DHS Coast Guard Awards $100M+ for Maritime Patrol Aircraft Development
Contract Overview
Contract Amount: $171,285,963 ($171.3M)
Contractor: Integrated Coast Guard Systems LLC
Awarding Agency: Department of Homeland Security
Start Date: 2003-05-15
End Date: 2008-01-14
Contract Duration: 1,705 days
Daily Burn Rate: $100.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE DELIVERY/TASK ORDER IS ISSUED FOR THE DEVELOPMENT AND DEMONSTRATION OF CN-235-300M, THE MARITIME PATROL AIRCRAFT (AIRCRAFT 1-3).
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $171.3 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: THE DELIVERY/TASK ORDER IS ISSUED FOR THE DEVELOPMENT AND DEMONSTRATION OF CN-235-300M, THE MARITIME PATROL AIRCRAFT (AIRCRAFT 1-3). Key points: 1. Significant investment in specialized maritime patrol aircraft development. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with complex aircraft development and demonstration. 4. Sector focus on advanced aeronautical and nautical systems manufacturing.
Value Assessment
Rating: good
The contract value of $100,461,000 for three aircraft development units appears reasonable given the specialized nature of maritime patrol aircraft. Benchmarking against similar complex aerospace development contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of capable contractors to bid. This method is expected to yield fair market value.
Taxpayer Impact: Taxpayer funds are being used for critical national security assets, with competition aiming to ensure efficient use of resources.
Public Impact
Enhances U.S. Coast Guard's maritime surveillance and interdiction capabilities. Supports advanced technology development in the aerospace and defense sector. Contributes to national security by improving border and maritime domain awareness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Development complexity and potential for cost overruns.
- Long-term sustainment and maintenance costs for specialized aircraft.
Positive Signals
- Clear mission requirement for enhanced maritime patrol.
- Competitive award process likely secured favorable pricing.
- Investment in advanced aeronautical technology.
Sector Analysis
This contract falls within the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. Spending in this area is often characterized by high R&D costs and specialized production requirements.
Small Business Impact
The data does not indicate specific involvement of small businesses in this prime contract, which is common for large, complex aerospace development programs. Subcontracting opportunities may exist but are not detailed here.
Oversight & Accountability
The award was managed by the Department of Homeland Security's U.S. Coast Guard, indicating federal oversight. Further oversight would involve monitoring contract performance, milestones, and financial expenditures throughout the development period.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Contract duration is lengthy, increasing exposure to changing requirements.
- Firm Fixed Price contract shifts cost overrun risk to contractor.
- Potential for schedule delays in complex aircraft development.
- Dependence on contractor's technical expertise for successful demonstration.
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $171.3 million to INTEGRATED COAST GUARD SYSTEMS LLC. THE DELIVERY/TASK ORDER IS ISSUED FOR THE DEVELOPMENT AND DEMONSTRATION OF CN-235-300M, THE MARITIME PATROL AIRCRAFT (AIRCRAFT 1-3).
Who is the contractor on this award?
The obligated recipient is INTEGRATED COAST GUARD SYSTEMS LLC.
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 $171.3 million.
What is the period of performance?
Start: 2003-05-15. End: 2008-01-14.
What is the projected operational readiness timeline for these aircraft post-development?
The contract duration is 1705 days, ending in January 2008. This suggests the development and demonstration phase is expected to conclude around that time. Post-development readiness would depend on subsequent testing, integration, and training phases, which are not detailed in this award data.
Are there any identified risks related to the specific CN-235-300M platform's suitability for extended maritime patrol missions?
The data focuses on the development and demonstration phase. Risks related to platform suitability would likely be assessed during the technical reviews and demonstrations outlined in the contract. The choice of platform suggests prior analysis indicated its potential suitability, but ongoing evaluation is crucial.
How does the per-unit development cost compare to similar international maritime patrol aircraft programs?
Benchmarking against international programs is challenging without specific cost breakdowns and program scope comparisons. However, the total award of approximately $33.5 million per aircraft for development and demonstration appears within a reasonable range for highly specialized military/security aviation assets.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 300 M ST SE STE 685, WASHINGTON, DC, 20003
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $171,285,963
Exercised Options: $171,285,963
Current Obligation: $171,285,963
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTCG2302C2DW001
IDV Type: IDC
Timeline
Start Date: 2003-05-15
Current End Date: 2008-01-14
Potential End Date: 2008-01-14 00:00:00
Last Modified: 2025-05-23
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