DoD Spends $130M on Armored Vehicles via Non-Competed Contract with Textron Systems
Contract Overview
Contract Amount: $130,234,417 ($130.2M)
Contractor: Textron Systems Corp
Awarding Agency: Department of Defense
Start Date: 2009-12-03
End Date: 2015-08-14
Contract Duration: 2,080 days
Daily Burn Rate: $62.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ARMORED SECURITY VEHICLES
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129
Plain-Language Summary
Department of Defense obligated $130.2 million to TEXTRON SYSTEMS CORP for work described as: ARMORED SECURITY VEHICLES Key points: 1. Significant spending on armored vehicles highlights defense procurement needs. 2. Sole reliance on Textron Systems Corp raises questions about competitive pricing. 3. Long contract duration (2009-2015) may indicate evolving requirements or limited options. 4. The "LA" state code suggests a concentration of this spending in Louisiana.
Value Assessment
Rating: questionable
The total award of $130.2 million for armored vehicles lacks clear benchmarks for comparison due to the non-competed nature of the contract. Without competitive bids, assessing the value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Textron Systems Corp. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than if multiple vendors had vied for the contract, impacting taxpayer funds.
Public Impact
Taxpayers funded a substantial $130 million for specialized military equipment. The contract supported manufacturing jobs, potentially in Louisiana given the state code. This spending directly contributes to the U.S. military's armored vehicle capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Direct support for military readiness
- Established relationship with a known manufacturer
Sector Analysis
Spending on armored vehicles falls within the broader defense manufacturing sector. Benchmarks for similar sole-source contracts are difficult to establish, but large-scale procurement of specialized military hardware often involves significant investment.
Small Business Impact
The data indicates no specific set-aside for small businesses (sb: false). This contract likely did not involve significant subcontracting opportunities for small businesses in the armored vehicle manufacturing space.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting oversight was in place. However, the sole-source nature warrants scrutiny regarding the justification for not seeking competitive bids.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for overpayment due to lack of competition
- Limited transparency into pricing justification
- Risk of vendor lock-in
- Long-term commitment without demonstrated value evolution
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, la, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $130.2 million to TEXTRON SYSTEMS CORP. ARMORED SECURITY VEHICLES
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 $130.2 million.
What is the period of performance?
Start: 2009-12-03. End: 2015-08-14.
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 a lack of viable alternative sources. Without further documentation, it's impossible to definitively state the reason, but it implies that Textron Systems Corp was deemed the only capable provider or that competition was deemed impractical or not in the government's best interest at the time of award.
How does the per-unit cost of these armored vehicles compare to similar, competitively procured vehicles?
Direct comparison is not possible without knowing the specific type and capabilities of the armored vehicles procured under this contract and without data on competitively procured, similar vehicles. However, sole-source contracts generally carry a higher risk of inflated pricing compared to those awarded through competitive bidding processes.
What was the overall effectiveness of these armored vehicles in fulfilling their intended military purpose?
The provided data does not include information on the operational effectiveness or performance of the armored vehicles. Assessing their success would require post-deployment reviews, combat performance data, and feedback from military end-users, which are outside the scope of this contract award information.
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
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: $130,258,479
Exercised Options: $130,234,417
Current Obligation: $130,234,417
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-12-03
Current End Date: 2015-08-14
Potential End Date: 2015-08-14 00:00:00
Last Modified: 2025-04-22
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