DHS Coast Guard awards $6.1M for MH-65 aircraft spares, citing non-availability exception

Contract Overview

Contract Amount: $6,124,891 ($6.1M)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-18

End Date: 2028-03-14

Contract Duration: 817 days

Daily Burn Rate: $7.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

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 $6.1 million 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. Spending focuses on critical aircraft spares for the MH-65 helicopter fleet. 2. Sole-source award to Airbus Helicopters, Inc. due to non-availability exception. 3. Risk of higher costs and limited innovation due to lack of competition. 4. Sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.

Value Assessment

Rating: questionable

The contract value of $6.1M for spares is difficult to assess without benchmarks for specific MH-65 parts. The sole-source nature raises concerns about whether this price represents fair market value compared to potentially competitive options.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This action was not competed, citing FAR 25.103(b)(1) for non-availability. This exception limits price discovery and potentially leads to higher costs as there is no competitive pressure to drive down prices.

Taxpayer Impact: Taxpayer funds are used for this sole-source procurement, potentially at a premium due to the lack of competition.

Public Impact

Ensures continued operational readiness of the MH-65 helicopter fleet. Potential for increased costs for taxpayers due to sole-source award. Limited opportunity for other manufacturers to supply these critical parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for overpayment without competitive bidding.
Reliance on a single supplier for critical spares.

Positive Signals

Addresses critical need for aircraft spares.
Ensures operational capability of MH-65 fleet.

Sector Analysis

This procurement falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector. Spending in this sector can vary widely based on aircraft type, age, and operational tempo. Benchmarks are difficult without specific part identification.

Small Business Impact

The awardee, Airbus Helicopters, Inc., is a large business. There is no indication that small businesses were involved in this specific sole-source procurement, limiting opportunities for them.

Oversight & Accountability

The justification for the sole-source award based on non-availability requires thorough review to ensure it is appropriate and that all competitive avenues were explored. Oversight is needed to monitor pricing and future procurement strategies.

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 lacks competition.
Potential for inflated pricing.
Limited transparency in price justification.
Reliance on a single supplier for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.1 million 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 $6.1 million.

What is the period of performance?

Start: 2025-12-18. End: 2028-03-14.

What specific parts are included in this procurement, and what is the justification for their non-availability from multiple sources?

The specific parts are not detailed in the provided data. The justification for non-availability, as per FAR 25.103(b)(1), typically applies when a particular supply is not manufactured in the United States or in sufficient domestic commercial quantities to meet requirements. A detailed review of the Basis for Award (BAA) exception is necessary to understand the exact reasoning and supporting documentation.

What is the potential cost impact of this sole-source award compared to a competitive procurement?

Without competitive bidding, the cost impact is inherently uncertain but likely higher. A sole-source award removes the downward price pressure that competition provides. The government may be paying a premium for these spares, as the contractor faces no direct market pressure to offer the lowest possible price.

How will the Coast Guard ensure the effectiveness and long-term availability of these spares given the sole-source arrangement?

The Coast Guard should implement robust contract management, including detailed monitoring of delivery schedules and part quality. They may also explore strategies to encourage future competition, such as working with the supplier to identify potential secondary sources or investing in domestic manufacturing capabilities for these critical spares over time.

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: $6,124,891

Exercised Options: $6,124,891

Current Obligation: $6,124,891

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03823DB0000035

IDV Type: IDC

Timeline