DoD's $21.8M MSFV Training Contract with Textron Systems Lacked Competition, Raising Cost Concerns

Contract Overview

Contract Amount: $21,814,534 ($21.8M)

Contractor: Textron Systems Corp

Awarding Agency: Department of Defense

Start Date: 2015-08-31

End Date: 2017-12-31

Contract Duration: 853 days

Daily Burn Rate: $25.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF - COST-PLUS-FIXED-FEE (CPFF)/FIRM-FIXED-PRICE (FFP) CONTRACT FOR MOBILE STRIKE FORCE VEHICLE (MSFV) INTERIM CONTRACTOR TRAINING SUPPORT (ICTS) FOR THE AFGHAN NATIONAL ARMY (ANA).

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to TEXTRON SYSTEMS CORP for work described as: IGF::OT::IGF - COST-PLUS-FIXED-FEE (CPFF)/FIRM-FIXED-PRICE (FFP) CONTRACT FOR MOBILE STRIKE FORCE VEHICLE (MSFV) INTERIM CONTRACTOR TRAINING SUPPORT (ICTS) FOR THE AFGHAN NATIONAL ARMY (ANA). Key points: 1. The contract awarded to Textron Systems Corp for Mobile Strike Force Vehicle (MSFV) training support was not competed, raising questions about potential overspending. 2. Textron Systems Corp, a major defense contractor, secured this sole-source award, highlighting a lack of competitive pressure on pricing. 3. The interim contractor training support for the Afghan National Army (ANA) was a critical need, but the procurement method warrants scrutiny. 4. The sector is Military Armored Vehicle, Tank, and Tank Component Manufacturing, where large contracts are common but competition is expected.

Value Assessment

Rating: questionable

The contract's value of $21.8 million for training support is significant. Without competitive bidding, it's difficult to benchmark against similar services to determine if the pricing was optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was sole-sourced, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a nearly $22 million contract may have resulted in taxpayer funds being used less efficiently than if multiple vendors had vied for the work.

Public Impact

Taxpayers may have paid more than necessary due to the absence of a competitive bidding process. The effectiveness of the training provided by Textron Systems Corp is difficult to assess without a comparative analysis against potential competitors. The reliance on a single source for critical training support could indicate potential vulnerabilities in future procurement strategies. This contract highlights a need for greater transparency and competition in defense spending, particularly for specialized training services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated costs
Sole-source award

Positive Signals

Contract awarded to a known entity
Addresses a specific military need

Sector Analysis

The contract falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this area is substantial, and competitive bidding is typically expected to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a large corporation, Textron Systems Corp.

Oversight & Accountability

The sole-source nature of this contract warrants further oversight to ensure that the pricing was fair and reasonable and that the training objectives were met effectively.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns
Limited transparency in pricing
Sole-source award raises accountability questions
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to TEXTRON SYSTEMS CORP. IGF::OT::IGF - COST-PLUS-FIXED-FEE (CPFF)/FIRM-FIXED-PRICE (FFP) CONTRACT FOR MOBILE STRIKE FORCE VEHICLE (MSFV) INTERIM CONTRACTOR TRAINING SUPPORT (ICTS) FOR THE AFGHAN NATIONAL ARMY (ANA).

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 $21.8 million.

What is the period of performance?

Start: 2015-08-31. End: 2017-12-31.

What specific factors justified the sole-source award for MSFV interim contractor training support, and were alternatives explored?

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'sole-source'. While the urgency of training the Afghan National Army might have been a factor, a detailed justification for foregoing competition and a review of potential alternatives are crucial for assessing value and accountability. Without this information, it's difficult to ascertain if taxpayer funds were used optimally.

How does the cost per training day or per trainee compare to industry benchmarks for similar military vehicle training, given the lack of competition?

Benchmarking the cost per unit is challenging due to the sole-source nature of this $21.8 million contract. Without competitive bids, there's no direct market comparison. A thorough review would require analyzing Textron Systems Corp's internal cost structure or seeking data from similar, potentially competed, training contracts for comparable military platforms, which is not readily available in the provided data.

What mechanisms were in place to ensure the effectiveness and quality of the training provided by Textron Systems Corp under this sole-source contract?

The data does not specify oversight mechanisms for training quality. Typically, contracts include performance metrics, milestones, and quality assurance provisions. For a sole-source award of this magnitude, robust government oversight, including regular progress reviews and performance evaluations, would be essential to ensure the training met the required standards for the Afghan National Army.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV14R0316

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $21,814,534

Exercised Options: $21,814,534

Current Obligation: $21,814,534

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $18,152,163

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline