DoD awards $347M to Textron Systems for Abrasive Product Manufacturing, a sole-source contract

Contract Overview

Contract Amount: $346,841,256 ($346.8M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2006-05-03

End Date: 2009-12-31

Contract Duration: 1,338 days

Daily Burn Rate: $259.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $346.8 million to TEXTRON SYSTEMS CORPORATION for work described as: Key points: 1. Significant contract value of $347 million. 2. Sole-source award indicates limited competition. 3. Potential for cost overruns with Cost Plus Incentive Fee structure. 4. Contract spans over three years, indicating long-term need.

Value Assessment

Rating: questionable

The contract value of $347 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for abrasive product manufacturing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a $347 million contract raises concerns about taxpayer value and the potential for inflated prices.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract could lock in potentially inefficient pricing. Lack of transparency in the procurement process hinders public scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long contract duration

Positive Signals

Clear contract award

Sector Analysis

This contract falls under the 'Other' sector, specifically abrasive product manufacturing. Benchmarks for this niche are hard to establish without more specific data, but the scale suggests a significant industrial component.

Small Business Impact

The provided data does not indicate any specific provisions or awards to small businesses within this contract, suggesting it may not have directly benefited them.

Oversight & Accountability

The sole-source nature of this large contract warrants closer oversight to ensure fair pricing and efficient use of funds. Accountability for cost management under the incentive fee structure is crucial.

Related Government Programs

Abrasive Product Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency
No small business set-aside indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $346.8 million to TEXTRON SYSTEMS CORPORATION. See the official description on USAspending.

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 $346.8 million.

What is the period of performance?

Start: 2006-05-03. End: 2009-12-31.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of alternative sources. Without specific documentation, it's impossible to determine the exact rationale, but it's a critical factor in assessing the contract's necessity and fairness.

How were costs controlled and justified under the Cost Plus Incentive Fee structure?

Cost Plus Incentive Fee contracts aim to incentivize cost savings by sharing savings with the contractor. However, the effectiveness depends on clearly defined targets and robust oversight. Without detailed performance reports, it's difficult to assess if cost controls were effective or if the incentive structure truly benefited the government.

What is the long-term strategic importance of this abrasive product manufacturing contract for the Department of Defense?

The long-term strategic importance likely relates to specialized materials or components essential for defense systems. Understanding this strategic need helps contextualize the significant investment and the rationale behind a sole-source award, though it doesn't negate the need for competitive processes where feasible.

Industry Classification

NAICS: Manufacturing › Other Nonmetallic Mineral Product Manufacturing › Abrasive Product Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 124 INDUSTRY LN, HUNT VALLEY, MD, 21031

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $370,682,120

Exercised Options: $370,431,894

Current Obligation: $346,841,256

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline