DoD awards $37.7M for 3 King Air aircraft to Textron Aviation for Canadian ISR mission

Contract Overview

Contract Amount: $37,652,974 ($37.7M)

Contractor: Textron Aviation Inc

Awarding Agency: Department of Defense

Start Date: 2019-12-20

End Date: 2024-12-31

Contract Duration: 1,838 days

Daily Burn Rate: $20.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS CONTRACT IS FAR PART 12, COMMERCIAL ITEM CONTRACT TO ACQUIRE THREE TEXTRON/BEECHCRAFT KING AIR 350ER AIRCRAFT TO SUPPORT THE CANADIAN MANNED AIRBORNE INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE REQUIREMENT FOR THE CANADA.

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $37.7 million to TEXTRON AVIATION INC for work described as: THIS CONTRACT IS FAR PART 12, COMMERCIAL ITEM CONTRACT TO ACQUIRE THREE TEXTRON/BEECHCRAFT KING AIR 350ER AIRCRAFT TO SUPPORT THE CANADIAN MANNED AIRBORNE INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE REQUIREMENT FOR THE CANADA. Key points: 1. Acquisition of three Textron/Beechcraft King Air 350ER aircraft for intelligence, surveillance, and reconnaissance (ISR). 2. Contract awarded to Textron Aviation Inc. by the Department of the Army. 3. The contract is a firm-fixed-price definitive contract with an estimated completion date of December 31, 2024. 4. This acquisition supports a Canadian manned airborne ISR requirement. 5. The contract was not available for competition.

Value Assessment

Rating: questionable

The total contract value is $37,652,974. Without specific per-unit pricing or comparison data for similar aircraft acquisitions, it is difficult to definitively assess if this price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This lack of competition may have impacted price discovery and potentially led to a higher price than if multiple vendors had bid.

Taxpayer Impact: Taxpayer funds are being used for this acquisition. The absence of competition raises concerns about the optimal use of these funds.

Public Impact

Enhances Canadian intelligence, surveillance, and reconnaissance capabilities. Supports a critical defense requirement for a NATO ally. Procurement of specialized aircraft can be a lengthy and complex process. Potential for follow-on contracts for maintenance, training, and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High dollar value for a limited competition award
Long contract duration

Positive Signals

Acquisition of critical ISR assets
Support for allied nation capabilities
Firm-fixed-price contract type

Sector Analysis

The aircraft manufacturing sector is characterized by high barriers to entry and significant technological investment. This contract falls within the broader aerospace and defense industry, which often involves specialized, high-value procurements.

Small Business Impact

This contract was awarded to Textron Aviation Inc., a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The Department of the Army is responsible for oversight of this contract. The firm-fixed-price nature provides some cost control, but the lack of competition warrants scrutiny to ensure value for money.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may result in higher costs.
Potential for cost overruns if not closely managed.
Dependence on a single supplier for critical assets.
Long contract duration increases risk exposure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.7 million to TEXTRON AVIATION INC. THIS CONTRACT IS FAR PART 12, COMMERCIAL ITEM CONTRACT TO ACQUIRE THREE TEXTRON/BEECHCRAFT KING AIR 350ER AIRCRAFT TO SUPPORT THE CANADIAN MANNED AIRBORNE INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE REQUIREMENT FOR THE CANADA.

Who is the contractor on this award?

The obligated recipient is TEXTRON AVIATION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $37.7 million.

What is the period of performance?

Start: 2019-12-20. End: 2024-12-31.

What was the justification for limiting competition on this aircraft acquisition?

The justification for limiting competition is not provided in the data. Typically, sole-source or limited competition contracts are awarded when only one responsible source can provide the required supplies or services, or when there's a compelling urgency. Further investigation into the specific circumstances surrounding this procurement would be necessary to understand the rationale.

What are the specific ISR capabilities these King Air 350ER aircraft will provide?

The King Air 350ER is a versatile platform often configured for Intelligence, Surveillance, and Reconnaissance (ISR) missions. It can be equipped with various sensors such as electro-optical/infrared (EO/IR) cameras, signals intelligence (SIGINT) systems, and radar. These capabilities allow for persistent monitoring, target detection, and data collection over extended periods.

Are there any performance metrics or key performance parameters associated with this contract?

The provided data does not specify any performance metrics or key performance parameters (KPPs) for the aircraft or the ISR mission. While the contract is firm-fixed-price, ensuring the aircraft meet specific operational requirements and deliver the intended ISR capabilities would typically be detailed in the contract's statement of work and subject to government acceptance criteria.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ19R0373

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: ONE CESSNA BLVD, WICHITA, KS, 67215

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: $37,652,974

Exercised Options: $37,652,974

Current Obligation: $37,652,974

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline