DoD awards $44.8M for 3 Bell 412EXP aircraft, with no competition

Contract Overview

Contract Amount: $44,818,175 ($44.8M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2024-10-09

End Date: 2027-12-31

Contract Duration: 1,178 days

Daily Burn Rate: $38.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 3 BELL 412EXP AIRCRAFT IN SUPPORT OF IRAQ

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $44.8 million to BELL TEXTRON INC for work described as: 3 BELL 412EXP AIRCRAFT IN SUPPORT OF IRAQ Key points: 1. The contract was awarded on a sole-source basis, raising concerns about potential overpayment and lack of market-driven pricing. 2. The fixed-price contract type offers some cost certainty, but the absence of competition limits the government's ability to secure the best value. 3. Performance is scheduled over nearly four years, indicating a long-term need for these specialized aircraft. 4. The contractor, Bell Textron Inc., is a known entity in aircraft manufacturing, suggesting a degree of reliability but also potential market dominance. 5. The contract is for aircraft acquisition, a significant capital expenditure for the Department of Defense. 6. The lack of a small business set-aside means opportunities for smaller firms in this specialized sector are not explicitly prioritized.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the sole-source award and lack of publicly available comparable contract data for identical configurations. However, the absence of competition inherently limits the government's ability to negotiate the most favorable pricing. Without competitive bids, it's difficult to ascertain if the $44.8 million represents a fair market price for three Bell 412EXP aircraft. The firm fixed-price structure provides cost predictability, but the initial price may not reflect optimal value.

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 bypasses the standard competitive bidding process, which typically involves multiple interested parties submitting proposals. The lack of competition means that the government did not benefit from price discovery through market forces, potentially leading to a higher price than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may have paid a premium for these aircraft due to the absence of competitive pressure. The government missed an opportunity to leverage market dynamics to achieve cost savings.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Army, which will receive three Bell 412EXP aircraft. These aircraft are intended for support operations, likely for troop transport, logistics, or specialized missions within Iraq. The geographic impact is focused on operations in Iraq, supporting U.S. military presence and activities. The contract supports the aerospace manufacturing sector, specifically Bell Textron Inc., and potentially its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for taxpayer dollars.
Lack of transparency in the justification for sole-sourcing.
Potential for higher costs compared to a competitive procurement.
Limited opportunities for small businesses in this high-value contract.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contractor is an established manufacturer with a known product line.
Clear delivery timeline and end-of-life for the contract.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and often long-term government contracts. Aircraft manufacturing, particularly for specialized military applications like the Bell 412EXP, is a niche market dominated by a few large, established players. Spending in this area is critical for national security and operational readiness. Comparable spending benchmarks would typically involve other military aircraft procurements, but direct comparisons are difficult without knowing the specific mission requirements and configurations.

Small Business Impact

This contract was not competed and did not include a small business set-aside. As a sole-source award to a large prime contractor, it offers no direct subcontracting opportunities specifically mandated for small businesses. While Bell Textron Inc. may engage small businesses in its supply chain, there is no explicit requirement within this contract to do so. This limits the direct economic benefit to the small business ecosystem from this particular procurement.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified aircraft within the agreed-upon price. Transparency is limited due to the sole-source nature of the award; the justification for not competing the contract would be the primary document for understanding the decision. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Aircraft Procurement
Military Helicopter Acquisition
Foreign Military Support Contracts
Bell Helicopter Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to BELL TEXTRON INC. 3 BELL 412EXP AIRCRAFT IN SUPPORT OF 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 $44.8 million.

What is the period of performance?

Start: 2024-10-09. End: 2027-12-31.

What is the specific justification provided for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or when urgency, national security, or unique capabilities necessitate it. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the rationale behind bypassing the competitive bidding process for these three Bell 412EXP aircraft. This lack of transparency is a key area for further investigation.

How does the price per aircraft compare to market rates for similar Bell 412EPX models?

The total contract value is $44,818,175.46 for three aircraft, equating to approximately $14,939,391.82 per aircraft. Benchmarking this price against market rates for Bell 412EPX models is difficult without specific configuration details and current market conditions. Bell Textron Inc. is the sole manufacturer, and pricing can vary significantly based on avionics, mission equipment, and support packages. However, given the sole-source nature, it is prudent to assume this price may be higher than what could be achieved through competitive bidding. Further analysis would require access to Bell's public pricing or data from previous competitive sales of similar configurations.

What are the risks associated with acquiring aircraft through a sole-source contract?

The primary risk of a sole-source contract is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government loses the opportunity to leverage market forces to secure the best possible value. Other risks include reduced innovation, as the contractor may have less incentive to offer cost-saving solutions, and potential vendor lock-in. Furthermore, the lack of transparency in the procurement process can raise concerns about fairness and efficiency. For this specific contract, the risk is that the $44.8 million may not represent the most cost-effective acquisition for the Department of Defense.

What is the historical spending pattern for Bell 412EPX aircraft by the Department of Defense?

The provided data does not offer historical spending patterns for Bell 412EPX aircraft by the Department of Defense. To assess this, one would need to query federal procurement databases for past contracts awarded to Bell Textron Inc. for this specific model or similar helicopter platforms. Analyzing historical data would help determine if this $44.8 million award is consistent with previous spending, if prices have escalated, and whether previous procurements were competitive or sole-source. Understanding past trends is crucial for evaluating the current contract's value and the agency's procurement strategy.

What are the performance implications of acquiring aircraft through a sole-source award?

The performance implications of acquiring aircraft through a sole-source award are primarily related to the acquisition process itself rather than the operational performance of the aircraft once delivered. While the aircraft's capabilities are determined by its design and configuration (Bell 412EXP), the sole-source nature means the government did not explore potential performance advantages or alternative solutions that might have been offered by other manufacturers had the contract been competed. The risk is that a competitive process might have identified aircraft with superior performance characteristics or better suitability for the intended missions in Iraq, or that the chosen aircraft's performance is not optimized for value due to lack of competitive pressure on features and capabilities.

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: $44,818,175

Exercised Options: $44,818,175

Current Obligation: $44,818,175

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $107,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ21D0007

IDV Type: IDC

Timeline