DHS awards $48.7M for 2 Multirole Enforcement Aircraft, with Sierra Nevada Company as prime

Contract Overview

Contract Amount: $48,672,671 ($48.7M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-02-19

End Date: 2023-02-28

Contract Duration: 739 days

Daily Burn Rate: $65.9K/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 $48.7 million to SIERRA NEVADA COMPANY, LLC for work described as: MULTIROLE ENFORCEMENT AIRCRAFT (MEA) - QUANTITY 2 Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract value of $48.7M for two aircraft implies a significant investment in aerial enforcement capabilities. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Delivery order structure indicates a phased approach to acquisition and delivery. 5. The aircraft manufacturing sector is characterized by high barriers to entry and specialized capabilities. 6. Performance period of approximately two years suggests a focused delivery timeline.

Value Assessment

Rating: good

The contract value of $48.7 million for two Multirole Enforcement Aircraft (MEA) represents a substantial investment. Benchmarking against similar large aircraft procurements is challenging without more specific performance and configuration details. However, the firm fixed-price nature of the contract provides cost certainty for the government, which is a positive indicator of value. The award to Sierra Nevada Company, a known entity in aerospace, suggests a degree of confidence in their ability to deliver the required capabilities within the allocated budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's decision to use full and open competition suggests they sought the best possible value from the market.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The U.S. Customs and Border Protection (CBP) will benefit from enhanced aerial surveillance and enforcement capabilities. The contract will deliver two specialized Multirole Enforcement Aircraft (MEA) designed for border security and law enforcement missions. The geographic impact is primarily focused on U.S. borders and areas requiring aerial monitoring. The contract supports jobs within the aerospace manufacturing sector, specifically at Sierra Nevada Company and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if mission requirements evolve significantly during the delivery period.
Dependence on a single contractor for the delivery of two critical assets.
Long-term sustainment and maintenance costs for these specialized aircraft are not detailed in this award.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Awarded through full and open competition, suggesting a competitive process.
Sierra Nevada Company has a track record in aerospace and defense contracting.
Delivery order structure allows for phased funding and oversight.

Sector Analysis

The aircraft manufacturing industry, particularly for specialized defense and law enforcement platforms, is highly technical and capital-intensive. This contract falls within the broader aerospace and defense sector, which is characterized by long development cycles, stringent quality requirements, and significant government spending. Comparable spending benchmarks would typically involve other large aircraft procurements for surveillance, patrol, or special mission roles, often valued in the tens to hundreds of millions of dollars depending on complexity and quantity.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Sierra Nevada Company, the prime contractor, is a significant aerospace firm. It is possible that small businesses may be involved as subcontractors, but this information is not detailed in the award data. Further analysis would be needed to determine the extent of small business participation and subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security. Contract performance, delivery schedules, and adherence to specifications would be monitored by contracting officers and technical representatives. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Homeland Security Aircraft Procurement
Surveillance and Reconnaissance Aircraft
Border Patrol Aircraft
Special Mission Aircraft
Defense Contract Awards

Risk Flags

Potential for schedule delays
Technical integration risks
Long-term sustainment costs not detailed

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $48.7 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 $48.7 million.

What is the period of performance?

Start: 2021-02-19. End: 2023-02-28.

What is Sierra Nevada Company's track record with similar large aircraft procurements for government agencies?

Sierra Nevada Company (SNC) has a notable track record in aerospace and defense, including significant work on aircraft modifications, sensor integration, and specialized platform development for government clients. They have been involved in programs such as the production of Intelligence, Surveillance, and Reconnaissance (ISR) aircraft, electronic warfare systems, and various unmanned aerial systems. While specific details on MEA programs comparable to this DHS award require deeper investigation into their contract history, SNC's general experience suggests a capability to handle complex aircraft manufacturing and integration projects. Their past performance on large, complex government contracts would be a key factor in the agency's source selection process.

How does the per-unit cost of these Multirole Enforcement Aircraft compare to similar government procurements?

The stated contract value of $48,672,671.29 for two aircraft equates to approximately $24.3 million per aircraft. Benchmarking this per-unit cost requires careful consideration of the aircraft's specific capabilities, mission systems, and the level of customization involved. Similar government procurements for specialized surveillance or enforcement aircraft can vary widely in price. For instance, turboprop-based ISR platforms might range from $15 million to $30 million, while more complex jet-based platforms with advanced sensor suites could exceed $50 million or more. Without detailed specifications of the MEA's payload, range, endurance, and integrated technology, a precise comparison is difficult. However, the $24.3 million figure appears to be within a plausible range for a sophisticated, purpose-built enforcement aircraft.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential technical challenges in integrating specialized mission equipment, schedule delays in manufacturing and delivery, and ensuring the aircraft meet stringent performance requirements. The mitigation strategies appear to be the firm fixed-price contract type, which incentivizes the contractor to control costs and manage risks effectively, and the selection of Sierra Nevada Company, a contractor with demonstrated experience in aerospace. The phased delivery order approach also allows for incremental oversight and acceptance. However, risks related to long-term operational sustainment, maintenance, and potential obsolescence of technology are less directly addressed by the contract terms themselves and would require separate planning and budgeting.

What is the historical spending pattern for Multirole Enforcement Aircraft or similar assets by the Department of Homeland Security?

Historical spending data for 'Multirole Enforcement Aircraft' specifically is not readily available as a distinct category in public databases. However, the Department of Homeland Security (DHS), particularly U.S. Customs and Border Protection (CBP), has consistently invested in aerial assets for border surveillance and interdiction. This includes fixed-wing aircraft, helicopters, and unmanned aerial systems. Over the past decade, CBP's Air and Marine Operations (AMO) has procured and operated a diverse fleet, with spending on aircraft acquisition and sustainment often running into hundreds of millions of dollars annually. This $48.7 million award for two specialized aircraft represents a significant, but not unprecedented, investment within DHS's broader aviation portfolio aimed at enhancing operational capabilities.

How does the competition level (full and open) impact the potential value and innovation for taxpayers?

A 'full and open' competition is generally considered the most advantageous approach for taxpayers. It allows any responsible company to bid, thereby maximizing the pool of potential offerors and increasing the likelihood of receiving competitive pricing. This competitive pressure can drive down costs and encourage contractors to propose innovative solutions to meet the government's requirements efficiently. By not restricting the field of bidders, the government is better positioned to secure the best value, both in terms of price and technological advancement. This contrasts with sole-source or limited competitions, where the lack of broad competition can sometimes lead to higher prices and less incentive for innovation.

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

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: $48,672,671

Exercised Options: $48,672,671

Current Obligation: $48,672,671

Actual Outlays: $9,696,336

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $30,897,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1016D00011

IDV Type: IDC

Timeline