DoD awards $243.6M for Aircraft Components to Textron Systems, raising competition concerns

Contract Overview

Contract Amount: $243,639,123 ($243.6M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2006-09-01

End Date: 2019-09-12

Contract Duration: 4,759 days

Daily Burn Rate: $51.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200612!004661!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06C0190 !A!N! !N! ! !20060901!20090930!003090198!003090198!001527852!N!AAI CORPORATION !124 INDUSTRY LN !HUNT VALLEY !MD!21031!41100!005!24!HUNT VALLEY !BALTIMORE !MARYLAND !+000001895694!N!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !272 !TACTICAL UAV !336411!E! !1! ! ! ! ! !99990909!B! ! !N!A!D!N!J!1!001!N!2A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $243.6 million to TEXTRON SYSTEMS CORPORATION for work described as: 200612!004661!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06C0190 !A!N! !N! ! !20060901!20090930!003090198!003090198!001527852!N!AAI CORPORATION !124 INDUSTRY LN !HUNT VALLEY !MD!21031!41100!005!24!HUNT VALLEY !BALT… Key points: 1. Significant contract value of $243.6 million for aircraft components. 2. Sole-source award to Textron Systems Corporation, limiting competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Contract falls within the Aircraft Manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $243.6 million is substantial. Benchmarking against similar aircraft component contracts is difficult without more detailed cost breakdowns, but the lack of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Textron Systems Corporation, was solicited. This significantly limits price discovery and competitive pressure, potentially leading to less favorable pricing for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these aircraft components.

Public Impact

Taxpayers may be overpaying for critical aircraft components due to a lack of competitive bidding. The sole-source nature of this award could set a precedent for future sole-source contracts in this sector. Limited transparency into the pricing justification for this large sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Positive Signals

Contract awarded to a known entity
Definitive contract provides some stability

Sector Analysis

This contract is within the Aircraft Manufacturing sector, specifically for airframe structural components. Spending in this sector is critical for defense readiness, but competitive procurement is generally preferred to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants further scrutiny from oversight bodies to ensure the pricing is fair and reasonable and that competition was appropriately considered.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award raises concerns about competition.
Potential for inflated pricing due to lack of competitive bidding.
Limited transparency into the justification for sole-sourcing.
Missed opportunity for small business participation.
Significant contract value warrants close scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $243.6 million to TEXTRON SYSTEMS CORPORATION. 200612!004661!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06C0190 !A!N! !N! ! !20060901!20090930!003090198!003090198!001527852!N!AAI CORPORATION !124 INDUSTRY LN !HUNT VALLEY !MD!21031!41100!005!24!HUNT VALLEY !BALTIMORE !MARYLAND !+000001895694!N!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !272 !TACTICAL UAV !336411!E! !1! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $243.6 million.

What is the period of performance?

Start: 2006-09-01. End: 2019-09-12.

What specific justification was provided for awarding this contract on a sole-source basis, and was a thorough market research conducted to confirm the absence of other capable sources?

The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a strong justification, such as a critical need, unique capability, or lack of viable alternatives. Without access to the full contract file, it's impossible to verify the specific justification or the extent of market research performed. However, the absence of competition raises questions about whether all avenues for competitive bidding were fully explored.

How does the per-unit cost of these airframe structural components compare to industry benchmarks or previous contracts for similar items, especially given the sole-source nature?

Benchmarking the per-unit cost is challenging without specific unit details and historical data. The sole-source award to Textron Systems Corporation means there's no direct competitive pricing to compare against. It is crucial for the DoD to have conducted an independent cost analysis to ensure the negotiated price is fair and reasonable, especially when competition is absent. Without this, it's difficult to assess if taxpayers are receiving good value.

What is the long-term strategic impact of awarding such a significant contract solely to Textron Systems Corporation, particularly concerning the development and maintenance of competitive capabilitie

Sole-source awards, especially for substantial amounts, can reduce market competition over time, potentially leading to increased reliance on a single supplier and stifling innovation from other potential vendors. This can impact the overall resilience and cost-effectiveness of the defense industrial base. It's important to balance immediate needs with the long-term health of the competitive landscape.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: 124 INDUSTRY LN, HUNT VALLEY, MD, 21031

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline