DoD Awards Textron $66.6M for 60 Commando Armored Vehicles for Iraq and Colombia
Contract Overview
Contract Amount: $66,562,978 ($66.6M)
Contractor: Textron Systems Corp
Awarding Agency: Department of Defense
Start Date: 2016-04-04
End Date: 2017-08-11
Contract Duration: 494 days
Daily Burn Rate: $134.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT FOR 58 COMMANDO SELECT ARMORED PERSONNEL CARRIER FOR IRAQ, AND 2 FOR COLOMBIA, PLUS ASSOCIATED SPARES AND MANUALS.
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129
Plain-Language Summary
Department of Defense obligated $66.6 million to TEXTRON SYSTEMS CORP for work described as: PROCUREMENT FOR 58 COMMANDO SELECT ARMORED PERSONNEL CARRIER FOR IRAQ, AND 2 FOR COLOMBIA, PLUS ASSOCIATED SPARES AND MANUALS. Key points: 1. High value contract for specialized military vehicles. 2. Sole-source award to Textron Systems Corp. 3. Risk of limited competition and potential price inflation. 4. Spending concentrated in the Defense sector, specifically armored vehicle manufacturing.
Value Assessment
Rating: fair
The contract value of $66.6 million for 60 vehicles and associated parts appears high, but without specific per-unit cost data or comparison to similar recent procurements, a precise assessment is difficult. The firm-fixed-price structure offers some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The sole-source nature of this award limits competitive pressure, potentially leading to higher costs for taxpayers than if multiple vendors had competed.
Public Impact
Enhances military capabilities for US allies in Iraq and Colombia. Supports the defense industrial base and Textron Systems Corp.'s operations. Potential for follow-on contracts for maintenance and additional vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of detailed cost breakdown for per-unit pricing.
- Potential for cost overruns due to limited oversight.
Positive Signals
- Addresses critical equipment needs for allied forces.
- Firm-fixed-price contract provides cost certainty.
- Supports US defense industrial base.
Sector Analysis
This procurement falls within the Defense sector, specifically the manufacturing of military armored vehicles. Benchmarks for similar contracts are difficult to ascertain due to the specialized nature of the equipment and sole-source award.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. The prime contractor, Textron Systems Corp., is a large defense manufacturer.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight mechanisms would typically involve contract management teams monitoring performance, delivery schedules, and adherence to contract terms, especially given the sole-source nature.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency on per-unit cost
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, la, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $66.6 million to TEXTRON SYSTEMS CORP. PROCUREMENT FOR 58 COMMANDO SELECT ARMORED PERSONNEL CARRIER FOR IRAQ, AND 2 FOR COLOMBIA, PLUS ASSOCIATED SPARES AND MANUALS.
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 $66.6 million.
What is the period of performance?
Start: 2016-04-04. End: 2017-08-11.
What is the cost per vehicle, and how does it compare to similar armored personnel carriers on the market?
The total contract value is $66,562,977.9 for 60 vehicles (58 for Iraq, 2 for Colombia), plus spares and manuals. This equates to approximately $1.1 million per vehicle before accounting for the additional items. Without specific details on the vehicle's capabilities and comparable market prices for similar armored personnel carriers, it is difficult to definitively assess value. However, this price point suggests a highly specialized and protected vehicle.
What are the risks associated with a sole-source procurement for such a significant defense asset?
Sole-source procurements carry inherent risks, primarily the lack of competitive pricing, which can lead to inflated costs for taxpayers. There's also a reduced incentive for the contractor to innovate or offer the most cost-effective solution. Furthermore, it limits the government's ability to explore alternative technologies or suppliers that might better meet evolving requirements or offer better value.
How effective is this procurement in meeting the stated needs of allied forces in Iraq and Colombia?
The procurement directly addresses the stated need for 60 Commando Select Armored Personnel Carriers, suggesting a direct alignment with the requirements of allied forces in Iraq and Colombia. The effectiveness hinges on the vehicle's suitability for the intended operational environments and the reliability of Textron Systems Corp. in meeting delivery and performance specifications. Assuming the 'Commando Select' meets the operational requirements, the procurement is effective in fulfilling the stated need.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV16R0017
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: $66,562,978
Exercised Options: $66,562,978
Current Obligation: $66,562,978
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $3,784,696
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-04-04
Current End Date: 2017-08-11
Potential End Date: 2017-08-11 00:00:00
Last Modified: 2025-04-21
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