DoD's $90.7M rotary wing airlift contract awarded to Construction Helicopters, Inc. for Afghanistan services

Contract Overview

Contract Amount: $90,767,731 ($90.8M)

Contractor: Construction Helicopters, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-08-11

End Date: 2014-10-31

Contract Duration: 1,177 days

Daily Burn Rate: $77.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AFGHANISTAN ROTARY WING PASSENGER AND CARGO AIRLIFT SERVICES.

Plain-Language Summary

Department of Defense obligated $90.8 million to CONSTRUCTION HELICOPTERS, INC. for work described as: AFGHANISTAN ROTARY WING PASSENGER AND CARGO AIRLIFT SERVICES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1177 days indicates a significant, long-term operational need. 3. The firm-fixed-price structure aims to control costs for the government. 4. Awarded by USTRANSCOM, highlighting its role in logistical support for military operations. 5. The North American Industry Classification System (NAICS) code 481211 points to nonscheduled chartered passenger air transportation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service costs in the region. The total award amount of $90.7 million over approximately three years suggests a substantial investment in critical airlift capabilities. The firm-fixed-price contract type is generally favorable for cost control, but the ultimate value depends on the efficiency and effectiveness of the services provided by Construction Helicopters, Inc. Further analysis would require details on the number of flight hours, passenger/cargo capacity utilized, and operational uptime.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bids suggests a healthy level of interest and competition for this requirement. A competitive process like this is generally expected to drive prices down and encourage the most capable offerors to participate, potentially leading to better value for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best pricing and performance.

Public Impact

Provides essential rotary wing passenger and cargo airlift services in Afghanistan. Supports U.S. military operations and logistical needs within the operational theater. Facilitates the movement of personnel and equipment, crucial for mission success. Potentially impacts local economies through employment and resource utilization in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could pose operational risks and impact service delivery.
Reliance on a single contractor for critical airlift services may present supply chain or performance risks.
Firm-fixed-price contracts can sometimes lead to contractor cost-cutting if not adequately monitored, potentially affecting quality.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The firm-fixed-price contract type provides cost certainty for the government.
The contractor, Construction Helicopters, Inc., has secured a significant contract, suggesting established capabilities.
The contract duration implies a stable, long-term requirement being met.

Sector Analysis

The aerospace and defense sector, particularly aviation services, is characterized by high capital investment, stringent regulatory requirements, and complex operational demands. This contract falls within the nonscheduled chartered air transportation sub-sector, which is vital for supporting specialized logistical needs, especially in remote or challenging environments like Afghanistan. The market often involves a mix of large established players and specialized service providers. Government contracts in this area are typically awarded through competitive processes to ensure value and reliability.

Small Business Impact

This contract was not specifically set aside for small businesses, and the award to Construction Helicopters, Inc. does not indicate direct small business participation as the prime contractor. There is no information provided on subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless Construction Helicopters, Inc. actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of Defense and USTRANSCOM. Mechanisms likely include contract performance monitoring, regular reporting requirements from the contractor, and potentially site visits or inspections. The firm-fixed-price nature necessitates oversight focused on performance delivery and adherence to contract terms rather than cost auditing. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Afghanistan Security Forces Fund
Logistics Civil Augmentation Program (LOGCAP)
Expeditionary Combat Support Services
Military Sealift Command Contracts

Risk Flags

Operational environment risks in Afghanistan
Contractor performance reliability
Supply chain and maintenance challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.8 million to CONSTRUCTION HELICOPTERS, INC.. AFGHANISTAN ROTARY WING PASSENGER AND CARGO AIRLIFT SERVICES.

Who is the contractor on this award?

The obligated recipient is CONSTRUCTION HELICOPTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $90.8 million.

What is the period of performance?

Start: 2011-08-11. End: 2014-10-31.

What is the track record of Construction Helicopters, Inc. in performing similar government contracts, particularly in high-risk environments?

Assessing Construction Helicopters, Inc.'s track record requires a review of their past performance on federal contracts. While this award indicates they were deemed capable, specific details on past performance ratings, any contract disputes, or successful completion of similar airlift operations in challenging theaters like Afghanistan are crucial. A deeper dive into their contract history, including any awards or penalties, would provide a clearer picture of their reliability and expertise in delivering complex aviation services under demanding conditions. Without this specific data, it's difficult to definitively assess their suitability beyond the fact they won this competitive bid.

How does the per-flight-hour cost of this contract compare to industry benchmarks for similar rotary wing services in Afghanistan during the contract period?

Determining the per-flight-hour cost benchmark requires access to the contract's detailed pricing structure and comparable market data for rotary wing airlift in Afghanistan between 2011 and 2014. This contract's total value of $90.7 million over 1177 days (approximately 3.2 years) suggests an average annual value of roughly $28.3 million. If the contract specified a certain number of flight hours per year, a rough per-hour cost could be estimated. However, without knowing the total flight hours procured or the specific rates for different helicopter types and missions (e.g., passenger vs. cargo, day vs. night), a precise comparison to market rates is not feasible. Such data is often proprietary or requires specialized databases for analysis.

What were the primary risk factors identified during the solicitation process, and how were they mitigated?

The primary risk factors for a contract of this nature in Afghanistan would likely include operational risks (e.g., security threats, weather, maintenance in austere conditions), logistical risks (e.g., fuel supply, spare parts availability), and performance risks (e.g., meeting flight schedules, aircraft availability). Given the full and open competition, the solicitation likely detailed these risks and required offerors to propose mitigation strategies. The government's evaluation would have assessed the adequacy of these proposed mitigations. Specific details on identified risks and their mitigation plans are typically found within the solicitation documents and evaluation reports, which are not publicly available in this context.

What specific performance metrics were included in the contract, and how was contractor performance measured against them?

Performance metrics for airlift services typically include on-time performance (meeting scheduled departures/arrivals), aircraft availability rates, mission completion rates, safety incident rates, and response times for unscheduled or emergency requests. The contract likely stipulated specific targets for these metrics, with potential incentives for exceeding them or penalties for failing to meet minimum standards. The government's quality assurance personnel would be responsible for monitoring and reporting on the contractor's performance against these metrics throughout the contract duration. Detailed performance reports are usually internal government documents.

How has USTRANSCOM's spending on rotary wing airlift services evolved before and after this contract award?

Analyzing USTRANSCOM's spending trends on rotary wing airlift before and after this $90.7 million contract (2011-2014) would require access to historical federal spending databases. This specific contract represents a significant investment during its term. Understanding the broader trend would involve examining whether USTRANSCOM increased, decreased, or maintained its overall spending on similar services in subsequent years. Factors influencing these trends could include changes in operational tempo in Afghanistan, shifts in military strategy, the introduction of new technologies, or changes in contracting approaches (e.g., consolidating requirements, moving to different contract types).

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3679 BOWEN RD, HOWELL, MI, 48855

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

Financial Breakdown

Contract Ceiling: $125,595,331

Exercised Options: $90,767,731

Current Obligation: $90,767,731

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71111DR022

IDV Type: IDC

Timeline