Coast Guard awards $3.8M contract for HC-144 aircraft service life extension

Contract Overview

Contract Amount: $3,789,680 ($3.8M)

Contractor: Airbus US Space & Defense Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-04-11

End Date: 2026-06-12

Contract Duration: 792 days

Daily Burn Rate: $4.8K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SUPPORT FOR THE SERVICE LIFE EXTENSION PROGRAM ON THE HC-144 AIRCRAFT.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.8 million to AIRBUS US SPACE & DEFENSE INC for work described as: SUPPORT FOR THE SERVICE LIFE EXTENSION PROGRAM ON THE HC-144 AIRCRAFT. Key points: 1. Contract focuses on extending the operational life of critical HC-144 aircraft. 2. Airbus US Space & Defense Inc. is the sole awardee. 3. The contract is a delivery order under an existing contract. 4. Pricing is firm-fixed-price, indicating predictable costs. 5. The contract duration extends into mid-2026. 6. This award supports a specific program for aircraft sustainment.

Value Assessment

Rating: fair

The contract value of $3.8 million for service life extension appears reasonable for specialized aviation support. Benchmarking against similar sustainment contracts for mid-sized aircraft would provide a clearer picture of value. Without specific details on the scope of work, a precise comparison is difficult, but the firm-fixed-price nature suggests cost control. The award is a delivery order, implying it's part of a larger, pre-negotiated framework.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed. This approach is often used when a specific contractor possesses unique capabilities, intellectual property, or is the original equipment manufacturer, as is likely the case with Airbus for the HC-144. The lack of competition means there was no opportunity for price discovery through a bidding process.

Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing, potentially leading to higher costs than if multiple vendors had bid.

Public Impact

The U.S. Coast Guard benefits from extended operational capability of its HC-144 aircraft fleet. Services delivered include sustainment and life extension for aviation assets. The geographic impact is national, supporting Coast Guard operations across the US. Workforce implications include specialized engineering and maintenance roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Lack of competition may reduce pressure on contractor to offer best value.
Dependence on a single supplier for critical sustainment.

Positive Signals

Supports critical Coast Guard aviation assets.
Firm-fixed-price contract provides cost certainty.
Awarded under an existing contract vehicle, potentially streamlining acquisition.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized technology, and significant government investment. Contracts for aircraft sustainment and life extension are crucial for maintaining fleet readiness. This $3.8 million award fits within the broader landscape of defense sustainment spending, where original equipment manufacturers often hold a dominant position for specialized support services. Comparable spending benchmarks would typically involve analyzing other service life extension programs for similar aircraft types.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by the prime contractor being Airbus US Space & Defense Inc. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. The focus on specialized aircraft sustainment by a large prime contractor suggests limited direct opportunities for small businesses unless they are part of the prime's supply chain.

Oversight & Accountability

Oversight for this contract would fall under the U.S. Coast Guard's contracting and program management offices. As a delivery order under an existing contract, the initial award and oversight framework are likely established. Transparency is facilitated through contract databases, but specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Service Life Extension Programs (SLEP)
Aviation Sustainment Contracts
HC-144 Aircraft Support
Department of Homeland Security Procurement

Risk Flags

Sole-source award limits competition.
Potential for unforeseen costs in life extension programs.
Risk of component obsolescence over extended service life.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.8 million to AIRBUS US SPACE & DEFENSE INC. SUPPORT FOR THE SERVICE LIFE EXTENSION PROGRAM ON THE HC-144 AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is AIRBUS US SPACE & DEFENSE INC.

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 $3.8 million.

What is the period of performance?

Start: 2024-04-11. End: 2026-06-12.

What is the specific scope of work included in this service life extension for the HC-144 aircraft?

The provided data indicates the contract is for 'SUPPORT FOR THE SERVICE LIFE EXTENSION PROGRAM ON THE HC-144 AIRCRAFT.' However, the specific technical tasks, components to be addressed, or upgrades included in this extension are not detailed. Typically, a Service Life Extension Program (SLEP) involves comprehensive inspections, repairs, component replacements, and potential modifications to extend an aircraft's operational lifespan beyond its originally designed service life. This could range from structural enhancements and avionics upgrades to engine overhauls. Further details would likely be found in the contract's statement of work (SOW) or performance work statement (PWS), which are not publicly available in this data snippet.

How does the $3.8 million award compare to historical spending on HC-144 sustainment by the Coast Guard?

To compare this $3.8 million award to historical spending, one would need access to the U.S. Coast Guard's procurement history for the HC-144 aircraft. This would involve aggregating all previous contracts, delivery orders, and task orders related to the maintenance, repair, overhaul, and sustainment of this aircraft type. Analyzing the total annual or cumulative spending over the life of the HC-144 program would establish a baseline. Without that historical data, it's difficult to ascertain if $3.8 million represents a significant increase, decrease, or is in line with previous investments. However, given the nature of SLEPs, they often represent substantial, albeit infrequent, investments in prolonging asset life.

What are the key performance indicators (KPIs) used to measure the success of this service life extension contract?

Key performance indicators (KPIs) for a Service Life Extension Program (SLEP) contract typically focus on ensuring the extended operational capability and reliability of the aircraft. Common KPIs might include: 1) Aircraft Availability Rate: The percentage of time the HC-144 aircraft are mission-capable and available for operations. 2) Mean Time Between Failures (MTBF): Measuring the reliability of critical systems after the extension work. 3) Schedule Compliance: Ensuring the life extension work is completed within the contracted timeframe (ending June 2026). 4) Cost Performance: Adherence to the firm-fixed-price budget. 5) Technical Performance: Successful completion of all required inspections, repairs, and upgrades as per the Statement of Work. These KPIs help the Coast Guard assess whether the investment is achieving its objective of prolonging the aircraft's useful service life effectively.

What is Airbus US Space & Defense Inc.'s track record with the HC-144 aircraft program?

Airbus US Space & Defense Inc. is the prime contractor and likely the original manufacturer or integrator of the HC-144 'Ocean Sentry' aircraft for the U.S. Coast Guard. Their track record with this specific platform is therefore extensive, encompassing initial production, delivery, and ongoing sustainment activities. As the original equipment manufacturer (OEM) or its designated representative, they possess the inherent technical knowledge, proprietary data, and specialized tooling required for the aircraft's maintenance and life extension. Awards like this delivery order suggest a continued, established relationship and demonstrated capability in supporting the HC-144 fleet, likely built upon previous successful sustainment contracts and support agreements.

Are there any identified risks associated with extending the service life of the HC-144 aircraft?

Extending the service life of any aircraft platform, including the HC-144, carries inherent risks. Key risks include: 1) Unforeseen structural degradation: Despite inspections, hidden corrosion or fatigue issues might emerge, requiring costly additional repairs beyond the SLEP scope. 2) Obsolescence: Critical components or systems may become obsolete during the extended service life, necessitating expensive upgrades or replacements. 3) Integration challenges: Integrating new or upgraded systems into an older airframe can be complex and may lead to performance issues. 4) Performance degradation: The aircraft may not perform to original specifications or meet evolving mission requirements after the extension. 5) Cost overruns: While this is a fixed-price contract, unforeseen issues could lead to change orders or necessitate future, more expensive sustainment efforts. The success of the SLEP hinges on thorough initial assessments and robust risk mitigation strategies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1525 WILSON BLVD STE 500, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $3,789,680

Exercised Options: $3,789,680

Current Obligation: $3,789,680

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03823DL0000006

IDV Type: IDC

Timeline