Coast Guard spends $2.8M on MH-65 aircraft spare parts, citing non-availability exception

Contract Overview

Contract Amount: $2,800,299 ($2.8M)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-20

End Date: 2027-07-08

Contract Duration: 534 days

Daily Burn Rate: $5.2K/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 $2.8 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. Contract awarded to Airbus Helicopters, Inc. for essential spare parts. 2. Sole-source award due to a non-availability determination, limiting competition. 3. The contract duration spans over 1.5 years, indicating ongoing support needs. 4. Focus on maintaining the operational readiness of the MH-65 helicopter fleet. 5. Geographic location of the contractor is Texas, potentially impacting logistics. 6. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: fair

The contract value of $2.8 million for spare parts is difficult to benchmark without specific part details and market comparisons. Given the sole-source nature, a thorough review of pricing against historical data or similar sole-source procurements for comparable aircraft parts would be necessary to assess value for money. The non-availability exception suggests a lack of competitive alternatives, which can sometimes lead to higher prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This action was not competed, with a Class Determination for Non-Availability of Articles (FAR 25.103(b)(1)) cited. This means the contracting activity determined that the required spare parts were not available from a sufficient number of domestic sources to ensure adequate competition. The BAA Exception MTF (Buy American Act) is also noted in the file, suggesting potential origin restrictions.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the price reductions typically achieved through a competitive bidding process. The government is reliant on the sole provider's pricing.

Public Impact

The U.S. Coast Guard benefits from the procurement of critical spare parts. Services delivered include the supply of various spare parts for MH-65 aircraft. The geographic impact is primarily related to the operational bases of the MH-65 fleet. Workforce implications include ensuring aviation mechanics and support personnel have necessary parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Reliance on a single supplier for critical spare parts can create supply chain risks.
The non-availability determination requires careful scrutiny to ensure it is justified and periodically reassessed.

Positive Signals

Firm Fixed Price contract provides budget certainty for the awarded amount.
Procurement ensures the continued operational readiness of essential MH-65 aircraft.
The contract is for spare parts, directly supporting maintenance and repair activities.

Sector Analysis

This contract falls within the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector. This sector is crucial for maintaining the operational capabilities of aviation fleets across government agencies. The market for specialized aircraft parts can be concentrated, with a few key manufacturers often holding proprietary rights or being the sole authorized distributors, which can influence competition dynamics.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award, as it was a sole-source procurement with a non-availability exception. There is no indication of small business set-asides or subcontracting requirements associated with this delivery order.

Oversight & Accountability

Oversight would typically involve contract administration by the U.S. Coast Guard contracting office. Transparency is limited due to the sole-source nature and the reliance on internal determinations for non-availability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

MH-65 Helicopter Maintenance
Aircraft Parts Procurement
Department of Homeland Security Aviation Support
U.S. Coast Guard Fleet Readiness

Risk Flags

Sole-source award
Non-availability determination justification
Potential for price escalation due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.8 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 $2.8 million.

What is the period of performance?

Start: 2026-01-20. End: 2027-07-08.

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

Analyzing historical spending for MH-65 spare parts would involve reviewing past contracts awarded by the U.S. Coast Guard for similar items. This would include examining the total dollar amounts, contract types, and competition levels over several fiscal years. Understanding past spending can reveal trends in demand, identify potential price fluctuations, and highlight whether sole-source awards have been a recurring practice for these parts. Without access to a comprehensive contract database or specific historical data for this category, it's challenging to provide precise figures. However, consistent spending on spare parts is typical for maintaining aging aircraft fleets, and the frequency of sole-source awards often correlates with the availability of parts from the original equipment manufacturer.

How does the non-availability determination process work for aircraft parts?

The non-availability determination process is governed by regulations such as the Federal Acquisition Regulation (FAR) 25.103(b)(1). It allows for exceptions to domestic source requirements when the articles are not produced in sufficient commercial quantities or are not available from domestic sources. For aircraft parts, this often means that the original equipment manufacturer (OEM) is the only viable source, or that required parts are no longer in widespread commercial production. The procuring agency must document this determination, often requiring market research to confirm the lack of competitive domestic sources. This process is critical for ensuring that essential operational needs can be met, even if it means foregoing full and open competition.

What are the risks associated with sole-source procurement of critical aircraft components?

Sole-source procurement of critical aircraft components carries several risks. Primarily, it eliminates the benefit of price competition, potentially leading to higher costs for the government and taxpayers. There's also a risk of vendor lock-in, where the government becomes overly dependent on a single supplier, which can lead to supply chain vulnerabilities if that supplier experiences production issues, financial instability, or decides to discontinue support. Furthermore, without competitive pressure, there may be less incentive for the sole-source provider to innovate or improve product quality. Ensuring the justification for a sole-source award is robust and periodically reviewed is crucial to mitigate these risks.

What is the typical lifecycle cost of an MH-65 helicopter, and how do spare parts contribute?

The lifecycle cost of an aircraft like the MH-65 helicopter is substantial and encompasses acquisition, operation, maintenance, and disposal. Spare parts represent a significant component of the maintenance and operational costs throughout the aircraft's service life. These costs are driven by the need to replace components that wear out, fail, or reach their service life limits. The frequency and cost of spare parts procurement are directly influenced by factors such as flight hours, operating environment, maintenance practices, and the availability of parts. A well-managed spare parts strategy, even if involving sole-source awards for specific items, is essential to ensure the long-term operational readiness and cost-effectiveness of the MH-65 fleet.

Are there alternative aircraft or platforms that could fulfill the mission requirements of the MH-65, potentially reducing reliance on its specific spare parts?

Exploring alternative aircraft or platforms is a strategic consideration for long-term fleet management and cost reduction. However, the MH-65 is a specialized helicopter with specific capabilities tailored to the U.S. Coast Guard's unique missions, such as maritime law enforcement, search and rescue, and homeland security operations. Replacing such a platform involves extensive analysis of mission requirements, operational effectiveness, training, infrastructure, and overall lifecycle costs. While modernization or diversification of the fleet might be considered in future planning, immediate reliance on existing platforms like the MH-65 necessitates continued support, including the procurement of necessary spare parts, even if sole-source.

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: $2,800,299

Exercised Options: $2,800,299

Current Obligation: $2,800,299

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03822DB2000001

IDV Type: IDC

Timeline