DoD Awards $33.2M for 4 Huey II Aircraft & Customization to Bell Textron Inc

Contract Overview

Contract Amount: $33,254,835 ($33.3M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2021-01-05

End Date: 2024-10-01

Contract Duration: 1,365 days

Daily Burn Rate: $24.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF 4 HUEY II AIRCRAFT AND CUSTOMIZATION FOR THE BOSNIA AND HERZEGOVINA.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $33.3 million to BELL TEXTRON INC for work described as: PROCUREMENT OF 4 HUEY II AIRCRAFT AND CUSTOMIZATION FOR THE BOSNIA AND HERZEGOVINA. Key points: 1. Significant investment in aviation assets for international support. 2. Sole-source award to Bell Textron Inc., a major aerospace manufacturer. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on specialized aircraft modification for specific operational needs.

Value Assessment

Rating: fair

The $33.25 million contract for four Huey II aircraft and customization appears high given the lack of competition. Benchmarking against similar sole-source procurements or competitive bids for comparable aircraft would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This approach can lead to higher prices as the contractor faces no market pressure to offer the most competitive bid.

Taxpayer Impact: Taxpayer funds are used for this procurement, and the lack of competition may result in a less efficient use of those funds compared to a fully competed contract.

Public Impact

Enhances Bosnia and Herzegovina's aviation capabilities. Supports U.S. foreign military assistance objectives. Potential for follow-on contracts for maintenance and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Long contract duration (over 3 years) may not reflect current market prices.
Lack of transparency in pricing justification.

Positive Signals

Acquisition of critical aviation assets.
Supports a key international partner.
Utilizes established aircraft platform (Huey II).

Sector Analysis

The procurement falls within the aerospace and defense sector, specifically focusing on aircraft manufacturing and modification. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.

Small Business Impact

This contract was awarded directly to Bell Textron Inc., a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for this procurement. Oversight would typically involve contract management, performance monitoring, and financial accountability to ensure the funds are used appropriately and objectives are met.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition may lead to inflated costs.
Potential for cost overruns during customization.
Long-term sustainment and maintenance costs are not detailed.
Dependency on a single supplier for critical assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.3 million to BELL TEXTRON INC. PROCUREMENT OF 4 HUEY II AIRCRAFT AND CUSTOMIZATION FOR THE BOSNIA AND HERZEGOVINA.

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 $33.3 million.

What is the period of performance?

Start: 2021-01-05. End: 2024-10-01.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves specific circumstances like unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear if other competitive strategies were explored or deemed unsuitable. A thorough review of the Justification and Approval (J&A) document is necessary to understand the rationale and assess if it aligns with federal procurement regulations.

How does the per-unit cost compare to similar Huey II aircraft procurements or competitive bids for comparable helicopters?

Benchmarking the per-unit cost is crucial for assessing value. Without access to historical data on similar sole-source awards or competitive bids for comparable helicopters, it's difficult to definitively state if this price is reasonable. A comparative analysis against market rates and previous government contracts would reveal potential overpricing or cost savings.

What are the specific customization requirements, and do they justify the sole-source nature of the contract?

The customization requirements are key to understanding the necessity of a sole-source award. If the modifications are highly specialized, proprietary to Bell Textron, or require unique expertise only they possess, it could justify the lack of competition. However, if the customizations are standard or could be performed by other qualified vendors, the sole-source decision warrants closer scrutiny.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

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: $33,254,835

Exercised Options: $33,254,835

Current Obligation: $33,254,835

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $1,748,763

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ21D0007

IDV Type: IDC

Timeline