Transportation awards $14.3M for King Air aircraft components, sole-sourced from Textron Aviation

Contract Overview

Contract Amount: $14,312,517 ($14.3M)

Contractor: Textron Aviation Inc

Awarding Agency: Department of Transportation

Start Date: 2024-08-19

End Date: 2028-09-30

Contract Duration: 1,503 days

Daily Burn Rate: $9.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCURE COMPONENTS FOR MODIFIED COMMERCIAL KING AIR 360ER AIRCRAFT - FPFM P2

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Transportation obligated $14.3 million to TEXTRON AVIATION INC for work described as: PROCURE COMPONENTS FOR MODIFIED COMMERCIAL KING AIR 360ER AIRCRAFT - FPFM P2 Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract duration of over 4 years suggests a long-term need for these components. 3. Fixed-price contract type shifts performance risk to the contractor. 4. The specific components procured are for modified commercial King Air 360ER aircraft. 5. The award is a delivery order under a larger contract vehicle. 6. The contractor, Textron Aviation, is a significant player in the aircraft manufacturing sector.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the underlying contract's pricing structure and the specific components procured. However, the sole-source nature of the award raises concerns about whether the government achieved the best possible price. Comparing this to other sole-source procurements for similar aircraft components would be necessary for a more definitive value assessment. The fixed-price nature of the contract provides some cost certainty, but the absence of competition limits the ability to assess if the price is truly competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one bidder, Textron Aviation Inc., was solicited. This approach bypasses the competitive bidding process, which typically involves soliciting offers from multiple qualified vendors. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), they generally result in less price discovery and potentially higher costs for the government compared to fully competed contracts.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most cost-effective pricing that could have been achieved through a competitive bidding process.

Public Impact

The Federal Aviation Administration (FAA) benefits through the acquisition of necessary components for its aircraft fleet. These components are critical for maintaining and operating modified commercial King Air 360ER aircraft, likely used for surveillance, inspection, or other operational missions. The geographic impact is primarily linked to Textron Aviation's operations in Kansas (st: KS, sn: KANSAS). The contract supports jobs within the aircraft manufacturing sector, specifically at Textron Aviation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Lack of transparency in the justification for sole-sourcing.
Potential for price escalation over the contract duration if not carefully managed.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Contract awarded to a known entity (Textron Aviation) with established capabilities.
Long contract duration may indicate a stable and predictable need.

Sector Analysis

The aircraft manufacturing sector is a significant part of the aerospace industry, characterized by high barriers to entry and substantial R&D investment. Textron Aviation is a major player in this market, producing a range of business and special mission aircraft. Procurements like this, even for components, are essential for maintaining government aviation fleets. Comparable spending benchmarks would involve analyzing other sole-source or competitively awarded contracts for similar aircraft components or maintenance services within the federal government.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by 'sb': false. Furthermore, the prime contractor, Textron Aviation Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem from this particular award is likely minimal, though Textron Aviation may engage small businesses in its broader supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a component of the Department of Transportation. Accountability measures would be embedded in the contract terms, including delivery schedules and specifications. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected within the procurement or execution of this contract.

Related Government Programs

Aircraft Procurement
Aviation Support Services
Special Mission Aircraft
Commercial Derivative Aircraft

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $14.3 million to TEXTRON AVIATION INC. PROCURE COMPONENTS FOR MODIFIED COMMERCIAL KING AIR 360ER AIRCRAFT - FPFM P2

Who is the contractor on this award?

The obligated recipient is TEXTRON AVIATION INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

Start: 2024-08-19. End: 2028-09-30.

What is the specific justification provided by the FAA for awarding this contract on a sole-source basis to Textron Aviation Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as: only one responsible source being available, an urgent and compelling need where competition is not feasible, or when a specific brand-name item is required that only one manufacturer can provide. The Federal Aviation Administration would have had to document and approve such a justification, often in accordance with the Federal Acquisition Regulation (FAR) Part 6.3. Without access to the contract file or justification documentation, it is impossible to determine the precise reason for bypassing the competitive process for these King Air 360ER components.

How does the pricing of these components compare to market rates or similar procurements, given the sole-source nature?

Directly comparing the pricing of these components is difficult without access to the specific line-item costs within the contract and the underlying pricing structure agreed upon with Textron Aviation. As a sole-source award, there is an inherent risk that the price may not be as competitive as it would be in a fully competed environment. To benchmark this, one would need to identify similar sole-source or competitively awarded contracts for identical or comparable King Air 360ER components, analyze their pricing (preferably on a per-unit basis), and consider factors like quantity, delivery timelines, and any associated services. The absence of competitive bids means the government relies heavily on negotiation and its understanding of fair and reasonable pricing, which can be less robust than market-driven pricing derived from multiple offers.

What are the potential risks associated with a sole-source award for critical aircraft components?

Sole-source awards for critical aircraft components carry several risks. Firstly, there's the risk of paying a premium price due to the lack of competition, potentially exceeding what could be achieved through bidding. Secondly, it can lead to vendor lock-in, making it difficult or costly to switch suppliers in the future, even if better alternatives emerge. Thirdly, there's a reduced incentive for the sole provider to innovate or offer cost efficiencies, as they face no direct competitive pressure. Finally, if the sole provider experiences production issues or financial instability, it could significantly disrupt the supply chain for these essential components, impacting the operational readiness of the FAA's aircraft fleet.

What is the historical spending pattern with Textron Aviation Inc. for similar aircraft components or services by the FAA or other government agencies?

Analyzing historical spending with Textron Aviation Inc. is crucial for understanding the context of this $14.3 million award. Data on past contracts, including their value, duration, competition level, and the specific items procured, would reveal trends. For instance, has the FAA or other agencies frequently awarded sole-source contracts to Textron for King Air components? What has been the average price paid for similar items over time? Examining this history can help identify patterns of reliance, potential cost efficiencies or inefficiencies, and whether this current award aligns with or deviates from previous spending practices. Without specific historical data, it's difficult to assess if this $14.3 million represents a typical, inflated, or unusually cost-effective expenditure.

What is the significance of the 'modified commercial King Air 360ER aircraft' designation for this procurement?

The designation 'modified commercial King Air 360ER aircraft' indicates that the components are intended for aircraft that are based on a standard commercial model but have undergone specific alterations or additions to meet specialized government requirements. These modifications could include specialized avionics, sensor integration, mission equipment, or structural changes for surveillance, research, or other non-standard commercial roles. Procuring components for modified aircraft often necessitates specialized knowledge and manufacturing capabilities, which may contribute to the justification for sole-source awards if only the original manufacturer or a highly specialized integrator possesses the necessary expertise and access to proprietary designs or materials. This specificity can limit the pool of potential suppliers.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 1 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: $14,312,517

Exercised Options: $14,312,517

Current Obligation: $14,312,517

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH23D00122

IDV Type: IDC

Timeline