DHS Coast Guard awards $6.2M for MH-65 aircraft spare parts, citing non-availability exception
Contract Overview
Contract Amount: $6,249,657 ($6.2M)
Contractor: Airbus Helicopters, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2025-12-16
End Date: 2027-12-11
Contract Duration: 725 days
Daily Burn Rate: $8.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF VARIOUS 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.
Place of Performance
Location: GRAND PRAIRIE, TARRANT County, TEXAS, 75052
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $6.2 million to AIRBUS HELICOPTERS, INC. for work described as: PROCUREMENT OF VARIOUS 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. Key points: 1. Spending focuses on critical MH-65 helicopter sustainment. 2. Sole-source award to Airbus Helicopters raises competition concerns. 3. Potential for higher costs due to limited competition. 4. Sector: Defense/Aerospace parts manufacturing.
Value Assessment
Rating: fair
The contract value of $6.2M for spare parts appears reasonable for specialized aviation components. However, without competitive bids, it's difficult to benchmark against market prices.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This procurement was not competed, citing FAR 25.103(b)(1) for non-availability. This exception limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: Taxpayer funds may be less efficiently utilized due to the lack of competitive bidding.
Public Impact
Ensures operational readiness of MH-65 helicopters for Coast Guard missions. Supports critical aviation maintenance and repair capabilities. Potential impact on future parts pricing if non-availability exceptions become routine.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competition.
- Potential for inflated pricing due to lack of bids.
- Reliance on a single supplier for critical parts.
Positive Signals
- Addresses critical need for aircraft parts.
- Ensures operational continuity for Coast Guard assets.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically for aircraft parts manufacturing. Spending benchmarks for sole-source parts procurement can vary widely based on criticality and availability.
Small Business Impact
The awardee is Airbus Helicopters, Inc., a large business. There is no indication that small businesses were involved in this specific procurement action.
Oversight & Accountability
The justification for non-availability (FAR 25.103(b)(1)) and the associated BAA exception should be thoroughly reviewed by oversight bodies to ensure its validity 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.
- Potential for price gouging.
- Lack of competitive bidding.
- Reliance on a single supplier.
- Limited transparency in pricing.
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 $6.2 million to AIRBUS HELICOPTERS, INC.. PROCUREMENT OF VARIOUS 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.
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 $6.2 million.
What is the period of performance?
Start: 2025-12-16. End: 2027-12-11.
What is the specific justification for the non-availability of these spare parts, and has it been independently verified?
The justification cited is FAR 25.103(b)(1) for non-availability, with a Business Area Analysis (BAA) exception noted. Independent verification of this non-availability is crucial to ensure the sole-source award is truly warranted and not a result of convenience or poor planning. Without this, taxpayers may be overpaying for parts that could potentially be sourced competitively.
What is the long-term strategy to ensure competitive sourcing for these critical MH-65 spare parts?
The current sole-source award raises concerns about long-term cost-effectiveness. The Coast Guard should develop a strategy to explore alternative suppliers, investigate potential domestic manufacturing capabilities, or engage in longer-term agreements that incentivize competitive pricing for these parts to mitigate future risks and ensure better value for taxpayer dollars.
How does the pricing of these spare parts compare to similar components for other helicopter platforms, considering the sole-source nature of this award?
Direct comparison is challenging due to the sole-source nature and specific application to the MH-65. However, the absence of competition inherently removes a key mechanism for price discovery. The agency should maintain internal benchmarks and conduct post-award price analyses to identify any significant deviations from expected costs for similar specialized aviation components.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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: $6,249,657
Exercised Options: $6,249,657
Current Obligation: $6,249,657
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z03822DB2000001
IDV Type: IDC
Timeline
Start Date: 2025-12-16
Current End Date: 2027-12-11
Potential End Date: 2027-12-11 00:00:00
Last Modified: 2025-12-16
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