DHS awards $23.7M for aircraft parts to TFAB Defense Systems, facing limited competition

Contract Overview

Contract Amount: $23,709,637 ($23.7M)

Contractor: Tfab Defense Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-08-30

End Date: 2021-07-07

Contract Duration: 1,407 days

Daily Burn Rate: $16.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: HC144 PODS, A KITS AND SPARES

Place of Performance

Location: MADISON, MADISON County, ALABAMA, 35758

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.7 million to TFAB DEFENSE SYSTEMS LLC for work described as: HC144 PODS, A KITS AND SPARES Key points: 1. Significant contract value of $23.7 million for aircraft parts. 2. TFAB Defense Systems LLC is the sole awardee, indicating limited competition. 3. The contract spans nearly four years, suggesting a sustained need. 4. Awarded by the U.S. Coast Guard, a key component of DHS.

Value Assessment

Rating: fair

The contract value of $23.7 million is substantial. Without specific per-unit cost data or benchmarks for 'HC144 PODS, A KITS AND SPARES,' it's difficult to definitively assess pricing fairness against similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these aircraft parts, impacting taxpayer funds.

Public Impact

Ensures operational readiness for the U.S. Coast Guard's aircraft fleet. Supports critical aviation maintenance and supply chain for DHS. Potential for increased costs due to limited competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of transparency in pricing

Positive Signals

Supports critical Coast Guard operations
Long-term contract provides stability

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is vital for defense and homeland security. Spending benchmarks are difficult to ascertain without more specific part details, but large contracts like this are common for maintaining specialized fleets.

Small Business Impact

The awardee, TFAB Defense Systems LLC, is not indicated as a small business. This contract does not appear to have specific provisions for small business participation.

Oversight & Accountability

The contract was awarded as a definitive contract, suggesting a clear scope. Oversight would focus on delivery, quality, and adherence to the firm fixed price, especially given the limited competition.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Limited competition
Potential for overpricing
Lack of small business participation
Sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.7 million to TFAB DEFENSE SYSTEMS LLC. HC144 PODS, A KITS AND SPARES

Who is the contractor on this award?

The obligated recipient is TFAB DEFENSE 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 $23.7 million.

What is the period of performance?

Start: 2017-08-30. End: 2021-07-07.

What is the specific nature of 'HC144 PODS, A KITS AND SPARES' and why was competition limited?

The specific nature of 'HC144 PODS, A KITS AND SPARES' relates to components for aircraft, likely specialized parts for the U.S. Coast Guard's fleet. Competition was limited because the contract was 'NOT AVAILABLE FOR COMPETITION,' suggesting potential proprietary technology, unique manufacturing capabilities, or a specific existing system requirement that only TFAB Defense Systems LLC could fulfill.

What are the potential risks associated with awarding a $23.7 million contract with limited competition?

The primary risk is paying an inflated price due to the lack of competitive pressure. There's also a risk of reduced innovation and potentially lower quality if the contractor faces no market alternatives. Furthermore, over-reliance on a single supplier can create vulnerabilities in the supply chain.

How effectively does this contract support the U.S. Coast Guard's mission given the pricing and competition structure?

The contract effectively supports the mission by ensuring the availability of critical aircraft parts, maintaining operational readiness. However, the effectiveness in terms of value for money is questionable due to the limited competition. While the parts are secured, the cost to taxpayers may not be optimized.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSCG23-17-R-2DAM03

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Tyonek Native Corporation

Address: 229 PALMER RD, MADISON, AL, 35758

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,709,637

Exercised Options: $23,709,637

Current Obligation: $23,709,637

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $52,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline