DoD's $230M Shadow UAS Support Contract Awarded to Textron Systems Corporation

Contract Overview

Contract Amount: $230,209,876 ($230.2M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2013-11-01

End Date: 2018-05-01

Contract Duration: 1,642 days

Daily Burn Rate: $140.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: FOLLOW-ON CONTRACT FOR SHADOW UNMANNED AIRCRAFT SYSTEM PERFORMANCE BASED LOGISTICS SUPPORT AND OPERATIONAL/SUSTAINMENT SUPPORT FOR FISCAL YEARS 2014 AND 2015.

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $230.2 million to TEXTRON SYSTEMS CORPORATION for work described as: FOLLOW-ON CONTRACT FOR SHADOW UNMANNED AIRCRAFT SYSTEM PERFORMANCE BASED LOGISTICS SUPPORT AND OPERATIONAL/SUSTAINMENT SUPPORT FOR FISCAL YEARS 2014 AND 2015. Key points: 1. This contract represents significant spending on unmanned aircraft system sustainment. 2. Textron Systems Corporation is the sole provider for this follow-on contract. 3. Potential risks include vendor lock-in and lack of competitive pricing pressure. 4. The Defense sector continues to invest heavily in advanced aviation technologies.

Value Assessment

Rating: questionable

The contract's cost-plus incentive fee structure aims to control costs, but without competition, it's difficult to benchmark against market rates. The total value of $230M over several years warrants scrutiny for efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers are receiving the best possible value for this significant expenditure.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract could lead to escalating costs over time. Dependence on a single vendor for critical UAS support poses a strategic risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for cost overruns
Long contract duration

Positive Signals

Performance-based logistics support
Operational and sustainment support

Sector Analysis

The Department of Defense's spending on unmanned aircraft systems (UAS) is substantial, reflecting the growing importance of drone technology in military operations. Benchmarks for similar sustainment contracts are difficult to establish due to the sole-source nature of this award.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors.

Oversight & Accountability

The contract's sole-source nature suggests limited oversight on pricing competitiveness. Further review would be needed to assess the effectiveness of performance metrics and accountability mechanisms within the contract.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competitive pricing.
Potential for cost overruns due to CPIF structure without competition.
Long contract duration increases risk of price escalation.
Vendor lock-in and strategic dependence.
Lack of transparency in pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $230.2 million to TEXTRON SYSTEMS CORPORATION. FOLLOW-ON CONTRACT FOR SHADOW UNMANNED AIRCRAFT SYSTEM PERFORMANCE BASED LOGISTICS SUPPORT AND OPERATIONAL/SUSTAINMENT SUPPORT FOR FISCAL YEARS 2014 AND 2015.

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $230.2 million.

What is the period of performance?

Start: 2013-11-01. End: 2018-05-01.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of viable alternative sources. Without specific documentation, it's presumed that the government determined Textron Systems Corporation was the only entity capable of providing the required specialized support for the Shadow UAS. Further investigation into the contracting officer's determination is warranted.

How does the cost-plus incentive fee structure ensure cost control and value for money in a sole-source environment?

A cost-plus incentive fee (CPIF) contract aims to incentivize the contractor to control costs by sharing savings or overruns with the government based on pre-defined targets. However, in a sole-source scenario, the baseline cost targets themselves may not be as rigorously tested as they would be in a competitive environment, potentially limiting the effectiveness of the incentive structure.

What are the long-term implications of relying on a single vendor for critical UAS operational and sustainment support?

Long-term reliance on a single vendor can lead to vendor lock-in, reduced bargaining power for the government, and potential price increases over time. It also poses a strategic risk if the vendor faces financial difficulties or decides to exit the market. Diversification of support or developing organic government capabilities could mitigate these risks.

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: W58RGZ13R0009

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $376,291,107

Exercised Options: $237,561,151

Current Obligation: $230,209,876

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline