DoD Awards $282M for UAS Data Links to Textron Systems, Sole-Source Contract

Contract Overview

Contract Amount: $282,149,431 ($282.1M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2015-04-03

End Date: 2022-07-30

Contract Duration: 2,675 days

Daily Burn Rate: $105.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: PROCUREMENT OF FISCAL YEAR 14 TACTICAL COMMON DATA LINK FULL RATE PRODUCTION VII IN SUPPORT OF UNMANNED AIRCRAFT SYSTEMS ARMY AND MARINES.

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $282.1 million to TEXTRON SYSTEMS CORPORATION for work described as: PROCUREMENT OF FISCAL YEAR 14 TACTICAL COMMON DATA LINK FULL RATE PRODUCTION VII IN SUPPORT OF UNMANNED AIRCRAFT SYSTEMS ARMY AND MARINES. Key points: 1. Significant investment in critical UAS technology. 2. Sole-source award raises questions about competition and price. 3. Long contract duration (2015-2022) suggests sustained need. 4. Aircraft manufacturing sector sees substantial contract value.

Value Assessment

Rating: questionable

The contract value of $282.15 million for Full Rate Production VII is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar data link systems or previous iterations.

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 was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may have paid a premium for these tactical data links.

Public Impact

Enhances communication capabilities for Army and Marine unmanned aircraft systems. Supports critical intelligence, surveillance, and reconnaissance (ISR) missions. Potential for increased operational effectiveness of UAS platforms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Supports critical defense systems
Addresses specific UAS needs

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for components supporting unmanned aerial systems. Spending in this area is driven by defense modernization efforts and the increasing reliance on drone technology for various military operations.

Small Business Impact

The data indicates this contract was awarded to Textron Systems Corporation and does not specify any subcontracting to small businesses. Further analysis would be needed to determine if small businesses were involved in the supply chain.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the justification for not competing the contract was sound and that the pricing negotiated was reasonable given the circumstances.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in cost justification
Long-term contract duration without re-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $282.1 million to TEXTRON SYSTEMS CORPORATION. PROCUREMENT OF FISCAL YEAR 14 TACTICAL COMMON DATA LINK FULL RATE PRODUCTION VII IN SUPPORT OF UNMANNED AIRCRAFT SYSTEMS ARMY AND MARINES.

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 $282.1 million.

What is the period of performance?

Start: 2015-04-03. End: 2022-07-30.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this specific contract, the justification would likely relate to Textron Systems' established role and expertise in providing the Tactical Common Data Link system for UAS, potentially making them the only viable option without significant delays or cost increases.

How does the unit cost of this data link compare to similar systems procured competitively?

Without access to competitive procurement data for similar systems, a direct comparison of unit costs is challenging. However, sole-source contracts inherently lack the price pressure of competition. If comparable systems exist that were procured competitively, their unit costs would likely be lower, highlighting a potential cost disadvantage for this contract.

What is the long-term strategic value of this data link system for the DoD?

The long-term strategic value lies in its role in enhancing the operational effectiveness of unmanned aircraft systems, which are increasingly vital for intelligence, surveillance, reconnaissance, and strike missions. A reliable and advanced data link ensures seamless communication and control, improving situational awareness and enabling more complex operations across different platforms and services.

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: FIXED PRICE INCENTIVE (L)

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: $294,033,093

Exercised Options: $294,033,093

Current Obligation: $282,149,431

Actual Outlays: $6,324

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $888,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline