Department of the Army awarded $163.5M to Textron Systems for engineering services, a contract that was not competed
Contract Overview
Contract Amount: $163,524,922 ($163.5M)
Contractor: Textron Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-09-26
End Date: 2020-02-28
Contract Duration: 2,346 days
Daily Burn Rate: $69.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::CT::IGF SHADOW FY13-15 ESM CONTRACT
Place of Performance
Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $163.5 million to TEXTRON SYSTEMS CORPORATION for work described as: IGF::CT::IGF SHADOW FY13-15 ESM CONTRACT Key points: 1. The contract's value of $163.5 million over seven years raises questions about cost-effectiveness due to the lack of competition. 2. The 'NOT COMPETED' status suggests potential missed opportunities for better pricing and innovative solutions from a wider market. 3. Performance risk indicators are moderate, given the long duration and cost-plus fixed-fee structure, which can incentivize cost overruns. 4. The contract falls within the Engineering Services sector, a critical area for defense operations. 5. This award represents a significant portion of spending within its specific sub-sector for the period.
Value Assessment
Rating: questionable
The total award of $163.5 million for engineering services over approximately seven years appears substantial. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can lead to higher costs if not managed rigorously, as the contractor is reimbursed for all allowable costs plus a fixed fee. This structure may not represent the best value for taxpayer dollars compared to a competitively bid fixed-price contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits the government's ability to explore a broader range of potential contractors and solutions. The absence of competition means that pricing and service offerings were not tested against market alternatives, potentially leading to higher costs and less innovation. The justification for a sole-source award would typically involve unique capabilities or urgent needs not met by other sources.
Taxpayer Impact: Sole-source awards mean taxpayers may be paying a premium for services, as there was no competitive pressure to drive down costs. This also limits the opportunity for small businesses to participate in this significant contract.
Public Impact
The primary beneficiaries are the Department of the Army, receiving essential engineering services to support its operations. The services delivered are critical for maintaining and advancing military engineering capabilities. The contract's geographic impact is centered in Maryland, where the contractor is located, potentially supporting local jobs. Workforce implications include employment for engineers and technical staff at Textron Systems and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated costs for taxpayers.
- Cost-plus fixed-fee structure can incentivize cost overruns if not closely monitored.
- Long contract duration increases the risk of scope creep and cost escalation.
- Limited transparency due to sole-source nature hinders public scrutiny of value.
- Potential for contractor lock-in, reducing future flexibility.
Positive Signals
- Contract provides essential engineering services to a critical defense agency.
- Textron Systems is an established defense contractor with relevant experience.
- Fixed fee component provides some level of cost predictability for the government.
- Long duration allows for sustained support and development of specialized capabilities.
Sector Analysis
The engineering services sector is vital for the defense industry, encompassing a wide range of activities from design and development to testing and sustainment. This contract, valued at over $163 million, represents a significant award within this space. Comparable spending benchmarks are difficult to establish precisely without knowing the specific nature of the engineering services, but large-scale, long-term engineering contracts for defense are common. The market for defense engineering services is often characterized by a mix of large prime contractors and specialized subcontractors.
Small Business Impact
This contract was not competed and there is no indication of small business set-asides or subcontracting plans. The sole-source nature of the award means that small businesses were not actively solicited for participation. This could limit opportunities for small businesses to contribute to this significant defense engineering effort and potentially miss out on valuable subcontracting work.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The Inspector General (IG) for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is limited due to the sole-source nature, making public assessment of accountability measures challenging. Regular reporting and audits would be expected as part of the contract terms.
Related Government Programs
- Department of Defense Engineering Services
- Army Research and Development Contracts
- Textron Systems Corporation Contracts
- Cost-Plus Fixed Fee Contracts
- Sole-Source Defense Procurements
Risk Flags
- Lack of Competition
- Cost-Plus Contract Type
- Long Contract Duration
Tags
defense, department-of-defense, department-of-the-army, engineering-services, not-competed, sole-source, cost-plus-fixed-fee, definitive-contract, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.5 million to TEXTRON SYSTEMS CORPORATION. IGF::CT::IGF SHADOW FY13-15 ESM CONTRACT
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 $163.5 million.
What is the period of performance?
Start: 2013-09-26. End: 2020-02-28.
What specific engineering services were provided under this contract?
The provided data indicates the contract falls under the 'Engineering Services' NAICS code (541330). While specific details are not available in the abbreviated data, this typically encompasses a broad range of services including research and development, design, analysis, testing, and technical support for various engineering disciplines. For a defense contract of this magnitude, it likely involves complex systems engineering, integration, and potentially support for advanced military platforms or technologies. Further investigation into the contract's statement of work would be required for precise service details.
Why was this contract awarded on a sole-source basis?
The provided data explicitly states the contract was 'NOT COMPETED'. The specific justification for this sole-source award is not detailed in the abbreviated data. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, there is a public exigency, or the contract is for a follow-on effort to a previously competed contract where only the original contractor can provide the necessary services. Without the official justification document, the precise reason remains unknown.
How does the Cost Plus Fixed Fee (CPFF) contract type impact value for money?
The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure allows for flexibility and is often used for research and development or services where costs are uncertain, it carries inherent risks to value for money. The contractor has less incentive to control costs compared to fixed-price contracts, as cost savings do not directly benefit them beyond the fixed fee. Conversely, the government bears the risk of cost overruns. Effective oversight and stringent cost controls are crucial to mitigate these risks and ensure reasonable value.
What is the historical spending pattern for similar engineering services contracts by the Department of the Army?
The provided data only includes details for this specific contract. To assess historical spending patterns for similar engineering services contracts by the Department of the Army, one would need to access broader federal procurement databases (e.g., FPDS-NG, USASpending.gov). This would involve filtering for the Department of the Army, the relevant NAICS code (541330 for Engineering Services), and potentially contract types (like CPFF) or specific service descriptions. Analyzing trends in award values, competition levels, and contract durations over several fiscal years would reveal patterns and benchmarks.
What is Textron Systems Corporation's track record with the federal government, particularly the Department of Defense?
Textron Systems Corporation is a well-established defense contractor with a significant history of awards from the federal government, particularly the Department of Defense. While the abbreviated data does not detail their entire contract history, their presence as a recipient of a $163.5 million contract suggests a substantial and ongoing relationship. A comprehensive review of their contract portfolio would reveal their performance ratings, types of services provided, and overall value of contracts awarded. Their long-standing involvement indicates a level of capability and trust from the government.
Are there any specific performance metrics or deliverables associated with this contract?
The abbreviated data does not include specific performance metrics or deliverables for this contract. Typically, such details are outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For a CPFF contract of this nature, performance is often assessed based on the successful completion of defined tasks, adherence to project milestones, quality of engineering outputs, and effective management of resources. The fixed fee is contingent upon meeting these performance expectations. Without access to the full contract documentation, specific metrics remain unknown.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ13R0199
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: $202,787,078
Exercised Options: $168,482,525
Current Obligation: $163,524,922
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $458,426
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-26
Current End Date: 2020-02-28
Potential End Date: 2020-02-28 00:00:00
Last Modified: 2024-04-12
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