Davenport Aviation Inc. awarded $65.7M for light enforcement helicopters by DHS, with a significant price variance

Contract Overview

Contract Amount: $65,721,154 ($65.7M)

Contractor: Davenport Aviation Inc

Awarding Agency: Department of Homeland Security

Start Date: 2019-08-13

End Date: 2022-09-02

Contract Duration: 1,116 days

Daily Burn Rate: $58.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LIGHT ENFORCEMENT HELICOPTERS

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43219

State: Ohio Government Spending

Plain-Language Summary

Department of Homeland Security obligated $65.7 million to DAVENPORT AVIATION INC for work described as: LIGHT ENFORCEMENT HELICOPTERS Key points: 1. The contract's value suggests a substantial investment in aerial surveillance capabilities. 2. Competition dynamics for specialized aircraft can influence pricing and availability. 3. Potential risks include technological obsolescence and maintenance costs for complex equipment. 4. Performance context is critical to understand the operational effectiveness of these helicopters. 5. This contract positions the agency to enhance border security operations. 6. The firm fixed-price structure aims to control costs, but initial pricing requires scrutiny.

Value Assessment

Rating: fair

The awarded amount of $65.7 million for light enforcement helicopters appears high when compared to general aviation procurement benchmarks. While specialized equipment often commands a premium, the lack of detailed cost breakdowns makes a precise value-for-money assessment difficult. The benchmark of $58,890 (likely per unit or a component) suggests a significant per-unit cost, which warrants further investigation into the specific capabilities and features of these helicopters relative to market alternatives. Without more granular data on the helicopter specifications and operational requirements, it is challenging to definitively assess if the price reflects fair market value.

Cost Per Unit: $58,890 (benchmark provided, requires further context for unit definition)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. This process is generally expected to foster competitive pricing and encourage innovation. However, the number of actual bidders is not specified, which is crucial for understanding the true level of competition. A high number of bidders typically leads to better price discovery for the government, while a low number might suggest market concentration or high barriers to entry for certain types of specialized equipment.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality for the required goods or services.

Public Impact

U.S. Customs and Border Protection benefits from enhanced aerial surveillance capabilities. The services delivered include the provision of light enforcement helicopters for border patrol and interdiction operations. The geographic impact is primarily focused on border regions requiring aerial monitoring. Workforce implications may include the need for trained pilots and maintenance personnel for these specialized aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if maintenance and operational costs exceed initial projections.
Risk of technological obsolescence given the rapid advancements in aviation technology.
Dependence on a single contractor for specialized parts or maintenance could lead to price increases.

Positive Signals

Firm fixed-price contract structure helps to mitigate cost uncertainty for the government.
Full and open competition suggests a robust market engagement process.
Award to a specific contractor indicates a selection based on defined criteria, potentially including technical merit.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and stringent regulatory requirements. Procurement of specialized aircraft like enforcement helicopters falls within this domain, often involving a limited number of qualified manufacturers and suppliers. The market size for such niche defense and security assets is substantial, driven by government needs for surveillance, transport, and tactical operations. This contract represents a specific instance of federal spending within the broader aviation and defense industry, where pricing is influenced by technological sophistication, customization, and long-term support requirements.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the procurement likely focused on large, specialized aerospace firms capable of meeting the demanding technical specifications for enforcement helicopters. Consequently, the direct impact on the small business ecosystem may be limited unless subcontractors are utilized by the prime contractor, Davenport Aviation Inc. Further analysis would be needed to determine if subcontracting opportunities were directed towards small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement and program management offices. The U.S. Customs and Border Protection, as the end-user agency, would also play a key role in monitoring performance and ensuring compliance with contract terms. Transparency is facilitated through contract databases like FPDS, which provide basic award details. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this procurement.

Related Government Programs

Department of Defense Aircraft Procurement
Federal Aviation Administration (FAA) Certifications
Homeland Security Aerial Surveillance Programs
Border Patrol Equipment Contracts

Risk Flags

Potential data entry error in NAICS code.
Lack of specific unit count and detailed technical specifications.
Unclear definition of the provided benchmark cost ($58,890).

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $65.7 million to DAVENPORT AVIATION INC. LIGHT ENFORCEMENT HELICOPTERS

Who is the contractor on this award?

The obligated recipient is DAVENPORT AVIATION INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $65.7 million.

What is the period of performance?

Start: 2019-08-13. End: 2022-09-02.

What specific model of light enforcement helicopter was procured, and what are its key performance characteristics?

The specific model of light enforcement helicopter procured under this contract is not explicitly detailed in the provided data. However, the North American Industry Classification System (NAICS) code 339113, 'Surgical Appliance and Supplies Manufacturing,' appears to be a data entry error, as it is unrelated to aviation. Light enforcement helicopters typically possess capabilities such as advanced sensor suites (e.g., electro-optical/infrared cameras, radar), high endurance, speed, and maneuverability suitable for surveillance, reconnaissance, and interdiction missions along borders or in operational theaters. The contract's value suggests a sophisticated platform, likely equipped for demanding law enforcement or security operations, potentially including secure communications and data-linking capabilities.

How does the awarded price compare to similar light enforcement helicopter contracts awarded by federal agencies in the past three years?

Comparing the $65.7 million award to similar contracts requires access to a broader dataset of federal procurements for light enforcement helicopters. However, based on the provided benchmark of $58,890, if this represents a per-unit cost, it would indicate a high price point, suggesting either a very specialized or advanced helicopter, or potentially a package deal including extensive support, training, or modifications. Without knowing the exact number of units procured and their specific configurations, a direct comparison is difficult. Generally, specialized military or law enforcement aircraft can range from several million to tens of millions of dollars per unit, depending on mission requirements, avionics, and manufacturer.

What are the primary risks associated with the long-term sustainment and maintenance of these helicopters?

The primary risks associated with the long-term sustainment and maintenance of these helicopters include high operational costs, potential for component obsolescence, and reliance on specialized technicians and parts. Helicopters, particularly those equipped for demanding enforcement roles, require frequent and intensive maintenance. The cost of spare parts, specialized tooling, and certified maintenance personnel can be substantial and may escalate over the life of the aircraft. Furthermore, as technology evolves, specific components or systems may become obsolete, requiring costly upgrades or replacements to maintain operational readiness and compliance with evolving regulations. Ensuring a robust supply chain and maintenance plan is critical to mitigate these risks.

What is the expected operational lifespan of these helicopters, and how does this influence the overall value proposition?

The expected operational lifespan of these light enforcement helicopters is not explicitly stated in the provided data. However, for specialized aviation assets procured by federal agencies, lifespans can range from 15 to 30 years, depending on the platform, usage intensity, and maintenance regimen. A longer operational lifespan generally enhances the value proposition by amortizing the initial procurement cost over a greater period of service. If these helicopters are expected to serve for an extended duration, the initial investment, even if substantial, could represent a cost-effective solution for meeting long-term border security or enforcement needs. Conversely, a shorter lifespan would necessitate more frequent recapitalization efforts.

Were there any specific performance metrics or key performance indicators (KPIs) defined in the contract to measure the effectiveness of the helicopters?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) established within the contract to measure the effectiveness of the light enforcement helicopters. Typically, such contracts would include requirements related to flight hours, operational availability rates, mission success rates (e.g., successful surveillance or interdiction events), response times, and potentially fuel efficiency or maintenance turnaround times. The U.S. Customs and Border Protection would be responsible for monitoring these KPIs throughout the contract period to ensure the agency is receiving the expected value and operational capability from the procured assets. The effectiveness would ultimately be judged by their contribution to border security objectives.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 20112154

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2300 MARILYN PARK LN, COLUMBUS, OH, 43219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $65,721,154

Exercised Options: $65,721,154

Current Obligation: $65,721,154

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F139DA

IDV Type: FSS

Timeline