DoD's $40.8M rotary wing airlift contract awarded to Columbia Helicopters for Afghanistan operations
Contract Overview
Contract Amount: $40,786,981 ($40.8M)
Contractor: Columbia Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-06-21
End Date: 2017-09-30
Contract Duration: 466 days
Daily Burn Rate: $87.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF ROTARY WING CARGO AND PASSENGER AIRLIFT SERVICES IN AFGHANISTAN.
Plain-Language Summary
Department of Defense obligated $40.8 million to COLUMBIA HELICOPTERS, INC. for work described as: IGF::OT::IGF ROTARY WING CARGO AND PASSENGER AIRLIFT SERVICES IN AFGHANISTAN. Key points: 1. Contract awarded for essential cargo and passenger airlift services in a high-risk operational environment. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of over a year indicates a significant operational requirement. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Services were critical for supporting military operations in Afghanistan. 6. The contract was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.
Value Assessment
Rating: good
The contract's value of approximately $40.8 million over its period of performance appears reasonable for specialized rotary-wing airlift services in a complex operational theater like Afghanistan. Benchmarking against similar contracts for military airlift in austere environments is challenging due to unique mission requirements and risk factors. However, the fixed-price nature of the contract provides cost certainty for the government, and the competitive award process likely contributed to achieving a fair market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized service. While more bidders could potentially drive prices lower, the nature of rotary-wing airlift in a conflict zone may limit the number of qualified and willing contractors.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, which can lead to better pricing and service quality.
Public Impact
Beneficiaries include U.S. military personnel and operations in Afghanistan requiring logistical support. Services delivered include essential cargo and passenger transportation via rotary-wing aircraft. Geographic impact is concentrated within Afghanistan, supporting military objectives. Workforce implications include employment for pilots, maintenance crews, and support staff for Columbia Helicopters.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Operational risks inherent in providing airlift services in a conflict zone.
- Potential for cost overruns if unforeseen operational challenges arise, despite fixed-price contract.
- Dependence on a single contractor for critical logistical support in a remote theater.
Positive Signals
- Awarded through full and open competition, suggesting a fair process.
- Fixed-price contract type provides cost predictability.
- Contractor has experience in providing similar services in challenging environments.
Sector Analysis
Rotary-wing airlift services, particularly in support of military operations, represent a niche but critical segment within the broader aerospace and defense sector. This contract falls under the category of specialized transportation and logistics. The market for such services is often characterized by high barriers to entry due to capital investment in aircraft, specialized training, and regulatory compliance. Comparable spending benchmarks are difficult to establish precisely due to the unique operational context and mission-specific requirements.
Small Business Impact
This contract was not specifically set aside for small businesses, and the awardee, Columbia Helicopters, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though large prime contractors often utilize small businesses for various support services.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the U.S. Transportation Command (USTRANSCOM) and potentially the Department of Defense's Inspector General. Mechanisms would include performance monitoring, delivery tracking, and financial audits. Transparency is generally maintained through contract award databases like FPDS. The IG's office would investigate any allegations of fraud, waste, or abuse.
Related Government Programs
- Rotary Wing Aircraft Maintenance
- Air Transportation Services
- Logistics and Support Services
- Afghanistan Security Assistance
Risk Flags
- Operational Risk in Conflict Zone
- Logistical Complexity
- Dependence on Specialized Assets
Tags
defense, department-of-defense, ustranscom, rotary-wing-airlift, cargo-transportation, passenger-transportation, afghanistan, full-and-open-competition, delivery-order, firm-fixed-price, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.8 million to COLUMBIA HELICOPTERS, INC.. IGF::OT::IGF ROTARY WING CARGO AND PASSENGER AIRLIFT SERVICES IN AFGHANISTAN.
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 $40.8 million.
What is the period of performance?
Start: 2016-06-21. End: 2017-09-30.
What is Columbia Helicopters' track record with similar government contracts, particularly in high-risk environments?
Columbia Helicopters has a significant history of performing complex aviation services for government agencies, including the Department of Defense. They have extensive experience in providing rotary-wing cargo and passenger airlift, often in challenging and remote locations, including past operations in Afghanistan. Their track record generally indicates a capability to meet demanding operational requirements. However, a detailed review of past performance evaluations, any contract disputes, or termination for default would be necessary for a comprehensive assessment of their specific track record on this contract and similar ones.
How does the awarded price compare to market rates for similar rotary-wing airlift services in comparable theaters?
Benchmarking the exact price is difficult without access to proprietary pricing data and specific operational details. However, the contract's total value of approximately $40.8 million over its period suggests a significant cost per flight hour or per mission. Rotary-wing airlift in austere, high-risk environments is inherently more expensive than standard commercial operations due to factors like increased insurance, specialized crew training, maintenance in remote locations, and heightened operational risks. The fact that it was awarded under full and open competition with two bidders provides some assurance that the price was competitive within the available market for such specialized services.
What were the primary risks identified for this contract, and how were they mitigated?
Key risks for this contract likely included operational safety in a hostile environment, aircraft availability and maintenance, logistical challenges in remote areas, and potential geopolitical instability affecting mission execution. Mitigation strategies would have included stringent safety protocols, robust maintenance schedules, contingency planning for diversions or cancellations, and potentially security escorts for aircraft and personnel. The fixed-price contract structure also shifts some financial risk to the contractor, incentivizing them to manage operational costs effectively.
How effective was this contract in supporting the overall mission objectives in Afghanistan?
The effectiveness of this contract is directly tied to its ability to provide reliable and timely cargo and passenger airlift, which are critical enablers for military operations. Assuming the services were delivered as contracted, this contract likely played a vital role in maintaining operational readiness, facilitating troop movement, and ensuring the supply chain remained intact within Afghanistan. Without specific performance metrics or mission outcome data, a definitive assessment of 'effectiveness' is challenging, but the contract's existence points to a recognized need for these services to achieve strategic goals.
What are the historical spending patterns for similar airlift services by the Department of Defense in Afghanistan?
The Department of Defense has historically spent billions of dollars on various forms of transportation and logistics support in Afghanistan over two decades. This includes fixed-wing, rotary-wing, and ground transportation. Spending on airlift services, in particular, has fluctuated based on troop levels, operational tempo, and the security situation. Contracts for specialized services like rotary-wing airlift in such a complex environment are typically substantial due to the high operational costs and risks involved. Analyzing historical spending data would reveal trends in contract values, durations, and the number of contractors utilized over time.
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: 2
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: $40,786,981
Exercised Options: $40,786,981
Current Obligation: $40,786,981
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: 2016-06-21
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2018-03-21
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