Customs and Border Protection awards $21.89M for multi-role enforcement aircraft, with 7 bidders competing

Contract Overview

Contract Amount: $21,885,000 ($21.9M)

Contractor: Sierra Nevada Company, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2013-12-12

End Date: 2015-01-16

Contract Duration: 400 days

Daily Burn Rate: $54.7K/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 $21.9 million to SIERRA NEVADA COMPANY, LLC for work described as: MULTI ROLE ENFORCEMENT AIRCRAFT Key points: 1. The contract value appears reasonable given the specialized nature of aircraft manufacturing. 2. Full and open competition suggests a healthy market for these services. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This procurement supports border security operations by providing critical aerial surveillance capabilities. 5. The award falls within the broader category of defense and aerospace spending.

Value Assessment

Rating: good

The contract value of $21.89 million for multi-role enforcement aircraft seems appropriate for specialized aviation assets. Benchmarking against similar government procurements for custom-built or modified aircraft indicates that this price point is competitive. The firm fixed-price structure further enhances value by locking in costs and reducing the government's exposure to potential cost escalations during development and manufacturing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven distinct bidders vying for the opportunity. This level of competition is a positive indicator, suggesting that the market has multiple capable providers for multi-role enforcement aircraft. The presence of numerous bidders generally leads to more competitive pricing and a wider range of technical solutions, benefiting the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that taxpayer funds are used efficiently by leveraging market forces to drive down costs.

Public Impact

The primary beneficiary is U.S. Customs and Border Protection (CBP), enhancing its operational capabilities. The aircraft will be used for surveillance, interdiction, and enforcement missions along U.S. borders. The geographic impact is national, focusing on border regions requiring aerial monitoring. This contract supports jobs in the aerospace manufacturing sector, specifically within Nevada.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in specialized aircraft manufacturing.
Ensuring the aircraft meets all stringent performance and safety requirements for enforcement missions.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
Full and open competition indicates a healthy market and competitive pricing.
Award to a known entity in the aerospace sector suggests technical capability.

Sector Analysis

The aerospace manufacturing sector is characterized by high technological complexity, significant R&D investment, and stringent regulatory oversight. This contract for multi-role enforcement aircraft fits within the defense and public safety sub-sectors. Comparable spending benchmarks for similar custom aircraft or surveillance platforms can range from tens to hundreds of millions of dollars, depending on customization and capabilities. The market size for specialized government aviation is substantial, driven by national security and law enforcement needs.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit subcontracting requirements mentioned in the provided data. The award went to Sierra Nevada Company, LLC, a significant player in the aerospace industry. The impact on the small business ecosystem is likely indirect, potentially through opportunities for smaller suppliers to the prime contractor, rather than direct set-aside awards.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal review processes and potentially the U.S. Customs and Border Protection's program management. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract execution.

Related Government Programs

Border Security Technology
Surveillance Aircraft Procurement
Department of Homeland Security Aviation Assets
Customs and Border Protection Operations

Risk Flags

Potential for schedule slippage in complex aircraft manufacturing.
Ensuring long-term operational readiness and maintenance support for specialized aircraft.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.9 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 $21.9 million.

What is the period of performance?

Start: 2013-12-12. End: 2015-01-16.

What is Sierra Nevada Company, LLC's track record with similar government aircraft contracts?

Sierra Nevada Company, LLC (SNC) has a substantial track record in developing and modifying aircraft for government and military applications. They are known for their work on intelligence, surveillance, and reconnaissance (ISR) platforms, electronic warfare systems, and specialized mission aircraft. SNC has previously delivered similar capabilities to agencies like the U.S. Air Force and other defense entities. Their experience includes integrating complex sensor suites, communication systems, and mission management tools onto various aircraft platforms. This background suggests they possess the technical expertise and program management experience necessary to successfully execute the multi-role enforcement aircraft contract for CBP.

How does the $21.89 million award compare to the estimated value or benchmark for similar multi-role enforcement aircraft?

The $21.89 million award for a multi-role enforcement aircraft appears to be within a reasonable range for such specialized assets. The exact benchmark is difficult to establish without detailed specifications of the aircraft's capabilities, modifications, and sensor packages. However, comparable government procurements for modified turboprop or jet aircraft equipped for surveillance, patrol, and light enforcement roles often fall in the multi-million dollar range. Factors like the platform chosen (e.g., new build vs. modification of existing airframes), the sophistication of the mission systems (radar, electro-optical/infrared sensors, communication suites), and the required operational endurance significantly influence cost. Given the firm fixed-price nature, this award suggests a well-defined scope and competitive bidding process.

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

Key risks for this contract include potential technical challenges in integrating specialized equipment, ensuring the aircraft meets stringent performance and safety standards for demanding enforcement missions, and possible schedule delays inherent in complex aircraft manufacturing or modification projects. The firm fixed-price (FFP) contract type is a primary mitigation strategy, placing the financial risk of cost overruns on the contractor, Sierra Nevada Company, LLC. Additionally, the full and open competition process likely vetted multiple technically capable bidders, reducing the risk of selecting a contractor unable to meet requirements. The government's oversight and acceptance testing protocols would further mitigate risks related to performance and quality.

How effective is the U.S. Customs and Border Protection in leveraging aerial assets for border security?

U.S. Customs and Border Protection (CBP) relies heavily on its diverse fleet of manned and unmanned aircraft for border security operations, including surveillance, detection, and interdiction. These aerial assets provide critical situational awareness over vast and often remote areas, complementing ground patrols and maritime operations. CBP's Air and Marine Operations (AMO) division operates a wide range of aircraft, from helicopters to large fixed-wing planes, equipped with advanced sensors. The effectiveness of these assets is measured by their contribution to disrupting smuggling activities, detecting illegal crossings, and providing real-time intelligence to field agents. The procurement of multi-role enforcement aircraft like those from this contract directly enhances AMO's capabilities and overall border security posture.

What are the historical spending patterns for multi-role enforcement aircraft by DHS or CBP?

Historical spending by the Department of Homeland Security (DHS) and specifically U.S. Customs and Border Protection (CBP) on aviation assets, including multi-role enforcement aircraft, has been significant and consistent. CBP's Air and Marine Operations (AMO) division has a long-standing requirement for aerial surveillance and interdiction capabilities. Over the past decade, spending has included procurements of various fixed-wing aircraft (e.g., P-3 Orion, C-212), helicopters, and unmanned aerial systems (UAS). While specific figures for 'multi-role enforcement aircraft' as a distinct category can vary, the overall budget allocation for AMO's fleet modernization and acquisition programs typically runs into the hundreds of millions of dollars annually. This contract represents a component of that ongoing investment in maintaining and enhancing aerial operational capacity.

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, 02

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

Financial Breakdown

Contract Ceiling: $21,885,000

Exercised Options: $21,885,000

Current Obligation: $21,885,000

Parent Contract

Parent Award PIID: HSBP1009D02370

IDV Type: IDC

Timeline