Customs and Border Protection awarded $20.8M for Light Enforcement Helicopters, with Airbus Helicopters Inc. as the contractor

Contract Overview

Contract Amount: $20,786,756 ($20.8M)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-01-11

End Date: 2011-07-21

Contract Duration: 556 days

Daily Burn Rate: $37.4K/day

Competition Type: FULL AND OPEN COMPETITION

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 $20.8 million to AIRBUS HELICOPTERS, INC. for work described as: LIGHT ENFORCEMENT HELICOPTERS (LEH) Key points: 1. The contract value of $20.8M for two helicopters appears reasonable given the specialized nature of law enforcement aircraft. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have driven favorable pricing. 3. The contract duration of 556 days indicates a moderate-term project, allowing for production and delivery timelines. 4. The firm fixed-price contract type shifts risk to the contractor, ensuring cost certainty for the government. 5. The award was made to a single contractor, Airbus Helicopters, Inc., highlighting their position in this niche market. 6. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, a high-value industrial sector.

Value Assessment

Rating: good

The contract value of approximately $10.4 million per helicopter for specialized law enforcement aircraft seems within a reasonable range for this type of equipment. Benchmarking against similar government procurements for specialized helicopters would provide a more precise assessment, but the firm fixed-price nature suggests the government secured predictable costs. The contractor, Airbus Helicopters, Inc., is a major player in the global helicopter market, lending credibility to the quality and expected performance of the aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach is generally favored for maximizing competition and achieving the best value for the government. The number of bidders is not specified, but the process itself suggests a robust opportunity for multiple companies to compete for this requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, ultimately driving down costs and improving the overall value of the procurement.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), who will utilize these helicopters for border enforcement and related missions. The services delivered include the manufacturing and provision of two specialized Light Enforcement Helicopters (LEH). The geographic impact is likely focused on border regions within the United States, particularly Texas where the contract was awarded. The contract supports jobs within the aerospace manufacturing sector, specifically at Airbus Helicopters, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited future competition if the government develops a strong reliance on a single manufacturer's specific platform.
The specialized nature of LEH might limit the pool of potential bidders in future procurements, potentially impacting price competitiveness.

Positive Signals

The use of full and open competition is a positive signal for broad market engagement.
The firm fixed-price contract type provides cost certainty and transfers risk to the contractor.
Awarding to a reputable manufacturer like Airbus Helicopters, Inc. suggests a focus on quality and reliability.

Sector Analysis

The aerospace manufacturing sector is characterized by high barriers to entry, significant research and development costs, and stringent regulatory requirements. This contract falls within the aircraft manufacturing sub-sector (NAICS 336411). The global market for helicopters is substantial, with significant demand from defense, law enforcement, and commercial sectors. Government procurements, particularly for specialized law enforcement or military applications, represent a key segment of this market. Comparable spending benchmarks would involve analyzing other government contracts for similar types of specialized aircraft, considering factors like mission capabilities, payload, range, and avionics.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is a large corporation, there may be subcontracting opportunities for small businesses within the aerospace supply chain. The impact on the small business ecosystem would depend on the extent to which Airbus Helicopters, Inc. utilizes small business suppliers for components or services related to the helicopter manufacturing.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) contracting officers and program managers. They are responsible for monitoring contract performance, ensuring compliance with terms and conditions, and approving payments. Transparency is facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Homeland Security Aircraft Procurement
Law Enforcement Aviation Support
Border Patrol Equipment Contracts
Specialized Helicopter Acquisition Programs

Risk Flags

Contract awarded to a single, dominant supplier in the niche market.
Potential for limited competition in future procurements if reliance on specific platform increases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.8 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 $20.8 million.

What is the period of performance?

Start: 2010-01-11. End: 2011-07-21.

What is the track record of Airbus Helicopters, Inc. in supplying similar light enforcement helicopters to government agencies?

Airbus Helicopters, Inc., a subsidiary of Airbus SE, has a well-established and extensive track record in manufacturing a wide range of helicopters for military, law enforcement, and civilian applications globally. They are known for producing reliable and technologically advanced aircraft. For light enforcement helicopters (LEH), their product lines often include models suitable for surveillance, patrol, and light attack missions. Government agencies, including various law enforcement bodies and defense departments in the US and internationally, have procured helicopters from Airbus for similar operational needs. Their experience encompasses integrating specialized mission equipment, such as advanced sensors, communication systems, and defensive aids, tailored to the requirements of agencies like Customs and Border Protection. This extensive history suggests a high degree of capability and familiarity with the demands of this specific contract.

How does the per-unit cost of these helicopters compare to other similar government procurements?

The contract value of $20,786,756.17 for two Light Enforcement Helicopters (LEH) equates to approximately $10,393,378 per unit. Benchmarking this against other government procurements for specialized law enforcement or border patrol helicopters is crucial for a comprehensive value assessment. Prices can vary significantly based on specific configurations, installed avionics, mission equipment (e.g., surveillance pods, forward-looking infrared systems), engine types, and manufacturer. Generally, specialized government-grade helicopters with advanced capabilities can range from several million to over twenty million dollars each. Without specific details on the exact specifications and equipment included in these LEH, a precise comparison is challenging. However, the price point appears to be within the expected range for sophisticated, mission-ready aircraft procured by agencies like CBP, especially considering the firm fixed-price nature which often includes a premium for cost certainty.

What are the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this contract include potential performance issues with the helicopters, delivery delays, and cost overruns (though mitigated by the contract type). For a firm fixed-price contract, the main risk to the government is ensuring the contractor meets all specifications and performance requirements. Risks to the contractor include underestimating production costs or encountering unforeseen technical challenges. Mitigation strategies employed by the government likely included a thorough pre-award evaluation of Airbus Helicopters' technical capabilities, financial stability, and past performance. The firm fixed-price structure itself is a key risk mitigation tool, placing the financial burden of cost overruns on the contractor. Clear statement of work, detailed specifications, and phased delivery schedules with acceptance criteria also serve to manage performance and delivery risks.

What is the expected effectiveness of these helicopters in supporting Customs and Border Protection's mission?

These Light Enforcement Helicopters (LEH) are expected to significantly enhance Customs and Border Protection's (CBP) operational effectiveness in surveillance, interdiction, and response missions along the border and within the United States. Helicopters provide critical aerial mobility, allowing agents to cover vast and often remote terrains quickly, track targets, and provide real-time situational awareness to ground units. The 'enforcement' aspect implies they are equipped for law enforcement operations, potentially including capabilities for pursuit, observation, and possibly non-lethal interdiction support. Their effectiveness will depend on factors such as flight endurance, sensor suites (e.g., high-resolution cameras, radar), communication systems, and the training of the aircrews. By providing an elevated vantage point and rapid response capability, these LEH are crucial tools for CBP's mission of preventing smuggling of people and contraband.

How has historical spending on Light Enforcement Helicopters (LEH) by DHS or CBP trended over the past decade?

Analyzing historical spending trends for Light Enforcement Helicopters (LEH) by DHS and CBP over the past decade would require access to detailed procurement data beyond this single award. However, it is reasonable to infer that spending in this category would fluctuate based on fleet modernization needs, operational demands, and budget allocations. Agencies like CBP typically maintain a mix of manned aircraft, including helicopters, to support their diverse missions. Investments in new platforms or upgrades are often driven by technological advancements, aging fleets, and evolving threat landscapes. Given the ongoing challenges in border security and counter-narcotics operations, consistent investment in aviation assets like LEH is likely, though the specific dollar amounts awarded annually can vary. This $20.8M award represents a significant, but likely episodic, investment rather than a continuous annual expenditure.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

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

Financial Breakdown

Contract Ceiling: $20,786,756

Exercised Options: $20,786,756

Current Obligation: $20,786,756

Parent Contract

Parent Award PIID: HSBP1008D01934

IDV Type: IDC

Timeline