DoD awards $11.4M for Beechcraft King Air 360ER, with option for second aircraft

Contract Overview

Contract Amount: $11,443,421 ($11.4M)

Contractor: Textron Aviation Inc

Awarding Agency: Department of Defense

Start Date: 2022-02-14

End Date: 2026-10-31

Contract Duration: 1,720 days

Daily Burn Rate: $6.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COMMERCIAL ITEM CONTRACT TO ACQUIRE ONE BEECHCRAFT KINGAIR 360ER (PROLINE FUSION) WITH THE OPTION TO PROCURE ONE ADDITIONAL BEECHCRAFT KINGAIR 360ER (PROLINE FUSION).

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to TEXTRON AVIATION INC for work described as: COMMERCIAL ITEM CONTRACT TO ACQUIRE ONE BEECHCRAFT KINGAIR 360ER (PROLINE FUSION) WITH THE OPTION TO PROCURE ONE ADDITIONAL BEECHCRAFT KINGAIR 360ER (PROLINE FUSION). Key points: 1. Contract awarded to Textron Aviation Inc. for a specialized aircraft. 2. High value contract for a single, advanced aircraft model. 3. Limited competition noted, impacting potential price discovery. 4. Aircraft Manufacturing sector, with specific model focus.

Value Assessment

Rating: fair

The contract price of $11.4M for one King Air 360ER appears high compared to general aircraft acquisition costs. Benchmarking against similar specialized military aircraft would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited source justification. This lack of competition may have led to a higher price than if multiple vendors had bid.

Taxpayer Impact: Taxpayer funds are used for a specialized aircraft acquisition with limited competitive pricing, potentially increasing the overall cost.

Public Impact

Acquisition of advanced aircraft for potential military or government operations. Potential for follow-on contract if the option is exercised. Impact on the specialized aircraft manufacturing market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
High unit cost potential

Positive Signals

Acquisition of advanced capability
Option for additional unit

Sector Analysis

The Department of Defense is acquiring a specialized aircraft from the Aircraft Manufacturing sector. Spending in this sector can vary widely based on technological advancements and geopolitical needs.

Small Business Impact

This contract was awarded to Textron Aviation Inc., a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The contract is a definitive contract with a fixed price, suggesting clear terms. Oversight would focus on delivery, performance, and adherence to the contract specifications.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition
High unit cost
Sole-source potential
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to TEXTRON AVIATION INC. COMMERCIAL ITEM CONTRACT TO ACQUIRE ONE BEECHCRAFT KINGAIR 360ER (PROLINE FUSION) WITH THE OPTION TO PROCURE ONE ADDITIONAL BEECHCRAFT KINGAIR 360ER (PROLINE FUSION).

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 $11.4 million.

What is the period of performance?

Start: 2022-02-14. End: 2026-10-31.

What is the specific operational requirement driving the need for the King Air 360ER with Proline Fusion avionics?

The specific operational requirement is not detailed in the provided data. However, the King Air 360ER is known for its versatility, range, and payload capacity, making it suitable for various missions including surveillance, transport, and special operations support. The Proline Fusion avionics enhance navigation, situational awareness, and operational efficiency.

What are the risks associated with a limited competition procurement for specialized aircraft?

Limited competition increases the risk of paying a premium price due to the absence of competitive pressure. It can also limit innovation by not exposing the government to alternative solutions or technologies from other manufacturers. Furthermore, reliance on a single source can create supply chain vulnerabilities.

How does the acquisition of this aircraft contribute to the Department of Defense's overall mission effectiveness?

The acquisition of a specialized aircraft like the King Air 360ER enhances the Department of Defense's operational capabilities. Its advanced features likely support critical missions requiring specific performance characteristics, thereby contributing to mission success and potentially filling a capability gap within the existing fleet.

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: W58RGZ21R0177

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 1 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: $11,443,421

Exercised Options: $11,443,421

Current Obligation: $11,443,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline