DHS Coast Guard awards $4.79M for MH-65 aircraft spares, citing non-availability exception

Contract Overview

Contract Amount: $47,939 ($47.9K)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-08

End Date: 2027-02-22

Contract Duration: 320 days

Daily Burn Rate: $150/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 $47,939.08 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 procurement due to non-availability exception limits competitive pricing. 3. Risk of higher costs and limited vendor options due to sole-source nature. 4. Sector context: Defense/Aerospace parts procurement, often subject to specialized sourcing.

Value Assessment

Rating: questionable

The contract value of $4.79M for spares is difficult to benchmark without specific part details. However, sole-source procurements often carry a premium compared to competitively bid items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This action is sole-source, justified by a Class Determination for Non-Availability of Articles (FAR 25.103(b)(1)). This significantly restricts competition and may lead to less favorable pricing for the government.

Taxpayer Impact: Taxpayer funds are used for this procurement. The lack of competition could result in higher costs than if multiple vendors were considered, impacting overall value for money.

Public Impact

Ensures operational readiness of the MH-65 helicopter fleet, vital for Coast Guard missions. Potential for increased costs due to sole-source justification, impacting budget efficiency. Limited transparency in pricing due to the absence of competitive bidding. Dependence on a single supplier for critical components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Potential for price inflation
Limited competition

Positive Signals

Ensures availability of critical spares
Supports operational readiness

Sector Analysis

This procurement falls within the aerospace and defense sector, specifically for aircraft parts. Spending in this area can be high due to specialized manufacturing and stringent quality requirements. Benchmarks are highly dependent on the specific parts and their criticality.

Small Business Impact

The data indicates this contract was awarded to Airbus Helicopters, Inc., a large business. There is no indication of small business participation in this specific action.

Oversight & Accountability

The justification for sole-source procurement (Class Determination for Non-Availability) should be thoroughly reviewed to ensure it is valid and that all efforts to find competitive sources were exhausted. Post-award monitoring of pricing and performance is crucial.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Sole-source justification may mask inflated pricing.
Lack of competition limits opportunities for innovation and cost savings.
Potential for supply chain disruptions if the sole source faces issues.
Dependence on a single supplier for critical aircraft components.
Limited transparency in the pricing structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $47,939.08 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 $47,939.08.

What is the period of performance?

Start: 2026-04-08. End: 2027-02-22.

What specific parts are included in this procurement, and what is their historical pricing?

The provided data does not specify the exact parts being procured. Understanding the specific components and their historical pricing trends would be crucial for assessing value. Without this detail, it's difficult to determine if the $4.79M represents a fair price, especially given the sole-source nature of the award.

What is the process and timeline for re-evaluating competitive sourcing for these spares?

The government should have a process to periodically re-evaluate the need for sole-source justification. This includes assessing if the parts are still considered non-available or if new manufacturers have emerged. A defined timeline for this re-evaluation would ensure the government actively seeks competitive opportunities in the future.

How does the non-availability exception impact the government's ability to negotiate favorable terms?

The non-availability exception significantly weakens the government's negotiating position. When only one source is available, the government has limited leverage to negotiate price reductions, favorable payment terms, or enhanced warranties. This can lead to higher overall contract costs compared to a competitive environment.

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: $47,939

Exercised Options: $47,939

Current Obligation: $47,939

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03823DB0000035

IDV Type: IDC

Timeline