Navy's $17.3M H-72A Aircraft Logistics Contract Awarded to Airbus Without Competition
Contract Overview
Contract Amount: $17,308,467 ($17.3M)
Contractor: Airbus US Space & Defense Inc
Awarding Agency: Department of Defense
Start Date: 2009-07-16
End Date: 2015-08-14
Contract Duration: 2,220 days
Daily Burn Rate: $7.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVY TEST PILOT SCHOOL H-72A AIRCRAFT PERFORMANCE BASED LOGISTICS
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.3 million to AIRBUS US SPACE & DEFENSE INC for work described as: NAVY TEST PILOT SCHOOL H-72A AIRCRAFT PERFORMANCE BASED LOGISTICS Key points: 1. Significant spending on aircraft logistics for the Navy's Test Pilot School. 2. Sole-source award to Airbus US Space & Defense Inc. raises competition concerns. 3. Contract duration of 2220 days suggests long-term reliance on this provider. 4. The 'Other Support Activities for Air Transportation' sector is critical for aviation readiness.
Value Assessment
Rating: questionable
The contract value of $17.3M over approximately 6 years for aircraft logistics is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar performance-based logistics contracts for specialized aircraft.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Airbus US Space & Defense Inc. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this significant contract may result in taxpayers paying a premium for aircraft logistics services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Navy's Test Pilot School relies on this contract for critical aircraft operations. Potential for reduced innovation and service improvements without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Performance-based logistics contract structure
Sector Analysis
This contract falls within the Defense sector, specifically supporting aviation operations. Spending benchmarks for performance-based logistics in defense aviation can vary widely, but sole-source awards often deviate from cost-efficiency norms.
Small Business Impact
The data does not indicate any involvement of small businesses in this contract, suggesting a focus on large, established aerospace corporations.
Oversight & Accountability
The 'sole-source' nature of this award warrants scrutiny from oversight bodies to ensure the government received the best possible value and that the justification for not competing was sound.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- No small business participation
Tags
other-support-activities-for-air-transpo, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.3 million to AIRBUS US SPACE & DEFENSE INC. NAVY TEST PILOT SCHOOL H-72A AIRCRAFT PERFORMANCE BASED LOGISTICS
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 Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $17.3 million.
What is the period of performance?
Start: 2009-07-16. End: 2015-08-14.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where competition is not feasible. Without further documentation, it's impossible to determine the specific rationale. However, the absence of competition inherently limits the government's ability to explore alternative solutions that might offer better value or performance.
How does the per-unit cost or overall contract value compare to similar performance-based logistics contracts for comparable aircraft in the defense sector?
Benchmarking this contract's value is challenging without access to detailed cost breakdowns and comparisons with similar contracts. However, sole-source awards are generally expected to be less cost-effective than competitively bid contracts. A thorough review by an independent cost analyst would be necessary to determine if the pricing is fair and reasonable relative to market standards.
What mechanisms are in place to ensure the quality and effectiveness of the 'Other Support Activities for Air Transportation' provided under this contract?
Performance-based logistics contracts typically include metrics and service level agreements (SLAs) to ensure quality and effectiveness. The Department of Defense, through agencies like the Defense Contract Management Agency, is responsible for monitoring contractor performance against these terms. However, the effectiveness of these oversight mechanisms can be influenced by the contract's specific terms and the level of detail in performance standards.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001909R0203
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,828,760
Exercised Options: $17,793,636
Current Obligation: $17,308,467
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2009-07-16
Current End Date: 2015-08-14
Potential End Date: 2015-08-14 00:00:00
Last Modified: 2015-10-16
More Contracts from Airbus US Space & Defense Inc
- Light Utility Helicopter — $3.3B (Department of Defense)
- This Contract IS for the Firm-Fixed Price UH-72 Lakota Helicopter Contractor Logistics Support and Engineering Services With a Base Year (6 Months), Four One-Year Options, and a SIX Month Extension Under FAR Clause 52.217-8 — $1.3B (Department of Defense)
- Lakota UH-72 Contractor Logistics Support Parts Support and Sustainment Contract With Base Year Plus Four 12 Month Option Years — $1.1B (Department of Defense)
- Production and Delivery of HC-144A Maritime Patrol Aircraft (MPA) for the United States Coast Guard — $274.6M (Department of Homeland Security)
- 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 — $159.2M (Department of Homeland Security)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)