Textron Systems Corp awarded $113M for 135 mobile strike force vehicles, a sole-source contract

Contract Overview

Contract Amount: $113,061,478 ($113.1M)

Contractor: Textron Systems Corp

Awarding Agency: Department of Defense

Start Date: 2013-02-28

End Date: 2016-09-28

Contract Duration: 1,308 days

Daily Burn Rate: $86.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 135 MOBILE STRIKE FORCE VEHICLES FOR THE AFGHAN NATIONAL ARMY

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $113.1 million to TEXTRON SYSTEMS CORP for work described as: 135 MOBILE STRIKE FORCE VEHICLES FOR THE AFGHAN NATIONAL ARMY Key points: 1. The contract value of $113 million for 135 vehicles suggests a significant investment per unit. 2. As a sole-source award, the absence of competition may have impacted price negotiation and value. 3. The contract duration of approximately 3.5 years indicates a substantial, long-term commitment. 4. The firm fixed-price nature of the contract shifts cost risk to the contractor. 5. This award falls within the broader category of military armored vehicle manufacturing. 6. The contract was awarded by the Department of the Army, indicating a specific military need.

Value Assessment

Rating: fair

The awarded amount of $113 million for 135 vehicles results in a per-unit cost of approximately $835,000. Benchmarking this against similar specialized military vehicle procurements is challenging without more specific data on capabilities and customization. However, the lack of competition in a sole-source award raises questions about whether this price represents optimal value for the government compared to what might have been achieved through a competitive bidding process. The firm fixed-price structure, while beneficial for cost control, does not inherently guarantee value if the initial price was not aggressively negotiated.

Cost Per Unit: $835,000 per vehicle (estimated)

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Textron Systems Corp, was solicited. This approach is typically used when a unique capability exists or when it's impractical to compete. The lack of multiple bidders means there was no direct price comparison or incentive for vendors to offer their most competitive pricing. This limits the government's ability to discover the lowest possible market price for these specific vehicles.

Taxpayer Impact: Taxpayers may have paid a higher price than if the contract had been competed. The absence of competitive pressure means that the government did not benefit from potential cost savings that multiple bidders might have offered.

Public Impact

The primary beneficiaries are the Afghan National Army, receiving critical mobile strike force vehicles. The services delivered include the manufacturing and provision of 135 specialized armored vehicles. The geographic impact is focused on Afghanistan, supporting security operations. Workforce implications include employment at Textron Systems Corp and its subcontractors involved in the manufacturing process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases cost to taxpayers.
High per-unit cost requires justification and comparison to similar specialized assets.
Contract duration and value suggest a significant, long-term commitment that warrants ongoing performance monitoring.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Awarding specialized vehicles to support allied forces aligns with foreign policy objectives.
Contracting with an established defense manufacturer like Textron Systems Corp suggests access to proven technology.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically the manufacturing of military armored vehicles. The market for such specialized equipment is often characterized by a limited number of highly capable manufacturers due to the technical expertise, research and development investment, and stringent quality control required. Comparable spending benchmarks would involve analyzing other procurements of similar armored personnel carriers or strike vehicles by the U.S. military or allied nations, considering factors like armor level, armament, mobility, and technological sophistication.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' flag is also false, suggesting it was not a small business prime contractor. The implications for small businesses would primarily be through subcontracting opportunities. Textron Systems Corp, as the prime contractor, would determine the extent to which small businesses are engaged in the supply chain for components or services related to the vehicle manufacturing.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified vehicles. Transparency is generally limited for sole-source defense contracts, though contract award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or award.

Related Government Programs

Mine-Resistant Ambush Protected (MRAP) Vehicles
Armored Personnel Carriers
Light Armored Vehicles
Foreign Military Sales (FMS) Program
Afghanistan Security Forces Fund

Risk Flags

Sole-source award
High per-unit cost
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $113.1 million to TEXTRON SYSTEMS CORP. 135 MOBILE STRIKE FORCE VEHICLES FOR THE AFGHAN NATIONAL ARMY

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 $113.1 million.

What is the period of performance?

Start: 2013-02-28. End: 2016-09-28.

What is Textron Systems Corp's track record with similar sole-source defense contracts?

Textron Systems Corp has a history of securing defense contracts, including those for armored vehicles and other specialized military equipment. While specific details on their track record with sole-source awards for similar mobile strike force vehicles require deeper analysis of historical contract data, their position as a significant defense contractor suggests experience in navigating complex procurement processes. It is important to examine past performance metrics, delivery timeliness, and any documented issues or successes on previous sole-source awards to fully assess their reliability and capability in fulfilling this particular contract. Publicly available contract databases can provide insights into the volume and nature of their prior government awards.

How does the per-unit cost of these vehicles compare to other government procurements of similar armored vehicles?

The estimated per-unit cost of approximately $835,000 for these mobile strike force vehicles is substantial. To benchmark this effectively, one would need to compare it against government procurements of vehicles with comparable armor protection, mobility features, armament systems, and technological sophistication. For instance, comparing it to the acquisition costs of various Mine-Resistant Ambush Protected (MRAP) variants or other specialized armored personnel carriers procured by the U.S. military or allied nations would provide context. Without direct comparisons of vehicles with identical specifications and mission profiles, this figure serves as a high-level indicator that warrants further investigation into the specific capabilities and unique aspects of the Textron vehicles to justify the cost.

What are the primary risks associated with a sole-source award for military hardware?

The primary risks associated with a sole-source award for military hardware include a lack of competitive pricing, potentially leading to higher costs for the government and taxpayers. Without competing bids, there is less incentive for the contractor to offer the most cost-effective solution. Additionally, sole-source awards can limit innovation by excluding other potential suppliers who might offer alternative technologies or more efficient designs. There's also a risk of vendor lock-in, making it difficult to switch suppliers in the future. Transparency and accountability can be reduced, making it harder to ensure the best value is being obtained. Finally, it can raise concerns about fairness and equal opportunity among potential defense contractors.

What is the expected effectiveness and operational impact of these mobile strike force vehicles in Afghanistan?

The expected effectiveness and operational impact of these mobile strike force vehicles in Afghanistan are centered on enhancing the mobility, protection, and firepower of the Afghan National Army (ANA). These vehicles are designed to provide a protected platform for troop transport and combat operations in challenging terrain and potentially hostile environments. Their 'strike force' designation implies capabilities for offensive operations, rapid deployment, and engagement with enemy forces. The vehicles' mobility is crucial for covering the vast distances in Afghanistan and responding quickly to threats. Their armored protection is intended to significantly reduce casualties from improvised explosive devices (IEDs) and direct fire, thereby increasing the survivability and operational effectiveness of ANA units. Ultimately, their successful integration is expected to bolster the ANA's capacity to conduct independent security operations.

How has spending on military armored vehicle manufacturing evolved over the past decade?

Spending on military armored vehicle manufacturing has seen fluctuations over the past decade, influenced by geopolitical events, evolving warfare doctrines, and budget priorities. Following the significant investments in Mine-Resistant Ambush Protected (MRAP) vehicles during the height of conflicts in Iraq and Afghanistan, there was a subsequent drawdown and shift towards more technologically advanced, lighter, and versatile platforms. Recent years have seen renewed focus on modernizing armored fleets to counter potential near-peer adversaries, leading to increased investment in next-generation combat vehicles and upgrades to existing platforms. Factors such as technological advancements in protection, lethality, and networked capabilities continue to drive research and development spending in this sector. The overall trend reflects a strategic adaptation to changing security landscapes and a continuous effort to equip forces with superior battlefield capabilities.

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

Solicitation ID: W56HZV13R0165

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: $113,061,478

Exercised Options: $113,061,478

Current Obligation: $113,061,478

Subaward Activity

Number of Subawards: 156

Total Subaward Amount: $53,832,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline