DHS awards $18.9M for 5 light enforcement helicopters, with a per-unit cost of $3.78M

Contract Overview

Contract Amount: $18,910,898 ($18.9M)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-12-22

End Date: 2012-12-30

Contract Duration: 374 days

Daily Burn Rate: $50.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LIGHT ENFORCEMENT HELICOPTERS - AS350 - QTY 5

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 $18.9 million to AIRBUS HELICOPTERS, INC. for work described as: LIGHT ENFORCEMENT HELICOPTERS - AS350 - QTY 5 Key points: 1. The contract value of $18.9 million for five helicopters represents a significant investment in aerial surveillance capabilities. 2. Competition dynamics for specialized aircraft manufacturing can influence pricing and availability. 3. The firm fixed-price contract type suggests a defined cost structure, potentially mitigating cost overrun risks. 4. The duration of the contract (374 days) indicates a relatively short procurement and delivery timeline for specialized equipment. 5. The procurement falls within the Aircraft Manufacturing sector, highlighting the government's reliance on specialized industrial capabilities. 6. The award to a single contractor suggests a focused acquisition strategy for specific aircraft models.

Value Assessment

Rating: fair

The per-unit cost of approximately $3.78 million for these light enforcement helicopters appears high when benchmarked against general aviation aircraft. However, specialized military or law enforcement configurations, including advanced avionics and mission equipment, can significantly increase costs. Without specific details on the configuration and included systems, a direct comparison to civilian market prices is challenging. The firm fixed-price nature provides cost certainty for the government, but the overall value depends on the operational effectiveness and longevity of the acquired assets.

Cost Per Unit: $3.78M per unit

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this competitive process is generally expected to yield fair market pricing. The nature of specialized aircraft procurement can sometimes limit the number of capable bidders, even under full and open competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple suppliers to offer their best pricing and terms, potentially leading to cost savings and a wider selection of suitable aircraft.

Public Impact

U.S. Customs and Border Protection (CBP) will benefit from enhanced aerial surveillance capabilities for border security and law enforcement operations. The five AS350 light enforcement helicopters will be utilized for patrol, interdiction, and reconnaissance missions. The primary geographic impact is expected along U.S. borders, particularly in Texas where the contract indicates a state presence. The acquisition supports the operational readiness of CBP aviation units, potentially impacting the workforce through increased demand for pilots and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high per-unit cost given the specialized nature of the aircraft.
Limited information on the specific mission equipment included, making value assessment difficult.
Reliance on a single model (AS350) may limit future interoperability or alternative sourcing options.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract provides cost certainty for the government.
Acquisition directly supports critical homeland security missions.

Sector Analysis

The Aircraft Manufacturing sector is characterized by high barriers to entry, significant research and development costs, and stringent regulatory requirements. This contract falls within the specialized segment of light utility and law enforcement helicopters. The market for such specialized aircraft is relatively niche, often dominated by a few key manufacturers. Government procurements represent a significant portion of demand for these specialized platforms, influencing production schedules and pricing for the entire sector.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the award was not set aside for small businesses and the contractor is likely a large entity. There is no explicit information on subcontracting plans for small businesses. This procurement may not directly benefit the small business ecosystem within the aerospace sector unless the prime contractor actively engages them for specialized components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement review processes and potentially the U.S. Customs and Border Protection's program management. Transparency is generally maintained through contract award databases like FPDS. While specific Inspector General (IG) investigations are not indicated, the DHS OIG has broad jurisdiction over departmental spending and could investigate if any improprieties were suspected.

Related Government Programs

Department of Homeland Security Aviation Programs
Border Patrol Aircraft Procurement
Law Enforcement Helicopter Acquisitions
Aircraft Manufacturing Contracts

Risk Flags

High per-unit cost
Limited competition information
Specialized equipment configuration unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.9 million to AIRBUS HELICOPTERS, INC.. LIGHT ENFORCEMENT HELICOPTERS - AS350 - QTY 5

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 $18.9 million.

What is the period of performance?

Start: 2011-12-22. End: 2012-12-30.

What is the track record of AIRBUS HELICOPTERS, INC. with the Department of Homeland Security and similar agencies?

AIRBUS HELICOPTERS, INC. has a history of supplying aircraft to various government agencies, including defense and homeland security. For the Department of Homeland Security (DHS) and its components like U.S. Customs and Border Protection (CBP), Airbus has provided helicopters for a range of missions. Their track record typically involves delivering reliable platforms that meet stringent operational requirements. Analyzing past contracts with DHS would reveal patterns in pricing, delivery performance, and adherence to specifications. For instance, previous awards for similar AS350 variants or other light utility helicopters would provide a benchmark for assessing the current contract's value and the contractor's performance consistency. A review of contract close-out data and any reported disputes or contract modifications would offer further insight into their performance reliability and relationship with the agency.

How does the per-unit cost of $3.78 million compare to other light enforcement helicopter procurements by federal agencies?

The per-unit cost of $3.78 million for the AS350 light enforcement helicopters is within a range that can be expected for specialized aviation assets, but it warrants comparison. Federal agencies often procure similar platforms for border patrol, surveillance, and tactical support. For example, other procurements of light utility helicopters by agencies like the FBI or the Department of Justice might serve as benchmarks. The specific configuration, including advanced avionics, communication systems, sensors (like electro-optical/infrared cameras), and mission-specific modifications, significantly impacts the final price. If this contract includes extensive mission equipment, the cost might be justified. However, if it represents a more basic configuration, it could be considered on the higher end, especially when compared to civilian market prices for the base airframe. A detailed analysis would require comparing the exact specifications and included equipment across multiple contracts.

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

The primary risks associated with this contract include potential cost overruns if the firm fixed-price structure doesn't adequately account for unforeseen issues, although this contract type aims to mitigate that. Another risk is performance risk, where the delivered helicopters may not meet the stringent operational requirements of U.S. Customs and Border Protection, impacting mission effectiveness. Delivery delays could also pose a risk, affecting operational readiness. Mitigation strategies likely include robust contract oversight by CBP, detailed technical specifications and acceptance criteria, and performance-based payment schedules. The firm fixed-price nature itself is a mitigation tool against cost escalation. Furthermore, the contractor's established reputation and experience with the AS350 platform suggest a lower risk of technical non-performance. However, the specialized nature of law enforcement aviation means that any performance shortfall could have significant operational consequences.

How effective has the AS350 platform been in similar federal law enforcement or border patrol roles?

The AS350 (now often referred to as the H125) platform has a long and generally positive track record in federal law enforcement and border patrol roles across various agencies. Its versatility, relatively low operating costs compared to larger helicopters, and good performance in varied conditions make it a popular choice for surveillance, patrol, and light transport missions. Agencies like the U.S. Forest Service, various state and local law enforcement agencies, and even some federal entities have utilized the AS350 for demanding tasks. Its effectiveness is often attributed to its maneuverability, payload capacity for its size, and reliability. For border patrol, its ability to loiter and provide aerial observation over extended periods is crucial. While specific mission success metrics are often classified or program-specific, the continued procurement and use of the AS350 by government entities suggest a high degree of satisfaction with its performance and suitability for these demanding roles.

What are the historical spending patterns for light enforcement helicopters by the Department of Homeland Security?

Historical spending patterns for light enforcement helicopters by the Department of Homeland Security (DHS) reveal a consistent need for aerial assets to support border security and law enforcement operations. DHS, primarily through U.S. Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE), has regularly procured various types of helicopters, including light utility and specialized enforcement models. Spending in this category can fluctuate based on budget allocations, operational priorities, and the lifecycle of existing fleets. Over the years, DHS has awarded numerous contracts for helicopter acquisition, maintenance, and upgrades. The AS350 platform, or its successors, has likely been a recurring acquisition due to its suitability for the mission profile. Analyzing spending data over the past decade would show trends in the number of aircraft procured, average contract values, and the primary contractors utilized, indicating a sustained investment in aerial surveillance capabilities.

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: $18,910,898

Exercised Options: $18,910,898

Current Obligation: $18,910,898

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1008D01934

IDV Type: IDC

Timeline