DoD Awards $25.9M for King Air & Cessna Aircraft to Textron Aviation for Foreign Military Sales

Contract Overview

Contract Amount: $25,936,635 ($25.9M)

Contractor: Textron Aviation Inc

Awarding Agency: Department of Defense

Start Date: 2024-12-19

End Date: 2028-01-24

Contract Duration: 1,131 days

Daily Burn Rate: $22.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIVE-YEAR, FIRM FIXED PRICE, INDEFINITE DELIVERY - INDEFINITE QUANTITY FOR PROCUREMENT OF KING AIR B200 SERIES, KING AIR B300, CESSNA C-408 AIRCRAFT, TO SATISFY FOREIGN MILITARY SALES (FMS) REQUIREMENTS.

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $25.9 million to TEXTRON AVIATION INC for work described as: FIVE-YEAR, FIRM FIXED PRICE, INDEFINITE DELIVERY - INDEFINITE QUANTITY FOR PROCUREMENT OF KING AIR B200 SERIES, KING AIR B300, CESSNA C-408 AIRCRAFT, TO SATISFY FOREIGN MILITARY SALES (FMS) REQUIREMENTS. Key points: 1. Contract awarded to Textron Aviation Inc. for specialized aircraft. 2. Focus on Foreign Military Sales (FMS) requirements indicates international support. 3. Firm Fixed Price contract type aims to control costs. 4. Aircraft Manufacturing sector, NAICS 336411, is the primary industry.

Value Assessment

Rating: fair

The contract is a Firm Fixed Price IDIQ, which provides cost certainty. However, without a competitive award, it's difficult to assess if the pricing is optimal compared to market rates for similar aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers are receiving the best value for this procurement.

Public Impact

Supports U.S. foreign military allies through aircraft provision. Ensures availability of specific aircraft models for international partners. Potential for follow-on sustainment and training contracts. Impacts the global aerospace market for these aircraft types.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award

Positive Signals

Firm Fixed Price contract
Supports FMS requirements

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for specialized fixed-wing aircraft. Spending benchmarks for similar FMS aircraft procurements would be relevant for comparison.

Small Business Impact

The data indicates 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 award is managed by the Department of the Army within the Department of Defense. Oversight would focus on ensuring FMS requirements are met and contract terms are adhered to.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in price discovery
Reliance on a single contractor for critical FMS needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.9 million to TEXTRON AVIATION INC. FIVE-YEAR, FIRM FIXED PRICE, INDEFINITE DELIVERY - INDEFINITE QUANTITY FOR PROCUREMENT OF KING AIR B200 SERIES, KING AIR B300, CESSNA C-408 AIRCRAFT, TO SATISFY FOREIGN MILITARY SALES (FMS) 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 $25.9 million.

What is the period of performance?

Start: 2024-12-19. End: 2028-01-24.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award is critical for understanding the procurement's necessity and the absence of viable alternatives. Agencies typically require detailed documentation, such as a Justification and Approval (J&A), to support sole-source awards. This documentation should outline why only one source can meet the requirement and the market research conducted. For pricing, agencies must still ensure it's fair and reasonable, often through cost analysis, comparison to historical data, or independent government cost estimates, even without competition.

How does the pricing of these aircraft compare to similar domestic procurements or commercial sales?

Comparing the pricing of these FMS aircraft to domestic procurements or commercial sales is essential for assessing value. Without competitive bidding, it's challenging to determine if the negotiated price reflects market conditions. Analysis of Textron Aviation's commercial price lists, historical FMS sales of similar platforms, and pricing for comparable aircraft procured competitively by the DoD would provide benchmarks to evaluate the fairness and reasonableness of the awarded price.

What is the long-term strategic value of procuring these specific aircraft models for FMS, beyond the immediate contract value?

The long-term strategic value lies in strengthening alliances and enhancing the operational capabilities of partner nations, which indirectly supports U.S. foreign policy and security objectives. Providing these specific aircraft models can standardize equipment among allies, simplifying interoperability and joint operations. Furthermore, it can foster goodwill and create opportunities for future defense cooperation, training, and sustainment services, solidifying U.S. influence and security partnerships.

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: W58RGZ25R0136

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: $25,936,635

Exercised Options: $25,936,635

Current Obligation: $25,936,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ23D0032

IDV Type: IDC

Timeline