DHS awards $28.3M task order for TARS sites to Tyonek Aircraft Overhaul, LLC

Contract Overview

Contract Amount: $28,290,293 ($28.3M)

Contractor: Tyonek Aircraft Overhaul, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-07-17

End Date: 2026-12-16

Contract Duration: 1,248 days

Daily Burn Rate: $22.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TASK ORDER AWARD TO ESTABLISH NEW TARS SITES.

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99501

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.3 million to TYONEK AIRCRAFT OVERHAUL, LLC for work described as: TASK ORDER AWARD TO ESTABLISH NEW TARS SITES. Key points: 1. Contract awarded for establishing new TARS sites, indicating a need for enhanced surveillance or operational capabilities. 2. The awardee, Tyonek Aircraft Overhaul, LLC, suggests a focus on aviation-related infrastructure or support services. 3. The contract duration of approximately 3.5 years implies a significant, ongoing requirement. 4. The firm fixed-price contract type aims to control costs by establishing a set price for the work. 5. The absence of a specific Product Service Code (PSC) might indicate a specialized or unique requirement. 6. The contract's geographic focus on Alaska (AK) suggests a strategic importance for operations in that region.

Value Assessment

Rating: fair

Benchmarking the value of this task order is challenging without more specific details on the TARS sites' scope and the services provided. The total award amount of $28.3 million over roughly 3.5 years suggests a substantial investment. However, without comparable contract data for similar TARS site establishments or a breakdown of costs, it's difficult to definitively assess if this represents excellent value for money. The firm fixed-price nature provides some cost certainty, but the overall efficiency and effectiveness of the spending will depend on the execution and the actual utility of the new sites.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary qualifications, capabilities, or proprietary technology to fulfill the requirement. While it ensures the specific needs are met by a chosen entity, it bypasses the potential benefits of a competitive bidding process, such as lower prices and innovative solutions from a wider pool of contractors.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from price competition. It also limits opportunities for other businesses to secure federal contracts.

Public Impact

The U.S. Customs and Border Protection (CBP) within the Department of Homeland Security (DHS) is the primary beneficiary, likely enhancing its operational capacity. The contract supports the establishment of new TARS (Tethered Aerostat Radar System) sites, which are crucial for surveillance and border security. The geographic impact is concentrated in Alaska, suggesting a strategic focus on monitoring remote or sensitive areas. The contract may have implications for the aerospace and defense industry workforce, particularly those with expertise in radar systems and site construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition, potentially increasing costs and reducing opportunities for other businesses.
Lack of detailed scope for TARS sites makes it difficult to assess the true value and necessity of the expenditure.
Geographic remoteness of Alaska may present logistical challenges and increase project costs.
The specific nature of 'TARS sites' is not fully defined, raising questions about the exact services and equipment being procured.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to Tyonek Aircraft Overhaul, LLC, suggests leveraging specialized expertise in aviation or related systems.
The establishment of new TARS sites indicates a commitment to enhancing critical national security infrastructure.
The contract duration suggests a long-term strategic investment by CBP.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, specifically related to advanced surveillance systems. The market for such specialized systems is often dominated by a few key players due to high technological barriers and stringent security requirements. Federal spending in this area is driven by national security needs, border protection, and intelligence gathering. Comparable spending benchmarks would involve other contracts for radar systems, surveillance platforms, and related infrastructure development, often in the tens to hundreds of millions of dollars depending on scale and complexity.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award to Tyonek Aircraft Overhaul, LLC, a company that may or may not be classified as a small business, does not automatically imply subcontracting opportunities for small businesses. Further investigation into Tyonek's size classification and subcontracting plans would be necessary to determine the impact on the small business ecosystem. Without specific set-asides, the primary focus is on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and specifically the U.S. Customs and Border Protection (CBP). As a task order under a larger contract vehicle (though the parent contract is not specified), oversight would involve monitoring performance against the established schedule and technical requirements. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance metrics. The DHS Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

Tethered Aerostat Radar System (TARS) Program
Border Security Technology
Surveillance and Reconnaissance Systems
Department of Homeland Security Procurement
Customs and Border Protection Operations

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns due to remote Alaskan location.
Limited public information on the specific scope and technical requirements.
Contractor's specific experience with TARS systems not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.3 million to TYONEK AIRCRAFT OVERHAUL, LLC. TASK ORDER AWARD TO ESTABLISH NEW TARS SITES.

Who is the contractor on this award?

The obligated recipient is TYONEK AIRCRAFT OVERHAUL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2023-07-17. End: 2026-12-16.

What is the specific operational purpose and technical capability of the new TARS sites being established?

The provided data indicates the contract is for 'TASK ORDER AWARD TO ESTABLISH NEW TARS SITES.' TARS, or Tethered Aerostat Radar System, typically refers to aerostats (lighter-than-air aircraft) equipped with radar and other surveillance payloads. These systems are used for persistent, wide-area surveillance, often along borders or in strategic locations. The specific purpose of these new sites is not detailed, but they likely aim to enhance CBP's ability to detect and track potential threats, such as illegal crossings, smuggling activities, or other illicit operations in the operational area. The technical capabilities would involve the deployment, operation, and maintenance of these aerostats and their associated radar and communication systems, tailored to the unique environmental conditions and surveillance requirements of Alaska.

What is Tyonek Aircraft Overhaul, LLC's track record with similar sole-source contracts or TARS-related projects?

Information regarding Tyonek Aircraft Overhaul, LLC's specific track record with similar sole-source contracts or Tethered Aerostat Radar System (TARS) projects is not detailed in the provided data. As a sole-source award, the justification for selecting this specific contractor would typically include their unique qualifications or prior experience. To assess their track record, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards to Tyonek, particularly those involving aviation support, radar systems, or infrastructure development for government agencies. Understanding their performance history on previous contracts, especially those awarded non-competitively, is crucial for evaluating the risk associated with this $28.3 million task order.

How does the $28.3 million cost compare to the establishment of previous TARS sites or similar surveillance infrastructure?

Direct comparison of the $28.3 million cost for establishing new TARS sites is difficult without specific historical data on previous TARS site establishments or comparable surveillance infrastructure projects. The cost would be influenced by numerous factors, including the complexity of the terrain in Alaska, the specific technological requirements of the radar and aerostat systems, the duration of site preparation and construction, and the ongoing operational support needed. Given the sole-source nature of this award, it is harder to gauge if competitive pressures have been factored into the pricing. A thorough value assessment would require benchmarking against similar projects, considering the scope, technology, and geographic challenges involved, which are not fully detailed here.

What are the primary risks associated with this contract, given its sole-source nature and the operational environment in Alaska?

The primary risks associated with this contract include potential cost overruns due to the sole-source award, which bypasses competitive bidding that could drive down prices. There's also a risk of performance issues if Tyonek Aircraft Overhaul, LLC lacks the specific expertise or resources required for TARS site establishment, despite being selected. The operational environment in Alaska presents significant logistical challenges, including extreme weather, remote locations, and limited infrastructure, which could lead to delays and increased costs. Furthermore, the lack of transparency inherent in sole-source contracts makes it harder to identify and mitigate risks proactively. Ensuring robust oversight and clear performance metrics will be critical to managing these risks.

What is the historical spending pattern for TARS or similar surveillance systems by DHS or CBP?

Historical spending patterns for Tethered Aerostat Radar System (TARS) or similar surveillance systems by DHS and CBP are not detailed in the provided data. However, it is known that CBP has utilized aerostat systems for border surveillance for many years, particularly along the southern border. Spending in this area is typically substantial, reflecting the high cost of acquiring, deploying, and maintaining advanced surveillance technology. Federal budgets for border security and national defense often include significant allocations for such systems. To understand historical patterns, one would need to analyze multi-year budget appropriations and contract awards related to aerostats, radar systems, and other persistent surveillance technologies used by these agencies.

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: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1689 C ST STE 219, ANCHORAGE, AK, 99501

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

Financial Breakdown

Contract Ceiling: $28,290,293

Exercised Options: $28,290,293

Current Obligation: $28,290,293

Actual Outlays: $19,946,362

Subaward Activity

Number of Subawards: 53

Total Subaward Amount: $10,560,600

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70B02C22D00000015

IDV Type: IDC

Timeline