DoD's $193M contract for drones and airframes awarded to Textron Systems Corporation

Contract Overview

Contract Amount: $193,072,045 ($193.1M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 1999-08-19

End Date: 2004-09-30

Contract Duration: 1,869 days

Daily Burn Rate: $103.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: 199911!2100!2522!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0199C0142 !A!*!P00001 !19990819!19991130!003090198!003090198!001527852!N!97384!AAI CORPORATION !YORK RD & INDUSTRY LN !COCKEYSVILLE !MD!21031!41100!005!24!HUNT VALLEY !BALTIMORE !MARYLAND !0001!+000000250000!N!N!000000000000!1550!DRONES !A1A!AIRFRAMES AND SPARES !1GHL!AIRBORNE RECON LOW (ARL) !3721!3!*!*!H!B!A!*!A !N!L!2!007!B!* !A!N!A!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $193.1 million to TEXTRON SYSTEMS CORPORATION for work described as: 199911!2100!2522!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0199C0142 !A!*!P00001 !19990819!19991130!003090198!003090198!001527852!N!97384!AAI CORPORATION !YORK RD & INDUSTRY LN !COCKEYSVILLE !MD!21031!41100!005!24!HUNT VALLEY !BALTIM… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Fixed Price Incentive contract type indicates shared risk between government and contractor. 3. Long contract duration of 1869 days suggests a significant, ongoing need for these services. 4. The contract is for drones and related airframes and spares, a critical defense capability. 5. Awarded by the Department of Defense, highlighting its strategic importance. 6. The contract was managed by the Defense Contract Management Agency.

Value Assessment

Rating: good

The total value of $193,072,044.71 for a 1869-day contract (approximately 5 years) for drones and airframes appears reasonable given the scope. Without specific details on the number of units or performance metrics, a direct value-for-money assessment is challenging. However, the fixed-price incentive structure suggests an effort to control costs while allowing for adjustments based on performance, which is a positive sign for value.

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 suggests a robust bidding process where multiple companies likely vied for the contract. The presence of 7 bids further supports the notion of significant competition, which generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it drives down prices through market forces and encourages contractors to offer their best value propositions to secure the award.

Public Impact

The primary beneficiaries are the U.S. military branches requiring advanced drone and airframe capabilities for reconnaissance and operational support. Services delivered include the provision of drones, airframes, and associated spare parts, crucial for maintaining operational readiness. The geographic impact is national, with potential deployment across various operational theaters. Workforce implications include skilled labor in aerospace engineering, manufacturing, and maintenance within Textron Systems Corporation and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if performance targets are not met or if unforeseen technical challenges arise, given the Fixed Price Incentive structure.
Long-term reliance on a single contractor for critical drone technology could pose supply chain risks.
The specific performance metrics and their impact on the final price are not detailed, making it hard to fully assess incentive effectiveness.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
The Fixed Price Incentive contract type aligns government and contractor incentives towards achieving performance goals.
The contract duration suggests a stable, long-term partnership for a critical defense need.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on unmanned aerial systems (drones) and related components. The market for defense drones has seen significant growth, driven by evolving military requirements for intelligence, surveillance, reconnaissance (ISR), and strike capabilities. Spending in this area is substantial across major defense agencies, with numerous contractors competing for a share of the market.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless Textron Systems Corporation voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the Fixed Price Incentive contract terms, linking payment to performance. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Unmanned Aerial Systems (UAS) Procurement
Aerospace and Defense Manufacturing
Intelligence, Surveillance, and Reconnaissance (ISR) Equipment
Airframe and Component Manufacturing
Department of Defense Aviation Procurement

Risk Flags

Contract Type Risk (Fixed Price Incentive)
Long-term Dependency
Performance Metric Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $193.1 million to TEXTRON SYSTEMS CORPORATION. 199911!2100!2522!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0199C0142 !A!*!P00001 !19990819!19991130!003090198!003090198!001527852!N!97384!AAI CORPORATION !YORK RD & INDUSTRY LN !COCKEYSVILLE !MD!21031!41100!005!24!HUNT VALLEY !BALTIMORE !MARYLAND !0001!+000000250000!N!N!000000000000!1550!DRONES !A1A!AIRFRAMES AND SPARES !1GHL!AIRBORNE RECON LOW (ARL) !3721!3!*!*!H!B!A!*!A !N!L!2!0

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $193.1 million.

What is the period of performance?

Start: 1999-08-19. End: 2004-09-30.

What is the track record of Textron Systems Corporation in delivering similar drone and airframe contracts to the DoD?

Textron Systems Corporation has a significant history of delivering advanced defense technologies, including unmanned systems, to the U.S. military. They are known for their expertise in areas like drone design, manufacturing, and integration. While specific contract performance details for this particular award are not publicly detailed, Textron's established presence and capabilities in the defense sector suggest a strong foundational capacity to fulfill such requirements. Their portfolio often includes a range of unmanned aircraft systems designed for various mission profiles, indicating a deep understanding of military needs in this domain. Past performance reviews and contract awards would provide a more granular view of their reliability and success rates in fulfilling complex defense obligations.

How does the $193 million contract value compare to similar drone procurement contracts awarded by the DoD around 1999?

In 1999, a $193 million contract for drones and airframes would have been considered substantial, reflecting the growing importance of unmanned systems in military operations. The defense budget at the time was robust, and investments in new technologies like drones were increasing. Comparing this value requires looking at the specific capabilities and quantities procured. For instance, earlier drone programs might have been smaller in scale or focused on simpler reconnaissance roles. As technology advanced, contracts for more sophisticated systems, including those with strike capabilities or advanced sensor payloads, naturally commanded higher prices. This contract's value suggests a significant procurement, likely encompassing advanced platforms and potentially long-term support, aligning with the technological trajectory of military aviation during that period.

What are the primary risks associated with a Fixed Price Incentive (FPI) contract for drone systems?

The primary risks with a Fixed Price Incentive (FPI) contract for drone systems revolve around the balance between cost control and performance achievement. For the government, the risk is that the final price could exceed the target price if the contractor incurs higher-than-expected costs while still meeting minimum performance standards. Conversely, the contractor bears the risk of cost overruns if their expenses exceed the target cost, as they must absorb a portion of the excess. A key challenge is establishing realistic target costs and performance metrics; if these are poorly defined, the incentive structure may not effectively motivate the contractor or could lead to disputes. Furthermore, the complexity of drone technology means unforeseen technical issues could arise, impacting both cost and performance, potentially leading to price adjustments within the FPI framework.

How effective was the 'full and open competition' in ensuring optimal value for this $193 million drone contract?

The 'full and open competition' award for this $193 million drone contract is a strong indicator of potential value for the government. By allowing all responsible sources to bid, the DoD likely received a range of proposals, fostering price competition. The fact that 7 bids were received suggests a healthy market interest and a competitive environment, which typically drives down prices and encourages innovation. This competitive pressure incentivizes bidders to offer their most cost-effective solutions and robust performance capabilities to win the contract. While the specific details of the winning bid versus others are not public, the competitive process itself is a fundamental mechanism for achieving optimal value in government procurement, ensuring that taxpayer funds are used efficiently.

What are the historical spending patterns for drone and unmanned aerial vehicle (UAV) procurement within the DoD leading up to and following this contract?

Leading up to 1999, DoD spending on drones and UAVs was increasing but still relatively modest compared to manned aircraft programs. Early investments focused on reconnaissance and surveillance platforms. Following this contract, spending on UAVs saw a dramatic acceleration, particularly after the September 11th attacks, driven by the demands of conflicts in Afghanistan and Iraq. This period saw the rise of more sophisticated systems, including armed drones and larger, longer-endurance platforms. The $193 million contract awarded to Textron Systems in 1999 represents a significant step in this evolution, indicating a growing commitment to unmanned capabilities. Post-2001, annual spending on UAVs surged into the billions, reflecting their integration across various military branches and mission types.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 7

Pricing Type: FIXED PRICE INCENTIVE (L)

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: YORK RD & INDUSTRY LN, COCKEYSVILLE, MD, 21031

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline