Defense contract for aircraft parts awarded to Bell Textron Inc. for over $35.7 million

Contract Overview

Contract Amount: $35,759,621 ($35.8M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2023-08-31

End Date: 2027-12-31

Contract Duration: 1,583 days

Daily Burn Rate: $22.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MODIFICATION TO UPDATE PART NUMBERS.

Place of Performance

Location: RICHLAND HILLS, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to BELL TEXTRON INC for work described as: MODIFICATION TO UPDATE PART NUMBERS. Key points: 1. Contract value appears reasonable for specialized aircraft parts, but detailed benchmarking is needed. 2. Sole-source award limits price discovery and potentially increases costs for taxpayers. 3. Long contract duration (over 4 years) may introduce risks related to obsolescence and changing requirements. 4. Contract is for aircraft parts, indicating a need for ongoing maintenance and support for existing fleets. 5. Awarded by the Department of the Army, suggesting a focus on aviation assets within the military. 6. The fixed-price contract type shifts some risk to the contractor, but scope creep could still be an issue.

Value Assessment

Rating: fair

The contract value of $35.7 million for aircraft parts over nearly four years requires careful benchmarking against similar sole-source awards for specialized components. Without competitive bidding, it is difficult to definitively assess if the pricing represents fair market value. The fixed-price nature provides some cost certainty, but the lack of competition raises concerns about potential overpayment compared to a more open procurement process. Further analysis of the specific parts and their market prices is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Bell Textron Inc., was solicited. This approach is typically used when a unique product or service is required, or when there is insufficient time for full and open competition. The lack of multiple bidders means there was no direct price competition, which can lead to higher costs for the government. The justification for this sole-source award should be thoroughly reviewed to ensure it was indeed necessary.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible prices, potentially resulting in higher expenditures for taxpayers. This contract's value could have been lower if other qualified suppliers had the opportunity to bid.

Public Impact

The U.S. Army benefits from the continued availability of essential aircraft parts for its fleet. Services delivered include the supply of specific aircraft parts, crucial for maintaining operational readiness. The geographic impact is primarily within Texas, where Bell Textron Inc. is located, and wherever the Army's aircraft are deployed. Workforce implications include the continued employment of personnel at Bell Textron Inc. involved in manufacturing and supplying these parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Long contract duration increases risk of obsolescence or changing needs.
Sole-source justification needs rigorous review to ensure necessity.
Potential for contractor to leverage sole-source position for future favorable terms.

Positive Signals

Fixed-price contract type shifts some cost risk to the contractor.
Award to an established manufacturer like Bell Textron Inc. suggests a degree of reliability.
Contract supports critical military aviation assets, ensuring operational readiness.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the broader aerospace and defense industry. This sector is characterized by high technological demands, stringent quality control, and often long product lifecycles. Spending in this area is directly tied to the maintenance and operational needs of military aviation fleets. Comparable spending benchmarks would involve analyzing other sole-source or competitively awarded contracts for similar specialized aircraft components across different military branches.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award is directly to Bell Textron Inc., a large corporation. There is no explicit information regarding subcontracting plans for small businesses within this specific award. This means the direct economic benefit to the small business ecosystem from this particular contract is likely minimal, unless Bell Textron Inc. voluntarily engages small businesses for parts or services not covered by the primary award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications. Transparency is limited due to the sole-source nature, but contract award data is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Aircraft Procurement
Army Aviation Maintenance Contracts
Aerospace Manufacturing Support
Military Spare Parts Procurement
Bell Helicopter Services Contracts

Risk Flags

Sole-source award may limit price competition.
Long contract duration poses obsolescence risk.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to BELL TEXTRON INC. MODIFICATION TO UPDATE PART NUMBERS.

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 $35.8 million.

What is the period of performance?

Start: 2023-08-31. End: 2027-12-31.

What is the specific justification provided by the Department of the Army for awarding this contract on a sole-source basis to Bell Textron Inc.?

The provided data indicates the contract was 'NOT COMPETED'. Typically, sole-source awards are justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can provide the supplies or services, or when there is a compelling urgency. For this contract, the justification would likely stem from Bell Textron Inc.'s unique position as the original equipment manufacturer (OEM) or a highly specialized supplier of these particular aircraft parts, making it the only viable source. The Army would need to document that full and open competition was not feasible or not in the government's best interest, potentially due to proprietary data, unique tooling, or specific technical expertise held exclusively by Bell Textron Inc. A thorough review of the official justification documentation would be necessary to confirm the precise reasons.

How does the per-unit cost of these aircraft parts compare to similar components purchased competitively by the Department of Defense or other federal agencies?

Direct comparison of per-unit costs is challenging without specific part numbers and detailed pricing breakdowns, especially given this is a sole-source award. However, sole-source contracts generally tend to have higher per-unit costs compared to competitively procured items because the government cannot leverage the price reductions that typically result from multiple bidders vying for the contract. To benchmark, one would need to identify comparable aircraft parts (e.g., similar complexity, material, function) procured by the DoD or other agencies through full and open competition. Analyzing the historical pricing trends for these specific parts, if available, and comparing them to the current award price would also provide insights. The absence of competition inherently limits the ability to definitively state if the per-unit cost is optimal.

What are the potential risks associated with the long contract duration (ending in December 2027) for aircraft parts?

A contract duration extending to late 2027, nearly four years from the award date, presents several risks for aircraft parts. Firstly, there's the risk of technological obsolescence; aircraft designs and associated components can evolve, making older parts less relevant or requiring modifications. Secondly, the risk of changing military requirements or fleet strategies could alter the demand for specific parts. Thirdly, the longer the contract, the greater the potential for unforeseen cost increases due to inflation or supply chain disruptions, even within a fixed-price structure, if not adequately managed. Lastly, maintaining the same level of contractor performance and responsiveness over an extended period can be challenging, potentially leading to a decline in service quality if oversight is not diligent.

What is Bell Textron Inc.'s track record with the Department of the Army and other federal agencies regarding similar aircraft parts contracts?

Bell Textron Inc. is a well-established and significant defense contractor with a long history of supplying aircraft and related components to the U.S. military, including the Department of the Army. Their track record typically involves providing helicopters (like the Huey, Cobra, and V-22 Osprey) and their associated parts. Performance data on past contracts, including delivery timeliness, quality compliance, and cost performance, would be available through federal procurement databases (e.g., FPDS, CPARS). Generally, large, established contractors like Bell Textron Inc. have extensive experience but can also be subject to scrutiny regarding pricing and contract management due to their size and the nature of sole-source awards. Specific performance metrics for this particular contract would be monitored throughout its duration.

How does this contract's value and nature compare to overall U.S. Army spending on aircraft parts and maintenance?

This $35.7 million contract represents a specific procurement action for aircraft parts. Overall U.S. Army spending on aircraft parts and maintenance is significantly larger, encompassing thousands of individual contracts, sustainment programs, and depot-level repairs for its extensive aviation fleet. This single contract, while substantial, is likely a fraction of the total annual budget allocated to aviation readiness. Its nature as a sole-source award for specific parts highlights a common strategy for acquiring OEM-specific components, contrasting with larger, competitively bid contracts for general maintenance services or broader parts categories. Analyzing this contract in isolation provides insight into one aspect of Army aviation sustainment, but it's crucial to view it within the context of the much larger overall spending picture.

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: $35,759,621

Exercised Options: $35,759,621

Current Obligation: $35,759,621

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $784,027

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ21D0007

IDV Type: IDC

Timeline