Navy Awards $270.8M for Landing Craft, Sole-Sourced to Textron Marine & Land Systems
Contract Overview
Contract Amount: $270,864,509 ($270.9M)
Contractor: Textron Systems Corp
Awarding Agency: Department of Defense
Start Date: 2002-12-27
End Date: 2016-12-31
Contract Duration: 5,118 days
Daily Burn Rate: $52.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: 200309!030604!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002403C2200 !A!N! !N! !20021227!20060731!039044037!001367903!001338979!N!TEXTRON MARINE & LAND SYSTEMS,!19401 CHEF MENTEUR HIGHWAY!NEW ORLEANS !LA!70129!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000060820933!N!N!000000000000!1907!LANDING CRAFT !A3 !SHIPS !2SEB!LANDING CRAFT AIR CUSHION LCAC!336611!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!L!1!001!N!1G!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129
Plain-Language Summary
Department of Defense obligated $270.9 million to TEXTRON SYSTEMS CORP for work described as: 200309!030604!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002403C2200 !A!N! !N! !20021227!20060731!039044037!001367903!001338979!N!TEXTRON MARINE & LAND SYSTEMS,!19401 CHEF MENTEUR HIGHWAY!NEW ORLEANS !LA!70129!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000060820933!N!N!00000000… Key points: 1. Contract awarded for Landing Craft Air Cushion (LCAC) vehicles. 2. Sole-source award to Textron Marine & Land Systems raises competition concerns. 3. Significant taxpayer investment in specialized naval assets. 4. Sector: Defense - Shipbuilding and Repair.
Value Assessment
Rating: fair
The contract value of $270.8 million for 1 LCAC unit appears high compared to typical shipbuilding contracts. Benchmarking is difficult without more unit details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Enhances naval amphibious capabilities with advanced landing craft. Supports critical military logistics and deployment operations. Ensures readiness for projecting power ashore. Potential for long-term sustainment and upgrade contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High per-unit cost potential
- Sole-source award
Positive Signals
- Acquisition of critical defense asset
- Supports naval modernization
Sector Analysis
This contract falls within the Defense sector, specifically shipbuilding and repair. Spending in this area is often characterized by high costs, long lead times, and specialized requirements, making competition challenging.
Small Business Impact
No information is available regarding small business participation in this contract. Sole-source awards often limit opportunities for small businesses to compete.
Oversight & Accountability
The contract was awarded by the Naval Sea Systems Command, part of the Department of the Navy. Oversight would focus on contract performance, delivery schedules, and adherence to specifications.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- High contract value requires careful scrutiny.
- Limited transparency on cost justification.
Tags
ship-building-and-repairing, department-of-defense, la, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $270.9 million to TEXTRON SYSTEMS CORP. 200309!030604!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002403C2200 !A!N! !N! !20021227!20060731!039044037!001367903!001338979!N!TEXTRON MARINE & LAND SYSTEMS,!19401 CHEF MENTEUR HIGHWAY!NEW ORLEANS !LA!70129!55000!071!22!NEW ORLEANS !ORLEANS !LOUISIANA !+000060820933!N!N!000000000000!1907!LANDING CRAFT !A3 !SHIPS !2SEB!LANDING CRAFT AIR CUSHION LCAC!336611!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!L!1!001!N!1G!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Who is the contractor on this award?
The obligated recipient is TEXTRON SYSTEMS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $270.9 million.
What is the period of performance?
Start: 2002-12-27. End: 2016-12-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. Without a competitive process, the government must rely on robust negotiation and market research to ensure fair and reasonable pricing. Further investigation into the specific justification and negotiation records is warranted.
How does the cost of this LCAC compare to previous acquisitions or similar vessels?
Benchmarking the cost of this LCAC is challenging without more detailed cost breakdowns and comparisons to similar historical contracts. The reported value of $270.8 million for one unit suggests a significant investment. A detailed cost analysis against comparable LCAC procurements or alternative amphibious vehicles is needed to assess value.
What is the long-term strategic value and operational impact of acquiring this specific landing craft?
The LCAC is a critical asset for modern amphibious operations, enabling rapid deployment of troops and equipment from ship to shore. This acquisition enhances the Navy's ability to project power and respond to global contingencies. Its strategic value lies in maintaining operational flexibility and readiness for diverse mission sets.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Textron Inc (UEI: 001338979)
Address: 19401 CHEF MENTEUR HWY, NEW ORLEANS, LA, 70129
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2002-12-27
Current End Date: 2016-12-31
Potential End Date: 2016-12-31 00:00:00
Last Modified: 2016-08-26
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