DoD awards $190M for CBU-105 Sensor Fuzed Weapons to Textron Systems, citing sole-source justification

Contract Overview

Contract Amount: $190,130,978 ($190.1M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2014-05-29

End Date: 2017-12-31

Contract Duration: 1,312 days

Daily Burn Rate: $144.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: KOREA FMS SENSOR FUZED WEAPON CBU-105(D-2)/B

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $190.1 million to TEXTRON SYSTEMS CORPORATION for work described as: KOREA FMS SENSOR FUZED WEAPON CBU-105(D-2)/B Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and limited market testing. 2. The contract's duration of 1312 days suggests a long-term need for these specific munitions. 3. No small business participation was indicated, potentially limiting opportunities for smaller defense contractors. 4. The fixed-price contract type aims to control costs, but the sole-source nature may negate some benefits. 5. This award falls under ammunition manufacturing, a critical but often specialized segment of the defense industrial base.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging without competitive bids. The $190 million award for CBU-105 Sensor Fuzed Weapons represents a significant investment. Without comparable contract data or market analysis, it's difficult to definitively assess if the pricing is optimal or if taxpayers received the best possible value. The lack of competition inherently limits the ability to establish a strong price benchmark against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Textron Systems Corporation, was considered. The justification for this approach is not detailed in the provided data. Sole-source awards typically occur when a unique capability or proprietary technology is required, or in urgent situations. The absence of competition means there was no opportunity for other manufacturers to bid, potentially leading to higher prices than if multiple bids were solicited.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from the price reductions that can arise from a competitive bidding process. This could result in a higher overall cost for these munitions.

Public Impact

The primary beneficiaries are the U.S. military forces requiring advanced sensor-fuzed munitions for specific combat scenarios. The contract delivers CBU-105 Sensor Fuzed Weapons, a type of cluster munition designed for anti-armor and anti-personnel roles. The geographic impact is primarily related to the deployment and use of these weapons by the Department of Defense, rather than a specific domestic region. Workforce implications are likely concentrated within Textron Systems Corporation's manufacturing facilities and associated supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of small business participation may exclude smaller, innovative firms from contributing to this defense capability.
The nature of munitions contracts can involve long lead times and complex supply chains, introducing potential delays or cost overruns.

Positive Signals

Award to an established contractor like Textron Systems suggests a degree of confidence in their production capabilities.
Firm Fixed Price contract type provides cost certainty for the government, assuming the initial price is fair.
The specific nature of the CBU-105 weapon system implies a critical capability being addressed for defense needs.

Sector Analysis

The defense sector, specifically the ammunition manufacturing sub-sector, is characterized by high barriers to entry, significant R&D investment, and stringent regulatory requirements. Contracts like this are crucial for maintaining the readiness and technological edge of military forces. Comparable spending benchmarks are difficult to establish without more specific details on the weapon system's capabilities and quantities, but overall defense spending on munitions is substantial, often running into billions annually across various platforms.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business participation (sb: false). This means that opportunities for subcontracting or direct award to small businesses were not a stated priority for this specific procurement. Consequently, the broader small business defense industrial base may not directly benefit from this particular contract, potentially limiting their growth and contribution to the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA), which is listed as the 'Administering Office'. Accountability measures are inherent in the contract terms, including delivery schedules and quality specifications. Transparency is limited by the sole-source nature of the award, as competitive proposals and detailed justifications are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Munitions Procurement
Air-Delivered Munitions
Precision Guided Munitions
Textron Systems Defense Contracts

Risk Flags

Sole-source award
Lack of competition
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $190.1 million to TEXTRON SYSTEMS CORPORATION. KOREA FMS SENSOR FUZED WEAPON CBU-105(D-2)/B

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 $190.1 million.

What is the period of performance?

Start: 2014-05-29. End: 2017-12-31.

What is the specific technical capability or urgent need that justified the sole-source award of the CBU-105 Sensor Fuzed Weapon contract to Textron Systems?

The provided data does not specify the exact justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is capable of providing the required supplies or services, or when there is a compelling urgency. For advanced munitions like the CBU-105 Sensor Fuzed Weapon, it's possible that Textron Systems holds unique intellectual property, manufacturing expertise, or that the weapon system is highly specialized and critical to current operational needs, making it impractical or impossible to obtain from another source within the required timeframe. A formal Justification and Approval (J&A) document would normally detail these reasons.

How does the unit cost of the CBU-105 Sensor Fuzed Weapon under this contract compare to historical or similar munitions contracts?

Without the total quantity of CBU-105 Sensor Fuzed Weapons procured under this $190 million contract, calculating a precise unit cost for comparison is not possible. Furthermore, as this was a sole-source award, direct comparison to competitively bid contracts for similar munitions is inherently difficult. Competitive processes generally drive prices down. If historical data for this specific munition from previous competitive bids were available, or if data for functionally equivalent munitions from other manufacturers were accessible, a more robust comparison could be made. The 'firm fixed price' nature suggests the price was set upfront, but its reasonableness is hard to ascertain without market context.

What are the potential risks associated with a sole-source award for a significant defense contract like this, particularly concerning cost and innovation?

Sole-source awards carry inherent risks. The primary risk is the potential for inflated pricing, as the government lacks the leverage of competition to negotiate the best possible price. Without competing bids, the contractor may have less incentive to offer the most cost-effective solution. Another risk is the stifling of innovation; if only one company is producing a particular munition, other potential innovators in the market may not have the opportunity to develop alternative or improved solutions. This can also lead to vendor lock-in, making it difficult and costly to switch suppliers or adopt new technologies in the future.

What is Textron Systems Corporation's track record with Department of Defense contracts, particularly for munitions?

Textron Systems Corporation is a well-established defense contractor with a significant history of supplying various systems to the U.S. military, including munitions. They are known for developing and manufacturing a range of products, including precision weapons, armored vehicles, and unmanned systems. Their involvement in producing munitions like the CBU-105 Sensor Fuzed Weapon suggests they possess the necessary technical expertise and production capabilities. A comprehensive review of their contract history would reveal numerous awards across different agencies and programs, indicating a substantial presence and experience within the defense industrial base.

What is the strategic importance of the CBU-105 Sensor Fuzed Weapon, and how does this contract contribute to the DoD's overall munitions strategy?

The CBU-105 Sensor Fuzed Weapon is a type of sensor-fuzed munition designed to defeat armored vehicles and other hard targets. Its strategic importance lies in providing aircrews with a standoff capability to engage threats without entering heavily defended areas. This contract contributes to the DoD's munitions strategy by ensuring the continued availability of this specific, advanced weapon system. It supports the objective of maintaining a robust inventory of munitions capable of addressing contemporary battlefield challenges, particularly against armored formations, thereby enhancing force protection and mission effectiveness.

Industry Classification

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

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 201 LOWELL ST, WILMINGTON, MA, 01887

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: $190,526,768

Exercised Options: $190,526,768

Current Obligation: $190,130,978

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline