DHS Coast Guard Awards $2.47M for Airbus Aircraft Parts Under Non-Competitive Delivery Order

Contract Overview

Contract Amount: $2,474,475 ($2.5M)

Contractor: Airbus US Space & Defense Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-17

End Date: 2026-10-22

Contract Duration: 400 days

Daily Burn Rate: $6.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER FOR SPARE PARTS FROM CONTRACT 70Z03821DL0000001. CLASS DETERMINATION FOR NONAVAILABILITY ARTICLES IAW FAR 25.103(B)(1) APPLIES TO THIS ACTION, BAA EXCEPTION MTF IS IN THE FILE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.5 million to AIRBUS US SPACE & DEFENSE INC for work described as: DELIVERY ORDER FOR SPARE PARTS FROM CONTRACT 70Z03821DL0000001. CLASS DETERMINATION FOR NONAVAILABILITY ARTICLES IAW FAR 25.103(B)(1) APPLIES TO THIS ACTION, BAA EXCEPTION MTF IS IN THE FILE Key points: 1. Spending is for essential spare parts for aircraft, indicating ongoing operational needs. 2. The contract was not competed, raising questions about price discovery and potential cost savings. 3. Reliance on a single source for critical parts could pose supply chain risks. 4. The sector involves specialized aerospace manufacturing, often with limited competition.

Value Assessment

Rating: questionable

The contract value of $2.47M for spare parts is difficult to assess without specific part details and market benchmarks. The non-competitive nature limits direct comparison to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This action was not competed, citing a Class Determination for Nonavailability Articles (FAR 25.103(b)(1)). This exception limits competition, potentially leading to higher prices than if multiple vendors were solicited.

Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, which may result in a higher overall cost for these spare parts.

Public Impact

Ensures operational readiness of U.S. Coast Guard aircraft by providing necessary spare parts. Supports the aerospace manufacturing sector, specifically Airbus US Space & Defense Inc. Highlights the use of non-competitive contract awards for specialized defense articles.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Lack of competition
Potential for overpayment
Supply chain dependency

Positive Signals

Supports critical Coast Guard operations
Procurement of specialized aircraft parts

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending benchmarks in this area can vary widely based on part complexity and exclusivity.

Small Business Impact

The awardee, Airbus US Space & Defense Inc., is a large business. There is no indication that small businesses were involved in this specific delivery order.

Oversight & Accountability

The use of a non-availability exception (FAR 25.103(b)(1)) requires justification and documentation to ensure it is appropriately applied. Oversight should confirm the necessity of this sole-source approach.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Non-competitive award
Potential for inflated pricing
Dependency on a single supplier
Lack of transparency in price discovery
Limited opportunity for small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.5 million to AIRBUS US SPACE & DEFENSE INC. DELIVERY ORDER FOR SPARE PARTS FROM CONTRACT 70Z03821DL0000001. CLASS DETERMINATION FOR NONAVAILABILITY ARTICLES IAW FAR 25.103(B)(1) APPLIES TO THIS ACTION, BAA EXCEPTION MTF IS IN THE FILE

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 $2.5 million.

What is the period of performance?

Start: 2025-09-17. End: 2026-10-22.

What specific spare parts are being procured, and what is the justification for their non-availability through competitive means?

The provided data does not specify the exact spare parts. The justification for non-competition is a Class Determination for Nonavailability Articles (FAR 25.103(b)(1)). This implies that the parts are either unique, proprietary, or not readily available from multiple sources, necessitating a sole-source award to ensure operational continuity for the U.S. Coast Guard's aircraft.

What is the potential cost impact of awarding this contract without competition compared to a fully competed scenario?

Without competition, there is a significant risk of paying a premium. A sole-source award, especially under a non-availability clause, removes the price pressure that multiple bidders would typically create. The actual cost impact is unknown but could be substantial if alternative suppliers or more cost-effective solutions exist but were not explored.

How does this sole-source award affect the long-term strategy for maintaining Coast Guard aircraft parts inventory and supplier relationships?

This award suggests a reliance on a specific supplier for critical parts, potentially limiting future flexibility and negotiation power. It may indicate a lack of readily available alternatives or a strategic decision to maintain a relationship with Airbus. Long-term, this could impact cost-effectiveness and supply chain resilience if not managed carefully.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2550 WASSER TER STE 9000, HERNDON, VA, 20171

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: $2,474,475

Exercised Options: $2,474,475

Current Obligation: $2,474,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03821DL0000001

IDV Type: IDC

Timeline