DHS Awards $164.5M for Maritime Patrol Aircraft and Mission Systems to Integrated Coast Guard Systems LLC

Contract Overview

Contract Amount: $164,536,934 ($164.5M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2008-11-17

End Date: 2017-01-13

Contract Duration: 2,979 days

Daily Burn Rate: $55.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MARITIME PATROL AIRCRAFT HC-144A (AIRCRAFT #9-11) AND MISSION SYSTEM PALLETS (NO. 4-8)

Plain-Language Summary

Department of Homeland Security obligated $164.5 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: MARITIME PATROL AIRCRAFT HC-144A (AIRCRAFT #9-11) AND MISSION SYSTEM PALLETS (NO. 4-8) Key points: 1. The contract focuses on specialized maritime patrol aircraft and associated mission system pallets. 2. Integrated Coast Guard Systems LLC secured this award, indicating a specific supplier relationship. 3. The spending covers a significant period, suggesting a long-term need for these assets. 4. The sector is critical for national security and maritime domain awareness.

Value Assessment

Rating: good

The total award amount of $164.5 million for two aircraft and five mission system pallets appears reasonable given the specialized nature of maritime patrol aircraft. Benchmarking against similar complex defense or aerospace procurements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of the HC-144A aircraft and its mission systems might limit the number of capable bidders.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential national security assets.

Public Impact

Enhances U.S. Coast Guard's maritime surveillance and interdiction capabilities. Supports search and rescue operations and national defense missions. Contributes to border security and law enforcement at sea. Modernizes critical aviation assets for long-term operational effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for sole-source follow-on work if only one vendor can support these specific aircraft.
Long contract duration could lead to cost overruns if not managed tightly.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type helps control costs.
Supports critical national security and safety missions.

Sector Analysis

This procurement falls within the aerospace and defense sector, specifically focusing on specialized aircraft for homeland security. Spending benchmarks for similar maritime patrol aircraft can vary widely based on capabilities and mission requirements.

Small Business Impact

The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Homeland Security's oversight is crucial for ensuring the timely delivery and performance of these critical assets. Contract management practices will be key to controlling costs and meeting operational needs.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Contract duration is extensive.
Potential for technological obsolescence over the contract period.
Dependence on a single contractor for specific aircraft systems.
Limited data on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $164.5 million to INTEGRATED COAST GUARD SYSTEMS LLC. MARITIME PATROL AIRCRAFT HC-144A (AIRCRAFT #9-11) AND MISSION SYSTEM PALLETS (NO. 4-8)

Who is the contractor on this award?

The obligated recipient is INTEGRATED COAST GUARD SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $164.5 million.

What is the period of performance?

Start: 2008-11-17. End: 2017-01-13.

What is the specific operational advantage gained by acquiring these HC-144A aircraft and mission system pallets for the U.S. Coast Guard?

The HC-144A aircraft, equipped with advanced mission system pallets, significantly enhances the U.S. Coast Guard's capabilities in maritime patrol, search and rescue, and law enforcement. These systems provide improved situational awareness, longer endurance, and better detection capabilities, crucial for securing U.S. borders and responding to maritime threats.

What are the primary risks associated with the long duration and firm fixed price nature of this contract?

A primary risk with a long duration (2979 days) and firm fixed price is potential cost escalation if unforeseen technical challenges or material price increases occur, which the contractor must absorb. Conversely, the government risks receiving outdated technology if the contract doesn't allow for modernization updates, or if the contractor under-delivers on quality to maximize profit.

How effectively does this procurement align with the U.S. Coast Guard's long-term strategic goals for maritime domain awareness?

This procurement directly aligns with the Coast Guard's strategic goals by providing modern, capable platforms for persistent maritime domain awareness. The HC-144A and its mission systems are designed to meet evolving threats and operational demands, ensuring the Coast Guard can effectively monitor, detect, and respond to activities within its area of responsibility.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 M ST SE STE 685, WASHINGTON, DC, 20003

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $164,536,934

Exercised Options: $164,536,934

Current Obligation: $164,536,934

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline