DoD awards $67M for mobile strike force vehicles, with Textron Systems Corp. as the sole provider

Contract Overview

Contract Amount: $67,165,731 ($67.2M)

Contractor: Textron Systems Corp

Awarding Agency: Department of Defense

Start Date: 2017-10-25

End Date: 2019-06-10

Contract Duration: 593 days

Daily Burn Rate: $113.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF UP TO 255 MOBILE STRIKE FORCE VEHICLES AND RELATED FIELDING HARDWARE AND FIELD SERVICE REPRESENTATIVE SERVICES FOR SYSTEM DEPROCESSING.

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $67.2 million to TEXTRON SYSTEMS CORP for work described as: PROCUREMENT OF UP TO 255 MOBILE STRIKE FORCE VEHICLES AND RELATED FIELDING HARDWARE AND FIELD SERVICE REPRESENTATIVE SERVICES FOR SYSTEM DEPROCESSING. Key points: 1. This contract represents a significant investment in tactical mobility for the Army. 2. The sole-source nature raises questions about potential price inflation and limited innovation. 3. Performance risk appears moderate, given the established nature of armored vehicle production. 4. The contract duration of nearly two years suggests a substantial fielding effort. 5. This falls within the broader defense sector's focus on modernizing ground vehicle fleets. 6. The absence of small business participation is noted.

Value Assessment

Rating: fair

Benchmarking the value for this sole-source contract is challenging due to the lack of competitive bids. The total award of $67.2 million for up to 255 vehicles and associated services suggests a per-vehicle cost that needs further scrutiny against potential alternatives or historical data for similar platforms. Without competitive pricing, it's difficult to definitively assess if taxpayers received the best possible 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, Textron Systems Corp., was considered. This approach bypasses the typical competitive bidding process, which usually involves multiple companies vying for the contract. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they limit price discovery and can potentially lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding environment. This could translate to a higher overall expenditure for these vehicles than if multiple vendors had been allowed to compete.

Public Impact

The primary beneficiaries are the U.S. Army units receiving enhanced mobile strike force capabilities. The contract delivers up to 255 mobile strike force vehicles and related fielding hardware. Field service representative support is included, ensuring operational readiness and maintenance. The geographic impact is likely concentrated at Army installations where these vehicles will be fielded and maintained. Workforce implications include potential demand for specialized technicians for fielding and maintenance services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns without competitive benchmarking.
No explicit small business set-aside, potentially limiting broader economic participation.

Positive Signals

Procurement of critical mobile strike force vehicles enhances Army readiness.
Textron Systems Corp. is an established defense contractor with experience in armored vehicles.
Firm Fixed Price contract type provides cost certainty for the government.
Inclusion of field service representative support ensures operational effectiveness.

Sector Analysis

The defense industrial base for armored vehicles is a specialized sector within the broader manufacturing industry. Companies like Textron Systems Corp. operate in a market characterized by high barriers to entry, significant R&D investment, and long product development cycles. This contract fits within the Army's ongoing efforts to modernize its ground vehicle fleet, ensuring soldiers have access to advanced protection and mobility. Comparable spending benchmarks would typically involve other large-scale armored vehicle procurements, though direct comparisons are difficult due to unique platform specifications.

Small Business Impact

This contract does not appear to include any specific small business set-aside provisions. The prime contractor, Textron Systems Corp., is a large business. There is no information provided regarding subcontracting plans or goals for small businesses. This means that opportunities for small businesses to participate in this procurement are likely limited to those that might be lower-tier suppliers to the prime contractor, rather than direct awardees.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The contract type is Firm Fixed Price, which generally offers cost certainty. However, the sole-source nature necessitates careful monitoring of performance and delivery schedules. Transparency is limited due to the non-competitive award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Ground Vehicle Modernization Programs
Tactical Wheeled Vehicle Programs
Armored Fighting Vehicle Procurement
Defense Logistics Agency Support Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.2 million to TEXTRON SYSTEMS CORP. PROCUREMENT OF UP TO 255 MOBILE STRIKE FORCE VEHICLES AND RELATED FIELDING HARDWARE AND FIELD SERVICE REPRESENTATIVE SERVICES FOR SYSTEM DEPROCESSING.

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $67.2 million.

What is the period of performance?

Start: 2017-10-25. End: 2019-06-10.

What is the specific justification provided by the Department of the Army for awarding this contract on a sole-source basis to Textron Systems Corp.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as when only one responsible source is capable of providing the required supplies or services, or when a compelling urgency precludes the use of competitive procedures. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the precise rationale. This lack of transparency is a common concern with sole-source contracts, as it limits the public's understanding of why competition was bypassed and whether it was truly necessary.

How does the per-unit cost of these mobile strike force vehicles compare to similar platforms procured competitively by the Army or other military branches?

Direct comparison of per-unit costs is not feasible with the provided data, primarily because this contract was awarded sole-source. Competitive procurements allow for benchmarking against multiple bids, providing a clearer picture of market value. To assess value, one would need to compare the cost per vehicle (total award divided by the maximum number of vehicles) against historical data for similar armored vehicles, or against prices obtained through competitive bids for comparable platforms. Without this comparative data, it's difficult to determine if the $67.2 million represents a fair market price for up to 255 vehicles.

What are the key performance metrics and delivery milestones associated with this contract, and has Textron Systems Corp. met them to date?

The provided data indicates a contract duration of 593 days (approximately 1.6 years) from the award date (October 25, 2017) to the estimated completion date (June 10, 2019). However, specific key performance metrics (e.g., technical specifications, reliability targets) and detailed delivery milestones are not included. To assess performance, one would need to review contract line item numbers (CLINs), delivery schedules, and acceptance reports. Without access to these details, it's impossible to determine if Textron Systems Corp. has met its obligations under the contract.

What is Textron Systems Corp.'s track record with the Department of Defense, particularly concerning armored vehicle production and sole-source contracts?

Textron Systems Corp. is a known entity within the defense sector, with a history of producing various armored vehicles and defense systems for the U.S. military. While specific details on their track record with sole-source contracts for similar vehicles are not provided here, their established presence suggests experience in meeting military requirements. A deeper analysis would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past issues with sole-source awards, and their overall success rate in delivering complex defense systems on time and within budget.

What is the total historical spending by the Department of the Army on mobile strike force vehicles or similar platforms over the last five fiscal years?

The provided data focuses solely on this specific contract award of $67.2 million. To determine the total historical spending by the Department of the Army on mobile strike force vehicles or similar platforms over the last five fiscal years, one would need to access broader federal procurement databases (like USASpending.gov or FPDS). This would involve searching for relevant product service codes (PSCs), contract vehicles, and keywords related to mobile strike force vehicles and armored personnel carriers. Aggregating this data would provide context on the scale and trend of Army investments in this capability area.

Are there any known risks or concerns associated with the specific mobile strike force vehicle platform being procured under this contract?

The provided data does not detail specific risks associated with the vehicle platform itself. General risks associated with sole-source procurements, such as potential lack of competitive pricing and limited innovation, are present. To identify platform-specific risks, one would need to consult technical documentation, operational testing reports, and any available threat assessments related to the vehicle's design, survivability, mobility, and maintainability. Without this information, the assessment is limited to procurement process risks rather than inherent product risks.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

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 (UEI: 001338979)

Address: 19401 CHEF MENTEUR HWY, NEW ORLEANS, LA, 70129

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,165,731

Exercised Options: $67,165,731

Current Obligation: $67,165,731

Subaward Activity

Number of Subawards: 87

Total Subaward Amount: $21,917,137

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV18D0014

IDV Type: IDC

Timeline