DoD Awards $45M Huey II Aircraft Deal to Bell Textron Inc. for Lebanon

Contract Overview

Contract Amount: $45,025,994 ($45.0M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2021-05-21

End Date: 2022-12-31

Contract Duration: 589 days

Daily Burn Rate: $76.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROCUREMENT OF 3 HUEY II AIRCRAFT AND CUSTOMIZATION FOR THE GOVERNMENT OF LEBANON.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76101

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $45.0 million to BELL TEXTRON INC for work described as: PROCUREMENT OF 3 HUEY II AIRCRAFT AND CUSTOMIZATION FOR THE GOVERNMENT OF LEBANON. Key points: 1. High value contract for specialized aircraft procurement. 2. Sole-source award raises questions about competition and price. 3. Potential risks associated with foreign military sales and aircraft sustainment. 4. Sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.

Value Assessment

Rating: questionable

The contract value of $45,025,994 for three Huey II aircraft and customization appears high, especially given the sole-source nature. Benchmarking against similar foreign military sales or domestic procurements of comparable aircraft would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Bell Textron Inc. The lack of competition limits price discovery and may result in a higher cost to the taxpayer.

Taxpayer Impact: The sole-source nature of this procurement likely results in a higher cost to the taxpayer than if it had been competitively bid.

Public Impact

Enhances Lebanon's military aviation capabilities. Potential for follow-on sustainment and training contracts. Represents U.S. foreign military assistance through aircraft provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Potential for cost overruns
Foreign military sales risks

Positive Signals

Supports allied nation's defense capabilities
Utilizes established aircraft platform

Sector Analysis

This procurement falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary significantly based on defense needs and foreign military sales, with aircraft platforms and customization being major cost drivers.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this procurement.

Oversight & Accountability

The Department of the Army, under the Department of Defense, awarded this contract. Oversight would typically involve contract management, performance monitoring, and financial accountability to ensure proper execution and prevent waste.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for inflated pricing
Foreign military sales complexities
Uncertainty of long-term support costs
Limited transparency on customization benefits

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.0 million to BELL TEXTRON INC. PROCUREMENT OF 3 HUEY II AIRCRAFT AND CUSTOMIZATION FOR THE GOVERNMENT OF LEBANON.

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 $45.0 million.

What is the period of performance?

Start: 2021-05-21. End: 2022-12-31.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must still conduct market research and negotiate to ensure the price is fair and reasonable, often comparing it to historical data or independent cost estimates. Without this information, the pricing remains questionable.

What are the long-term sustainment and maintenance costs associated with these aircraft for the Lebanese government?

Long-term sustainment and maintenance costs are critical but often not fully detailed in initial procurement contracts. These can include spare parts, technical support, training, and depot-level maintenance. For foreign military sales, these costs can significantly impact the total ownership cost and require separate agreements, potentially involving U.S. contractors.

How does the customization of these Huey II aircraft align with Lebanon's specific operational requirements and interoperability with existing assets?

The customization details are crucial for understanding the value and effectiveness of the procurement. Ensuring the modifications meet Lebanon's precise operational needs and are compatible with their existing military infrastructure and other allied assets is vital for maximizing the utility of these aircraft and avoiding costly integration issues.

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: $45,025,994

Exercised Options: $45,025,994

Current Obligation: $45,025,994

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $3,269,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ21D0007

IDV Type: IDC

Timeline