DoD Awards $686M Aircraft Contract to Textron Systems, Sole-Source

Contract Overview

Contract Amount: $685,944,944 ($685.9M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2016-10-31

End Date: 2025-02-28

Contract Duration: 3,042 days

Daily Burn Rate: $225.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

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 $685.9 million to TEXTRON SYSTEMS CORPORATION for work described as: "IGF::OT::IGF::EXEMPT" Key points: 1. Significant contract value of $686 million. 2. Sole-source award to Textron Systems raises competition concerns. 3. Long contract duration (2016-2025) suggests ongoing need. 4. Aircraft manufacturing sector is critical for defense readiness.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to reduce prices.

Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may be paying a premium for the aircraft manufacturing services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation as there's no incentive from competition. Ensuring effective oversight is crucial to manage costs on this sole-source contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of transparency in pricing

Positive Signals

Critical defense procurement
Long-term contract provides stability

Sector Analysis

This contract falls within the aircraft manufacturing sector, a key component of the defense industry. Spending in this area is substantial, driven by national security needs. Benchmarks are difficult without competitive data.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This sole-source award may limit opportunities for small business participation.

Oversight & Accountability

Given the sole-source nature and cost-plus fee structure, robust oversight from the Defense Contract Management Agency is essential to ensure cost control and performance standards are met.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $685.9 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $685.9 million.

What is the period of performance?

Start: 2016-10-31. End: 2025-02-28.

What justification was provided for the sole-source award, and does it align with federal procurement regulations for non-competitive contracts?

The provided data does not include the specific justification for the sole-source award. Federal regulations typically require a compelling reason, such as unique capabilities or urgent need, to bypass full and open competition. Without this justification, it's difficult to assess the validity of the non-competitive procurement.

How is Textron Systems Corporation's pricing benchmarked against similar sole-source contracts or industry standards for aircraft manufacturing?

Benchmarking pricing for sole-source contracts is inherently challenging due to the lack of direct comparison. While Textron's pricing might be assessed against historical data or internal cost structures, external validation against market rates or similar sole-source awards is not readily available from the provided information.

What mechanisms are in place to ensure cost efficiency and prevent overruns in this Cost Plus Fixed Fee contract, especially given its sole-source nature?

Effective oversight by the Defense Contract Management Agency is critical. This includes rigorous monitoring of costs, performance, and adherence to the fixed fee. Regular audits and performance reviews are essential to ensure accountability and mitigate the risks associated with cost-plus contracts awarded without competition.

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

Solicitation ID: W911QY16R0035

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 124 INDUSTRY LN, 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: $705,035,913

Exercised Options: $693,161,605

Current Obligation: $685,944,944

Actual Outlays: $7,652

Subaward Activity

Number of Subawards: 86

Total Subaward Amount: $38,934,605

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline