Defense contract for miscellaneous weapons awarded to Textron Systems Corp for over $117 million

Contract Overview

Contract Amount: $117,489,304 ($117.5M)

Contractor: Textron Systems Corp

Awarding Agency: Department of Defense

Start Date: 2003-02-13

End Date: 2011-09-22

Contract Duration: 3,143 days

Daily Burn Rate: $37.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200305!000022!5700!GM11 !AAC/YHK !F0863503C0022 !A!N! !N! !20030213!20050330!001863943!001863943!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDLESEX !MASS !+000116855700!N!N!000116855700!1095!MISCELLANEOUS WEAPONS !A5 !WEAPONS !3000!NOT DISCERNABLE OR CLASSIFIED !332993!E! !3! ! ! ! ! !99990909!B! ! !A! !C!N!J!1!001!N!1G!A!Y!F! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $117.5 million to TEXTRON SYSTEMS CORP for work described as: 200305!000022!5700!GM11 !AAC/YHK !F0863503C0022 !A!N! !N! !20030213!20050330!001863943!001863943!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDL… Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The duration of the contract (over 8 years) suggests a long-term need for these weapon systems. 3. The fixed-price contract type may offer some cost certainty, but the lack of competition is a concern. 4. The specific nature of 'miscellaneous weapons' warrants further clarity on the technology and its application. 5. The significant dollar value indicates a substantial investment in defense procurement.

Value Assessment

Rating: questionable

The contract's value of over $117 million for miscellaneous weapons, awarded on a sole-source basis, makes direct value-for-money assessment difficult without competitive benchmarks. The fixed-price nature provides some predictability, but the absence of competition means taxpayers may not have benefited from the most cost-effective pricing. Further analysis would require understanding the specific weapon systems procured and comparing their costs to similar, competitively sourced systems if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one source is capable of meeting the requirement, or in urgent situations. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the best possible value for taxpayers.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to offer the lowest price. This limits price discovery and potentially results in less efficient use of public funds.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically units requiring the 'miscellaneous weapons' for operational purposes. The contract delivers specialized weapon systems, contributing to national defense capabilities. The geographic impact is primarily within the United States, with Textron Systems Corp based in Massachusetts. The contract supports jobs within Textron Systems Corp and its supply chain, particularly in manufacturing and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract value raises concerns about potential overpayment.
The broad category of 'miscellaneous weapons' lacks specificity, making it difficult to assess the technology and its necessity.
The long contract duration could lead to obsolescence if not managed carefully with upgrade provisions.

Positive Signals

The fixed-price contract type offers cost certainty for the government, assuming the price was negotiated effectively.
Textron Systems Corp is an established defense contractor, suggesting a degree of reliability and expertise.
The contract supports critical defense capabilities, contributing to national security.

Sector Analysis

This contract falls within the Defense sector, specifically in the area of weapons manufacturing and procurement. The market for defense systems is characterized by high barriers to entry, specialized technology, and significant government investment. Comparable spending benchmarks would involve analyzing other contracts for similar weapon systems or defense articles, though the 'miscellaneous' nature of this category makes direct comparisons challenging.

Small Business Impact

There is no indication that this contract included small business set-asides. As a sole-source award to a large corporation, it is unlikely to have direct subcontracting opportunities specifically mandated for small businesses, though Textron Systems Corp may engage them in its broader supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring compliance with contract terms and quality standards. Accountability measures are inherent in the fixed-price structure, but the sole-source nature limits transparency in pricing negotiations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Procurement
Weapons Systems Acquisition
Sole-Source Contracts
Department of Defense Contracts
Ammunition Manufacturing

Risk Flags

Sole-source award lacks competitive pricing.
Lack of specificity in 'miscellaneous weapons' definition.
Long contract duration may lead to technology obsolescence.
Potential for cost overruns due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $117.5 million to TEXTRON SYSTEMS CORP. 200305!000022!5700!GM11 !AAC/YHK !F0863503C0022 !A!N! !N! !20030213!20050330!001863943!001863943!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDLESEX !MASS !+000116855700!N!N!000116855700!1095!MISCELLANEOUS WEAPONS !A5 !WEAPONS !3000!NOT DISCERNABLE OR CLASSIFIED !332993!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $117.5 million.

What is the period of performance?

Start: 2003-02-13. End: 2011-09-22.

What specific types of 'miscellaneous weapons' were procured under this contract?

The provided data classifies the product service code as '332993 - Ammunition (except Small Arms) Manufacturing' and the description as 'MISCELLANEOUS WEAPONS'. This suggests the contract was for components or systems related to ammunition or weapon platforms that do not fit into more specific categories. Without further details, it is difficult to ascertain the exact nature of these weapons, their intended use, or their technological sophistication. This lack of specificity is a common challenge in analyzing defense contracts and can obscure the true value and purpose of the expenditure.

What was the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED', indicating a sole-source award. Typical justifications for sole-source contracts include situations where only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For a contract valued at over $117 million and spanning over eight years, the justification would likely need to be robust, potentially involving unique technological capabilities held by Textron Systems Corp or a critical, time-sensitive national security need. The absence of competition, however, prevents independent verification of the necessity for a sole-source approach and raises concerns about potential price inflation.

How does the per-unit cost of these weapons compare to market rates or similar contracts?

Direct per-unit cost comparison is not feasible with the provided data. The contract is for 'MISCELLANEOUS WEAPONS' and 'Ammunition (except Small Arms) Manufacturing' with a total value of $117,489,303.66 over a duration of 3143 days (approximately 8.6 years). Without knowing the exact quantity and type of items procured, a per-unit cost cannot be calculated. Furthermore, as this was a sole-source contract, there are no competitive bids to establish a market rate. Benchmarking would require access to classified or proprietary data on similar weapon systems, which is not publicly available.

What is Textron Systems Corp's track record with similar defense contracts?

Textron Systems Corp is a well-established defense contractor with a history of producing various defense systems, including armored vehicles, unmanned aircraft, and precision weapons. While this specific contract is for 'miscellaneous weapons,' Textron's broader experience in defense manufacturing suggests they possess the technical capabilities to fulfill such a requirement. However, the sole-source nature of this particular award means that their past performance in competitive bidding environments for similar items is not directly reflected here. A deeper dive into their contract history would be needed to assess their overall performance, delivery timeliness, and cost control across their portfolio.

What are the potential risks associated with a long-duration, sole-source contract for weapons systems?

A long-duration (over 8 years) sole-source contract for weapons systems carries several risks. Firstly, the lack of competition can lead to higher costs for taxpayers, as there is no market pressure to ensure competitive pricing. Secondly, technology can rapidly evolve; a long-term contract might lock the government into using systems that become outdated or less effective over time, unless robust upgrade clauses are included. Thirdly, sole-source awards can reduce transparency in the procurement process, making it harder to scrutinize costs and ensure accountability. Finally, it may stifle innovation by limiting opportunities for other companies to compete and develop alternative solutions.

How does this contract fit into the broader context of US defense spending on weapons and ammunition?

This contract, valued at over $117 million, represents a component of the Department of Defense's substantial annual budget for weapons systems and ammunition. While significant in absolute terms, it is one of many such awards. The 'miscellaneous weapons' and 'ammunition manufacturing' classification suggests it supports a specific niche or a broad category of essential materiel. Its sole-source nature might indicate a specialized capability or a long-standing requirement. Analyzing its proportion relative to the total defense budget for procurement and R&D would provide further context on its strategic importance and resource allocation.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 LOWELL STREET, WILMINGTON, MA, 06

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline