Coast Guard awards $102K for MH-65 aircraft spares, citing non-availability exception

Contract Overview

Contract Amount: $102,267 ($102.3K)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-08-15

End Date: 2026-11-16

Contract Duration: 458 days

Daily Burn Rate: $223/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF VARIOUS SPARES 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.

Place of Performance

Location: GRAND PRAIRIE, TARRANT County, TEXAS, 75052

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $102,266.79 to AIRBUS HELICOPTERS, INC. for work described as: PROCUREMENT OF VARIOUS SPARES 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. Key points: 1. Contract focuses on specialized spares for MH-65 aircraft, indicating a need for specific, potentially hard-to-source components. 2. The procurement method, a non-availability exception, suggests limited market availability or unique technical requirements for these parts. 3. Awarded to Airbus Helicopters, Inc., the sole provider, raising questions about competitive pricing and potential cost efficiencies. 4. The contract duration of approximately 1.5 years aligns with typical sustainment needs for critical aviation components. 5. This award represents a small portion of overall aviation sustainment spending, but is critical for maintaining MH-65 operational readiness.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the specific nature of the spares and the non-availability exception, which inherently limits competition. Without comparable bids, it's difficult to assess if the $102,266.79 price represents fair market value. The sole-source nature means there's no direct price comparison to evaluate cost-effectiveness. However, for critical aviation components, ensuring availability and operational readiness often takes precedence over achieving the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, falling under a sole-source award. The justification cited is a Class Determination for Non-Availability Articles per FAR 25.103(b)(1), with a Business Area Exception (BAA) exception noted. This implies that the required spares are not readily available from multiple sources or that there are specific technical or logistical reasons preventing a competitive procurement. The lack of competition means there was no opportunity for price discovery through bidding.

Taxpayer Impact: For taxpayers, a sole-source award means the government cannot leverage competition to drive down prices. This can potentially lead to higher costs compared to a competed contract, as the contractor faces less pressure to offer the most competitive pricing.

Public Impact

The U.S. Coast Guard benefits directly through the acquisition of essential spare parts for its MH-65 aircraft fleet. This ensures the continued operational readiness and safety of MH-65 helicopters, which are vital for search and rescue, law enforcement, and other maritime missions. The geographic impact is national, as the Coast Guard operates its MH-65 fleet across various regions of the United States and its territories. Workforce implications are indirect, supporting the aviation maintenance personnel who rely on these spares to keep aircraft operational.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Reliance on a single supplier for critical spares could create supply chain vulnerabilities.
Lack of transparency in the non-availability justification requires careful review to ensure it was appropriate.

Positive Signals

Ensures availability of critical spares for MH-65 aircraft, maintaining operational readiness.
Awarded to a known manufacturer (Airbus Helicopters), suggesting familiarity with the product and potential for quality.
Contract duration is defined, providing a clear timeframe for delivery and support.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing and sustainment. The market for specialized aircraft spares can be niche, often dominated by original equipment manufacturers (OEMs) or authorized distributors, especially for legacy or specialized platforms like the MH-65. Spending in this sub-sector is driven by the need to maintain aging fleets and ensure mission capability, with procurement often influenced by technical specifications and availability rather than purely cost-based decisions.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by 'sb': false. The award is made directly to Airbus Helicopters, Inc., a large aerospace manufacturer. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, this specific award is unlikely to have a direct positive impact on the small business ecosystem, though the overall sustainment of the MH-65 fleet indirectly supports a broader network of suppliers.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited by the sole-source nature and the reliance on a non-availability justification, which may not be publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

MH-65 Helicopter Sustainment
Aviation Parts Procurement
Coast Guard Aircraft Maintenance
Defense Logistics Agency (DLA) Aviation

Risk Flags

Sole-source justification requires verification.
Potential for elevated pricing due to lack of competition.
Supply chain risk associated with single-source provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $102,266.79 to AIRBUS HELICOPTERS, INC.. PROCUREMENT OF VARIOUS SPARES 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.

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 $102,266.79.

What is the period of performance?

Start: 2025-08-15. End: 2026-11-16.

What is the specific justification for the 'Class Determination for Non-Availability Articles' for these MH-65 spares?

The 'Class Determination for Non-Availability Articles' (FAR 25.103(b)(1)) is typically invoked when a required item cannot be procured competitively from domestic or foreign sources. This could be due to unique manufacturing processes, proprietary technology, limited production capacity, or specific certifications required for the item. For the MH-65 spares, this likely means that Airbus Helicopters, as the original equipment manufacturer or an authorized entity, is the only viable source capable of providing these specific parts that meet the stringent airworthiness and performance standards required by the U.S. Coast Guard. The 'BAA EXCEPTION MTF IS IN THE FILE' suggests that a more detailed justification document exists within the contract file, outlining the precise reasons why competition was not feasible.

How does the price of $102,266.79 compare to similar MH-65 spare parts procurements?

Direct price comparison for this specific contract is difficult without access to detailed historical procurement data for identical or highly similar MH-65 spare parts. Given that this is a sole-source award under a non-availability clause, the price is likely set based on Airbus Helicopters' established pricing for these components, potentially including factors like manufacturing costs, overhead, and profit margins. Without competitive bids, it's impossible to benchmark against market rates or determine if this represents a 'good deal' in a competitive sense. Future procurements, if they become available competitively, or internal cost analyses by the Coast Guard would be needed for a more robust value assessment.

What are the potential risks associated with a sole-source award for critical aircraft spares?

Sole-source awards for critical aircraft spares present several risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, increasing costs for the government and taxpayers. Secondly, there's a potential for reduced innovation and service quality, as the sole provider may face less pressure to improve efficiency or offer better support. Thirdly, over-reliance on a single supplier can create supply chain vulnerabilities; if the supplier experiences production issues, financial difficulties, or geopolitical disruptions, the availability of critical spares could be severely impacted, potentially grounding aircraft. Finally, the justification for sole-sourcing needs rigorous scrutiny to ensure it is genuinely warranted and not a result of poor planning or market manipulation.

What is the expected impact of these spares on the operational readiness of the MH-65 fleet?

The procurement of these various spares is crucial for maintaining the operational readiness of the U.S. Coast Guard's MH-65 Dolphin helicopter fleet. The MH-65 is a versatile platform used for critical missions such as search and rescue, maritime law enforcement, port security, and environmental protection. Having readily available spare parts ensures that these helicopters can be repaired and returned to service promptly, minimizing downtime. This directly supports the Coast Guard's ability to respond effectively to emergencies and fulfill its diverse operational requirements across its area of responsibility, thereby enhancing national security and public safety.

What is the historical spending pattern for MH-65 aircraft spares by the U.S. Coast Guard?

Analyzing historical spending patterns for MH-65 aircraft spares requires access to comprehensive procurement databases. However, it's reasonable to infer that spending on spares is a consistent requirement for maintaining any operational aircraft fleet, especially one like the MH-65 which has been in service for a considerable period. Spending typically fluctuates based on fleet utilization, component lifecycles, unscheduled maintenance events, and the availability of parts. Sole-source awards for specific, non-readily available parts are likely a recurring necessity, though the Coast Guard would aim to competitively procure more common or standardized components whenever feasible to manage costs effectively.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

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: $102,267

Exercised Options: $102,267

Current Obligation: $102,267

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03823DB0000035

IDV Type: IDC

Timeline