DoD Awards $106M Contract for Iraq FMS Logistics, Spare Parts to Bell Textron Inc

Contract Overview

Contract Amount: $105,841,348 ($105.8M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2022-02-23

End Date: 2030-06-25

Contract Duration: 3,044 days

Daily Burn Rate: $34.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF CONTRACTOR LOGISTICS SERVICES, SPARE AND REPAIR PARTS IN SUPPORT OF FOREIGN MILITARY SALES FOR IRAQ.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76101

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $105.8 million to BELL TEXTRON INC for work described as: PROCUREMENT OF CONTRACTOR LOGISTICS SERVICES, SPARE AND REPAIR PARTS IN SUPPORT OF FOREIGN MILITARY SALES FOR IRAQ. Key points: 1. Significant contract value of $106 million for essential logistics and spare parts. 2. Sole-source award to Bell Textron Inc. raises questions about competition and potential price overruns. 3. Long contract duration (2022-2030) requires ongoing oversight for value and performance. 4. Focus on Foreign Military Sales (FMS) for Iraq highlights geopolitical and security implications.

Value Assessment

Rating: questionable

The contract value of $106 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value for contractor logistics services and spare parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and could lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these critical services and parts.

Public Impact

Ensures continued operational readiness for Iraqi military equipment through vital logistics and parts. Supports U.S. foreign policy objectives by providing essential sustainment for a partner nation. Potential for cost overruns due to sole-source nature impacts taxpayer burden. Long-term commitment requires sustained monitoring of performance and value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Long contract duration.
Lack of transparency in pricing.
Potential for cost overruns.

Positive Signals

Supports critical foreign military sales.
Ensures operational readiness for partner nation.
Long-term sustainment plan.

Sector Analysis

This contract falls under Aircraft Manufacturing (NAICS 336411) and involves complex logistics and spare parts for military aircraft. The $106 million value is significant for this sector, especially for sustainment contracts.

Small Business Impact

The contract data indicates that small business participation is not a stated factor, and the prime contractor is a large corporation. There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

The sole-source nature of this contract necessitates robust oversight from the Department of the Army to ensure Bell Textron Inc. is delivering services and parts at a reasonable cost and meeting performance requirements throughout the contract's duration.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competitive pricing.
Long contract duration increases risk of cost escalation.
Lack of small business participation noted.
Potential for performance issues over extended period.
Geopolitical factors in Iraq could impact contract execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $105.8 million to BELL TEXTRON INC. PROCUREMENT OF CONTRACTOR LOGISTICS SERVICES, SPARE AND REPAIR PARTS IN SUPPORT OF FOREIGN MILITARY SALES FOR IRAQ.

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 $105.8 million.

What is the period of performance?

Start: 2022-02-23. End: 2030-06-25.

What is the justification for the sole-source award, and what steps were taken to ensure the best possible price was negotiated?

The justification for a sole-source award typically involves unique capabilities or urgent needs. For this contract, the Department of Defense would need to provide specific reasons why only Bell Textron Inc. could fulfill the requirement. Robust negotiation tactics and market research, even in a sole-source scenario, are crucial to securing fair pricing and ensuring taxpayer funds are used efficiently.

What are the specific performance metrics and key performance indicators (KPIs) for this contract, and how will they be monitored?

Detailed performance metrics and KPIs are essential for a contract of this magnitude and duration. These should include measures for on-time delivery of parts, service response times, quality of repairs, and overall equipment availability. Regular performance reviews and audits by the Department of the Army are necessary to ensure Bell Textron Inc. is meeting these standards and to identify any potential issues early.

How will the long contract duration (until 2030) impact the potential for cost escalation or the adoption of newer technologies?

A contract extending to 2030 presents risks of cost escalation due to inflation and potential obsolescence of parts or technologies. Mechanisms should be in place to periodically review pricing, incorporate economic price adjustments cautiously, and allow for modifications to incorporate newer, more efficient technologies if they become available and cost-effective. Proactive contract management is key to mitigating these long-term risks.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ20R0156

Offers Received: 1

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: $268,863,898

Exercised Options: $105,841,348

Current Obligation: $105,841,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline