DHS awards $47M for Multirole Enforcement Aircraft, with Sierra Nevada Company as prime

Contract Overview

Contract Amount: $47,082,093 ($47.1M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-05-05

End Date: 2022-03-11

Contract Duration: 675 days

Daily Burn Rate: $69.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MULTIROLE ENFORCEMENT AIRCRAFT

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Homeland Security obligated $47.1 million to SIERRA NEVADA COMPANY, LLC for work described as: MULTIROLE ENFORCEMENT AIRCRAFT Key points: 1. Value for money assessed against comparable aircraft procurement and operational costs. 2. Competition dynamics indicate a robust bidding process for this specialized aircraft requirement. 3. Risk indicators include potential for cost overruns and schedule delays common in complex aerospace projects. 4. Performance context relies on the contractor's ability to deliver advanced surveillance and enforcement capabilities. 5. Sector positioning places this contract within the broader aerospace and defense manufacturing industry.

Value Assessment

Rating: good

The contract value of $47.1 million for multirole enforcement aircraft appears reasonable when benchmarked against similar specialized aircraft procurements. While specific per-unit cost data is not provided, the total award suggests a competitive pricing strategy was likely employed given the full and open competition. Further analysis would require comparing the specific capabilities and avionics suite to other offerings in the market to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors were invited to submit proposals. The number of bidders is not specified, but the designation implies a competitive environment that should drive price discovery and potentially lead to more favorable terms for the government. This approach is generally preferred for ensuring the best value is obtained.

Taxpayer Impact: A full and open competition process maximizes the potential for taxpayer savings by encouraging a wide range of suppliers to bid, thereby driving down prices and ensuring the government receives competitive offers.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), enhancing their border security and enforcement capabilities. The services delivered include the manufacturing and delivery of specialized multirole enforcement aircraft equipped for surveillance and interdiction. The geographic impact is national, supporting border security operations across U.S. territories and potentially international waters. Workforce implications include jobs in aerospace manufacturing, engineering, and related technical fields within the prime contractor and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in advanced aircraft modifications.
Reliance on a single prime contractor for complex integration.
Schedule slippage risks inherent in aerospace development.

Positive Signals

Awarded under full and open competition, indicating broad market engagement.
Firm Fixed Price contract type helps control costs.
Contractor has experience in aerospace manufacturing and integration.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically focusing on specialized aircraft for government use. The market for such platforms is characterized by high barriers to entry due to technological complexity and stringent regulatory requirements. Comparable spending benchmarks would include other government procurements for surveillance, patrol, and enforcement aircraft, which often represent significant investments.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Sierra Nevada Company voluntarily engages small businesses in its supply chain. Further investigation into subcontracting plans would be necessary to assess broader small business implications.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officer and program management office. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases, though detailed operational performance data may be sensitive.

Related Government Programs

Homeland Security Aircraft Procurement
Border Patrol Aircraft
Surveillance Aircraft Manufacturing
Aerospace Defense Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns
Performance specification adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $47.1 million to SIERRA NEVADA COMPANY, LLC. MULTIROLE ENFORCEMENT AIRCRAFT

Who is the contractor on this award?

The obligated recipient is SIERRA NEVADA COMPANY, LLC.

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 $47.1 million.

What is the period of performance?

Start: 2020-05-05. End: 2022-03-11.

What is Sierra Nevada Company's track record with similar government aircraft contracts?

Sierra Nevada Company (SNC) has a significant track record in aerospace and defense, including extensive experience with government contracts for aircraft modification, integration, and manufacturing. They are known for their work on intelligence, surveillance, and reconnaissance (ISR) platforms, electronic warfare systems, and specialized mission aircraft for various U.S. government agencies, including the Department of Defense and DHS. Their portfolio includes programs like the MC-130J Commando II modifications and various unmanned aerial systems. This background suggests a strong capability to handle complex projects like the multirole enforcement aircraft, although specific performance metrics on past contracts would provide a more granular assessment of their reliability and efficiency.

How does the $47.1 million award compare to the cost of similar multirole enforcement aircraft?

Benchmarking the $47.1 million award for multirole enforcement aircraft requires detailed comparison of the specific capabilities, mission systems, and aircraft platform procured. Generally, specialized aircraft with advanced surveillance, communication, and enforcement equipment can range from tens of millions to over a hundred million dollars each, depending on complexity and customization. For instance, similar ISR or patrol aircraft used by other agencies can have unit costs that vary widely. Without knowing the exact specifications of the aircraft delivered under this contract (e.g., base airframe, sensor suite, operational range), a precise comparison is difficult. However, the total award suggests a significant investment in a highly capable platform.

What are the primary risks associated with this contract for DHS?

The primary risks associated with this contract for DHS include potential schedule delays in aircraft delivery and modification, cost overruns if unforeseen technical challenges arise, and performance risks if the aircraft does not meet the demanding operational requirements for border enforcement. Given the complexity of integrating advanced avionics and surveillance systems onto an aircraft platform, technical integration issues are a common concern. Furthermore, ensuring the long-term reliability and maintainability of these specialized assets is crucial for sustained operational effectiveness. The firm fixed-price nature of the contract helps mitigate cost risk for the government, but it places more financial burden on the contractor if costs escalate.

How effective are multirole enforcement aircraft in enhancing border security operations?

Multirole enforcement aircraft are highly effective tools for enhancing border security operations by providing persistent surveillance, rapid response capabilities, and a broad operational perspective. They can detect and track illegal activities such as smuggling, illegal crossings, and other illicit activities over vast areas, including land and maritime borders. The 'multirole' aspect implies versatility, allowing these aircraft to be configured for various missions, from intelligence gathering and reconnaissance to interdiction support and personnel transport. Their presence acts as a deterrent and provides critical real-time information to ground and maritime assets, significantly improving situational awareness and response coordination for agencies like CBP.

What is the historical spending trend for similar aircraft procurements by DHS or CBP?

Historical spending trends for similar aircraft procurements by DHS and CBP show a consistent and significant investment in aviation assets to support border security and law enforcement missions. Over the past decade, agencies within DHS have allocated billions of dollars towards acquiring, maintaining, and upgrading fixed-wing and rotary-wing aircraft, including specialized surveillance and patrol platforms. Spending often fluctuates based on specific program needs, technological advancements, and budget appropriations. Contracts for multirole enforcement aircraft, like the one awarded to Sierra Nevada Company, represent a substantial portion of this aviation budget, reflecting the critical role these assets play in national security operations.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 20118964

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 444 SALOMON CIR, SPARKS, NV, 89434

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $47,082,093

Exercised Options: $47,082,093

Current Obligation: $47,082,093

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $7,865,587

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1016D00011

IDV Type: IDC

Timeline