DHS Spends $23.3M on C-550 Aircraft Upgrade by TKC Aerospace
Contract Overview
Contract Amount: $23,259,875 ($23.3M)
Contractor: TKC Aerospace, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2008-09-30
End Date: 2012-12-31
Contract Duration: 1,553 days
Daily Burn Rate: $15.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UPGRADE OF TWO C-550 AIRCRAFT
Place of Performance
Location: DANIEL ISLAND, BERKELEY County, SOUTH CAROLINA, 29492
Plain-Language Summary
Department of Homeland Security obligated $23.3 million to TKC AEROSPACE, INC. for work described as: UPGRADE OF TWO C-550 AIRCRAFT Key points: 1. Significant investment in aircraft modernization for Customs and Border Protection. 2. TKC Aerospace, Inc. is the sole provider for this specific upgrade. 3. Potential risk associated with limited competition and reliance on a single vendor. 4. Spending falls within the broad 'Aircraft Manufacturing' sector.
Value Assessment
Rating: fair
The total award of $23.3 million for two aircraft upgrades lacks direct comparable contract data. Without specific details on the scope of work and the nature of the C-550 aircraft, a precise pricing assessment against similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that competition was likely not feasible or pursued for this specific upgrade. This limits price discovery and potentially leads to higher costs than a competitive process might yield.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive bidding, though the necessity of the upgrade for national security functions is a key consideration.
Public Impact
Enhances operational capabilities of U.S. Customs and Border Protection aircraft. Ensures continued airworthiness and modernization of critical assets. Supports specialized aviation services within a federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Lack of detailed scope for cost validation.
- Long contract duration (over 4 years) may introduce cost escalation risks.
Positive Signals
- Addresses critical need for aircraft modernization.
- Firm Fixed Price contract provides cost certainty once awarded.
- Supports a specific, potentially unique, aircraft upgrade requirement.
Sector Analysis
The 'Aircraft Manufacturing' sector involves complex, high-value production and modification. This contract aligns with specialized defense and security aviation services, where costs can be significantly influenced by unique technical requirements and limited vendor availability.
Small Business Impact
This contract was awarded to TKC Aerospace, Inc., a company that may or may not be a small business. The data does not indicate any specific set-aside for small businesses, suggesting it was likely awarded to a larger entity or based on specific capabilities.
Oversight & Accountability
The award was made by the Department of Homeland Security (DHS) to U.S. Customs and Border Protection. Oversight would typically involve program management reviews, milestone tracking, and financial audits to ensure contract compliance and effective use of funds.
Related Government Programs
- Aircraft Manufacturing
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Sole-source award limits competition.
- Lack of detailed scope for cost validation.
- Potential for cost overruns in long-duration projects.
- Reliance on a single vendor for critical upgrades.
Tags
aircraft-manufacturing, department-of-homeland-security, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $23.3 million to TKC AEROSPACE, INC.. UPGRADE OF TWO C-550 AIRCRAFT
Who is the contractor on this award?
The obligated recipient is TKC AEROSPACE, INC..
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 $23.3 million.
What is the period of performance?
Start: 2008-09-30. End: 2012-12-31.
What specific technological advancements or performance improvements does this C-550 aircraft upgrade entail, and how do they justify the $23.3 million cost?
The provided data lacks specifics on the upgrade's scope. A detailed breakdown of the technical enhancements, such as avionics modernization, structural improvements, or new mission equipment, is needed to assess if the $23.3 million investment aligns with tangible performance gains and operational benefits for Customs and Border Protection.
Given the sole-source nature of this award, what steps were taken by DHS to ensure the price paid was fair and reasonable?
Without a competitive process, ensuring a fair and reasonable price typically involves rigorous cost analysis by the contracting agency. This could include reviewing the contractor's cost proposals, comparing them to historical data or independent cost estimates, and negotiating profit margins to mitigate the risks associated with sole-source procurement.
How will the upgraded C-550 aircraft contribute to the effectiveness of U.S. Customs and Border Protection's border security and interdiction missions?
The effectiveness hinges on the specific upgrades. If they enhance surveillance capabilities, extend flight endurance, improve navigation systems, or increase payload capacity, the aircraft could significantly boost CBP's ability to patrol borders, detect illicit activities, and respond to threats more efficiently and safely.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Kuskokwim Corporation (UEI: 055665624)
Address: 1183 DANIEL ISLAND DR, CHARLESTON, SC, 29492
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm
Financial Breakdown
Contract Ceiling: $23,259,875
Exercised Options: $23,259,875
Current Obligation: $23,259,875
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1008D01989
IDV Type: IDC
Timeline
Start Date: 2008-09-30
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2017-08-01
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