DoD awards $28M for C-12W Aircraft to Textron Aviation Inc. in FY17

Contract Overview

Contract Amount: $28,060,779 ($28.1M)

Contractor: Textron Aviation Inc

Awarding Agency: Department of Defense

Start Date: 2016-12-21

End Date: 2022-03-03

Contract Duration: 1,898 days

Daily Burn Rate: $14.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-12W BASIC AIRCRAFT # 8 - FY17

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to TEXTRON AVIATION INC for work described as: C-12W BASIC AIRCRAFT # 8 - FY17 Key points: 1. Significant award to a single large business. 2. No competition reported for this aircraft manufacturing contract. 3. Potential for higher pricing due to sole-source award. 4. Defense sector spending on aircraft manufacturing.

Value Assessment

Rating: fair

The award amount of $28.1M for C-12W BASIC AIRCRAFT # 8 appears to be a significant investment. Without comparable contract data or detailed cost breakdowns, assessing its value against similar aircraft procurements is challenging. Benchmarking against industry standards for this type of aircraft would be necessary for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating no competition was sought. This method can limit price discovery and potentially lead to less favorable pricing for the government compared to a competitive procurement process. The absence of competition raises questions about the government's ability to secure the best possible value.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from competitive pricing, potentially leading to a higher overall cost for the aircraft.

Public Impact

Taxpayers funded a sole-source contract for aircraft manufacturing. The Department of Defense acquired essential aircraft for its operations. Textron Aviation Inc., a large business, received the full contract value. The contract spanned over five years, indicating a long-term need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for inflated pricing

Positive Signals

Award to established manufacturer
Firm fixed price contract type

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this sector is critical for national security and can be substantial. Benchmarks for aircraft manufacturing contracts vary widely based on aircraft type, complexity, and quantity, making direct comparisons difficult without more specific details.

Small Business Impact

This contract was awarded entirely to Textron Aviation Inc., a large business. There is no indication that any portion of this contract was subcontracted to small businesses, suggesting a missed opportunity for small business participation in this significant defense procurement.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, oversaw this award. The firm fixed price contract type provides some cost certainty. However, the sole-source nature warrants scrutiny to ensure the government received fair value and that the procurement process was justified.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award lacks competition
Potential for overpayment due to no competitive bidding
No small business participation noted
Long contract duration without clear performance milestones

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to TEXTRON AVIATION INC. C-12W BASIC AIRCRAFT # 8 - FY17

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 $28.1 million.

What is the period of performance?

Start: 2016-12-21. End: 2022-03-03.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically stems from specific circumstances, such as the unique capabilities of a single provider, urgent needs where competition is impractical, or if only one source is capable of meeting the requirement. Without the specific justification documentation, it's impossible to definitively state why competition was bypassed for this C-12W aircraft procurement.

How does the per-unit cost of these C-12W aircraft compare to similar military or civilian aircraft procured competitively?

A direct comparison of the per-unit cost is difficult without knowing the exact configuration and quantity of aircraft procured under this $28.1M contract. However, sole-source contracts often result in higher per-unit costs compared to competitively bid contracts due to the lack of price pressure. Further analysis would require access to detailed cost data and benchmarks for comparable aircraft.

What is the long-term strategic value of acquiring these C-12W aircraft through this specific contract?

The C-12W aircraft are utility transport planes used for personnel and light cargo movement. Their strategic value lies in providing essential airlift capabilities for various military operations and logistics. The long-term value is realized through sustained operational readiness and support for troop deployment and equipment transport, assuming the aircraft meet performance and reliability expectations.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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

Parent Company: Textron Inc

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

Financial Breakdown

Contract Ceiling: $294,198,538

Exercised Options: $28,060,779

Current Obligation: $28,060,779

Actual Outlays: $11,433,150

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline