DoD's $1.11B Lakota UH-72 Contractor Logistics Support Contract Awarded to Airbus
Contract Overview
Contract Amount: $1,110,959,063 ($1.1B)
Contractor: Airbus US Space & Defense Inc
Awarding Agency: Department of Defense
Start Date: 2017-01-01
End Date: 2024-09-30
Contract Duration: 2,829 days
Daily Burn Rate: $392.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF LAKOTA UH-72 CONTRACTOR LOGISTICS SUPPORT PARTS SUPPORT AND SUSTAINMENT CONTRACT WITH BASE YEAR PLUS FOUR 12 MONTH OPTION YEARS.
Place of Performance
Location: GRAND PRAIRIE, TARRANT County, TEXAS, 75052
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $1.11 billion to AIRBUS US SPACE & DEFENSE INC for work described as: IGF::OT::IGF LAKOTA UH-72 CONTRACTOR LOGISTICS SUPPORT PARTS SUPPORT AND SUSTAINMENT CONTRACT WITH BASE YEAR PLUS FOUR 12 MONTH OPTION YEARS. Key points: 1. The contract, valued at $1.11 billion, covers parts support and sustainment for Lakota UH-72 helicopters. 2. Awarded to Airbus US Space & Defense Inc., this represents a significant sole-source expenditure. 3. The firm-fixed-price contract spans over 7 years, indicating a long-term commitment. 4. The 'Other Support Activities for Air Transportation' sector sees substantial investment here.
Value Assessment
Rating: questionable
The contract's large value and sole-source nature raise questions about pricing competitiveness. Benchmarking against similar aviation sustainment contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about optimal use of taxpayer funds.
Public Impact
Ensures continued operational readiness for the Lakota UH-72 helicopter fleet. Supports critical aviation logistics and maintenance for a key military asset. Potential for cost overruns due to sole-source award impacting budget allocation for other defense needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- High contract value requires robust oversight to ensure value for money.
- Long duration may not adapt well to evolving technological needs.
Positive Signals
- Ensures specialized support for a specific aircraft type.
- Provides stable sustainment for critical aviation assets.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. Spending benchmarks in this area are highly variable, but large sustainment contracts are common for complex military platforms.
Small Business Impact
The awardee is Airbus US Space & Defense Inc., a large corporation. There is no indication of small business participation in this specific contract award, suggesting missed opportunities for small business engagement.
Oversight & Accountability
Given the sole-source nature and significant value, enhanced oversight is crucial. The Defense Contract Management Agency (DCMA) is responsible, but the lack of competition necessitates proactive monitoring of performance and costs.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- High contract value
- Lack of small business participation
- Long contract duration
- Potential for cost creep
Tags
other-support-activities-for-air-transpo, department-of-defense, tx, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.11 billion to AIRBUS US SPACE & DEFENSE INC. IGF::OT::IGF LAKOTA UH-72 CONTRACTOR LOGISTICS SUPPORT PARTS SUPPORT AND SUSTAINMENT CONTRACT WITH BASE YEAR PLUS FOUR 12 MONTH OPTION YEARS.
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 $1.11 billion.
What is the period of performance?
Start: 2017-01-01. End: 2024-09-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or lack of viable alternatives. Without detailed documentation, it's difficult to assess the fairness and reasonableness of the pricing. Agencies should provide clear rationale and potentially conduct independent cost analyses to validate pricing, especially for contracts exceeding $1 billion.
What are the potential risks associated with a long-term, sole-source contract for aviation logistics support?
Risks include escalating costs due to limited competition, potential for vendor lock-in, and reduced incentive for the contractor to innovate or improve efficiency. Over time, the government may pay a premium for services that could be obtained more affordably through competitive means. Furthermore, reliance on a single provider can create vulnerabilities if the contractor faces financial or operational difficulties.
How does this contract contribute to the overall operational effectiveness and readiness of the UH-72 Lakota fleet?
This contract is designed to ensure the continuous availability of parts, maintenance, and sustainment services critical for the operational readiness of the UH-72 Lakota fleet. By securing dedicated contractor logistics support, the DoD aims to minimize downtime and maintain the fleet's capability to perform its intended missions effectively.
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: W58RGZ14R0053
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1525 WILSON BLVD STE 500, ARLINGTON, VA, 22209
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $1,681,941,628
Exercised Options: $1,111,227,981
Current Obligation: $1,110,959,063
Actual Outlays: $8,081,690
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2017-01-01
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-09-18
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