DHS Awards $47.1M for 2 Multirole Enforcement Aircraft to Sierra Nevada Company

Contract Overview

Contract Amount: $47,126,824 ($47.1M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-02

End Date: 2022-09-30

Contract Duration: 758 days

Daily Burn Rate: $62.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MULTIROLE ENFORCEMENT AIRCRAFT (MEA) - QUANTITY 2

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 (MEA) - QUANTITY 2 Key points: 1. Significant investment in critical aerial surveillance and enforcement capabilities. 2. Sierra Nevada Company, a major aerospace player, secures a substantial contract. 3. Full and open competition suggests a potentially competitive pricing environment. 4. Aircraft manufacturing sector sees continued government demand for specialized platforms.

Value Assessment

Rating: good

The contract value of $47.1 million for two aircraft appears reasonable given the specialized nature of Multirole Enforcement Aircraft. Benchmarking against similar custom-built or modified aircraft would provide a more precise assessment, but the fixed-price structure offers cost certainty.

Cost Per Unit: $23,563,412.13

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive favorable pricing and ensure the government receives the best value for its investment.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective solution for essential homeland security assets.

Public Impact

Enhances border security and law enforcement capabilities through advanced aerial surveillance. Supports critical missions for U.S. Customs and Border Protection operations. Contributes to national security by providing versatile enforcement aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during customization.
Dependence on a single contractor for delivery and potential future support.
Long-term sustainment and maintenance costs not detailed in this award.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm Fixed Price contract provides cost certainty.
Addresses a clear and critical need for enhanced enforcement capabilities.

Sector Analysis

The aircraft manufacturing sector is characterized by high barriers to entry and significant R&D investment. Government contracts for specialized aircraft like these represent a substantial portion of the market, often involving complex customization and stringent performance requirements.

Small Business Impact

While Sierra Nevada Company is a significant aerospace firm, this contract does not appear to directly involve small business participation based on the provided data. Future contracts or subcontracts may offer opportunities for small businesses in specialized manufacturing or support roles.

Oversight & Accountability

The award was made by the Department of Homeland Security to U.S. Customs and Border Protection. Oversight would typically involve program management, contract administration, and performance monitoring to ensure timely delivery and adherence to specifications.

Related Government Programs

Aircraft Manufacturing
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Potential for schedule slippage due to manufacturing complexity.
Reliance on a single prime contractor for critical assets.
Long-term sustainment and upgrade costs are not immediately apparent.
Need for robust oversight to ensure performance and quality.

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 (MEA) - QUANTITY 2

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: 2020-09-02. End: 2022-09-30.

What specific technological advancements or capabilities do these Multirole Enforcement Aircraft offer compared to previous platforms?

The specific technological advancements are not detailed in the award data. However, 'multirole' suggests capabilities beyond basic surveillance, potentially including advanced sensor suites, communication systems, and possibly light strike or interdiction capabilities. Further documentation would be needed to ascertain the precise upgrades and their impact on operational effectiveness.

What is the risk associated with the delivery timeline and potential delays for these specialized aircraft?

The contract duration is 758 days, ending September 30, 2022. Given the complexity of aircraft manufacturing and customization, there is an inherent risk of delays due to supply chain issues, technical challenges, or integration problems. The government's oversight and the contractor's performance history would be key factors in mitigating this risk.

How effectively will these aircraft integrate with existing DHS surveillance and interdiction networks?

The effectiveness of integration depends on the aircraft's communication and data-sharing systems. Assuming the aircraft are designed with interoperability in mind, they should seamlessly integrate with existing DHS networks, enhancing situational awareness and command-and-control. However, specific integration protocols and testing results would confirm this effectiveness.

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: 20121719

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: $47,126,824

Exercised Options: $47,126,824

Current Obligation: $47,126,824

Actual Outlays: $4,699,717

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $8,033,922

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1016D00011

IDV Type: IDC

Timeline