DoD's $130M Textron Systems Contract for Contractor Logistics Support: A Deep Dive
Contract Overview
Contract Amount: $130,477,026 ($130.5M)
Contractor: Textron Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2012-12-18
End Date: 2020-05-31
Contract Duration: 2,721 days
Daily Burn Rate: $48.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CONTRACTOR LOGISTICS SUPPORT FY13
Place of Performance
Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $130.5 million to TEXTRON SYSTEMS CORPORATION for work described as: CONTRACTOR LOGISTICS SUPPORT FY13 Key points: 1. Significant contract value of $130.5 million awarded to Textron Systems Corporation. 2. Contract is for Contractor Logistics Support, a critical but often complex area. 3. Awarded by the Department of the Army, indicating a focus on aviation readiness. 4. The 'Aircraft Manufacturing' NAICS code suggests a potential overlap with production, not just support.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed tightly. Without detailed cost breakdowns and performance metrics, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED,' indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition raises concerns about whether the government secured the best possible price for these essential logistics services.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. Potential for cost overruns exists with the Cost Plus Fixed Fee contract structure. Ensuring effective and efficient logistics support for Army aircraft is crucial for operational readiness. Transparency in contract performance and cost reporting is vital for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration (2012-2020)
Positive Signals
- Essential service for military operations
- Established contractor with potential expertise
Sector Analysis
This contract falls under the Defense sector, specifically focusing on logistics support for aircraft. Spending benchmarks in this area are highly variable, depending on the specific aircraft, scope of support, and duration. However, large sole-source contracts warrant close scrutiny.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were explored or provided.
Oversight & Accountability
The 'MD' (Maryland) state code suggests the contract may be managed by an agency within that region. Oversight would involve monitoring Textron Systems Corporation's performance, costs, and adherence to contract terms to ensure accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Long contract duration may indicate a lack of agile procurement or evolving needs.
- Potential for contractor lock-in due to specialized knowledge.
- Lack of transparency on specific services and performance metrics.
Tags
aircraft-manufacturing, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $130.5 million to TEXTRON SYSTEMS CORPORATION. CONTRACTOR LOGISTICS SUPPORT FY13
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 $130.5 million.
What is the period of performance?
Start: 2012-12-18. End: 2020-05-31.
What specific logistics services are covered under this contract, and how were they defined to ensure effective performance?
The contract details are limited, but 'Contractor Logistics Support' typically encompasses maintenance, repair, supply chain management, and technical assistance for aircraft. Effective performance relies on clear service level agreements, performance metrics, and regular reporting from Textron Systems Corporation to the Department of the Army.
Given the sole-source nature, what measures were in place to mitigate the risk of inflated pricing?
Without competition, mitigating pricing risk is challenging. The government likely relied on historical pricing data, should-cost analyses, or negotiation strategies to establish a fair price. However, the absence of competing bids inherently limits the government's leverage in price discovery.
How does the performance of this contract align with the Army's overall aviation readiness goals?
The effectiveness of this contract is directly tied to the operational readiness of the Army's aircraft fleet. Consistent and timely logistics support should contribute positively. However, without specific performance data (e.g., aircraft availability rates, turnaround times for repairs), a definitive assessment of its contribution to readiness is not possible.
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
Solicitation ID: W58RGZ12R0104
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Textron Inc
Address: 124 INDUSTRY LANE, HUNT VALLEY, MD, 21030
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $130,899,989
Exercised Options: $130,899,989
Current Obligation: $130,477,026
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-12-18
Current End Date: 2020-05-31
Potential End Date: 2020-05-31 00:00:00
Last Modified: 2025-04-22
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