DoD Awards $326M Contract for Shadow UAS Logistics Support to Textron Systems
Contract Overview
Contract Amount: $325,847,570 ($325.8M)
Contractor: Textron Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-12-31
End Date: 2025-03-08
Contract Duration: 1,528 days
Daily Burn Rate: $213.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: CONTRACTOR LOGISTICS SUPPORT FOR THE SHADOW UNMANNED AIRCRAFT SYSTEM.
Place of Performance
Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $325.8 million to TEXTRON SYSTEMS CORPORATION for work described as: CONTRACTOR LOGISTICS SUPPORT FOR THE SHADOW UNMANNED AIRCRAFT SYSTEM. Key points: 1. Contract value of $325.8M for contractor logistics support of Shadow UAS. 2. Sole-source award to Textron Systems Corporation, raising competition concerns. 3. Significant taxpayer investment in specialized aircraft manufacturing and support. 4. Long-term contract duration (2020-2025) suggests ongoing need for system support.
Value Assessment
Rating: questionable
The contract value of $325.8M is substantial for logistics support. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar UAS support contracts.
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 the government compared to a competitive process.
Taxpayer Impact: The lack of competition on this large contract may result in taxpayers paying a premium for logistics support services.
Public Impact
Ensures continued operational readiness of critical Shadow Unmanned Aircraft Systems. Supports advanced defense technology and the personnel operating these systems. Potential for cost overruns due to sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration may not reflect evolving market prices.
- Lack of small business participation noted.
Positive Signals
- Supports critical defense asset (Shadow UAS).
- Long-term commitment ensures system sustainment.
- Fixed Price Incentive contract type can incentivize contractor performance.
Sector Analysis
This contract falls within the Defense sector, specifically supporting unmanned aircraft systems. Benchmarks for UAS logistics support can vary widely based on system complexity and operational tempo.
Small Business Impact
The data indicates that small businesses were not involved in this contract (sb: false). This suggests a lack of opportunity for small business participation in supporting this specific defense system.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of the Army received the best possible value. Further review of the justification for not competing the contract is recommended.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of small business participation
- Potential for price escalation over contract duration
- Limited transparency in price discovery
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 $325.8 million to TEXTRON SYSTEMS CORPORATION. CONTRACTOR LOGISTICS SUPPORT FOR THE SHADOW UNMANNED AIRCRAFT SYSTEM.
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 $325.8 million.
What is the period of performance?
Start: 2020-12-31. End: 2025-03-08.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where only one source can meet requirements. To ensure fair pricing, the agency might have conducted market research, reviewed historical pricing, or negotiated extensively with the sole provider. However, without competitive pressure, the risk of paying above fair market value remains higher.
What are the potential risks associated with a long-term, sole-source contract for UAS logistics support?
Long-term, sole-source contracts carry risks of price escalation over time as market conditions change and competition is absent. There's also a risk of contractor complacency, potentially leading to reduced service quality or innovation. Furthermore, the government may become locked into a specific technology or support approach, hindering future upgrades or transitions to more cost-effective solutions.
How does the fixed-price incentive (FPI) contract type aim to balance cost and performance for this UAS logistics support?
The Fixed Price Incentive (FPI) contract type establishes a target cost, target profit, and a price ceiling. It incentivizes the contractor to control costs by sharing savings if the final cost is below the target. Conversely, if costs exceed the target, both the contractor and the government share the overrun, up to the ceiling. This structure aims to motivate the contractor to perform efficiently while providing some cost control for the government.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: HARDWARE AND ABRASIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ20R0053
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Textron Inc
Address: 124 INDUSTRY LN, 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: $717,773,305
Exercised Options: $325,847,570
Current Obligation: $325,847,570
Subaward Activity
Number of Subawards: 290
Total Subaward Amount: $69,255,893
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-12-31
Current End Date: 2025-03-08
Potential End Date: 2028-01-31 12:01:00
Last Modified: 2025-07-24
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