Army Awards $36.2M Contract for OSRVT Logistics Support to Textron Systems

Contract Overview

Contract Amount: $36,222,008 ($36.2M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2020-02-08

End Date: 2021-06-06

Contract Duration: 484 days

Daily Burn Rate: $74.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS TASK ORDER AWARDS THE ONE SYSTEM REMOTE VIDEO TERMINAL (OSRVT) FY20 CONTRACTOR LOGISTICS SUPPORT (CLS) FOR THE ARMY BASE, OCO, IA AND AUSTRALIA EFFORT.

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $36.2 million to TEXTRON SYSTEMS CORPORATION for work described as: THIS TASK ORDER AWARDS THE ONE SYSTEM REMOTE VIDEO TERMINAL (OSRVT) FY20 CONTRACTOR LOGISTICS SUPPORT (CLS) FOR THE ARMY BASE, OCO, IA AND AUSTRALIA EFFORT. Key points: 1. Significant contract value for specialized aircraft component logistics. 2. Textron Systems is a key player in defense manufacturing. 3. Potential risks include reliance on a single contractor and specialized nature of the equipment. 4. Spending falls within the Aircraft Manufacturing sector.

Value Assessment

Rating: good

The contract value of $36.2M for 16 months of support appears reasonable given the specialized nature of the OSRVT system and its global deployment. Benchmarking against similar complex logistics contracts for military hardware is difficult without more data, but the cost-plus-fixed-fee structure allows for some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a limited competition, likely due to the specialized nature of the OSRVT system and the need for contractor expertise. The limited competition may have impacted price discovery, potentially leading to a higher price than if it were fully competed.

Taxpayer Impact: Taxpayer funds are being used for essential military logistics, ensuring operational readiness. The limited competition aspect warrants scrutiny to ensure value for money.

Public Impact

Ensures operational readiness of Army aviation assets through specialized logistics. Supports global deployment of OSRVT systems, including overseas and in Australia. Contractor logistics support is critical for maintaining complex military hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may reduce cost savings.
Reliance on a single contractor for critical support.
Contract type (CPFF) can incentivize higher costs if not managed closely.

Positive Signals

Supports critical Army aviation systems.
Ensures global operational capability.
Contractor has established expertise in defense systems.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically focusing on logistics support for a specialized remote video terminal system. Spending benchmarks for similar niche logistics contracts are not readily available, but the value reflects the complexity and criticality of the supported equipment.

Small Business Impact

This contract was awarded to Textron Systems Corporation, a large defense contractor. There is no indication that small businesses were involved as subcontractors in this specific award, which is common for large, specialized defense contracts.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. The cost-plus-fixed-fee structure necessitates robust oversight to manage costs and ensure performance standards are met throughout the contract duration.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition
Cost-plus-fixed-fee contract type
Reliance on a single contractor
Specialized equipment logistics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 million to TEXTRON SYSTEMS CORPORATION. THIS TASK ORDER AWARDS THE ONE SYSTEM REMOTE VIDEO TERMINAL (OSRVT) FY20 CONTRACTOR LOGISTICS SUPPORT (CLS) FOR THE ARMY BASE, OCO, IA AND AUSTRALIA EFFORT.

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 $36.2 million.

What is the period of performance?

Start: 2020-02-08. End: 2021-06-06.

What specific performance metrics are in place to ensure the effectiveness of Textron Systems' logistics support for the OSRVT?

The contract likely includes specific performance work statements (PWS) with measurable metrics related to response times, equipment availability, repair turnaround, and inventory management. Robust oversight by the Army contracting officer's representative (COR) is crucial to monitor adherence to these metrics and ensure the OSRVT systems remain operational and mission-ready.

How does the limited competition impact the long-term cost-effectiveness of this contract for taxpayers?

Limited competition can lead to higher prices compared to a fully competitive environment. While Textron Systems may possess unique capabilities, the lack of broader bidding limits price discovery. The Army must ensure strong negotiation and ongoing oversight to mitigate potential cost overruns and maximize value for taxpayer investment over the contract's life.

What are the primary risks associated with relying solely on Textron Systems for OSRVT contractor logistics support?

The primary risks include potential vendor lock-in, reduced incentive for Textron to innovate or reduce costs aggressively, and vulnerability if Textron faces financial or operational difficulties. A single point of failure could disrupt critical Army operations. Contingency planning and regular performance reviews are essential to manage these risks.

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: $44,457,415

Exercised Options: $36,222,008

Current Obligation: $36,222,008

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $14,270,497

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