NOAA's $27.7M aircraft contract with Textron Aviation Inc. awarded under full and open competition

Contract Overview

Contract Amount: $27,711,078 ($27.7M)

Contractor: Textron Aviation Inc

Awarding Agency: Department of Commerce

Start Date: 2019-07-31

End Date: 2024-07-31

Contract Duration: 1,827 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIXED WING AIRCRAFT. NOAA OMAO.

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Commerce obligated $27.7 million to TEXTRON AVIATION INC for work described as: FIXED WING AIRCRAFT. NOAA OMAO. Key points: 1. Value for money appears reasonable given the nature of aircraft manufacturing and support. 2. Competition dynamics indicate a fair market approach, potentially leading to competitive pricing. 3. Risk indicators are moderate, typical for long-term aircraft sustainment contracts. 4. Performance context suggests a focus on maintaining critical NOAA operational capabilities. 5. Sector positioning places this contract within the broader aerospace and defense manufacturing industry.

Value Assessment

Rating: good

This contract for aircraft manufacturing and support appears to be priced competitively within the aerospace sector. While specific per-unit cost benchmarks for this exact aircraft model are not publicly available, the total contract value of approximately $27.7 million over its duration suggests a reasonable allocation of resources for specialized aviation assets. Benchmarking against similar government contracts for aircraft acquisition and sustainment would provide further insight, but the firm fixed-price nature offers cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of robust competition is a positive sign for price discovery and ensuring the government receives optimal value.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the most cost-effective solution for acquiring and maintaining essential NOAA aircraft.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its operational divisions, which rely on these aircraft for critical missions. Services delivered include the manufacturing and potential sustainment of fixed-wing aircraft essential for research, surveillance, and data collection. The geographic impact is national, supporting NOAA's nationwide operational requirements. Workforce implications include supporting jobs in aerospace manufacturing and maintenance, primarily in Kansas where Textron Aviation is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term sustainment costs could exceed initial estimates if unforeseen maintenance issues arise.
Dependence on a single manufacturer for specialized parts could create supply chain risks.
Potential for scope creep if additional modifications or upgrades are requested beyond the original contract terms.

Positive Signals

Firm fixed-price contract structure provides cost certainty and limits the government's exposure to cost overruns.
Awarded under full and open competition, suggesting a competitive pricing environment.
Long contract duration (over 5 years) allows for stable planning and execution of NOAA's aviation needs.

Sector Analysis

This contract falls within the aerospace manufacturing sector, a significant segment of the U.S. industrial base. The market for specialized government aircraft is characterized by high barriers to entry due to technical expertise and regulatory requirements. Textron Aviation is a major player in this space, known for producing a range of business and special mission aircraft. Comparable spending benchmarks would involve analyzing other government contracts for similar fixed-wing aircraft acquisition and modification programs.

Small Business Impact

While this contract was awarded to Textron Aviation Inc., a large business, the analysis does not indicate specific small business set-aside provisions or subcontracting requirements within the provided data. Further investigation into the contract's subcontracting plan would be necessary to assess the direct impact on the small business ecosystem. However, large prime contractors often engage small businesses for component manufacturing or specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by capping costs. Transparency is facilitated by the contract being awarded under full and open competition, with details likely available through federal procurement databases. Inspector General oversight may be involved if any allegations of fraud, waste, or abuse arise.

Related Government Programs

NOAA Aircraft Operations
Fixed-Wing Aircraft Procurement
Aerospace Manufacturing Contracts
Department of Commerce Procurement

Risk Flags

Potential for cost overruns if unforeseen technical issues arise.
Supply chain risks for specialized aircraft components.
Long-term sustainment costs may exceed initial projections.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $27.7 million to TEXTRON AVIATION INC. FIXED WING AIRCRAFT. NOAA OMAO.

Who is the contractor on this award?

The obligated recipient is TEXTRON AVIATION INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2019-07-31. End: 2024-07-31.

What is Textron Aviation Inc.'s track record with federal contracts, particularly with NOAA?

Textron Aviation Inc. has a significant history of performing federal contracts across various agencies. While specific details on their past performance with NOAA are not provided in this data snippet, their extensive experience in aircraft manufacturing and modification suggests a substantial portfolio of government work. A deeper dive into federal procurement databases like SAM.gov or FPDS would reveal the number and value of contracts awarded to Textron Aviation, including any prior awards to NOAA. This would allow for an assessment of their reliability, delivery performance, and overall satisfaction ratings on similar projects, providing context for the current contract's execution.

How does the $27.7 million contract value compare to similar NOAA aircraft procurements?

Comparing the $27.7 million contract value requires identifying similar NOAA aircraft procurements in terms of aircraft type, mission, and duration. Without specific details on the exact aircraft model and its intended use (e.g., research, surveillance, transport), a direct comparison is challenging. However, this figure represents a substantial investment, indicative of acquiring or significantly modifying specialized fixed-wing aircraft. Benchmarking against historical NOAA contracts for similar assets, adjusted for inflation and scope, would be necessary to determine if this represents a fair market value. The firm fixed-price nature suggests cost certainty, but the initial pricing is key to assessing value.

What are the primary risks associated with this firm fixed-price contract for aircraft manufacturing?

The primary risks associated with this firm fixed-price contract, while generally favorable for cost control, revolve around potential issues that could impact Textron Aviation's profitability or NOAA's timely receipt of a fully functional aircraft. These include unforeseen technical challenges during manufacturing or integration that could increase Textron's costs beyond the fixed price, potentially leading to quality compromises if not managed strictly. Another risk is the potential for delays if supply chain disruptions occur for critical components. For NOAA, the risk lies in the possibility that the fixed price might not fully encompass all necessary long-term sustainment or unforeseen upgrade requirements that may arise during the aircraft's operational life, potentially necessitating future, separate procurements.

How effective is full and open competition in ensuring value for money for NOAA aircraft?

Full and open competition is generally considered a highly effective mechanism for ensuring value for money in federal procurements, including for NOAA aircraft. By allowing all responsible sources to bid, it fosters a competitive environment where contractors are incentivized to offer their most competitive pricing and innovative solutions to win the contract. This broad competition increases the likelihood that NOAA will receive high-quality aircraft at a price reflecting market rates, rather than one inflated by limited options. The process also enhances transparency and accountability, as the selection criteria and award decision are typically well-documented, providing a basis for evaluating the fairness of the outcome and the ultimate value delivered to taxpayers.

What are the historical spending patterns for fixed-wing aircraft within NOAA or the Department of Commerce?

Historical spending patterns for fixed-wing aircraft within NOAA and the broader Department of Commerce typically show consistent investment in aviation assets to support their diverse missions, which include environmental monitoring, fisheries research, weather forecasting, and aeronautical charting. These expenditures often involve a mix of new aircraft procurements, upgrades to existing fleets, and long-term sustainment and maintenance contracts. The total annual spending can fluctuate based on fleet modernization cycles, specific research initiatives, and the availability of appropriations. Analyzing past budgets and contract awards would reveal trends in the types of aircraft acquired, the average cost per platform, and the proportion of spending allocated to acquisition versus sustainment, providing context for the current $27.7 million contract.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1305M219RNMAN0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: ONE CESSNA BLVD, WICHITA, KS, 67215

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: $27,711,078

Exercised Options: $27,711,078

Current Obligation: $27,711,078

Actual Outlays: $1,977,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline