Army's Future Vertical Lift Program Faces $3.5B Investment for Next-Gen Aircraft
Contract Overview
Contract Amount: $3,497,288,935 ($3.5B)
Contractor: Bell Textron Inc
Awarding Agency: Department of Defense
Start Date: 2022-12-05
End Date: 2031-04-05
Contract Duration: 3,043 days
Daily Burn Rate: $1.1M/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: THE FUTURE VERTICAL LIFT (FVL) FLRAA CAPABILITY SET THREE IS A PRE-MAJOR DEFENSE ACQUISITION PROGRAM (ACAT 1C) COMMISSIONED TO DEVELOP AND FIELD THE NEXT GENERATION OF AFFORDABLE VERTICAL LIFT TACTICAL ASSAULT / UTILITY AIRCRAFT FOR THE ARMY.
Place of Performance
Location: RICHLAND HILLS, TARRANT County, TEXAS, 76118
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $3.50 billion to BELL TEXTRON INC for work described as: THE FUTURE VERTICAL LIFT (FVL) FLRAA CAPABILITY SET THREE IS A PRE-MAJOR DEFENSE ACQUISITION PROGRAM (ACAT 1C) COMMISSIONED TO DEVELOP AND FIELD THE NEXT GENERATION OF AFFORDABLE VERTICAL LIFT TACTICAL ASSAULT / UTILITY AIRCRAFT FOR THE ARMY. Key points: 1. The FVL FLRAA program aims to modernize the Army's vertical lift capabilities. 2. Bell Textron Inc. is the contractor for Capability Set Three. 3. The program is classified as ACAT 1C, indicating significant defense acquisition. 4. The estimated completion date is April 2031, spanning over 8 years. 5. This initiative represents a substantial investment in advanced aviation technology.
Value Assessment
Rating: questionable
The total award amount is $3,497,288,935. Without specific per-unit cost data or comparison to similar advanced aircraft development programs, assessing the pricing's value is difficult. The fixed-price incentive contract type suggests cost controls are in place, but the overall value proposition requires further scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may restrict the pool of potential offerors, potentially impacting price discovery and overall cost-effectiveness compared to a truly open competition.
Taxpayer Impact: The significant investment of nearly $3.5 billion for next-generation aircraft development represents a major taxpayer commitment. The success of the program in delivering affordable and effective capabilities will determine the ultimate return on this investment.
Public Impact
Modernization of critical Army aviation assets. Potential for enhanced tactical and utility lift capabilities. Long-term program with significant economic impact in Texas. Development of advanced aerospace technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Long program duration increases risk of cost overruns and scope creep.
- Technology development is inherently risky.
- Lack of small business participation noted.
Positive Signals
- Addresses a critical modernization need for the Army.
- Fixed-price incentive contract aims to control costs.
- Significant investment in domestic aerospace manufacturing.
Sector Analysis
The program falls within the Aircraft Manufacturing sector, specifically focusing on advanced vertical lift technology. Defense acquisition programs of this scale often involve substantial R&D and long production cycles, with costs typically ranging in the billions for major platforms.
Small Business Impact
The data indicates that small business participation (sb) is false. This suggests that the prime contractor, Bell Textron Inc., is not currently subcontracting a significant portion of the work to small businesses, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
The ACAT 1C designation implies rigorous oversight from the Department of Defense. However, the long duration and complexity of the FVL FLRAA program necessitate continuous monitoring of cost, schedule, and performance to ensure accountability and effective use of funds.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to long program duration.
- Limited competition may restrict price negotiation.
- Technology development carries inherent risks of failure or delays.
- Lack of stated small business participation.
- Dependency on a single prime contractor for this capability set.
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.50 billion to BELL TEXTRON INC. THE FUTURE VERTICAL LIFT (FVL) FLRAA CAPABILITY SET THREE IS A PRE-MAJOR DEFENSE ACQUISITION PROGRAM (ACAT 1C) COMMISSIONED TO DEVELOP AND FIELD THE NEXT GENERATION OF AFFORDABLE VERTICAL LIFT TACTICAL ASSAULT / UTILITY AIRCRAFT FOR THE ARMY.
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 $3.50 billion.
What is the period of performance?
Start: 2022-12-05. End: 2031-04-05.
What specific technological advancements justify the $3.5 billion investment, and how will they translate into tangible operational advantages for the Army?
The $3.5 billion investment is earmarked for developing the next generation of affordable vertical lift tactical assault/utility aircraft. Key advancements are expected in areas such as increased speed, range, payload capacity, and reduced operational costs compared to current platforms. These improvements are intended to provide the Army with enhanced battlefield mobility, survivability, and mission flexibility, enabling more effective operations in complex and contested environments.
Given the 'limited' competition and long program duration, what measures are in place to mitigate the risk of cost overruns and ensure fair pricing throughout the contract lifecycle?
The contract utilizes a 'Fixed Price Incentive' (FPI) structure, which aims to incentivize the contractor to control costs by sharing savings or overruns with the government. Additionally, the ACAT 1C classification mandates stringent program management and oversight from the Department of Defense. Regular performance reviews, milestone tracking, and potential for contract modifications based on performance and market conditions are crucial for managing risks and ensuring fair pricing.
How will the success of the FVL FLRAA program be measured in terms of effectiveness and return on investment for the taxpayer, beyond meeting technical specifications?
Effectiveness will be measured by the program's ability to field aircraft that demonstrably improve the Army's operational capabilities, such as enhanced troop transport, reduced response times, and increased mission success rates. Return on investment for taxpayers will be assessed by comparing the total lifecycle costs against the realized operational benefits and the program's contribution to national security. Achieving affordability targets and minimizing long-term sustainment costs are also key metrics.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W58RGZ21R0084
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $7,151,546,481
Exercised Options: $3,497,288,935
Current Obligation: $3,497,288,935
Subaward Activity
Number of Subawards: 596
Total Subaward Amount: $1,460,420,040
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-12-05
Current End Date: 2031-04-05
Potential End Date: 2031-04-05 00:00:00
Last Modified: 2026-02-12
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