DHS awards $52.1M for light enforcement helicopters, with CBP as the primary user

Contract Overview

Contract Amount: $52,138,502 ($52.1M)

Contractor: Davenport Aviation Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-30

End Date: 2027-05-28

Contract Duration: 1,336 days

Daily Burn Rate: $39.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LIGHT ENFORCEMENT PLATFORM (LEP) HELICOPTERS

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43219

State: Ohio Government Spending

Plain-Language Summary

Department of Homeland Security obligated $52.1 million to DAVENPORT AVIATION INC for work described as: LIGHT ENFORCEMENT PLATFORM (LEP) HELICOPTERS Key points: 1. Contract value appears reasonable given the specialized nature of aviation assets for border security. 2. Full and open competition suggests a healthy market for these types of aircraft. 3. The contract duration of over three years indicates a sustained need for these capabilities. 4. Fixed-price contract type shifts risk to the contractor, potentially benefiting the government. 5. The award to Davenport Aviation Inc. warrants a review of their past performance in similar contracts. 6. Geographic focus on Ohio for delivery may indicate a specific operational requirement or logistics hub.

Value Assessment

Rating: good

The contract value of approximately $52.1 million for light enforcement helicopters is within a reasonable range for specialized aviation assets. Benchmarking against similar government procurements for surveillance or patrol aircraft would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when contractor performance is predictable, as it caps the government's financial exposure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This competitive process is expected to drive down prices and ensure the government receives fair market value. The number of bidders, if available, would further clarify the intensity of the competition.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential suppliers.

Public Impact

U.S. Customs and Border Protection (CBP) will benefit from enhanced aerial surveillance and enforcement capabilities. The contract supports the delivery of light enforcement helicopters, crucial for border patrol and interdiction operations. The primary geographic impact is expected along U.S. borders, though delivery is noted in Ohio. The contract may have implications for the aerospace and defense manufacturing workforce, particularly in specialized helicopter production and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise, despite the fixed-price nature.
Dependence on a single contractor for specialized aircraft could pose supply chain risks.
Ensuring adequate maintenance and operational readiness of the delivered helicopters will be critical.

Positive Signals

Firm-fixed-price contract type minimizes the risk of cost escalation for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
The contract duration allows for sustained operational support and potential for follow-on work.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on specialized aircraft for law enforcement and border security applications. The market for such platforms is characterized by high technical requirements, stringent regulatory oversight, and significant R&D investment. Comparable spending benchmarks would involve analyzing procurements of similar surveillance or patrol aircraft by agencies like the Department of Defense or other federal law enforcement bodies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. However, the prime contractor, Davenport Aviation Inc., may engage small businesses for subcontracting opportunities related to component manufacturing, maintenance, or support services. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small business suppliers in the aerospace ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Customs and Border Protection (CBP) contracting officers and program managers. Accountability measures will be embedded in the contract's performance work statement, delivery schedules, and payment terms. Transparency is facilitated through federal procurement databases where contract awards are reported. The Inspector General for the Department of Homeland Security may conduct audits or investigations into the contract's execution and compliance.

Related Government Programs

Border Patrol Aircraft Procurement
Homeland Security Aviation Assets
Law Enforcement Helicopter Programs
Department of Homeland Security Contracts

Risk Flags

Potential for performance delays
Technical obsolescence risk
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $52.1 million to DAVENPORT AVIATION INC. LIGHT ENFORCEMENT PLATFORM (LEP) 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 $52.1 million.

What is the period of performance?

Start: 2023-09-30. End: 2027-05-28.

What is the track record of Davenport Aviation Inc. in fulfilling similar government contracts, particularly for aviation assets?

A thorough review of Davenport Aviation Inc.'s contract history with federal agencies is necessary to assess their performance on similar aviation procurements. This includes examining past delivery performance, adherence to specifications, and any history of contract disputes or terminations. Data from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Understanding their experience with light enforcement helicopters specifically, or comparable aerial platforms used for surveillance and patrol, will provide insight into their capability to meet the requirements of this $52.1 million DHS contract. A positive track record would indicate a lower risk of performance issues, while a history of challenges might warrant closer monitoring and contingency planning.

How does the awarded price of $52.1 million compare to market rates for similar light enforcement helicopters?

To benchmark the value for money, the awarded price of $52.1 million needs to be compared against the market rates for comparable light enforcement helicopters. This involves researching the cost of similar aircraft models from various manufacturers, considering factors such as payload capacity, range, sensor integration, and operational capabilities. Publicly available pricing data, industry reports, and quotes for similar platforms can serve as benchmarks. If the DHS contract includes specific configurations or advanced technology, these would need to be factored into the comparison. A price significantly above market rates might suggest potential overpayment, while a price at or below market could indicate effective negotiation and competitive sourcing. Without specific details on the helicopter's configuration, a precise comparison is difficult, but the overall value should be assessed against the capabilities delivered.

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

Key risks for this contract include potential performance delays, technical issues with the helicopters, and ensuring long-term operational readiness and maintenance. Given the firm-fixed-price nature, the primary financial risk is shifted to Davenport Aviation Inc., but performance failures could still impact CBP's mission. Mitigation strategies likely involve stringent contract oversight, clearly defined performance metrics, phased delivery schedules with acceptance testing, and potentially performance bonds. The contract's duration (ending May 2027) also implies a need for robust long-term support and spare parts availability planning. Furthermore, ensuring the helicopters meet all regulatory and safety standards for law enforcement operations is a critical risk area that requires diligent verification throughout the contract lifecycle.

How effective is the current fleet of light enforcement helicopters in supporting CBP's border security mission, and how will this new contract enhance that effectiveness?

The effectiveness of the current light enforcement helicopter fleet is a crucial context for this new award. If the existing fleet is aging, insufficient in number, or lacking in modern capabilities, this contract represents a significant investment to address those gaps. The new helicopters are expected to enhance effectiveness by providing improved surveillance, faster response times, and potentially greater operational range or endurance compared to older models. Data on interdiction rates, patrol coverage, and operational uptime of the current fleet would be needed to quantify the improvement. The specific capabilities of the 'light enforcement platform' helicopters being procured will determine the extent of the enhancement, whether it's through advanced sensor technology, improved maneuverability, or enhanced communication systems that better support CBP's evolving border security strategies.

What are the historical spending patterns for light enforcement helicopters or similar aviation assets by the Department of Homeland Security?

Analyzing historical spending patterns for light enforcement helicopters and related aviation assets by DHS is essential for understanding the context of this $52.1 million award. This involves examining previous contracts awarded for similar platforms, including their values, durations, and the contractors involved. Trends in spending over the past 5-10 years can reveal whether DHS has consistently invested in such capabilities, if spending has increased or decreased, and the typical price points for these assets. Understanding these patterns helps assess if the current award is an anomaly, a continuation of a trend, or a significant shift in procurement strategy. It also provides a basis for comparing the current contract's value against historical expenditures, aiding in the assessment of its reasonableness and potential for cost efficiency.

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: RFQ1638054

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1279 W 10TH ST STE 107, BLACKSTONE, VA, 23824

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: $52,903,451

Exercised Options: $52,138,502

Current Obligation: $52,138,502

Actual Outlays: $16,999,025

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F139DA

IDV Type: FSS

Timeline