DoD's $63.6M Aircraft Manufacturing Contract with Textron Systems Corporation Awarded Without Competition
Contract Overview
Contract Amount: $63,565,578 ($63.6M)
Contractor: Textron Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-10-30
End Date: 2018-06-30
Contract Duration: 974 days
Daily Burn Rate: $65.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: "IGF::OT::IGF EXEMPT"
Place of Performance
Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $63.6 million to TEXTRON SYSTEMS CORPORATION for work described as: "IGF::OT::IGF EXEMPT" Key points: 1. Significant spending on aircraft manufacturing, with a substantial portion potentially lacking competitive pricing. 2. Textron Systems Corporation is the sole awardee, raising questions about market competition. 3. The contract's 'NOT COMPETED' status presents a risk of inflated costs and reduced value for taxpayers. 4. Aircraft manufacturing is a critical sector, but this award method may not yield the best value.
Value Assessment
Rating: questionable
The contract value of $63.6M is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar aircraft manufacturing contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was explicitly 'NOT COMPETED,' indicating a sole-source award. This method bypasses competitive discovery, potentially leading to higher prices and less innovation.
Taxpayer Impact: The lack of competition means taxpayers may have paid more than necessary for these aircraft manufacturing services.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Limited transparency into the pricing justification for this sole-source award. Potential for reduced innovation and quality without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Definitive contract awarded
- Firm fixed price contract type
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a key component of defense spending. Benchmarks for this sector are difficult to establish without competitive data for this specific award.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses were excluded or if opportunities were simply not applicable.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for bypassing competition was sound and that the price was fair and reasonable.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price discovery
- No small business participation indicated
Tags
aircraft-manufacturing, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.6 million to TEXTRON SYSTEMS CORPORATION. "IGF::OT::IGF EXEMPT"
Who is the contractor on this award?
The obligated recipient is TEXTRON SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $63.6 million.
What is the period of performance?
Start: 2015-10-30. End: 2018-06-30.
What was the specific justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies must provide detailed reasons, such as unique capabilities or urgent needs. Without this justification, it's impossible to assess the validity of the sole-source decision and how the price was determined to be fair and reasonable, potentially leading to taxpayer overpayment.
What are the potential risks associated with awarding a $63.6M contract without competition in the aircraft manufacturing sector?
The primary risk is paying an inflated price due to the absence of competitive pressure, which can lead to significant taxpayer overpayment. Other risks include reduced innovation, potential for lower quality if the contractor faces no market alternatives, and a lack of transparency in the procurement process. This can also set a precedent for future non-competitive awards.
How effective is the Department of Defense in ensuring best value when awarding large contracts without competition?
The effectiveness of ensuring best value without competition is inherently limited. While agencies have processes for sole-source justifications and price negotiation, the absence of competing offers means there's no direct market validation of the chosen contractor's price or performance. This increases the reliance on internal analysis and negotiation, making robust oversight crucial to mitigate 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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Textron Inc
Address: 124 INDUSTRY LANE, HUNT VALLEY, MD, 21030
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: $70,665,186
Exercised Options: $69,108,261
Current Obligation: $63,565,578
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-10-30
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2024-05-29
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