Department of the Army awards $32.4M contract for Aerosonde Systems to Textron Systems Corporation

Contract Overview

Contract Amount: $32,442,500 ($32.4M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2020-05-08

End Date: 2023-12-31

Contract Duration: 1,332 days

Daily Burn Rate: $24.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AEROSONDE SYSTEMS

Plain-Language Summary

Department of Defense obligated $32.4 million to TEXTRON SYSTEMS CORPORATION for work described as: AEROSONDE SYSTEMS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of over three years suggests a sustained need for these services. 3. Engineering services are critical for defense operations, indicating a strategic procurement. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. No small business set-aside was applied, potentially impacting small business participation. 6. The absence of competition raises questions about optimal value for taxpayer funds.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging due to the lack of competitive bids. The total award amount of $32.4 million over approximately three years suggests a significant investment in Aerosonde Systems. Without comparable contracts or market data, it's difficult to definitively assess if the pricing is optimal. However, the firm-fixed-price nature of the contract indicates that the contractor bears the risk of cost overruns, which can be a positive indicator of value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates a rapid award. The lack of competition means there was no opportunity for price discovery through bidding, which could lead to higher costs for the government compared to a competitive procurement.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible pricing, potentially resulting in less favorable outcomes for taxpayers.

Public Impact

The Department of the Army is the primary beneficiary, receiving Aerosonde Systems. These systems likely support intelligence, surveillance, and reconnaissance (ISR) missions. The geographic impact is likely global, supporting deployed forces. The contract supports specialized engineering and technical roles within Textron Systems Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency in pricing and vendor selection.
No indication of small business subcontracting goals.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Long-term contract suggests a critical and sustained need for the systems.
Award to an established entity (Textron Systems) may indicate reliability.

Sector Analysis

The defense sector relies heavily on advanced unmanned aerial systems (UAS) for intelligence, surveillance, and reconnaissance (ISR). Contracts for such systems are often complex and require specialized engineering expertise. While the exact market size for Aerosonde Systems is not publicly detailed, the broader UAS market is substantial and growing, with significant government investment. This contract fits within the broader category of defense procurement for advanced technology solutions.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication that Textron Systems Corporation is a small business. Consequently, there are no direct subcontracting opportunities for small businesses mandated by this specific award. The absence of a set-aside means that the primary contract is not designed to specifically foster small business participation, though Textron may engage small businesses as subcontractors at its discretion.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a sole-source award, scrutiny might be higher to ensure fair and reasonable pricing. Transparency is limited due to the lack of public competition details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Unmanned Aerial Vehicle (UAV) Procurement
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Engineering Services Contracts
Department of the Army Major Procurements

Risk Flags

Sole-source award limits competition and price discovery.
Lack of transparency in the procurement process.
No small business set-aside identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to TEXTRON SYSTEMS CORPORATION. AEROSONDE SYSTEMS

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 $32.4 million.

What is the period of performance?

Start: 2020-05-08. End: 2023-12-31.

What is the specific capability and intended use of the Aerosonde Systems being procured?

The Aerosonde Systems are unmanned aerial systems (UAS) designed for intelligence, surveillance, and reconnaissance (ISR) missions. These systems are typically employed for gathering real-time data, monitoring areas of interest, and providing situational awareness to military commanders. Their capabilities often include long endurance flight, advanced sensor payloads (such as electro-optical/infrared cameras and signals intelligence equipment), and robust communication links. The specific configuration and mission set for this contract would be detailed in the Statement of Work (SOW) but generally align with supporting tactical and operational level ISR requirements for the Department of the Army.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's requirements. For specialized systems like the Aerosonde, this could be due to unique technology, proprietary designs, existing infrastructure integration, or a critical need that cannot be met through a lengthy competitive process. The Department of the Army would have had to document the justification for other than full and open competition (JOFOC), likely citing Textron Systems Corporation's exclusive rights or unique capabilities related to the Aerosonde platform. This ensures continuity and avoids potential delays or risks associated with introducing a new system or vendor.

How does the firm-fixed-price (FFP) contract type mitigate risk for the government?

A Firm-Fixed-Price (FFP) contract is advantageous for the government as it establishes a ceiling price that the contractor must not exceed. All cost overruns are the responsibility of the contractor, shifting the financial risk away from the government. This contract type incentivizes the contractor to manage costs efficiently and perform the work within the agreed-upon budget. For the Department of the Army, this means greater predictability in spending for the Aerosonde Systems, assuming the scope of work remains stable. It simplifies financial management and reduces the potential for unexpected cost increases during the contract performance period.

What is Textron Systems Corporation's track record with similar defense contracts?

Textron Systems Corporation, a subsidiary of Textron Inc., has a significant and established track record in the defense industry, particularly in the development and production of unmanned systems, armored vehicles, and precision weapons. They are known for their expertise in areas such as aerospace, defense, and industrial technologies. The company has a history of delivering complex systems to various branches of the U.S. military and international allies. Their experience with previous generations of unmanned aerial vehicles and related support services suggests a strong capability to fulfill the requirements of the Aerosonde Systems contract, indicating a lower performance risk.

Are there any comparable contracts or spending benchmarks for similar unmanned aerial systems?

Benchmarking spending for specialized unmanned aerial systems (UAS) like the Aerosonde can be challenging due to the proprietary nature of many systems and the varying capabilities offered. However, the broader market for tactical and ISR-focused UAS has seen significant investment. Contracts for similar systems, depending on size, endurance, payload, and sensor suites, can range from tens of millions to hundreds of millions of dollars. For instance, other medium-altitude, long-endurance UAS programs procured by the military often involve substantial R&D and production costs. The $32.4 million award over three years for Aerosonde Systems appears to be within a reasonable range for a sole-source procurement of a specialized, established UAS platform, though a direct comparison is difficult without detailed specifications.

What are the potential implications of this contract on future defense spending in the UAS sector?

This contract signifies the Department of the Army's continued reliance on and investment in mature UAS technology for critical ISR missions. As a sole-source award for an established system, it suggests a focus on maintaining operational readiness and leveraging existing capabilities rather than exploring novel, potentially riskier, technologies through open competition at this time. It may indicate a strategic decision to prioritize proven platforms for specific roles. Future spending in the UAS sector will likely continue to be robust, driven by evolving threats and the increasing recognition of UAS as essential assets. However, the trend towards sole-source awards for established systems could influence how new technologies are introduced and competed in the future.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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 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: $32,442,500

Exercised Options: $32,442,500

Current Obligation: $32,442,500

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,697,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline