DoD Acquires Two 412 EXP Aircraft for Nepal for $38.5M, Sole-Sourced from Bell Textron

Contract Overview

Contract Amount: $38,457,821 ($38.5M)

Contractor: Bell Textron Inc

Awarding Agency: Department of Defense

Start Date: 2025-03-18

End Date: 2028-11-30

Contract Duration: 1,353 days

Daily Burn Rate: $28.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS ACQUISITION BY CARGO INTERNATIONAL PROGRAM OFFICE IS FOR THE PURCHASE OF TWO 412 EXP AIRCRAFT FOR NEPAL.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $38.5 million to BELL TEXTRON INC for work described as: THIS ACQUISITION BY CARGO INTERNATIONAL PROGRAM OFFICE IS FOR THE PURCHASE OF TWO 412 EXP AIRCRAFT FOR NEPAL. Key points: 1. High value acquisition for critical international program support. 2. Sole-source procurement limits competitive pricing advantages. 3. Potential risk in reliance on a single supplier for specialized aircraft. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: fair

The $38.5 million price for two specialized aircraft appears high without competitive benchmarking. Pricing for similar international aid aircraft acquisitions would be needed for a more accurate assessment.

Cost Per Unit: $19,228,910.50

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Bell Textron Inc. This lack of competition likely resulted in a higher price than if multiple vendors had bid.

Taxpayer Impact: Taxpayer funds are being used for a sole-source acquisition, potentially at a premium, for international program support.

Public Impact

Supports international relations and security cooperation through aircraft provision. Enhances Nepal's operational capabilities with advanced aircraft. Represents a significant investment in foreign military aid or assistance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
High per-unit cost

Positive Signals

Supports critical international program
Acquisition of specialized aircraft

Sector Analysis

This acquisition falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending benchmarks for similar international aircraft procurements are not readily available but typically involve significant investment.

Small Business Impact

The data indicates no specific set-aside for small businesses in this sole-source acquisition. The prime contractor, Bell Textron Inc., is a large aerospace manufacturer.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is overseeing this acquisition. Further oversight would focus on contract performance and delivery timelines.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment due to lack of competition.
Reliance on a single manufacturer for critical assets.
Limited transparency on justification for sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 million to BELL TEXTRON INC. THIS ACQUISITION BY CARGO INTERNATIONAL PROGRAM OFFICE IS FOR THE PURCHASE OF TWO 412 EXP AIRCRAFT FOR NEPAL.

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 $38.5 million.

What is the period of performance?

Start: 2025-03-18. End: 2028-11-30.

What is the justification for the sole-source award, and were alternative sourcing options explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear if alternatives were thoroughly explored or if specific technical requirements mandated Bell Textron Inc. as the only provider.

How does the per-unit cost compare to similar international aircraft sales or government procurements?

Benchmarking the $19.2 million per-unit cost against similar international sales or government procurements of the 412 EXP aircraft is crucial. Without this comparative data, it's difficult to definitively assess if the price is reasonable or inflated due to the sole-source nature of the contract.

What are the long-term sustainment and maintenance cost implications for these aircraft?

The initial acquisition cost is only part of the total ownership expense. Understanding the projected costs for spare parts, maintenance, training, and potential upgrades over the aircraft's lifespan is essential for a complete value assessment.

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: $38,457,821

Exercised Options: $38,457,821

Current Obligation: $38,457,821

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58RGZ21D0007

IDV Type: IDC

Timeline