Department of the Army awards $3.2M contract for UH-72A Lakota aircraft support to Airbus Helicopters

Contract Overview

Contract Amount: $3,216,619 ($3.2M)

Contractor: Airbus Helicopters, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-12-23

End Date: 2026-06-30

Contract Duration: 2,015 days

Daily Burn Rate: $1.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT W58RGZ-21-C-0010 TO AIRBUS HELICOPTERS INCORPORATED (AHI) FOR CONTRACTOR FIELD SERVICE REPRESENTATIVES (CFSRS)/CONTRACTOR LOGISTICS SERVICE REPRESENTATIVES (CLSRS) TO SUPPORT SERVICE FOR THE ROYAL THAILAND ARMY FOUR UH-72A LAKOTA AIRCRAFT.

Place of Performance

Location: GRAND PRAIRIE, TARRANT County, TEXAS, 75052

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $3.2 million to AIRBUS HELICOPTERS, INC. for work described as: CONTRACT W58RGZ-21-C-0010 TO AIRBUS HELICOPTERS INCORPORATED (AHI) FOR CONTRACTOR FIELD SERVICE REPRESENTATIVES (CFSRS)/CONTRACTOR LOGISTICS SERVICE REPRESENTATIVES (CLSRS) TO SUPPORT SERVICE FOR THE ROYAL THAILAND ARMY FOUR UH-72A LAKOTA AIRCRAFT. Key points: 1. Contract provides essential field and logistics support for Royal Thailand Army aircraft. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long contract duration (over 6 years) suggests a need for sustained, specialized services. 4. Firm-fixed-price structure aims to control costs, but requires careful monitoring of scope. 5. Support for foreign military sales highlights international defense cooperation.

Value Assessment

Rating: fair

The contract value of $3.2 million for contractor field and logistics support for four UH-72A Lakota aircraft appears reasonable given the specialized nature of the services and the long duration. However, without comparable sole-source contracts for similar support on this specific aircraft type, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the absence of competition limits the government's ability to benchmark pricing against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Airbus Helicopters, Inc. The data does not provide justification for this sole-source award, such as a lack of competition or a specific need that only this contractor can fulfill. The absence of a competitive bidding process means that the government did not explore potential cost savings or alternative solutions that might have been offered by other vendors.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

The Royal Thailand Army benefits from continued operational readiness of its UH-72A Lakota aircraft. Services include contractor field representatives and contractor logistics support, ensuring aircraft maintainability. The contract supports a foreign military sale, strengthening international partnerships. Workforce implications are primarily for Airbus Helicopters, Inc., which will provide the specialized personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source justification is not provided, raising transparency concerns.
Long-term contract could lock in costs without opportunities for re-evaluation.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration.
Support ensures continued operational capability for a key allied air asset.
Specialized support from the original equipment manufacturer (OEM) can ensure quality and technical expertise.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. The market for specialized aircraft maintenance and logistics support is often dominated by original equipment manufacturers (OEMs) or highly specialized third-party providers. While the overall defense aviation support market is substantial, contracts for specific platforms like the UH-72A Lakota are niche. Benchmarking would ideally involve comparing this contract to similar support agreements for other light utility helicopters, though such data is not readily available.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by 'sb: false'. Given the sole-source nature and the specialized technical support required for aircraft, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or readily available through this specific award. The focus is on direct support from the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations. Transparency regarding the sole-source justification and performance metrics would be key areas for oversight. Inspector General involvement would likely be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Foreign Military Sales Program
UH-72A Lakota Aircraft Sustainment
Aviation Logistics Support Services
Contractor Field Service Representatives

Risk Flags

Sole-source award lacks transparency regarding justification.
Potential for higher costs due to lack of competition.
Long contract duration may limit future cost-saving opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.2 million to AIRBUS HELICOPTERS, INC.. CONTRACT W58RGZ-21-C-0010 TO AIRBUS HELICOPTERS INCORPORATED (AHI) FOR CONTRACTOR FIELD SERVICE REPRESENTATIVES (CFSRS)/CONTRACTOR LOGISTICS SERVICE REPRESENTATIVES (CLSRS) TO SUPPORT SERVICE FOR THE ROYAL THAILAND ARMY FOUR UH-72A LAKOTA AIRCRAFT.

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 $3.2 million.

What is the period of performance?

Start: 2020-12-23. End: 2026-06-30.

What is the specific justification for awarding this contract on a sole-source basis to Airbus Helicopters, Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as only one responsible source being available, or an urgent and compelling need that prevents competition. For specialized aircraft support, justifications often cite proprietary data, unique technical expertise held by the original equipment manufacturer (OEM), or the need for seamless integration with existing systems. Without the official justification document, it is impossible to definitively state why competition was precluded for this particular contract. This lack of transparency is a common concern with sole-source awards.

How does the pricing of this contract compare to similar support contracts for light utility helicopters?

Direct comparison of pricing is difficult without access to data on similar sole-source or competitively awarded contracts for the support of other light utility helicopters. The value of $3.2 million over approximately six years suggests an annual cost of roughly $533,000. This figure encompasses contractor field representatives (CFRs) and contractor logistics support representatives (CLSRs), which can include salaries, travel, overhead, and potentially spare parts or specialized tooling. The firm-fixed-price nature provides cost certainty, but the absence of competition means there's no direct market benchmark to assess if this represents optimal value for money compared to what other providers might offer.

What are the potential risks associated with a long-duration, sole-source contract for aircraft support?

A primary risk of a long-duration, sole-source contract is the potential for cost escalation over time, even with a firm-fixed-price structure, if the initial pricing did not fully account for future inflation or unforeseen technical challenges. The lack of competition removes the incentive for the contractor to become more efficient or offer cost reductions. Furthermore, the government becomes heavily reliant on a single provider, potentially limiting flexibility if the contractor's performance declines or if alternative support solutions emerge. There's also a risk that the contractor may not prioritize this contract if more lucrative opportunities arise, potentially impacting service quality or availability.

What is the track record of Airbus Helicopters, Inc. in providing similar support services?

Airbus Helicopters, Inc. (AHI), as a major manufacturer of helicopters, including the UH-72A Lakota (which is based on the EC145/H145 platform), has a well-established track record in providing manufacturing, maintenance, repair, and overhaul (MRO) services for its aircraft. They are the original equipment manufacturer (OEM) for the UH-72A. Their experience typically includes providing field service representatives and logistics support for military and civilian operators worldwide. While specific performance data for this particular contract isn't detailed here, AHI's general industry standing suggests they possess the requisite technical expertise and infrastructure to fulfill the contract requirements.

How does this contract fit into the broader context of US foreign military sales and defense cooperation?

This contract directly supports a foreign military sale (FMS) to the Royal Thailand Army, underscoring the US government's role in facilitating defense cooperation with allies. By providing essential sustainment services for US-origin military equipment operated by partner nations, the US aims to enhance their operational capabilities and interoperability. Such support ensures that allied forces can effectively utilize the platforms they acquire, contributing to regional security and stability. This contract exemplifies how FMS extends beyond just the initial sale of equipment to include the necessary long-term support infrastructure.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ20R0266

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $3,216,619

Exercised Options: $3,216,619

Current Obligation: $3,216,619

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline