Army awards $517M for 35 UH-72A Lakota helicopters to Airbus Helicopters, Inc

Contract Overview

Contract Amount: $517,303,849 ($517.3M)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-08

End Date: 2023-02-28

Contract Duration: 1,818 days

Daily Burn Rate: $284.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF 35 UH-72A LAKOTA HELICOPTERS

Place of Performance

Location: GRAND PRAIRIE, TARRANT County, TEXAS, 75052

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $517.3 million to AIRBUS HELICOPTERS, INC. for work described as: PROCUREMENT OF 35 UH-72A LAKOTA HELICOPTERS Key points: 1. Significant investment in utility helicopters for Army aviation. 2. Sole-source award to Airbus Helicopters raises questions about competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Aircraft manufacturing sector sees substantial government contract.

Value Assessment

Rating: fair

The total contract value is $517,303,849 for 35 helicopters. Without competitive bids, it's difficult to assess if this price is optimal compared to market alternatives or previous procurements.

Cost Per Unit: $14,780,109

Competition Analysis

Competition Level: sole-source

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

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these helicopters.

Public Impact

Army aviation readiness potentially enhanced by new helicopter acquisition. Taxpayer funds allocated for defense procurement, impacting budget priorities. Economic impact on the aerospace and defense manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Acquisition of critical military assets
Long-term contract duration

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a key component of the broader aerospace and defense industry. Spending benchmarks for similar helicopter procurements are not readily available without competitive data.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award, as the prime contractor is Airbus Helicopters, Inc. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight of this sole-source contract should focus on ensuring fair pricing and adherence to contract terms. The Department of the Army is responsible for managing this procurement.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for overpricing
Limited transparency in price negotiation
Reliance on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $517.3 million to AIRBUS HELICOPTERS, INC.. PROCUREMENT OF 35 UH-72A LAKOTA HELICOPTERS

Who is the contractor on this award?

The obligated recipient is AIRBUS HELICOPTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $517.3 million.

What is the period of performance?

Start: 2018-03-08. End: 2023-02-28.

What is the justification for the sole-source award of the UH-72A Lakota helicopters?

The justification for a sole-source award typically involves factors such as unique capabilities, existing infrastructure, or urgent need where only one vendor can meet the requirements. Without specific documentation, it's presumed the Army determined Airbus Helicopters, Inc. was the only viable source for these 35 UH-72A Lakota helicopters at this time.

What are the risks associated with a sole-source procurement of this magnitude?

The primary risk of a sole-source procurement is the potential for inflated pricing due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds. Additionally, it may stifle innovation and limit market access for other capable manufacturers.

How does the acquisition of these helicopters impact the Army's operational effectiveness?

The UH-72A Lakota is a versatile utility helicopter used for various missions, including troop transport, medical evacuation, and reconnaissance. Acquiring 35 new units is expected to enhance the Army's aviation readiness and operational capabilities, ensuring they have modern platforms to support diverse mission requirements.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Airbus SE

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $517,591,146

Exercised Options: $517,303,849

Current Obligation: $517,303,849

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline