DHS Coast Guard Awards $2.07M for MH-65 Aircraft Spare Parts, Citing Non-Availability Exception
Contract Overview
Contract Amount: $2,072,165 ($2.1M)
Contractor: Airbus Helicopters, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2025-03-04
End Date: 2027-05-28
Contract Duration: 815 days
Daily Burn Rate: $2.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROCUREMENT OF SPARE PARTS USED ON THE MH-65 AIRCRAFT. CLASS DETERMINATION FOR NONAVAILABILITY ARTICLES IAW FAR 25.103(B)(1) APPLIES TO THIS ACTION, BAA EXCEPTION MTF IS IN THE FILE. SECTION 2(D)
Place of Performance
Location: GRAND PRAIRIE, TARRANT County, TEXAS, 75052
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $2.1 million to AIRBUS HELICOPTERS, INC. for work described as: PROCUREMENT OF SPARE PARTS USED ON THE MH-65 AIRCRAFT. CLASS DETERMINATION FOR NONAVAILABILITY ARTICLES IAW FAR 25.103(B)(1) APPLIES TO THIS ACTION, BAA EXCEPTION MTF IS IN THE FILE. SECTION 2(D) Key points: 1. Spending focuses on critical spare parts for the MH-65 helicopter fleet. 2. Sole-source procurement due to a non-availability exception limits competition. 3. Risk of higher costs and limited vendor options due to sole-source nature. 4. Sector is Other Aircraft Parts Manufacturing, essential for aviation readiness.
Value Assessment
Rating: fair
The contract value of $2.07M for spare parts is difficult to benchmark without specific part details. However, the sole-source nature suggests potential for above-market pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This action is not competed, citing FAR 25.103(b)(1) for non-availability. This exception bypasses competitive procedures, potentially impacting price discovery and leading to higher costs.
Taxpayer Impact: Taxpayer funds are used for a sole-source procurement, which may result in less value for money compared to a competitive process.
Public Impact
Ensures operational readiness of the MH-65 helicopter fleet, vital for Coast Guard missions. Limited public visibility into the justification for the non-availability exception. Potential for increased costs impacts overall budget allocation for aviation support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for price inflation
Positive Signals
- Supports critical aviation assets
- Addresses specific part needs
Sector Analysis
This procurement falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector. Spending benchmarks for specialized spare parts are highly variable and depend on the specific components and their availability.
Small Business Impact
The data indicates this contract was not awarded to a small business. The sole-source nature of the procurement further limits opportunities for small business participation.
Oversight & Accountability
The justification for the non-availability exception (FAR 25.103(b)(1)) and the Business Area Analysis (BAA) exception should be thoroughly reviewed by oversight bodies to ensure proper application and prevent potential misuse.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on specific parts
- Reliance on non-availability exception
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-homeland-security, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $2.1 million to AIRBUS HELICOPTERS, INC.. PROCUREMENT OF SPARE PARTS USED ON THE MH-65 AIRCRAFT. CLASS DETERMINATION FOR NONAVAILABILITY ARTICLES IAW FAR 25.103(B)(1) APPLIES TO THIS ACTION, BAA EXCEPTION MTF IS IN THE FILE. SECTION 2(D)
Who is the contractor on this award?
The obligated recipient is AIRBUS HELICOPTERS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $2.1 million.
What is the period of performance?
Start: 2025-03-04. End: 2027-05-28.
What specific spare parts are being procured, and what is the justification for their non-availability through competitive means?
The specific spare parts are not detailed in the provided data. The justification cited is FAR 25.103(b)(1), which allows for non-competitive procurement when supplies are not available from any other source, including through reasonable efforts to locate sources that could provide the supplies. A Business Area Analysis (BAA) exception is also noted, suggesting a formal internal review process was followed.
What is the assessed risk of overpayment given the sole-source, non-competed nature of this award?
The risk of overpayment is considered fair to concerning. Sole-source contracts inherently lack the price pressure found in competitive bidding. While the non-availability exception is a valid reason for sole-sourcing, it necessitates robust internal cost analysis and negotiation by the agency to mitigate potential price inflation and ensure reasonable value for taxpayer dollars.
How does this procurement contribute to the overall effectiveness and readiness of the MH-65 helicopter fleet?
This procurement is directly linked to the operational effectiveness and readiness of the MH-65 helicopter fleet. By securing necessary spare parts, the Coast Guard can maintain its aircraft in operational status, ensuring they are available for critical missions such as search and rescue, maritime law enforcement, and national security operations.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MECHANICAL POWER TRANSMISSION EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2701 N FORUM DR, GRAND PRAIRIE, TX, 75052
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: $2,072,165
Exercised Options: $2,072,165
Current Obligation: $2,072,165
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z03823DB0000035
IDV Type: IDC
Timeline
Start Date: 2025-03-04
Current End Date: 2027-05-28
Potential End Date: 2027-05-28 00:00:00
Last Modified: 2026-01-12
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