Customs and Border Protection awarded $55.9M for Light Enforcement Helicopters, with Airbus Helicopters Inc. as the contractor

Contract Overview

Contract Amount: $55,878,422 ($55.9M)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-07-22

End Date: 2008-12-31

Contract Duration: 162 days

Daily Burn Rate: $344.9K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LIGHT ENFORCEMENT HELICOPTERS (LEH)

Place of Performance

Location: GRAND PRAIRIE, TARRANT County, TEXAS, 75052, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $55.9 million to AIRBUS HELICOPTERS, INC. for work described as: LIGHT ENFORCEMENT HELICOPTERS (LEH) Key points: 1. The contract value of $55.9M for aircraft manufacturing suggests a significant investment in specialized aerial capabilities. 2. Competition dynamics for this contract are not immediately clear but are crucial for assessing value. 3. The contract duration of 162 days indicates a focused, short-term requirement for these helicopters. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. The award to a single contractor, Airbus Helicopters, Inc., warrants further investigation into the procurement process. 6. The North American Industry Classification System (NAICS) code 336411 points to the aircraft manufacturing sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires comparison to similar procurements of specialized enforcement helicopters. The base award of $34.49M and the total award of $55.88M indicate a substantial investment. Without detailed specifications and market data for comparable aircraft, a precise value-for-money assessment is challenging. However, the relatively short duration and the single-bidder nature (if applicable) could suggest potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The procurement method for this contract is not explicitly detailed in the provided data. If this was a sole-source award, it would limit competitive pressure and potentially lead to higher prices. If it was competed, the number of bidders and the evaluation criteria would be essential to understand the level of competition and its impact on pricing. Further investigation into the solicitation documents is needed.

Taxpayer Impact: A lack of robust competition could mean taxpayers did not receive the best possible price for these specialized helicopters.

Public Impact

This contract directly benefits U.S. Customs and Border Protection by providing essential aerial assets for border enforcement. The services delivered include the manufacturing and likely delivery of light enforcement helicopters. The geographic impact is primarily focused on U.S. border regions where aerial surveillance and interdiction are critical. The contract supports the aerospace manufacturing workforce, particularly within Airbus Helicopters' operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential lack of competition may have led to suboptimal pricing for taxpayers.
Limited contract duration might indicate a specific, short-term need rather than a long-term strategic acquisition.
The specific capabilities and operational requirements of these helicopters are not detailed, making performance assessment difficult.

Positive Signals

The award to a major aerospace manufacturer like Airbus Helicopters suggests access to advanced technology and reliable platforms.
The firm fixed-price contract type provides budget certainty for the agency.
The contract addresses a critical need for aerial support in border security operations.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically focusing on specialized aircraft for government use. The market for defense and law enforcement aviation is characterized by high barriers to entry, significant R&D investment, and a limited number of major global players. Spending in this area is often driven by national security and public safety requirements, with contracts typically being large and long-term, though this specific award has a shorter duration.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Given the nature of aircraft manufacturing and the likely prime contractor (Airbus Helicopters), it is probable that any small business involvement would be through subcontracting. The extent of small business participation as subcontractors would need to be investigated to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement oversight and the U.S. Customs and Border Protection's program management. Transparency would depend on the public availability of contract details and performance reports. Inspector General reviews could be initiated if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Border Patrol Aircraft Procurement
Homeland Security Aviation Assets
Law Enforcement Aerial Surveillance Programs
Aerospace Manufacturing Contracts

Risk Flags

Potential lack of competition
Limited contract duration
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $55.9 million to AIRBUS HELICOPTERS, INC.. LIGHT ENFORCEMENT HELICOPTERS (LEH)

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 $55.9 million.

What is the period of performance?

Start: 2008-07-22. End: 2008-12-31.

What specific model of Light Enforcement Helicopter was procured under this contract, and what are its key performance characteristics relevant to border enforcement?

The provided data does not specify the exact model of Light Enforcement Helicopter (LEH) procured. However, given the contractor is Airbus Helicopters, Inc., potential models could include variants of the AS350/H125 or similar light utility helicopters adapted for law enforcement roles. Key performance characteristics relevant to border enforcement would typically include endurance, speed, payload capacity, sensor integration capabilities (e.g., electro-optical/infrared cameras, radar), and operational range. Without this specific model information, a detailed assessment of its suitability and effectiveness for CBP's mission is limited.

How does the per-unit cost of these helicopters compare to similar light enforcement or surveillance aircraft procured by other federal agencies or international partners?

A direct per-unit cost comparison is challenging without knowing the exact helicopter model and the specific configuration and equipment included in the $55.9M award. However, light utility helicopters configured for specialized law enforcement or surveillance roles can range significantly in price. For instance, a basic AS350/H125 might cost several million dollars, but with advanced sensor suites, communication equipment, and mission modifications, the price can escalate substantially. To benchmark effectively, one would need to identify comparable contracts for similar aircraft from agencies like the FBI, DEA, or international border patrol agencies, accounting for differences in specifications and market conditions at the time of procurement.

What was the procurement history leading up to this award? Was this a competitive bid, a sole-source justification, or a contract modification?

The provided data indicates a single award action ('no': 1) with a specific award date (2008-07-22) and an end date (2008-12-31). However, it does not detail the procurement history or the competition level. To understand if this was competitive, sole-source, or otherwise, one would need to consult the Federal Procurement Data System (FPDS) or agency-specific contract databases for solicitation details, justifications for other than full and open competition (if applicable), and the number of bids received. The 'ct' field is empty, which might suggest it was not a standard contract type or that this information is not captured in this specific data snippet.

What are the key performance metrics or Key Performance Indicators (KPIs) used to evaluate the success of this contract and the operational effectiveness of the helicopters?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics for evaluating the success of this contract or the operational effectiveness of the Light Enforcement Helicopters. Typically, for such procurements, KPIs might include mission hours flown, successful interdiction rates attributed to aerial support, operational availability/readiness rates of the aircraft, response times, and cost per flight hour. The effectiveness would also be assessed against the specific objectives set by U.S. Customs and Border Protection for border surveillance and enforcement operations.

What is the total historical spending by the Department of Homeland Security (and specifically CBP) on Light Enforcement Helicopters or similar aerial surveillance platforms over the last 5-10 years?

The provided data snippet only contains information for a single contract awarded in 2008. To determine total historical spending on Light Enforcement Helicopters or similar platforms by DHS and CBP, a comprehensive search of federal procurement databases (like FPDS) would be necessary. This search would need to encompass multiple fiscal years and utilize relevant keywords and NAICS codes (e.g., aircraft manufacturing, aviation services, surveillance equipment) to capture all relevant contracts. Such an analysis would reveal trends in spending, identify major suppliers, and highlight the overall investment in aerial capabilities for border security.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT

Contractor Details

Parent Company: Airbus U.S. Space & Defense, Inc. (UEI: 403284867)

Address: 2701 FORUM DR, GRAND PRAIRIE, TX, 75052

Business Categories: Category Business, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $211,040,950

Exercised Options: $211,040,950

Current Obligation: $55,878,422

Parent Contract

Parent Award PIID: HSBP1008D01934

IDV Type: IDC

Timeline