DoD Awards $1.77 Billion to Textron Systems for Military Armored Vehicles, Tank Components
Contract Overview
Contract Amount: $1,769,544,976 ($1.8B)
Contractor: Textron Systems Corp
Awarding Agency: Department of Defense
Start Date: 2005-06-30
End Date: 2028-02-10
Contract Duration: 8,260 days
Daily Burn Rate: $214.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129
Plain-Language Summary
Department of Defense obligated $1.77 billion to TEXTRON SYSTEMS CORP for work described as: Key points: 1. Significant contract value highlights reliance on Textron Systems for critical defense equipment. 2. Lack of competition suggests potential for higher costs and limited innovation. 3. Long contract duration (2005-2028) raises concerns about adaptability to evolving threats and technologies. 4. Focus on armored vehicles and tank components indicates a specific, high-stakes defense sector.
Value Assessment
Rating: questionable
The contract value of $1.77 billion is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar armored vehicle and tank component contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to less favorable pricing for the government.
Taxpayer Impact: The lack of competition on such a large contract may result in taxpayers paying a premium for essential military hardware.
Public Impact
Ensures continued supply of critical armored vehicles and components for the U.S. Army. Supports jobs and economic activity within the defense manufacturing sector, particularly in Louisiana. Potential for extended reliance on a single provider could impact future technological advancements in military vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Long Contract Duration
- Sole Source Award
Positive Signals
- Consistent Supply of Critical Equipment
- Supports Domestic Manufacturing
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on armored vehicles and tank components. Spending benchmarks in this area are highly dependent on specific vehicle types and technological sophistication, but $1.77 billion represents a significant investment.
Small Business Impact
The contract data indicates that small business participation was not a stated factor (ss: false, sb: false). This suggests limited opportunities for small businesses within this specific large-scale sole-source award.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant close oversight to ensure continued value and prevent potential cost overruns or technological stagnation. Regular performance reviews and market analyses are crucial.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of Competition
- Sole Source Award
- Long Contract Duration
- Potential for Cost Overruns
- Risk of Technological Obsolescence
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, la, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.77 billion to TEXTRON SYSTEMS CORP. See the official description on USAspending.
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 Army).
What is the total obligated amount?
The obligated amount is $1.77 billion.
What is the period of performance?
Start: 2005-06-30. End: 2028-02-10.
What is the justification for the sole-source award, and has it been re-evaluated over the contract's long lifespan?
Sole-source awards are typically justified by unique capabilities or urgent needs. For a contract spanning from 2005 to 2028, it's critical that the Department of Defense has consistently re-evaluated the necessity of this approach. Without competitive bidding, there's a risk that the government is not benefiting from the best available technology or pricing, especially as the defense landscape evolves.
How does the per-unit cost of these armored vehicles and components compare to industry benchmarks, given the lack of competition?
Without competitive bids, establishing a precise per-unit cost benchmark is challenging. The government relies on internal cost analyses and historical data, which may not reflect current market dynamics or potential savings from competition. A lack of transparency in pricing for sole-source contracts makes it difficult for taxpayers to ascertain if they are receiving fair value for their investment in military hardware.
What measures are in place to ensure the effectiveness and technological relevance of the armored vehicles and components procured under this long-term, non-competed contract?
Given the contract's extended duration and sole-source nature, proactive measures are essential. This includes rigorous performance monitoring, incorporating clauses for technological upgrades, and conducting independent assessments of the equipment's effectiveness against evolving threats. Without these safeguards, there's a risk of procuring outdated or less effective systems, potentially impacting military readiness.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
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 (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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $141,175,673
Exercised Options: $141,175,673
Current Obligation: $1,769,544,976
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-06-30
Current End Date: 2028-02-10
Potential End Date: 2028-02-10 12:02:00
Last Modified: 2016-09-28
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