DHS awards $9.99M contract for light enforcement helicopters to Airbus, citing no competition

Contract Overview

Contract Amount: $9,990,964 ($10.0M)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2004-07-28

End Date: 2005-07-27

Contract Duration: 364 days

Daily Burn Rate: $27.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LIGHT ENFORCEMENT HELICOPTERS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.0 million to AIRBUS HELICOPTERS, INC. for work described as: LIGHT ENFORCEMENT HELICOPTERS Key points: 1. High contract value for specialized aircraft. 2. Sole-source award to Airbus raises competition concerns. 3. Risk of inflated pricing due to lack of competition. 4. Sector: Aircraft Manufacturing, with potential IT/surveillance integration.

Value Assessment

Rating: questionable

The contract value of $9.99M for one helicopter is high. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar aircraft purchases.

Cost Per Unit: $9,990,964

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding.

Public Impact

Border security and law enforcement operations may be impacted by the availability and capability of these helicopters. The use of specialized aircraft for enforcement raises questions about surveillance and operational effectiveness. Potential for future sole-source contracts if this is deemed successful.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High per-unit cost
Lack of transparency in pricing

Positive Signals

Addresses a specific agency need for enforcement aircraft

Sector Analysis

This contract falls within the Aircraft Manufacturing sector. Spending benchmarks for similar specialized aircraft can vary widely based on customization and technology, but a $10M price tag for a single unit warrants scrutiny.

Small Business Impact

The contract was awarded to Airbus Helicopters, Inc., a large corporation. There is no indication that small businesses were involved in this specific procurement.

Oversight & Accountability

The sole-source nature of this award suggests limited oversight on price reasonableness. Further review of the justification for not competing the award is recommended.

Related Government Programs

Aircraft Manufacturing
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Sole-source award lacks competitive pricing.
High per-unit cost raises value concerns.
Potential for inflated pricing due to limited competition.
Lack of transparency in the procurement process.
Limited opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.0 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. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2004-07-28. End: 2005-07-27.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The provided data indicates the contract was 'NOT COMPETED'. A full review would require accessing the contract file to understand the specific justification, such as a unique capability requirement or urgent need that precluded competition. Without this documentation, it's impossible to assess if alternatives were adequately explored or if the sole-source decision was fully warranted.

How does the per-unit cost of these light enforcement helicopters compare to similar aircraft procured competitively by other agencies?

Benchmarking this $9.99M per-unit cost against competitively procured similar aircraft is challenging without more detailed specifications of the helicopter's capabilities and equipment. However, this price point is exceptionally high for a single light helicopter, suggesting either highly specialized features or a significant lack of competitive pressure influencing the price.

What are the long-term operational and maintenance cost implications associated with this sole-source acquisition?

Sole-source acquisitions can sometimes lead to higher long-term costs due to a lack of competitive pressure on maintenance, parts, and upgrades. If Airbus is the only provider for specialized parts or services, ICE may face inflated costs over the helicopter's lifecycle, impacting overall program effectiveness and budget.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Airbus U.S. Space & Defense, Inc. (UEI: 403284867)

Address: 2701 FORUM DR, GRAND PRAIRIE, TX, 75052

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,990,964

Exercised Options: $9,990,964

Current Obligation: $9,990,964

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline