DHS awards $118M C-130J aircraft manufacturing contract to Integrated Coast Guard Systems LLC

Contract Overview

Contract Amount: $118,069,020 ($118.1M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2005-12-16

End Date: 2008-09-30

Contract Duration: 1,019 days

Daily Burn Rate: $115.9K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ICGS - C130J

Place of Performance

Location: GREENVILLE, GREENVILLE County, SOUTH CAROLINA, 29605

State: South Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $118.1 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: ICGS - C130J Key points: 1. Contract awarded to Integrated Coast Guard Systems LLC for C-130J aircraft manufacturing. 2. The contract is a follow-on to a competed action, suggesting prior competition. 3. The total award amount is $118,069,020. 4. The contract duration is 1019 days. 5. The contract falls under the Aircraft Manufacturing sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount of $118M for C-130J aircraft manufacturing needs to be benchmarked against similar contracts for value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract is described as a 'FOLLOW ON TO COMPETED ACTION,' which implies some level of prior competition. However, the specific competition method for this follow-on action is not detailed, making it difficult to assess the impact on price discovery.

Taxpayer Impact: The cost-plus-fixed-fee structure requires careful oversight to ensure taxpayer funds are used efficiently and effectively for the C-130J aircraft.

Public Impact

Ensures continued operation and modernization of the Coast Guard's C-130J aircraft fleet. Supports critical national security and maritime security missions. Potential impact on the aerospace manufacturing industry and associated supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Lack of detail on competition method for follow-on action.
Potential for cost overruns without strong oversight.

Positive Signals

Follow-on to a competed action suggests some level of market research and prior competition.
Contract supports critical national defense and security assets.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, which is a significant part of the broader aerospace industry. Spending in this sector is often characterized by high R&D costs, long production cycles, and substantial government investment due to national security implications.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Analysis is needed to determine if small businesses were excluded from participating in this contract or its subcontracts.

Oversight & Accountability

The contract's Cost Plus Fixed Fee structure necessitates robust oversight from the Department of Homeland Security to ensure cost control and prevent contractor inefficiencies. Accountability for performance and budget adherence is crucial.

Related Government Programs

Aircraft Manufacturing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Limited transparency on competition for follow-on action.
Potential for cost overruns.
Lack of explicit small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $118.1 million to INTEGRATED COAST GUARD SYSTEMS LLC. ICGS - C130J

Who is the contractor on this award?

The obligated recipient is INTEGRATED COAST GUARD SYSTEMS LLC.

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 $118.1 million.

What is the period of performance?

Start: 2005-12-16. End: 2008-09-30.

What was the competitive landscape for the original competed action, and how did that influence the pricing for this follow-on contract?

Understanding the original competition is key to assessing the value of this follow-on award. If the original competition was robust and yielded competitive pricing, this follow-on contract might represent a fair price. However, without details on the original procurement, it's difficult to ascertain if the current pricing reflects optimal value or if there's potential for price creep due to limited ongoing competition.

What are the specific performance metrics and risk mitigation strategies in place for this Cost Plus Fixed Fee contract to prevent cost overruns?

Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation if not managed tightly. Detailed performance metrics, clear deliverables, and proactive risk mitigation plans are essential. The Department of Homeland Security must have robust oversight mechanisms to monitor expenditures, ensure efficient resource allocation, and hold the contractor accountable for staying within the fixed fee parameters while meeting all performance requirements.

How does the $118M award for C-130J manufacturing compare to industry benchmarks for similar aircraft production or sustainment contracts?

Benchmarking this $118M award against similar C-130J manufacturing or sustainment contracts is crucial for evaluating its cost-effectiveness. Without comparative data, it's challenging to determine if the price is competitive. Factors like the scope of work, specific configurations, and the age of the aircraft being manufactured or modified will influence the benchmark, but a thorough analysis is needed to ensure taxpayer value.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1530 WILSON BLVD STE 400, ARLINGTON, VA, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $118,069,020

Exercised Options: $118,069,020

Current Obligation: $118,069,020

Contract Characteristics

Cost or Pricing Data: YES

Timeline