Customs and Border Protection awards $21.8M for multi-role enforcement aircraft, with Sierra Nevada Company as prime

Contract Overview

Contract Amount: $21,800,000 ($21.8M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2012-04-25

End Date: 2013-12-20

Contract Duration: 604 days

Daily Burn Rate: $36.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MULTI-ROLE ENFORCEMENT AIRCRAFT

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89434

State: Nevada Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.8 million to SIERRA NEVADA COMPANY, LLC for work described as: MULTI-ROLE ENFORCEMENT AIRCRAFT Key points: 1. The contract value of $21.8 million for aircraft manufacturing appears reasonable given the specialized nature of multi-role enforcement aircraft. 2. Full and open competition suggests a potentially competitive bidding process, which can lead to better pricing for the government. 3. The relatively short duration of 604 days for this delivery order indicates a focused scope of work. 4. The prime contractor, Sierra Nevada Company, has a significant presence in aerospace and defense, suggesting relevant expertise. 5. The North American Industry Classification System (NAICS) code 336411 points to the aircraft manufacturing sector, a high-value industry.

Value Assessment

Rating: good

The contract value of $21.8 million for multi-role enforcement aircraft is within a typical range for such specialized defense and security assets. Benchmarking against similar procurements for advanced surveillance or patrol aircraft would provide a more precise value-for-money assessment. However, given the complexity and technological requirements of multi-role enforcement aircraft, the awarded amount does not immediately raise concerns about overpricing.

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 presence of 7 bidders suggests a healthy level of interest and competition for this requirement. A competitive environment generally benefits the government by driving down prices and encouraging innovation from contractors.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the multi-role enforcement aircraft, maximizing the return on investment.

Public Impact

This contract directly benefits U.S. Customs and Border Protection by providing essential multi-role enforcement aircraft for border security and law enforcement operations. The services delivered include the manufacturing and likely modification or integration of aircraft to meet specific enforcement needs. The geographic impact is national, supporting border surveillance and interdiction efforts across U.S. territories. The contract supports jobs within the aerospace manufacturing sector, contributing to the skilled workforce in this industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined for the multi-role capabilities.
Dependence on a single prime contractor for delivery, which could pose risks if performance issues arise.
The specialized nature of the aircraft may lead to higher maintenance and operational costs post-delivery.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Prime contractor has established expertise in aerospace manufacturing.
Clear delivery order structure suggests a well-defined project scope.

Sector Analysis

The aircraft manufacturing sector (NAICS 336411) is a critical component of the aerospace and defense industry, characterized by high technological barriers to entry and significant government procurement. This contract for multi-role enforcement aircraft fits within the broader defense and homeland security spending landscape. Comparable spending benchmarks would typically involve other procurements for specialized aircraft, such as surveillance planes, patrol aircraft, or light attack aircraft, which can range from tens to hundreds of millions of dollars depending on complexity and quantity.

Small Business Impact

The contract details do not indicate any specific small business set-asides. Given the prime contractor is Sierra Nevada Company, LLC, a large business, the primary impact on small businesses would likely be through subcontracting opportunities. The extent of small business participation will depend on Sierra Nevada's subcontracting plan and the availability of qualified small businesses within the aerospace supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. U.S. Customs and Border Protection, as the end-user agency, would also play a key oversight role. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Homeland Security Aircraft Procurement
Border Patrol Aircraft
Surveillance Aircraft
Defense Contractor Spending
Aerospace Manufacturing Contracts

Risk Flags

Potential for cost overruns if unforeseen technical issues arise.
Risk of delivery delays impacting operational readiness.
Long-term sustainment and maintenance costs may exceed initial estimates.
Ensuring technology remains current with evolving threats.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.8 million to SIERRA NEVADA COMPANY, LLC. MULTI-ROLE ENFORCEMENT AIRCRAFT

Who is the contractor on this award?

The obligated recipient is SIERRA NEVADA COMPANY, LLC.

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 $21.8 million.

What is the period of performance?

Start: 2012-04-25. End: 2013-12-20.

What is Sierra Nevada Company's track record with similar multi-role enforcement aircraft contracts for federal agencies?

Sierra Nevada Company, LLC (SNC) has a substantial track record in aerospace and defense, including significant work on intelligence, surveillance, and reconnaissance (ISR) platforms, electronic warfare systems, and aircraft modifications. While specific details on 'multi-role enforcement aircraft' contracts might vary, SNC has been a key player in developing and integrating advanced capabilities onto various aircraft platforms for government clients, including military and homeland security agencies. Their experience often involves complex systems integration, sensor payloads, and communication suites, which are critical components of enforcement aircraft. A deeper dive into their contract history with agencies like CBP, the Air Force, or other relevant entities would reveal the extent and success of their past performance on similar, albeit potentially differently named, aircraft programs.

How does the $21.8 million award compare to the average cost of similar multi-role enforcement aircraft?

Benchmarking the $21.8 million award for a single multi-role enforcement aircraft requires understanding the specific capabilities and modifications included. Multi-role enforcement aircraft can range significantly in price based on factors like sensor suites (e.g., radar, electro-optical/infrared), communication systems, mission management systems, and the base aircraft platform. For highly specialized platforms with advanced ISR capabilities, costs can easily run into the tens of millions per aircraft. Simpler patrol or surveillance aircraft might be less. Without detailed specifications of the 'multi-role' capabilities and the base airframe, a precise comparison is difficult. However, for a sophisticated, custom-equipped enforcement aircraft, $21.8 million appears to be within a plausible range, especially considering it's for a single unit or a small batch under a delivery order.

What are the primary risks associated with this contract for U.S. Customs and Border Protection?

The primary risks associated with this contract include potential performance delays from the contractor, Sierra Nevada Company, especially given the complexity of integrating specialized systems onto an aircraft. There's also a risk of cost overruns if unforeseen technical challenges arise during modification or integration, although the firm fixed-price nature of the contract aims to mitigate this. Furthermore, the long-term operational and sustainment costs of these specialized aircraft could exceed initial projections. Ensuring the aircraft meets all operational requirements for effective border enforcement and adapting to evolving threats also presents an ongoing risk. Finally, reliance on a single prime contractor for delivery introduces dependency risk.

What is the historical spending pattern for multi-role enforcement aircraft by the Department of Homeland Security?

The Department of Homeland Security (DHS), particularly U.S. Customs and Border Protection (CBP), has a consistent history of investing in aviation assets for border security and law enforcement. Spending on 'multi-role enforcement aircraft' or similar platforms (like maritime patrol aircraft, surveillance aircraft, or specialized helicopters) has been a significant component of their budget. Historical data shows multi-year procurements and sustainment contracts for fleets of aircraft. Annual spending can fluctuate based on modernization needs, fleet expansion, and specific operational requirements. While $21.8 million represents a specific award for a delivery order, DHS's overall aviation procurement budget often runs into hundreds of millions annually to maintain and enhance its aerial capabilities across various components like CBP, ICE, and the Coast Guard.

How effective are multi-role enforcement aircraft in enhancing border security operations?

Multi-role enforcement aircraft are highly effective tools for enhancing border security operations by providing persistent surveillance, rapid response capabilities, and intelligence gathering over vast and often remote areas. Their 'multi-role' nature allows them to be configured for various missions, including drug interdiction, human smuggling detection, search and rescue, and general border patrol. Advanced sensors like radar, infrared cameras, and communication intercept equipment enable them to detect and track illicit activities day and night, in various weather conditions. The ability to cover large areas quickly and relay real-time information to ground or sea units significantly improves situational awareness and response times, making them a critical asset for agencies like CBP.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 444 SALOMON CIR, SPARKS, NV, 89434

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $21,800,000

Exercised Options: $21,800,000

Current Obligation: $21,800,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSBP1009D02370

IDV Type: IDC

Timeline