DoD awards $12.8M for new King Air aircraft, bypassing competition for foreign military sales

Contract Overview

Contract Amount: $12,781,987 ($12.8M)

Contractor: Textron Aviation Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2025-12-31

Contract Duration: 824 days

Daily Burn Rate: $15.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIVE-YEAR FIRM-FIXED PRICE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT FOR THE PROCUREMENT OF NEW KING AIR B300 SERIES AIRCRAFT FOR FOREIGN MILITARY SALES REQUIREMENTS.

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to TEXTRON AVIATION INC for work described as: FIVE-YEAR FIRM-FIXED PRICE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT FOR THE PROCUREMENT OF NEW KING AIR B300 SERIES AIRCRAFT FOR FOREIGN MILITARY SALES REQUIREMENTS. Key points: 1. Contract awarded to Textron Aviation Inc. for new King Air B300 series aircraft. 2. Focus on Foreign Military Sales (FMS) requirements indicates international security cooperation. 3. The contract is a Firm Fixed Price IDIQ, providing cost certainty for the government. 4. Delivery orders will be issued against this IDIQ, allowing for phased procurement. 5. The contract duration is 824 days, aligning with anticipated delivery schedules. 6. No small business set-aside was applied, suggesting a focus on specialized capabilities.

Value Assessment

Rating: fair

The contract value of $12.8 million for new King Air B300 series aircraft appears reasonable given the specialized nature of military-grade aircraft and the inclusion of foreign military sales requirements. Benchmarking against similar sole-source procurements for specialized aviation platforms is challenging due to limited public data. However, the firm-fixed-price structure offers some cost predictability. Further analysis would require comparing unit costs to historical FMS sales of similar aircraft or to commercial equivalents, adjusted for military modifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Textron Aviation Inc., was solicited. This approach is often used when a specific product or capability is required, or when there is a limited number of qualified sources. The lack of competition means the government did not benefit from a competitive bidding process, which could potentially lead to higher prices than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure. The government's ability to negotiate the best possible price is diminished in a sole-source scenario.

Public Impact

Foreign military partners will receive new King Air B300 series aircraft, enhancing their operational capabilities. The procurement supports U.S. foreign policy objectives by providing essential military assets to allied nations. The contract contributes to the aviation manufacturing sector, supporting jobs and technological development at Textron Aviation. Delivery of these aircraft can bolster regional security and stability through enhanced military readiness of partner nations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification process could obscure potential alternatives.
Dependence on a single contractor for specialized aircraft may create future supply chain risks.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Procurement of modern aircraft enhances capabilities for foreign military sales partners.
Contract supports a key U.S. defense industrial base manufacturer.

Sector Analysis

The aircraft manufacturing sector is a critical component of the defense industrial base, providing essential platforms for military operations and foreign military sales. This contract for King Air B300 series aircraft falls within the broader aerospace and defense industry. The market for specialized turboprop aircraft is relatively concentrated, with a few key manufacturers dominating. The value of this contract, while significant, represents a small portion of overall defense spending on aviation assets.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Textron Aviation Inc., a large aerospace manufacturer, suggests that the primary focus was on the prime contractor's ability to deliver the specialized aircraft. This means that opportunities for small businesses to participate directly in this specific contract may be limited, though they could potentially be involved as suppliers to the prime contractor.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army, likely through its contracting and program management offices. As a sole-source award, the justification and approval process would have undergone internal review. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Foreign Military Sales Program
Aircraft Procurement
Indefinite Delivery Indefinite Quantity Contracts
Turboprop Aircraft
Defense Logistics Agency (DLA) Aviation

Risk Flags

Sole-source award may limit price competition.
Lack of transparency in competition justification.
Potential for higher costs due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to TEXTRON AVIATION INC. FIVE-YEAR FIRM-FIXED PRICE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT FOR THE PROCUREMENT OF NEW KING AIR B300 SERIES AIRCRAFT FOR FOREIGN MILITARY SALES REQUIREMENTS.

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 $12.8 million.

What is the period of performance?

Start: 2023-09-29. End: 2025-12-31.

What is the historical spending by the Department of Defense on King Air aircraft, and how does this contract compare?

Historical spending by the Department of Defense on King Air aircraft is substantial, reflecting their long-standing use across various branches for training, transport, and special missions. While specific aggregate figures for King Airs are not readily available in public databases, Textron Aviation (and its predecessor Beechcraft) has been a consistent supplier. This $12.8 million contract for new B300 series aircraft for FMS represents a specific, recent investment. It is important to note that FMS contracts are distinct from direct U.S. military procurements, as the funding and end-users are international. Comparing this to past U.S. domestic procurements would require careful consideration of aircraft configuration, quantity, and the specific economic conditions at the time of those earlier contracts.

What are the specific justifications for awarding this contract on a sole-source basis?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For aircraft like the King Air B300 series, this could be due to unique manufacturing capabilities, proprietary technology, existing fleet commonality requirements, or specific modifications essential for the intended mission profile, especially within the context of Foreign Military Sales (FMS). The Department of the Army would have documented these justifications, likely citing Textron Aviation's exclusive rights to manufacture the specific model and any necessary FMS-unique configurations. Without access to the official Justification and Approval (J&A) document, the precise reasons remain proprietary, but common factors include specialized production lines and established support infrastructure.

How does the firm-fixed-price (FFP) contract type mitigate risks for the government in this sole-source procurement?

The firm-fixed-price (FFP) contract type is beneficial for the government, especially in sole-source situations, as it shifts the majority of cost risk to the contractor, Textron Aviation Inc. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides significant cost certainty for the Department of the Army and the foreign military sales customers. While the initial price might be higher than in a competitive scenario, the FFP structure prevents cost overruns from impacting the government's budget, unlike cost-reimbursement contracts where the government absorbs unexpected increases in the contractor's expenses.

What are the implications of this contract being for Foreign Military Sales (FMS) requirements?

This contract being designated for Foreign Military Sales (FMS) has several key implications. Firstly, the aircraft are intended for use by allied nations, not the U.S. military directly, supporting U.S. foreign policy and security cooperation objectives. Secondly, the procurement process and contract terms may be influenced by FMS regulations and agreements between the U.S. and the recipient country. Thirdly, while the Department of Defense manages the acquisition, the ultimate funding and end-user requirements originate from the international partner. This can sometimes involve specific modifications or configurations tailored to the foreign customer's needs, potentially impacting cost and delivery timelines compared to standard domestic military procurements.

What is the typical role of Textron Aviation Inc. in government aviation contracts, and what is their track record with King Air aircraft?

Textron Aviation Inc., through its Beechcraft brand, is a well-established and primary manufacturer of King Air turboprop aircraft. They have a long and extensive track record of supplying various King Air models to both commercial and government entities, including the U.S. military, for decades. Their role typically involves manufacturing, modification, and support services for these aircraft. Given their position as the original equipment manufacturer (OEM) for the King Air line, they are often the sole or primary source for new aircraft and specialized parts. Their track record is generally considered strong in terms of production quality and reliability for the King Air platform.

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: W58RGZ23R0043

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: $13,997,854

Exercised Options: $12,781,987

Current Obligation: $12,781,987

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ23D0032

IDV Type: IDC

Timeline