DHS awards $5.5M for aircraft frames and simulators, with a 120-month performance period

Contract Overview

Contract Amount: $5,500,000 ($5.5M)

Contractor: Diversified Fabricators & Erectors, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-31

End Date: 2026-04-30

Contract Duration: 120 days

Daily Burn Rate: $45.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIRCRAFT SIMULATORS- (4) AIRCRAFT FRAMES WITH COMPONENTS WITH INSTALLATION

Place of Performance

Location: BRUNSWICK, GLYNN County, GEORGIA, 31524

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.5 million to DIVERSIFIED FABRICATORS & ERECTORS, INC for work described as: AIRCRAFT SIMULATORS- (4) AIRCRAFT FRAMES WITH COMPONENTS WITH INSTALLATION Key points: 1. The contract value of $5.5 million for aircraft frames and simulators appears reasonable given the scope. 2. Competition dynamics for this contract are not fully detailed but were conducted under SAP. 3. Risk indicators are moderate, with a fixed-price contract type mitigating some cost uncertainty. 4. Performance context suggests a need for specialized training equipment for federal law enforcement. 5. This contract fits within the broader Defense and Security sector's procurement of training assets.

Value Assessment

Rating: good

The total contract value of $5.5 million for four aircraft frames with components and installation, spanning 120 months, suggests a significant investment in training capabilities. Benchmarking against similar procurements for advanced training systems indicates that this price point is within a reasonable range, especially considering the specialized nature of aircraft simulators and frames. The firm fixed-price structure provides cost certainty for the government, although it places the cost risk on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While the specific number of bidders is not provided, SAP is generally used for procurements below a certain threshold, often resulting in fewer offers. This limited competition may impact the government's ability to secure the lowest possible price.

Taxpayer Impact: Limited competition under SAP means taxpayers may not benefit from the most aggressive pricing achievable through broader market engagement.

Public Impact

Federal law enforcement personnel will benefit from enhanced training capabilities through advanced aircraft simulators and frames. The services delivered include the provision and installation of critical training equipment. The geographic impact is primarily at the Federal Law Enforcement Training Center in Georgia. Workforce implications include potential needs for specialized technicians for installation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if installation complexity is underestimated.
Risk of performance delays if contractor faces supply chain issues for specialized components.
Limited competition may result in a higher-than-optimal price for taxpayers.

Positive Signals

Firm Fixed Price contract type limits cost uncertainty for the government.
Long performance period allows for phased integration and training.
Procurement by a key federal agency (DHS) indicates critical operational need.

Sector Analysis

This contract falls within the broader Defense and Security sector, specifically focusing on training and simulation technologies. The market for aircraft simulators and related components is specialized, often involving a limited number of experienced manufacturers and integrators. Spending in this area is driven by the need for realistic and cost-effective training solutions for military and law enforcement agencies, aiming to reduce risks associated with live-flight training.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided for this contract. Given the specialized nature of aircraft simulators and frames, it is possible that the prime contractor is a large business, and subcontracting opportunities for small businesses may be limited unless specifically mandated or pursued.

Oversight & Accountability

Oversight will be managed by the Department of Homeland Security (DHS) and the Federal Law Enforcement Training Center (FLETC). As a purchase order under SAP, the level of formal oversight might be less intensive than for larger, more complex contracts. Transparency is generally maintained through contract award databases, but detailed performance monitoring specifics are not publicly available.

Related Government Programs

Federal Law Enforcement Training Programs
Aviation Training Systems
Defense Training and Simulation Procurement
Homeland Security Equipment Acquisition

Risk Flags

Limited Competition Risk
Contractor Specialized Experience Assessment
Supply Chain Vulnerability
Performance Monitoring Intensity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.5 million to DIVERSIFIED FABRICATORS & ERECTORS, INC. AIRCRAFT SIMULATORS- (4) AIRCRAFT FRAMES WITH COMPONENTS WITH INSTALLATION

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED FABRICATORS & ERECTORS, INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2025-12-31. End: 2026-04-30.

What is the track record of Diversified Fabricators & Erectors, Inc. with similar government contracts, particularly in aviation or simulation equipment?

A review of public contract databases indicates that Diversified Fabricators & Erectors, Inc. has a history of performing construction and fabrication services for government entities. However, specific experience with highly specialized procurements like aircraft simulators and frames is not immediately apparent from the provided data. Further investigation into their past performance on contracts involving complex technical integration and specialized equipment would be necessary to fully assess their capability and track record for this specific requirement. Their primary NAICS code (236220 - Commercial and Institutional Building Construction) suggests a core competency in construction rather than advanced simulation technology, raising questions about their direct experience in this niche.

How does the $5.5 million contract value compare to the market rate for four aircraft frames with components and installation over 120 months?

Determining the precise market rate for this specific procurement is challenging without detailed specifications of the aircraft frames and simulator capabilities. However, the $5.5 million value, spread over 120 months (10 years), averages $550,000 per year. This figure needs to encompass the cost of four frames, associated components, and installation. Given the highly specialized nature of aviation training simulators, which can range from basic mock-ups to full-motion flight simulators costing millions each, this contract value appears to be in a moderate range. If the 'frames' refer to basic structural components and the 'simulators' are less complex, the price could be competitive. Conversely, if high-fidelity, full-motion simulators are included, the value might be on the lower end, potentially indicating a focus on basic structures or a competitive bid.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns if installation proves more complex than anticipated, performance delays due to supply chain issues for specialized aircraft components or simulator technology, and the risk of receiving suboptimal value due to limited competition. The mitigation strategy primarily relies on the Firm Fixed Price (FFP) contract type, which shifts the cost overrun risk to the contractor. The 120-month performance period allows for phased delivery and installation, potentially reducing immediate pressure. However, the limited competition under Simplified Acquisition Procedures (SAP) remains a key risk factor for achieving the best possible price for taxpayers. The government's oversight and acceptance process will be crucial in ensuring quality and timely delivery.

What is the expected effectiveness of these aircraft simulators and frames in enhancing federal law enforcement training?

The effectiveness of these aircraft simulators and frames is expected to be significant in enhancing federal law enforcement training by providing a safe, controlled, and cost-effective environment for practicing critical skills. Simulators allow trainees to experience a wide range of scenarios, including emergency procedures, tactical maneuvers, and adverse weather conditions, without the risks and costs associated with live aircraft. This leads to improved pilot proficiency, decision-making abilities, and overall operational readiness. The inclusion of aircraft frames suggests a potential for realistic cockpit familiarization and systems training, complementing the simulator experience. The 120-month duration indicates a long-term investment in maintaining and potentially upgrading these training capabilities.

How does this contract's spending compare to historical federal spending on aviation training equipment?

Historical federal spending on aviation training equipment, particularly for military and law enforcement, is substantial and varies widely based on the complexity and quantity of simulators and training platforms procured. Contracts for advanced, full-flight simulators can easily run into tens or hundreds of millions of dollars. This $5.5 million award for four aircraft frames and components, likely including some level of simulation, appears to be a moderate-sized procurement. It suggests a focused need for specific training assets rather than a large-scale fleet-wide upgrade. Comparing this to broader categories like 'Aircraft Maintenance and Repair' or 'Training Services' would show it as a component within a larger ecosystem of defense and security spending.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70LGLY26QGLB00007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 GLYNDALE DR, BRUNSWICK, GA, 31520

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,500,000

Exercised Options: $5,500,000

Current Obligation: $5,500,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline