DHS Coast Guard awards $23.4M contract for air transportation support, highlighting a 544-day duration

Contract Overview

Contract Amount: $23,437,961 ($23.4M)

Contractor: DRS C3 & Aviation Company

Awarding Agency: Department of Homeland Security

Start Date: 2011-12-22

End Date: 2013-06-18

Contract Duration: 544 days

Daily Burn Rate: $43.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INITIAL FUNDING FOR OPTION YEAR TWO OF THE CONTRACT FOR SUPPORT FOR THE PERIOD OF 12/19/11 THROUGH 01/06/2012.

Place of Performance

Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909, UNITED STATES OF AMERICA

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.4 million to DRS C3 & AVIATION COMPANY for work described as: INITIAL FUNDING FOR OPTION YEAR TWO OF THE CONTRACT FOR SUPPORT FOR THE PERIOD OF 12/19/11 THROUGH 01/06/2012. Key points: 1. The contract's value appears reasonable given the 544-day performance period, suggesting a daily rate of approximately $43,000. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The award was made by the Department of Homeland Security, specifically the U.S. Coast Guard. 5. The North Carolina location of the contractor may have implications for local economic impact. 6. The contract is categorized under 'Other Support Activities for Air Transportation'.

Value Assessment

Rating: good

The contract value of $23.4 million over 544 days equates to a daily rate of approximately $43,000. This rate needs to be benchmarked against similar support contracts for air transportation services to fully assess value for money. Without direct comparisons, it's difficult to definitively state if this is excellent or fair, but it falls within a plausible range for specialized aviation support.

Cost Per Unit: Approximately $43,084 per day (based on total value and duration).

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This method is generally preferred as it allows for the widest possible range of potential contractors to compete, theoretically leading to better pricing and service offerings. The number of bidders is not specified, which would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

This contract supports the U.S. Coast Guard's aviation operations, contributing to its maritime safety and security missions. The services provided are crucial for maintaining the operational readiness of Coast Guard aircraft. The geographic impact is primarily related to the Coast Guard's operational areas, which are extensive in maritime environments. The contract supports the workforce employed by DRS C3 & Aviation Company, potentially including pilots, mechanics, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess contractor performance beyond contract completion.
The 'Other Support Activities for Air Transportation' category is broad and could encompass a wide range of services, necessitating a deeper dive into the SOW for precise understanding.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Awarded under full and open competition, indicating a potentially robust selection process.
The contractor, DRS C3 & Aviation Company, has a history of federal contracts, suggesting some level of established capability.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on support services for aviation. The market for aviation support services is substantial, encompassing maintenance, logistics, training, and operational support for both military and civilian aircraft. Contracts like this are essential for maintaining the operational readiness of government aviation assets, such as those operated by the U.S. Coast Guard.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or goals, it's difficult to assess the direct benefit to the small business ecosystem from this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

U.S. Coast Guard Aviation Logistics
Department of Homeland Security Aviation Support
Federal Aviation Support Services
Aerospace Maintenance and Repair Contracts

Risk Flags

Potential for scope creep if SOW is not precisely defined for FFP.
Need for detailed benchmarking to confirm value for money.
Limited insight into specific performance metrics from award data alone.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.4 million to DRS C3 & AVIATION COMPANY. INITIAL FUNDING FOR OPTION YEAR TWO OF THE CONTRACT FOR SUPPORT FOR THE PERIOD OF 12/19/11 THROUGH 01/06/2012.

Who is the contractor on this award?

The obligated recipient is DRS C3 & AVIATION COMPANY.

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 $23.4 million.

What is the period of performance?

Start: 2011-12-22. End: 2013-06-18.

What specific services are included under 'Other Support Activities for Air Transportation' for this contract?

The provided data offers a high-level categorization. 'Other Support Activities for Air Transportation' is a broad NAICS code (488190) that can encompass a variety of services beyond direct flight operations. These could include aircraft maintenance and repair, ground support, air traffic control support, logistics, training, or specialized technical services. To understand the precise scope, one would need to review the contract's Statement of Work (SOW) and any associated task orders. This level of detail is crucial for assessing the value and necessity of the awarded funds.

How does the daily rate of approximately $43,084 compare to industry benchmarks for similar aviation support services?

Benchmarking this daily rate requires access to detailed cost data for comparable contracts within the federal government or the commercial sector. Factors influencing this rate include the type of aircraft supported, the complexity of the services (e.g., routine maintenance vs. specialized avionics repair), labor costs, overhead, and profit margins. Without specific comparable contract data, it's challenging to definitively state if $43,084 per day represents excellent, fair, or questionable value. A thorough analysis would involve comparing rates for contracts with similar service scopes, durations, and geographic locations.

What is the track record of DRS C3 & Aviation Company with federal contracts, particularly within the Department of Homeland Security?

DRS C3 & Aviation Company, as a federal contractor, likely has a history of performance on various government contracts. Accessing historical contract data (e.g., through FPDS or SAM.gov) would reveal the types of contracts they have held, their performance ratings (if available), and their overall award history. A review of past performance, especially with DHS or similar agencies, would provide insights into their reliability, quality of service, and ability to manage complex projects. Positive past performance generally reduces perceived risk for new contract awards.

What are the potential risks associated with a Firm Fixed Price (FFP) contract for these types of services?

While FFP contracts are generally favored for shifting cost risk to the contractor, they can introduce other risks. If the scope of work is not precisely defined, the contractor may face unforeseen costs, potentially leading to claims for equitable adjustments or reduced quality to maintain profitability. Conversely, if the scope is too narrow, the government might not receive all necessary services. For complex aviation support, ensuring the SOW is comprehensive and anticipates potential issues is critical to mitigating risks under an FFP structure.

What is the historical spending pattern for 'Other Support Activities for Air Transportation' by the U.S. Coast Guard or DHS?

Analyzing historical spending patterns for this specific NAICS code by the U.S. Coast Guard or DHS would provide context for the $23.4 million award. This involves examining contract databases to identify trends in contract values, durations, and the number of awards over several fiscal years. Understanding whether this award represents an increase, decrease, or stable level of spending can indicate shifts in program priorities, operational tempo, or contracting strategies. It also helps in identifying potential consolidation or fragmentation of services.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 400 PROFEMDIONAL DR STE 400, GAITHERSBURG, MD, 20879

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: $23,437,961

Exercised Options: $23,437,961

Current Obligation: $23,437,961

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG3810FS00004

IDV Type: IDC

Timeline