DOE Acquires Two Rotary Wing Aircraft for Nuclear Incident Response for $36M
Contract Overview
Contract Amount: $36,006,484 ($36.0M)
Contractor: Agustawestland Philadelphia Corporation
Awarding Agency: Department of Energy
Start Date: 2022-01-20
End Date: 2025-11-28
Contract Duration: 1,408 days
Daily Burn Rate: $25.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ACQUISITION OF TWO (2) EACH ROTARY WING AIRCRAFT IN SUPPORT OF THE NNSA OFFICE OF NUCLEAR INCIDENT RESPONSE(NA-84).
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19114
Plain-Language Summary
Department of Energy obligated $36.0 million to AGUSTAWESTLAND PHILADELPHIA CORPORATION for work described as: ACQUISITION OF TWO (2) EACH ROTARY WING AIRCRAFT IN SUPPORT OF THE NNSA OFFICE OF NUCLEAR INCIDENT RESPONSE(NA-84). Key points: 1. High-value acquisition for critical national security mission. 2. Sole contractor identified, raising questions about competition. 3. Significant taxpayer investment in specialized aircraft. 4. Aircraft Manufacturing sector context is key.
Value Assessment
Rating: questionable
The total award of $36,006,484 for two aircraft appears high, especially given the lack of detailed cost breakdowns. Benchmarking against similar specialized rotary wing aircraft acquisitions is difficult without more specific performance and configuration data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive. However, the specific awardee, AGUSTAWESTLAND PHILADELPHIA CORPORATION, suggests a limited pool of potential suppliers for such specialized equipment, potentially impacting price discovery.
Taxpayer Impact: Taxpayers are funding a critical national security capability. The final price reflects the specialized nature of the aircraft and the competitive process, though the exact value for money requires further scrutiny.
Public Impact
Enhances NNSA's capability for rapid response to nuclear incidents. Ensures personnel and equipment can be deployed quickly to sensitive sites. Represents a significant investment in national security infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown.
- Potential for limited competition in specialized aircraft.
- Long contract duration with significant funding.
Positive Signals
- Supports a critical national security mission.
- Awarded under full and open competition.
- Firm Fixed Price contract type mitigates cost overrun risk.
Sector Analysis
The acquisition falls within the Aircraft Manufacturing sector. Spending benchmarks for specialized rotary wing aircraft are highly variable based on mission requirements, avionics, and customization. This acquisition appears to be a significant investment for a niche capability.
Small Business Impact
The data indicates no specific set-aside for small businesses in this acquisition. Given the specialized nature of rotary wing aircraft manufacturing, it is likely that large, established aerospace companies are the primary contractors.
Oversight & Accountability
The Department of Energy's acquisition process for this critical asset should include robust oversight to ensure the aircraft meet specifications and the price remains competitive throughout the contract lifecycle. Transparency in reporting is essential.
Related Government Programs
- Aircraft Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- High dollar value.
- Specialized equipment.
- Long performance period.
- Potential for sole-source dependency in future.
- Lack of detailed cost justification.
Tags
aircraft-manufacturing, department-of-energy, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $36.0 million to AGUSTAWESTLAND PHILADELPHIA CORPORATION. ACQUISITION OF TWO (2) EACH ROTARY WING AIRCRAFT IN SUPPORT OF THE NNSA OFFICE OF NUCLEAR INCIDENT RESPONSE(NA-84).
Who is the contractor on this award?
The obligated recipient is AGUSTAWESTLAND PHILADELPHIA CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $36.0 million.
What is the period of performance?
Start: 2022-01-20. End: 2025-11-28.
What specific performance capabilities do these rotary wing aircraft provide that justify the $36M cost?
The aircraft are intended for the NNSA Office of Nuclear Incident Response (NA-84), implying specialized equipment for hazardous environments, advanced communication systems, and potentially unique payload capabilities for monitoring or containment. Detailed specifications are likely classified or proprietary, making public justification difficult but crucial for value assessment.
What are the risks associated with relying on a single manufacturer for such critical national security assets?
Reliance on a single manufacturer poses risks of supply chain disruptions, limited future competition, and potential price escalation. It also creates a dependency that could be exploited. Mitigation strategies might include long-term sustainment planning and exploring alternative sourcing for future needs.
How effectively will these aircraft enhance the NNSA's nuclear incident response capabilities compared to existing or alternative solutions?
The effectiveness hinges on the specific mission requirements and the aircraft's ability to operate in challenging conditions. If these aircraft provide unique capabilities for rapid, safe deployment to nuclear incident sites, they represent a significant enhancement. Without comparative data on alternative solutions or performance metrics, a definitive assessment of effectiveness is challenging.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89233121RNA000098
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leonardo SPA
Address: 3050 RED LION RD, PHILADELPHIA, PA, 19114
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: $45,019,342
Exercised Options: $39,619,344
Current Obligation: $36,006,484
Actual Outlays: $36,006,484
Contract Characteristics
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: YES
Timeline
Start Date: 2022-01-20
Current End Date: 2025-11-28
Potential End Date: 2025-11-28 00:00:00
Last Modified: 2025-09-27
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