DHS awards $20.5M firm-fixed-price contract for Mexican Navy aircraft logistics support

Contract Overview

Contract Amount: $20,532,699 ($20.5M)

Contractor: Airbus US Space & Defense Inc

Awarding Agency: Department of Homeland Security

Start Date: 2013-09-04

End Date: 2017-09-30

Contract Duration: 1,487 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS A FIRM-FIXED PRICE CONTRACT PROVIDING CONTRACTOR LOGISTICS SUPPORT SERVICE (CLSS) TO SUPPORT FOUR (4) MEXICAN NAVY (SEMAR) CN-235-300M-MM01 AIRCRAFT (SERIAL NUMBERS 191, 204, 205, 206). THE FOREIGN MILITARY SALES (FMS) CASE IDENTIFIER FOR THIS CONTRACT IS MX-P-SCF.

Plain-Language Summary

Department of Homeland Security obligated $20.5 million to AIRBUS US SPACE & DEFENSE INC for work described as: THIS IS A FIRM-FIXED PRICE CONTRACT PROVIDING CONTRACTOR LOGISTICS SUPPORT SERVICE (CLSS) TO SUPPORT FOUR (4) MEXICAN NAVY (SEMAR) CN-235-300M-MM01 AIRCRAFT (SERIAL NUMBERS 191, 204, 205, 206). THE FOREIGN MILITARY SALES (FMS) CASE IDENTIFIER FOR THIS CONTRACT IS MX-P-SCF. Key points: 1. Contract supports four Mexican Navy CN-235-300M-MM01 aircraft. 2. Logistics support services provided under a firm-fixed-price agreement. 3. Foreign Military Sales case identifier MX-P-SCF is associated with this contract. 4. No competition was available for this contract award.

Value Assessment

Rating: fair

The contract was awarded at a firm-fixed price, which limits the government's exposure to cost overruns. However, without a competitive bidding process, it is difficult to definitively assess if the price represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This lack of competition may have impacted the government's ability to secure the most favorable pricing through market forces.

Taxpayer Impact: Taxpayer funds are used to support foreign military sales, which can be a sensitive area. The value of the contract suggests a significant investment in maintaining foreign aircraft.

Public Impact

Supports international military cooperation and defense capabilities. Ensures operational readiness of allied aircraft. Facilitates U.S. foreign policy objectives through military assistance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Foreign military sales

Positive Signals

Firm-fixed-price contract type
Defined period of performance

Sector Analysis

This contract falls under Other Support Activities for Air Transportation, a sector that involves specialized services for aircraft maintenance and logistics. Benchmarks for this specific niche are not readily available, but large-scale support contracts can range from millions to hundreds of millions.

Small Business Impact

The contract was awarded to AIRBUS US SPACE & DEFENSE INC, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The contract was awarded by the U.S. Coast Guard under the Department of Homeland Security. Oversight would typically involve contract management by the procuring agency to ensure performance and adherence to terms.

Related Government Programs

Other Support Activities for Air Transportation
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Limited competition may lead to higher costs.
Foreign military sales can be subject to political and economic shifts.
Dependence on a single contractor for critical support.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.5 million to AIRBUS US SPACE & DEFENSE INC. THIS IS A FIRM-FIXED PRICE CONTRACT PROVIDING CONTRACTOR LOGISTICS SUPPORT SERVICE (CLSS) TO SUPPORT FOUR (4) MEXICAN NAVY (SEMAR) CN-235-300M-MM01 AIRCRAFT (SERIAL NUMBERS 191, 204, 205, 206). THE FOREIGN MILITARY SALES (FMS) CASE IDENTIFIER FOR THIS CONTRACT IS MX-P-SCF.

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 $20.5 million.

What is the period of performance?

Start: 2013-09-04. End: 2017-09-30.

What was the justification for the limited competition for this contract?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. This typically suggests a sole-source justification, such as a unique capability, urgent need, or a requirement tied to a specific existing system where only one vendor can provide the necessary support. Further details on the specific justification would be needed for a complete understanding.

What are the potential risks associated with providing logistics support for foreign military aircraft?

Risks include geopolitical instability affecting the recipient nation, potential for technology transfer concerns, differing maintenance standards, and the complexity of managing support across international borders. Ensuring compliance with FMS regulations and maintaining effective communication channels are also critical risk mitigation factors.

How does this contract contribute to the overall effectiveness of the Mexican Navy's operations?

By providing contractor logistics support services, this contract directly contributes to the operational readiness and effectiveness of the Mexican Navy's CN-235-300M-MM01 aircraft. Ensuring these aircraft are well-maintained and operational allows the Mexican Navy to perform its missions, which may include maritime patrol, search and rescue, and interdiction.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSCG23-12-R-P69X03

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

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

Financial Breakdown

Contract Ceiling: $82,125,186

Exercised Options: $42,872,161

Current Obligation: $20,532,699

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline