Transportation awards $38.9M for King Air aircraft components, with Textron Aviation Inc. as the sole provider

Contract Overview

Contract Amount: $38,928,246 ($38.9M)

Contractor: Textron Aviation Inc

Awarding Agency: Department of Transportation

Start Date: 2025-06-11

End Date: 2028-03-31

Contract Duration: 1,024 days

Daily Burn Rate: $38.0K/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 $38.9 million to TEXTRON AVIATION INC for work described as: PROCURE COMPONENTS FOR MODIFIED COMMERCIAL KING AIR 360ER AIRCRAFT - FPFM P2 Key points: 1. Value for money is difficult to assess due to the lack of competitive bidding. 2. The contract is sole-source, limiting opportunities for price negotiation and innovation. 3. Risk indicators include potential overpricing and limited contractor accountability without competition. 4. Performance context is tied to the modification of existing King Air 360ER aircraft. 5. This contract falls within the aircraft manufacturing sector, a specialized industry.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the absence of comparable bids. The fixed-price contract type provides some cost certainty, but without competition, it's difficult to ascertain if the $38.9 million represents a fair market price for the specified aircraft components. Further analysis would require access to historical pricing for similar modifications or internal cost data from the contractor.

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 Aviation Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no opportunity for price discovery through market forces, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these components as there was no competitive pressure to drive down prices. The government missed an opportunity to leverage market competition to secure the best possible value.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving critical components for aircraft modification. Services delivered include the provision of specialized components for the King Air 360ER aircraft. The geographic impact is centered in Kansas (KS), where the contractor is located. Workforce implications are likely within the specialized aircraft manufacturing sector, supporting skilled labor at Textron Aviation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs.
Lack of transparency in the procurement process due to non-competitive nature.
Dependence on a single supplier could create future supply chain risks.

Positive Signals

Contract supports the modification of existing, likely critical, aircraft assets.
Fixed-price contract provides some cost predictability for the government.
Contractor is an established entity in aircraft manufacturing.

Sector Analysis

The aircraft manufacturing sector is characterized by high barriers to entry, specialized technology, and significant capital investment. This contract for components for the King Air 360ER fits within this niche, focusing on modifications rather than new aircraft production. Comparable spending benchmarks are difficult to establish without more specific component details, but the overall defense and aerospace manufacturing market involves billions in federal spending annually.

Small Business Impact

This contract does not appear to include a small business set-aside. As a sole-source award to a large corporation, there are no direct subcontracting implications for small businesses mandated by this specific contract. The focus is on a direct award to Textron Aviation Inc., potentially limiting opportunities for small businesses to participate in this particular procurement.

Oversight & Accountability

Oversight for this contract will primarily fall under the Federal Aviation Administration's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified components. 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.

Related Government Programs

Aircraft Manufacturing
Commercial Aircraft Modification
Federal Aviation Administration Procurement
Textron Aviation Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $38.9 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 $38.9 million.

What is the period of performance?

Start: 2025-06-11. End: 2028-03-31.

What is the specific nature of the 'PROCURE COMPONENTS FOR MODIFIED COMMERCIAL KING AIR 360ER AIRCRAFT - FPFM P2'?

The data indicates a procurement for components related to the modification of King Air 360ER aircraft. The designation 'FPFM P2' likely refers to a specific project phase, part number, or internal designation within the Federal Aviation Administration (FAA) or Textron Aviation. The contract is for Firm Fixed Price (FFP) delivery orders with an estimated completion date of March 31, 2028. The total award amount is $38,928,246. Without further details on the specific components, it's challenging to provide a more granular breakdown of their function or criticality.

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

The provided data explicitly states the contract type as 'NOT COMPETED' and lists the competition as 'sole-source'. While the specific justification for this sole-source award is not detailed in the provided data, common reasons include the unique capability of a single contractor, urgent and compelling needs where competition is not feasible, or if the components are proprietary and only available from one source. For a sole-source award of this magnitude, the government agency (FAA) would typically have a justification document outlining the rationale, often citing specific technical requirements or market limitations that preclude competitive bidding.

How does the $38.9 million award compare to historical spending on similar King Air 360ER modifications?

Direct comparison of the $38.9 million award to historical spending on similar King Air 360ER modifications is difficult without access to more granular historical procurement data. Since this is a sole-source award, there are no competing bids to establish a market benchmark for this specific procurement. To assess value, one would need to analyze Textron Aviation's historical pricing for similar component packages, or compare the unit cost of components against industry averages for aircraft modifications, assuming such data is publicly available or obtainable through specific data requests. The duration of the contract (delivery orders through March 2028) also suggests a phased approach to component delivery.

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

Sole-source contracts carry several inherent risks. Primarily, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. There's also a reduced incentive for the contractor to innovate or improve efficiency. Furthermore, the government becomes dependent on a single supplier, which can create vulnerabilities in the supply chain, especially if the contractor experiences production issues or financial instability. Without competitive oversight, ensuring the quality and timely delivery of components may also require more intensive government monitoring.

What is Textron Aviation Inc.'s track record with the Federal Aviation Administration and in aircraft manufacturing?

Textron Aviation Inc. is a well-established and significant player in the aviation industry, known for its Beechcraft and Cessna brands. They have a long history of manufacturing and supporting a wide range of aircraft, including the King Air series. Their track record with the Federal Aviation Administration (FAA) likely includes numerous contracts for aircraft, parts, and services, given the FAA's role in aviation safety and operations. While specific contract performance details are not provided here, Textron Aviation's longevity and market presence suggest a substantial capacity and experience in fulfilling government aviation requirements. Their expertise in modifying existing platforms like the King Air is a core part of their business.

What is the significance of the 'Aircraft Manufacturing' NAICS code (336411) in the context of this contract?

The North American Industry Classification System (NAICS) code 336411, 'Aircraft Manufacturing,' signifies that the primary business activity related to this contract falls within the production of aircraft and parts. This code indicates a highly specialized industrial sector involving complex engineering, manufacturing processes, and stringent quality control. For this contract, it means the components being procured are integral to the assembly or modification of aircraft, requiring specialized knowledge and facilities. This classification helps in understanding the industrial context, market dynamics, and potential supply chain considerations relevant to the procurement.

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: $38,928,246

Exercised Options: $38,928,246

Current Obligation: $38,928,246

Actual Outlays: $2,550,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH23D00122

IDV Type: IDC

Timeline