DHS Coast Guard awards $159M firm-fixed-price contract for 4 EADS CASA CN235-300M-MM01 aircraft to Airbus

Contract Overview

Contract Amount: $159,249,796 ($159.2M)

Contractor: Airbus US Space & Defense Inc

Awarding Agency: Department of Homeland Security

Start Date: 2010-10-01

End Date: 2013-05-21

Contract Duration: 963 days

Daily Burn Rate: $165.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS IS A FIRM-FIXED PRICE CONTRACT FOR THE ACQUISITION OF FOUR (4) EADS CASA CN235-300M-MM01 AIRCRAFT, SPARE PROVISIONING AND GROUND SUPPORT EQUIPMENT, AND ASSOCIATED TRAINING.

Plain-Language Summary

Department of Homeland Security obligated $159.2 million to AIRBUS US SPACE & DEFENSE INC for work described as: THIS IS A FIRM-FIXED PRICE CONTRACT FOR THE ACQUISITION OF FOUR (4) EADS CASA CN235-300M-MM01 AIRCRAFT, SPARE PROVISIONING AND GROUND SUPPORT EQUIPMENT, AND ASSOCIATED TRAINING. Key points: 1. Contract awarded for acquisition of aircraft, spare parts, ground support, and training. 2. The total value of the contract is $159,249,796.11. 3. This is a firm-fixed-price contract, indicating price certainty for the government. 4. The contract was not available for competition, raising questions about price discovery.

Value Assessment

Rating: fair

The contract value of $159.25 million for four specialized aircraft is significant. Without comparable contract data for similar aircraft acquisitions, a precise pricing assessment is difficult. However, the firm-fixed-price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited source or a specific requirement that precluded broader solicitation. This lack of competition may have impacted the government's ability to secure the best possible price through market forces.

Taxpayer Impact: The firm-fixed-price nature provides budget certainty, but the limited competition raises concerns about whether taxpayers received the most cost-effective solution.

Public Impact

Enhances U.S. Coast Guard's operational capabilities with new aircraft. Supports national security and maritime law enforcement missions. Investment in specialized aviation assets for critical government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of detailed pricing benchmarks

Positive Signals

Firm-fixed-price contract for cost certainty
Acquisition of critical operational assets

Sector Analysis

This contract falls within the Aircraft Manufacturing sector. Spending in this sector is often driven by defense and homeland security needs, with significant R&D and production costs.

Small Business Impact

The data indicates the awardee is Airbus US Space & Defense Inc., a large corporation. There is no information provided to suggest any subcontracting opportunities for small businesses under this specific contract.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Homeland Security. Oversight would typically involve contract management by the U.S. Coast Guard to ensure delivery and compliance with terms.

Related Government Programs

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

Risk Flags

Limited competition may have led to higher costs.
Lack of transparency regarding the justification for limited competition.
Potential for cost overruns if not managed tightly despite fixed price.
Dependence on a single supplier for critical assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $159.2 million to AIRBUS US SPACE & DEFENSE INC. THIS IS A FIRM-FIXED PRICE CONTRACT FOR THE ACQUISITION OF FOUR (4) EADS CASA CN235-300M-MM01 AIRCRAFT, SPARE PROVISIONING AND GROUND SUPPORT EQUIPMENT, AND ASSOCIATED TRAINING.

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 $159.2 million.

What is the period of performance?

Start: 2010-10-01. End: 2013-05-21.

What was the justification for limiting competition on this significant aircraft acquisition?

The justification for limiting competition is not detailed in the provided data. Typically, sole-source or limited competition contracts are used when only one source can meet the requirement, due to unique capabilities, urgent need, or specific technological compatibility. Further investigation into the contract's justification documentation would be necessary to understand the specific reasons.

How does the per-unit cost compare to similar military or civilian transport aircraft acquisitions?

Without specific per-unit cost data or access to benchmarks for comparable EADS CASA CN235-300M-MM01 aircraft or similar platforms, a direct comparison is not possible. The total contract value of $159.25 million for four aircraft suggests a per-unit cost of approximately $39.8 million. This figure needs to be evaluated against market prices for similar capabilities, considering customization and support packages.

What is the expected operational effectiveness and lifespan of these newly acquired aircraft?

The expected operational effectiveness and lifespan are not detailed in the provided contract data. However, the acquisition of four new aircraft suggests a strategic investment intended to enhance the U.S. Coast Guard's capabilities for an extended period. The specific mission roles and expected service life would typically be outlined in the operational requirements and technical specifications associated with the contract.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSCG23-10-R-P9X001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Airbus U.S. Space & Defense, Inc. (UEI: 403284867)

Address: 1616 FORT MYER DR STE 1500, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $159,249,796

Exercised Options: $159,249,796

Current Obligation: $159,249,796

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline