Airbus Helicopters awarded $18.1M contract for light enforcement helicopters by DHS

Contract Overview

Contract Amount: $18,111,525 ($18.1M)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-12-22

End Date: 2011-12-31

Contract Duration: 374 days

Daily Burn Rate: $48.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LIGHT ENFORCEMENT HELICOPTERS

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 $18.1 million to AIRBUS HELICOPTERS, INC. for work described as: LIGHT ENFORCEMENT HELICOPTERS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $18.1M for 374 days of performance indicates a significant investment in aerial enforcement capabilities. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. Performance is concentrated in Texas, suggesting a focus on border security operations in that region. 5. The award to a single contractor, Airbus Helicopters, Inc., warrants scrutiny of the competitive landscape. 6. The contract falls under Aircraft Manufacturing (NAICS 336411), a specialized sector.

Value Assessment

Rating: fair

The contract value of $18.1M over approximately one year for light enforcement helicopters appears substantial. Benchmarking against similar contracts for specialized aircraft would be necessary for a precise value-for-money assessment. Given the fixed-price nature, the government has a defined cost, but the specific capabilities and number of units procured relative to the price are key to determining true value. Without more detailed performance metrics or unit costs, it's difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, which is crucial for understanding the intensity of the competition. A robust competition typically leads to better pricing and innovation. If only a few bids were received, it might suggest limitations in the market or specific requirements that narrowed the field.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and terms, potentially leading to cost savings and a wider array of solutions.

Public Impact

The U.S. Customs and Border Protection (CBP) benefits from enhanced aerial surveillance and enforcement capabilities. Light enforcement helicopters are delivered to support border security operations. The geographic impact is primarily focused on Texas, aligning with border patrol needs. The contract supports the aerospace manufacturing sector, potentially impacting skilled labor in that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit cost data makes it difficult to assess cost-effectiveness per helicopter.
The concentration of performance in Texas might limit broader national deployment flexibility.
Limited information on the number of bidders in the full and open competition.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm fixed-price contract type provides cost certainty for the government.
The contract addresses a critical need for aerial support in law enforcement and border security.

Sector Analysis

The aircraft manufacturing sector is highly specialized and capital-intensive. Contracts for defense and law enforcement aircraft represent a significant portion of this market. Spending in this area is often driven by national security and border control needs. Benchmarking this contract would involve comparing its value and terms to other procurements of similar light utility or enforcement helicopters by government agencies, considering factors like customization, avionics, and support packages.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (SB: false). There is no information provided regarding subcontracting plans or actual subcontracting to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is unclear, though the prime contractor may engage small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security's existing procurement regulations and contract management processes. The U.S. Customs and Border Protection is responsible for ensuring performance and compliance. Transparency is facilitated through contract databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues, with the DHS OIG overseeing the department's programs and operations.

Related Government Programs

Border Patrol Aircraft
Law Enforcement Aviation Support
Aerospace Manufacturing Contracts
Homeland Security Aviation Procurement

Risk Flags

Limited bidder information for full and open competition.
Lack of detailed per-unit cost analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.1 million to AIRBUS HELICOPTERS, INC.. LIGHT ENFORCEMENT 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 $18.1 million.

What is the period of performance?

Start: 2010-12-22. End: 2011-12-31.

What is the specific model of light enforcement helicopter procured under this contract, and what are its key performance specifications?

The provided data does not specify the exact model of light enforcement helicopter procured. It only indicates the general category as 'LIGHT ENFORCEMENT HELICOPTERS' and the NAICS code for Aircraft Manufacturing (336411). To understand the specific capabilities, one would need to access the detailed contract award documents or technical specifications. These specifications would typically include details on rotorcraft type, engine power, maximum speed, operational range, payload capacity, and specialized equipment such as surveillance systems (e.g., FLIR, radar), communication suites, and defensive systems relevant to law enforcement and border patrol missions.

How does the per-unit cost of these helicopters compare to similar models procured by other federal agencies or commercial entities?

The provided data does not offer a per-unit cost breakdown, as the total award amount of $18.1 million is for the entire contract, which may include multiple units, training, maintenance, or other support services over its duration. To compare per-unit costs, one would need to know the exact number of helicopters delivered and access data on comparable procurements. For instance, if the contract delivered 10 helicopters, the average cost per unit would be $1.81 million. This figure would then need to be benchmarked against publicly available data for similar light utility or law enforcement helicopters from manufacturers like Bell, Sikorsky, or Leonardo, considering variations in configuration, avionics, and support packages. Without this granular data, a direct comparison is not feasible.

What was the duration and intensity of the competition for this contract, and how many bids were received?

The contract was awarded under 'FULL AND OPEN COMPETITION,' which signifies that the solicitation was made available to all responsible prospective contractors. However, the provided data does not specify the number of bids received or the duration of the solicitation period. A robust competition typically involves multiple bidders vying for the contract, which can lead to more competitive pricing and better terms for the government. If only a limited number of bids were submitted, it could indicate a niche market, high barriers to entry, or specific technical requirements that restricted the pool of potential offerors. Further investigation into the solicitation details would be required to assess the true intensity of the competition.

What is the track record of Airbus Helicopters, Inc. in fulfilling similar government contracts, particularly for law enforcement or defense aviation?

Airbus Helicopters, Inc. is a major global manufacturer of helicopters with a significant presence in both civil and military markets. They have a history of supplying aircraft to various government agencies worldwide, including for law enforcement, border patrol, and military applications. Their track record typically includes a range of helicopter models suited for surveillance, transport, and tactical operations. While this specific contract award data doesn't detail past performance on similar contracts, Airbus Helicopters' general reputation and extensive portfolio suggest a capability to deliver complex aviation solutions. A thorough assessment would involve reviewing past performance evaluations and contract completion history for Airbus Helicopters on comparable government procurements.

Are there any identified risks associated with this contract, such as potential cost overruns, schedule delays, or performance deficiencies?

The provided data does not explicitly list any risks associated with this contract. However, potential risks inherent in aircraft manufacturing and delivery contracts can include technical challenges in meeting specifications, supply chain disruptions affecting component availability, delays in testing and certification, and potential cost increases if the firm fixed-price contract does not adequately account for unforeseen market fluctuations in materials or labor. Performance deficiencies could arise if the delivered aircraft do not meet the required operational standards or if maintenance and support are inadequate. The duration of the contract (approximately one year) and its focus on a specific product line might mitigate some risks compared to longer, more complex service contracts.

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

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: $18,111,525

Exercised Options: $18,111,525

Current Obligation: $18,111,525

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1008D01934

IDV Type: IDC

Timeline