DOJ's FBI Awards $11M for Pilatus Aircraft Under Full & Open Competition

Contract Overview

Contract Amount: $11,050,496 ($11.1M)

Contractor: Pilatus Business Aircraft Ltd

Awarding Agency: Department of Justice

Start Date: 2024-09-18

End Date: 2026-08-31

Contract Duration: 712 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

Official Description: THIS FUNDED ORDER WILL FACILITATE THE PURCHASE OF SINGLE ENGINE TURBINE AIRCRAFT IN ACCORDANCE WITH THE ATTACHMENTS IN SECTION J.

Place of Performance

Location: BROOMFIELD, JEFFERSON County, COLORADO, 80021

State: Colorado Government Spending

Plain-Language Summary

Department of Justice obligated $11.1 million to PILATUS BUSINESS AIRCRAFT LTD for work described as: THIS FUNDED ORDER WILL FACILITATE THE PURCHASE OF SINGLE ENGINE TURBINE AIRCRAFT IN ACCORDANCE WITH THE ATTACHMENTS IN SECTION J. Key points: 1. Significant investment in specialized aircraft for law enforcement operations. 2. Pilatus Business Aircraft Ltd. secured the contract, indicating potential market concentration. 3. Risk of price escalation due to economic price adjustment clause. 4. Aircraft manufacturing sector sees federal spending, impacting supply chains.

Value Assessment

Rating: good

The $11.05 million award for single-engine turbine aircraft appears reasonable given the specialized nature of the equipment. Benchmarking against similar government contracts for aviation assets is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process was initiated but specific sources were later excluded. This method aims for best value but requires scrutiny to ensure true competition was maintained.

Taxpayer Impact: Taxpayer funds are being used for critical law enforcement equipment, with the competitive award process aiming to secure fair pricing.

Public Impact

Enhances FBI's operational capabilities for surveillance, transport, and interdiction. Supports critical missions requiring specialized aerial assets. Potential for increased law enforcement presence and effectiveness in the field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost overruns.
Limited competition details raise questions about the exclusion of sources.
Dependence on a single aircraft manufacturer could pose long-term supply risks.

Positive Signals

Awarded under full and open competition, suggesting a robust process.
Procurement of essential law enforcement assets.
Clear delivery timeline established.

Sector Analysis

The federal government's spending in the aircraft manufacturing sector supports specialized defense and law enforcement capabilities. Benchmarks for similar turbine aircraft procurements vary widely based on customization and mission requirements.

Small Business Impact

The contract was awarded to Pilatus Business Aircraft Ltd., a known entity in the aviation market. Analysis is needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The FBI's procurement process, including the justification for excluding sources, will be subject to oversight. Ensuring transparency and adherence to procurement regulations is crucial for accountability.

Related Government Programs

Aircraft Manufacturing
Department of Justice Contracting
Federal Bureau of Investigation Programs

Risk Flags

Potential for price escalation due to EPA.
Lack of clarity on 'exclusion of sources' justification.
Limited visibility into small business participation.
Dependence on a single supplier for specialized aircraft.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $11.1 million to PILATUS BUSINESS AIRCRAFT LTD. THIS FUNDED ORDER WILL FACILITATE THE PURCHASE OF SINGLE ENGINE TURBINE AIRCRAFT IN ACCORDANCE WITH THE ATTACHMENTS IN SECTION J.

Who is the contractor on this award?

The obligated recipient is PILATUS BUSINESS AIRCRAFT LTD.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2024-09-18. End: 2026-08-31.

What specific operational needs justify the acquisition of these single-engine turbine aircraft, and how do they align with the FBI's strategic objectives?

These aircraft likely support critical FBI missions such as surveillance, reconnaissance, high-value suspect interdiction, and rapid deployment of personnel or equipment to remote or challenging locations. Their acquisition aligns with the need for versatile, cost-effective aerial assets that can perform a range of specialized law enforcement tasks, enhancing the Bureau's overall operational effectiveness and response capabilities.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' method, and how were these mitigated?

This method carries the risk of limiting the competitive pool, potentially leading to higher prices or less innovative solutions if the exclusion criteria are overly restrictive or not well-justified. Mitigation typically involves a clear, documented rationale for exclusion based on technical requirements, past performance, or unique capabilities, ensuring that the remaining competition still yields best value for the government.

How will the economic price adjustment (EPA) clause be managed to prevent significant cost increases beyond the initial fixed price?

Managing the EPA clause requires diligent monitoring of relevant economic indices (e.g., labor, material costs) and strict adherence to the contract's predefined adjustment formulas. The government should establish clear thresholds for acceptable price increases and potentially negotiate caps or review the necessity of the EPA if market conditions become volatile, ensuring taxpayer funds are protected.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pilatus Aircraft Service AG

Address: 12300 PILATUS WAY, BROOMFIELD, CO, 80021

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,050,496

Exercised Options: $11,050,496

Current Obligation: $11,050,496

Actual Outlays: $5,525,248

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15F06722D0000896

IDV Type: IDC

Timeline