DHS awards $25.8M for PC-12 Aircraft to Pilatus, impacting Aircraft Manufacturing sector
Contract Overview
Contract Amount: $25,832,718 ($25.8M)
Contractor: Pilatus Business Aircraft Ltd
Awarding Agency: Department of Homeland Security
Start Date: 2025-09-18
End Date: 2027-09-17
Contract Duration: 729 days
Daily Burn Rate: $35.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PC-12 AIRCRAFT FOR CBP AIR AND MARINE OPERATIONS
Place of Performance
Location: BROOMFIELD, JEFFERSON County, COLORADO, 80021
State: Colorado Government Spending
Plain-Language Summary
Department of Homeland Security obligated $25.8 million to PILATUS BUSINESS AIRCRAFT LTD for work described as: PC-12 AIRCRAFT FOR CBP AIR AND MARINE OPERATIONS Key points: 1. The contract value of $25.8M is significant for specialized aircraft procurement. 2. Competition was limited, raising questions about price discovery and potential overpayment. 3. The risk of single-source reliance for specialized aircraft is a concern. 4. This spending falls within the Aircraft Manufacturing sector, which has high barriers to entry.
Value Assessment
Rating: fair
The award amount of $25.8M for PC-12 aircraft needs comparison to similar government or commercial procurements. Without specific per-unit cost data, it's difficult to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not yield the best price as fewer potential bidders were considered.
Taxpayer Impact: Taxpayer funds are utilized for this procurement. The limited competition raises concerns about whether the most cost-effective solution was secured.
Public Impact
Enhances border security capabilities through advanced aircraft. Supports critical air and marine operations for U.S. Customs and Border Protection. Potential impact on the specialized aircraft manufacturing market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Reliance on a single manufacturer for specialized aircraft.
- Lack of detailed cost breakdown for per-unit pricing.
Positive Signals
- Acquisition of critical operational assets.
- Supports national security and border protection missions.
Sector Analysis
This procurement falls under the Aircraft Manufacturing sector, characterized by high R&D costs and specialized production. Benchmarks for similar government aircraft contracts would be useful for comparison.
Small Business Impact
The data indicates no specific set-aside for small businesses in this contract. The nature of specialized aircraft manufacturing often favors larger, established companies.
Oversight & Accountability
Oversight will be crucial to ensure the aircraft meet specifications and are delivered on time. The contracting agency, DHS, should monitor performance and costs closely.
Related Government Programs
- Aircraft Manufacturing
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Limited competition
- Potential for cost overruns
- Lack of detailed cost transparency
- Sole-source dependency risk
Tags
aircraft-manufacturing, department-of-homeland-security, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $25.8 million to PILATUS BUSINESS AIRCRAFT LTD. PC-12 AIRCRAFT FOR CBP AIR AND MARINE OPERATIONS
Who is the contractor on this award?
The obligated recipient is PILATUS BUSINESS AIRCRAFT LTD.
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 $25.8 million.
What is the period of performance?
Start: 2025-09-18. End: 2027-09-17.
What is the specific per-unit cost of the PC-12 aircraft under this contract, and how does it compare to market rates for similar aircraft?
The provided data does not specify the per-unit cost. To assess value, a detailed breakdown is needed. Comparing this to publicly available pricing for the Pilatus PC-12, or similar turboprop aircraft used for surveillance and transport, would reveal if the government is receiving a competitive price.
What were the specific reasons for excluding other sources, and were these justifications robust enough to warrant limited competition?
The justification for excluding other sources is critical. If based on unique technical requirements, specialized capabilities, or existing platform integration, it might be valid. However, a thorough review is needed to ensure no viable alternatives were overlooked, which could indicate a risk of inflated pricing due to reduced market pressure.
How will the effectiveness of these PC-12 aircraft in supporting CBP's air and marine operations be measured and reported?
Effectiveness measurement should focus on key performance indicators relevant to CBP's mission, such as flight hours, operational readiness, surveillance capabilities, and interdiction success rates. Regular reporting and independent evaluations will be essential to ensure the investment yields the intended operational benefits and justifies the expenditure.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 20152002
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pilatus Aircraft Service AG
Address: 12300 PILATUS WAY, BROOMFIELD, CO, 80021
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $25,832,718
Exercised Options: $25,832,718
Current Obligation: $25,832,718
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 15F06722D0000896
IDV Type: IDC
Timeline
Start Date: 2025-09-18
Current End Date: 2027-09-17
Potential End Date: 2027-09-17 00:00:00
Last Modified: 2025-09-25
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