DOE Spends $32M on 3 Fixed-Wing Aircraft from Textron Aviation Inc
Contract Overview
Contract Amount: $32,048,286 ($32.0M)
Contractor: Textron Aviation Inc
Awarding Agency: Department of Energy
Start Date: 2019-04-03
End Date: 2020-01-06
Contract Duration: 278 days
Daily Burn Rate: $115.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 3 FIXED WING AIRCRAFT
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67215
State: Kansas Government Spending
Plain-Language Summary
Department of Energy obligated $32.0 million to TEXTRON AVIATION INC for work described as: 3 FIXED WING AIRCRAFT Key points: 1. Significant expenditure on specialized aircraft for the Department of Energy. 2. Sole-source procurement limits competitive pricing and potential cost savings. 3. Firm Fixed Price contract provides cost certainty but may not reflect market value. 4. Aircraft Manufacturing sector is highly specialized, potentially justifying limited competition.
Value Assessment
Rating: fair
The $32M price for three fixed-wing aircraft is difficult to assess without specific model and configuration details. However, given the firm fixed-price nature and lack of competition, it's possible the price is not optimized.
Cost Per Unit: $10,682,762
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher prices and reduced transparency in price discovery.
Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive pressure to secure the best possible price for these aircraft.
Public Impact
Procurement of essential aviation assets for government operations. Potential for increased operational efficiency with new aircraft. Lack of competition raises concerns about the efficient use of taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for overpayment
Positive Signals
- Firm Fixed Price contract provides cost certainty
- Acquisition of necessary operational assets
Sector Analysis
The Department of Energy's acquisition of fixed-wing aircraft falls within the broader aerospace and defense manufacturing sector. Benchmarks for similar specialized aircraft can vary widely based on mission requirements and customization.
Small Business Impact
This contract was awarded to Textron Aviation Inc., a large business. There is no indication of small business participation in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price paid was fair and reasonable, and that future procurements explore competitive options where feasible.
Related Government Programs
- Aircraft Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to no competition.
- Lack of transparency in price justification.
- No small business participation noted.
Tags
aircraft-manufacturing, department-of-energy, ks, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $32.0 million to TEXTRON AVIATION INC. 3 FIXED WING AIRCRAFT
Who is the contractor on this award?
The obligated recipient is TEXTRON AVIATION INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $32.0 million.
What is the period of performance?
Start: 2019-04-03. End: 2020-01-06.
What specific mission requirements necessitate these fixed-wing aircraft, and how do they justify a sole-source award?
The specific mission requirements are not detailed in the provided data. However, specialized government operations, such as scientific research, surveillance, or transport in remote areas, can sometimes necessitate unique aircraft configurations that may limit the pool of qualified manufacturers, potentially leading to sole-source justifications. Further investigation into the DOE's operational needs would clarify this.
What is the benchmark price for comparable fixed-wing aircraft in the market to assess the fairness of the $32M expenditure?
Establishing a precise benchmark is challenging without knowing the exact aircraft models, specifications, and customization levels. However, comparing the per-unit cost of $10.7 million against similar government or commercial aircraft used for comparable missions would be necessary. A thorough market research report would be required to determine if this price falls within an acceptable range.
What are the long-term operational and maintenance costs associated with these aircraft, and were they factored into the total value assessment?
The provided data focuses solely on the acquisition cost and does not include information on long-term operational and maintenance expenses. These costs, including fuel, pilot salaries, parts, and regular servicing, can significantly exceed the initial purchase price. A comprehensive value assessment should ideally incorporate these lifecycle costs to understand the true financial impact on the agency.
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
Solicitation ID: 89233119CNA00061
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Textron Inc (UEI: 001338979)
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: $32,066,886
Exercised Options: $32,066,886
Current Obligation: $32,048,286
Actual Outlays: $3,389,089
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2019-04-03
Current End Date: 2020-01-06
Potential End Date: 2022-03-15 00:00:00
Last Modified: 2022-03-15
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