DoD Spent $352M on Rotary Wing Passenger & Cargo Transport in Afghanistan via Columbia Helicopters
Contract Overview
Contract Amount: $352,777,535 ($352.8M)
Contractor: Columbia Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-07-01
End Date: 2017-09-30
Contract Duration: 2,283 days
Daily Burn Rate: $154.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: MOVEMENT OF PASSENGERS AND CARGO IN AFGHANISTAN - ROTARY WING.
Plain-Language Summary
Department of Defense obligated $352.8 million to COLUMBIA HELICOPTERS, INC. for work described as: MOVEMENT OF PASSENGERS AND CARGO IN AFGHANISTAN - ROTARY WING. Key points: 1. Significant expenditure on a critical logistical service for military operations. 2. Columbia Helicopters secured a large contract, indicating strong performance or limited alternatives. 3. Long contract duration (2011-2017) suggests sustained need and potential for price escalation. 4. Firm Fixed Price contract type offers cost certainty but may limit flexibility. 5. Focus on Afghanistan highlights specific geopolitical and operational context.
Value Assessment
Rating: good
The $352M expenditure over 6 years for specialized rotary-wing transport appears reasonable given the operational context in Afghanistan. Benchmarking is difficult without specific route and payload data, but the firm fixed price structure suggests a degree of cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specialized nature of rotary-wing transport in a conflict zone may limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds were used for essential military logistics, supporting operations in Afghanistan. The competitive award process aims to ensure value for money.
Public Impact
Ensured critical movement of personnel and supplies in a challenging operational environment. Supported U.S. military objectives and troop presence in Afghanistan. Provided employment and economic activity through the contracting company.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical instability in Afghanistan could impact operational costs and risks.
- Long-term reliance on a single provider might reduce future competitive pressure.
Positive Signals
- Firm Fixed Price contract provides budget predictability.
- Full and open competition was utilized for award.
Sector Analysis
This contract falls under air transportation services, specifically for specialized rotary-wing operations. Spending benchmarks for such niche services in active conflict zones are highly variable and context-dependent.
Small Business Impact
No indication of small business participation is provided in the data. The scale and nature of this contract likely favored larger, specialized aviation companies.
Oversight & Accountability
USTRANSCOM's oversight would be crucial to ensure contract compliance, performance standards, and cost management throughout the contract's lifecycle, especially given the extended duration and operational environment.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Operational risks in Afghanistan
- Potential for cost creep through contract modifications
- Limited visibility into specific performance metrics
- Long-term reliance on a single provider
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $352.8 million to COLUMBIA HELICOPTERS, INC.. MOVEMENT OF PASSENGERS AND CARGO IN AFGHANISTAN - ROTARY WING.
Who is the contractor on this award?
The obligated recipient is COLUMBIA HELICOPTERS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $352.8 million.
What is the period of performance?
Start: 2011-07-01. End: 2017-09-30.
What were the specific performance metrics and service level agreements tied to this contract, and how were they monitored?
Performance metrics likely included on-time delivery, flight safety, cargo/passenger capacity utilization, and operational availability of aircraft. USTRANSCOM would have established monitoring mechanisms, potentially through regular reporting, site visits, and performance reviews, to ensure Columbia Helicopters met these critical requirements throughout the contract's duration.
Were there any contract modifications or change orders issued during the 6-year period, and what was their impact on the total cost?
Given the extended duration and dynamic operational environment in Afghanistan, it's probable that modifications or change orders were issued to address evolving mission requirements, unforeseen circumstances, or adjustments in scope. Analyzing these changes would be essential to understand the final cost drivers and assess the flexibility of the firm fixed price structure.
How did the operational risks associated with flying in Afghanistan influence the contract's pricing and terms?
The inherent risks of operating in Afghanistan, including security threats, challenging terrain, and potential airspace restrictions, would have significantly influenced the contract's pricing. These risks likely factored into Columbia Helicopters' cost proposals, potentially leading to higher rates than comparable civilian operations, and may have necessitated specific risk mitigation clauses within the contract.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HTC71110RR001
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14452 ARNDT RD NE, AURORA, OR, 97002
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $352,777,535
Exercised Options: $352,777,535
Current Obligation: $352,777,535
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71111DR021
IDV Type: IDC
Timeline
Start Date: 2011-07-01
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2018-10-17
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