially more expensive, contract actions.

Positive Signals

Provides critical logistics support for important defense assets.
Supports a known contractor with expertise in UAS.
Delivery Order structure may leverage existing contract efficiencies.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on support services for advanced unmanned aircraft systems. Spending benchmarks for UAS logistics support can vary widely based on system complexity and operational tempo.

Small Business Impact

The awardee, Textron Systems Corporation, is a large business. There is no indication in the provided data that small businesses were involved in this specific delivery order, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability for performance and cost rests with Textron Systems Corporation and the government oversight team.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may not yield the best pricing.
Short contract duration raises questions about long-term support strategy.
Lack of transparency on specific performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to TEXTRON SYSTEMS CORPORATION. THIS CONTRACT IS AWARDED FOR CONTRACTOR LOGISTICS SUPPORT FOR UNMANED AIRCRAFT SYSTEMS.

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2019-05-06. End: 2020-02-07.

What is the specific justification for the limited competition for this delivery order, and how does it align with the government's overall procurement strategy for UAS logistics?

The justification for limited competition is crucial for understanding if this award represents a strategic choice or a missed opportunity for broader market engagement. If it's part of a larger IDIQ or existing contract, the initial competition might have been sufficient. However, without details, it's hard to assess if taxpayers received the best value or if alternative solutions were overlooked.

How does the Cost Plus Fixed Fee structure impact the government's ability to control costs and ensure efficient delivery of logistics support for these UAS?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover allowable costs plus a predetermined fixed fee. While it incentivizes the contractor to complete the work, it can also lead to cost overruns if the initial cost estimates are inaccurate or if scope creep occurs. Effective government oversight is paramount to scrutinize costs and ensure the fixed fee remains appropriate for the effort.

What are the key performance indicators (KPIs) used to measure the effectiveness of Textron Systems' contractor logistics support for the UAS, and how are these tracked?

Measuring effectiveness requires defined KPIs such as system uptime, response times for maintenance, parts availability, and overall mission readiness rates. The government must have robust mechanisms to track these metrics, compare them against contractual requirements, and hold Textron Systems accountable for meeting or exceeding performance standards to ensure the value of the $20.35 million investment.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

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

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: $20,352,428

Exercised Options: $20,352,428

Current Obligation: $20,352,428

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $17,978,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ17D0006

IDV Type: IDC

Timeline