DoD's $35.8M Engineering Services Contract with Textron Aviation Inc. awarded in 1999, ending in 2017

Contract Overview

Contract Amount: $35,842,284 ($35.8M)

Contractor: Textron Aviation Inc

Awarding Agency: Department of Defense

Start Date: 1999-11-04

End Date: 2017-12-28

Contract Duration: 6,629 days

Daily Burn Rate: $5.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67206

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to TEXTRON AVIATION INC for work described as: Key points: 1. Contract value of $35.8M over its duration suggests a significant investment in engineering services. 2. The 'NOT COMPETED' award type raises questions about the procurement process and potential for better pricing. 3. A long performance period of over 19 years indicates a sustained need for these services. 4. The firm fixed price contract type offers cost certainty for the government. 5. The contract's duration and value place it in the mid-to-large tier for engineering services within the defense sector. 6. Lack of competition may limit opportunities for other qualified firms and potentially impact innovation.

Value Assessment

Rating: questionable

Benchmarking the value of this $35.8 million contract is challenging without specific service details. However, the absence of competition for a contract spanning nearly two decades suggests potential overpayment or a missed opportunity to leverage market forces for better pricing. Compared to similar large-scale engineering service contracts, the lack of competitive bidding is a significant concern for value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source procurement. This means that only one vendor, Textron Aviation Inc., was solicited for these engineering services. The lack of a competitive bidding process prevents a direct comparison of offers and may lead to prices that are not optimized.

Taxpayer Impact: Sole-source awards mean taxpayers did not benefit from the price reductions and efficiencies that typically arise from a competitive bidding environment.

Public Impact

The Department of Defense benefits from specialized engineering services crucial for its operations. Textron Aviation Inc. provides essential engineering expertise, likely supporting aircraft or related defense systems. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications include employment for engineers and technical staff at Textron Aviation Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a long-duration contract raises concerns about price reasonableness.
The sole-source nature limits opportunities for small businesses to participate.
Extended performance period without re-competition could lead to complacency in service delivery.

Positive Signals

Firm fixed price contract provides budget predictability.
Sustained contract indicates a consistent need and likely satisfaction with the services provided.
Long-term relationship may foster deep expertise and efficiency within Textron Aviation.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for defense engineering services is substantial, driven by the need for specialized expertise in areas like aircraft design, modification, and maintenance. Comparable spending benchmarks for large, long-term engineering contracts within the DoD can range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

The 'NOT COMPETED' status and the nature of specialized engineering services suggest that small business participation, either as prime contractors or subcontractors, was likely limited. Without specific subcontracting plans or set-aside provisions, it's probable that Textron Aviation Inc. handled the majority of the work internally. This contract does not appear to have been designed to specifically benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring compliance with contract terms and performance standards. Transparency is limited due to the sole-source nature. Accountability relies on Textron Aviation's internal processes and DCMA's monitoring, with potential oversight from the DoD Inspector General if performance issues or fraud were suspected.

Related Government Programs

Defense Engineering Services
Aerospace Engineering Support
Aircraft Maintenance and Modification Contracts
Department of Defense Procurement

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to TEXTRON AVIATION INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TEXTRON AVIATION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.8 million.

What is the period of performance?

Start: 1999-11-04. End: 2017-12-28.

What specific engineering services were provided under this contract?

The provided data indicates the contract was for 'Engineering Services' (NAICS 541330) awarded to Textron Aviation Inc. by the Department of Defense. While the specific nature of the services is not detailed, Textron Aviation's primary business involves aircraft manufacturing, modification, and support. Therefore, it is highly probable that the engineering services rendered were related to aircraft design, development, testing, modification, or sustainment for DoD platforms. This could encompass a wide range of activities, from conceptual design and structural analysis to systems integration and performance optimization, all crucial for maintaining and advancing military aviation capabilities.

How does the $35.8M contract value compare to similar engineering service contracts within the DoD?

The $35.8 million contract value, spread over nearly two decades (1999-2017), represents an average annual expenditure of approximately $1.9 million. This figure is moderate for large-scale defense engineering contracts, which can often reach hundreds of millions or even billions of dollars for major platform development or sustainment programs. However, for specialized, long-term support or modification services for specific aircraft or systems, this value could be considered significant. The lack of competition makes direct value comparison difficult, as competitive bids often drive down per-unit costs or increase the scope of work for a given price.

What are the risks associated with a sole-source award for engineering services lasting over 19 years?

The primary risk of a sole-source award, especially one spanning nearly two decades, is the potential for inflated pricing due to the absence of market competition. The contractor may have less incentive to innovate or offer cost efficiencies over time. Furthermore, the government risks becoming locked into a specific technology or vendor, potentially hindering the adoption of newer, more effective solutions. There's also a risk that the contractor's expertise or focus may drift from the government's evolving needs without the pressure of competitive re-evaluation. Finally, without a competitive process, it's harder to ensure the government is receiving the best possible value for its investment.

What was Textron Aviation Inc.'s track record prior to or during this contract?

Textron Aviation Inc., a subsidiary of Textron Inc., has a long-standing history in the aviation industry, known for brands like Cessna, Beechcraft, and Hawker. Prior to and during this contract (1999-2017), Textron Aviation was a significant player in both commercial and military aviation markets. Their track record includes the design, manufacturing, and support of a wide range of aircraft. For defense contracts, they have historically supplied various aircraft types and provided associated engineering, modification, and sustainment services. Their established presence and experience in aerospace engineering suggest a capable contractor, though the specific performance metrics for this particular $35.8M contract are not detailed in the provided data.

How might this contract have impacted the broader aerospace engineering market?

A sole-source contract of this magnitude, awarded to a major established player like Textron Aviation, could have had a mixed impact on the broader aerospace engineering market. On one hand, it solidified Textron's position and likely supported a dedicated team of engineers and resources focused on specific DoD requirements. On the other hand, the lack of competition meant that other capable firms, including smaller specialized companies or potential innovators, were excluded from bidding on this particular work. This could limit opportunities for market entry or expansion for competitors and potentially concentrate expertise within the incumbent firm, potentially slowing broader market innovation if not balanced by other competitive contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline