Defense contract for miscellaneous weapons awarded to Textron Systems Corp for over $112 million

Contract Overview

Contract Amount: $112,622,553 ($112.6M)

Contractor: Textron Systems Corp

Awarding Agency: Department of Defense

Start Date: 2003-12-12

End Date: 2011-09-09

Contract Duration: 2,828 days

Daily Burn Rate: $39.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200410!000007!5700!GM11 !AAC/YHK !FA867704C0071 !A!N! !N! ! !20031212!20060330!001863943!001863943!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDLESEX !MASS !+000109558400!N!N!000109558400!1095!MISCELLANEOUS WEAPONS !A5 !WEAPONS !000 !* !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!Y! ! ! !Y! ! !0001! !

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $112.6 million to TEXTRON SYSTEMS CORP for work described as: 200410!000007!5700!GM11 !AAC/YHK !FA867704C0071 !A!N! !N! ! !20031212!20060330!001863943!001863943!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDD… Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of over 7 years suggests a long-term need for these weapon systems. 3. A firm fixed-price contract type indicates that the contractor bears the risk of cost overruns. 4. The award was made by the Defense Contract Management Agency, a key procurement arm. 5. The specific product code '332993' relates to ammunition manufacturing, excluding small arms. 6. The contract was not competed, suggesting potential limitations in market exploration.

Value Assessment

Rating: questionable

The total award amount of $112,622,553.42 for miscellaneous weapons over nearly 8 years warrants scrutiny. Without competitive bidding, it is difficult to benchmark the value for money. The firm fixed-price structure is a positive indicator for cost control, but the lack of competition means there's no clear market comparison to assess if this price is optimal. Further analysis would require understanding the specific nature of the 'miscellaneous weapons' and any unique capabilities Textron Systems Corp provides.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms. It also means that potential cost savings that might arise from a competitive bidding process were not realized.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the price reflects the most economical option available in the market.

Public Impact

The primary beneficiaries are likely military units requiring specialized ammunition and weapon systems. The contract supports the production and delivery of miscellaneous weapons and related ammunition. The geographic impact is centered around Textron Systems Corp's facilities in Wilmington, MA, and potentially extends to military installations receiving the products. The contract implies a sustained demand for specific defense materiel, supporting jobs within Textron Systems Corp and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially leads to higher costs for taxpayers.
Long contract duration (nearly 8 years) could lock the government into a potentially suboptimal pricing structure if market conditions change.
Lack of transparency inherent in sole-source procurements makes it difficult to assess true value for money.
The specific nature of 'miscellaneous weapons' is broad and could encompass a range of items where competition might be feasible.

Positive Signals

Firm fixed-price contract type shifts cost overrun risk to the contractor.
Award to an established defense contractor like Textron Systems Corp suggests a known entity with relevant capabilities.
The contract duration indicates a stable, long-term requirement, potentially allowing for production efficiencies.

Sector Analysis

This contract falls within the Defense sector, specifically related to the manufacturing of ammunition and weapons systems. The defense industry is characterized by long procurement cycles, high R&D costs, and significant government oversight. Spending in this area is driven by national security requirements and geopolitical factors. Comparable spending benchmarks would typically involve analyzing other contracts for similar weapon systems or ammunition types awarded through competitive processes.

Small Business Impact

There is no indication in the provided data that this contract included small business set-asides or subcontracting requirements. As a sole-source award to a large corporation, it is unlikely to have directly benefited small businesses through set-aside provisions. The primary impact on small businesses would be indirect, through potential subcontracting opportunities with Textron Systems Corp, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. As a sole-source award, the primary accountability measure is the contractor's adherence to the firm fixed-price terms. Transparency is limited due to the non-competitive nature of the award, making detailed public scrutiny of the pricing and justification challenging.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $112.6 million to TEXTRON SYSTEMS CORP. 200410!000007!5700!GM11 !AAC/YHK !FA867704C0071 !A!N! !N! ! !20031212!20060330!001863943!001863943!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDLESEX !MASS !+000109558400!N!N!000109558400!1095!MISCELLANEOUS WEAPONS !A5 !WEAPONS !000 !* !332993!E! !3! ! ! ! ! !999

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 $112.6 million.

What is the period of performance?

Start: 2003-12-12. End: 2011-09-09.

What specific types of 'miscellaneous weapons' are covered under this contract?

The provided data categorizes the contract under 'MISCELLANEOUS WEAPONS' and 'WEAPONS' with a Product Service Code (PSC) of '332993', which specifically denotes 'Ammunition (except Small Arms) Manufacturing'. This suggests the contract is primarily for the production of ammunition rather than complete weapon platforms. However, the term 'miscellaneous weapons' is broad and could encompass various types of ammunition for different weapon systems, such as artillery shells, mortar rounds, or specialized munitions. Without further details from the contract documentation, the exact nature and variety of ammunition produced remain unspecified.

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

The data indicates the contract was awarded under 'CT: NOT COMPETED', which signifies a sole-source or non-competitive procurement. Government regulations typically allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without access to the specific justification documentation filed for this contract (e.g., a Justification and Approval document), the precise reasons for bypassing the competitive bidding process cannot be determined. This lack of competition raises concerns about potential cost inefficiencies and limits the government's ability to ensure it received the best value.

How does the firm fixed-price (FFP) contract type benefit the government in this sole-source scenario?

A Firm Fixed-Price (FFP) contract type is generally advantageous for the government as it places the risk of cost overruns on the contractor. This means that Textron Systems Corp is obligated to deliver the specified goods (ammunition and weapons) at the agreed-upon price, regardless of their actual costs incurred during production. In a sole-source situation, where competitive pricing cannot be established, the FFP structure provides a degree of cost certainty for the government. However, it is crucial that the initial price negotiated reflects a fair and reasonable estimate, as the government does not benefit from potential cost savings if the contractor's actual expenses are lower than anticipated.

What is the historical spending pattern for this specific product code (332993) within the Department of Defense?

The provided data only pertains to a single contract (FA867704C0071) for product code 332993, totaling $112,622,553.42 awarded to Textron Systems Corp. To understand historical spending patterns for 'Ammunition (except Small Arms) Manufacturing', a broader analysis of federal procurement databases would be necessary. This would involve querying for all contracts associated with PSC 332993 across various agencies and fiscal years. Such an analysis could reveal trends in total spending, average contract values, common awardees, and the prevalence of competitive versus sole-source awards within this category, providing context for the significance of this particular contract.

What is the significance of the contract duration (2828 days) in relation to the total award amount?

The contract duration of 2828 days, approximately 7.75 years, is substantial and indicates a long-term requirement for the specified ammunition and weapons. When considered alongside the total award amount of $112,622,553.42, it suggests an average annual value of roughly $14.5 million. This extended period allows for sustained production and delivery, potentially enabling economies of scale for the contractor. However, it also means that the government is committed to this expenditure over a significant timeframe. The long duration, coupled with the sole-source nature, underscores the importance of ensuring the initial pricing was robust and that the government has mechanisms to adjust or re-evaluate if necessary, although FFP contracts offer limited flexibility.

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