DHS Spends $25.5M on Single Engine Helicopters via Full and Open Competition
Contract Overview
Contract Amount: $25,494,838 ($25.5M)
Contractor: Airbus Helicopters, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2006-02-17
End Date: 2008-12-30
Contract Duration: 1,047 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SINGLE ENGINE HELICOPTERS
Place of Performance
Location: GRAND PRAIRIE, TARRANT County, TEXAS, 75052
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $25.5 million to AIRBUS HELICOPTERS, INC. for work described as: SINGLE ENGINE HELICOPTERS Key points: 1. Significant investment in specialized aircraft for border security operations. 2. Competition was utilized, suggesting potential for price discovery. 3. Contract duration of nearly 3 years indicates a substantial operational need. 4. Research and Development category may imply unique or advanced helicopter capabilities.
Value Assessment
Rating: fair
The total award amount of $25.5 million for 3 units over nearly 3 years is difficult to assess without specific unit pricing. The benchmark of $24,350 (likely a typo or misinterpretation of 'br' field) is too low for helicopters.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The delivery order structure suggests it was part of a larger framework agreement.
Taxpayer Impact: Taxpayers funded this significant expenditure for critical border security assets.
Public Impact
Enhances border surveillance and response capabilities for U.S. Customs and Border Protection. Supports national security by providing advanced aerial assets. Investment in technology may lead to improved operational efficiency in the long term.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear per-unit cost makes value assessment difficult.
- The 'Research and Development' NAICS code might indicate higher costs for specialized features.
- Small business participation is not indicated.
Positive Signals
- Full and open competition was employed.
- Contract awarded to a known entity in the helicopter manufacturing sector.
- Supports a critical government function (border security).
Sector Analysis
Spending in the aviation and defense sectors often involves high-value, specialized equipment. Benchmarks for similar single-engine helicopters vary widely based on capabilities and manufacturer.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract, as the 'ss' (small business set-aside) field is false.
Oversight & Accountability
Awarded as a delivery order, suggesting it might be part of a broader contract vehicle. Oversight would focus on performance and adherence to the firm fixed price.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Lack of detailed cost breakdown per unit.
- Ambiguity in the 'br' field value.
- NAICS code suggests R&D costs, which can be less predictable.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-homeland-security, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $25.5 million to AIRBUS HELICOPTERS, INC.. SINGLE ENGINE HELICOPTERS
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. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $25.5 million.
What is the period of performance?
Start: 2006-02-17. End: 2008-12-30.
What specific R&D advancements were sought with these single-engine helicopters, and how do they justify the $25.5 million expenditure?
The NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) suggests these helicopters may incorporate novel technologies or advanced research applications. Without detailed specifications, it's challenging to ascertain the exact R&D focus. The significant cost implies unique capabilities beyond standard rotorcraft, potentially related to surveillance, sensor integration, or specialized operational requirements for border patrol.
Given the full and open competition, what was the competitive landscape, and were there significant price differences between bidders?
While full and open competition was used, the provided data does not detail the number of bidders or the price spread. This method is designed to encourage multiple offers, theoretically leading to better pricing. However, the final price is influenced by the specific technical requirements and the unique capabilities of the helicopters procured under the R&D classification.
How does the performance and operational effectiveness of these specific helicopters compare to standard single-engine models in similar border security roles?
The effectiveness comparison is contingent on the specialized R&D features incorporated. If these helicopters are equipped with advanced sensors, communication systems, or enhanced performance envelopes due to their R&D nature, they would likely outperform standard models in specific mission parameters. However, without performance metrics or details on the R&D outcomes, a direct comparison remains speculative.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Airbus U.S. Space & Defense, Inc. (UEI: 403284867)
Address: 2701 FORUM DR, GRAND PRAIRIE, TX, 75052
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $165,963,166
Exercised Options: $165,926,126
Current Obligation: $25,494,838
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1004D00649
IDV Type: IDC
Timeline
Start Date: 2006-02-17
Current End Date: 2008-12-30
Potential End Date: 2009-09-28 00:00:00
Last Modified: 2017-04-14
More Contracts from Airbus Helicopters, Inc.
- Procurement of 35 UH-72A Lakota Helicopters — $517.3M (Department of Defense)
- Light Enforcement Helicopters (LEH) — $55.9M (Department of Homeland Security)
- AS350B3 Light Enforcement Helicopters — $51.2M (Department of Homeland Security)
- Light Enforcement Helicopters (LEH) — $20.8M (Department of Homeland Security)
- Light Enforcement Helicopters - AS350 - QTY 5 — $18.9M (Department of Homeland Security)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)