Interior Department awards $29.9M contract for flight services to Bristow LLC, emphasizing fixed-price adjustments

Contract Overview

Contract Amount: $29,949,947 ($29.9M)

Contractor: Bristow LLC

Awarding Agency: Department of the Interior

Start Date: 2022-09-23

End Date: 2023-09-30

Contract Duration: 372 days

Daily Burn Rate: $80.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Transportation

Official Description: BSEE FLIGHT SERVICES

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of the Interior obligated $29.9 million to BRISTOW LLC for work described as: BSEE FLIGHT SERVICES Key points: 1. Value for money assessed through fixed-price with economic price adjustment structure. 2. Competition dynamics indicate a full and open competition. 3. Risk indicators include reliance on a single award for a defined period. 4. Performance context is air transportation for departmental needs. 5. Sector positioning within the broader transportation and logistics industry. 6. Contract duration of 372 days suggests a medium-term operational need.

Value Assessment

Rating: good

The contract value of approximately $30 million for flight services appears reasonable given the scope of nonscheduled chartered passenger air transportation. Benchmarking against similar contracts for aerial services in remote or specialized operational areas would provide a more precise value assessment. The fixed-price with economic price adjustment (FPEPA) structure aims to balance cost certainty for the government with flexibility for the contractor to manage fluctuating operational costs, such as fuel prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competitive process. This approach is generally expected to yield competitive pricing and encourage innovation from potential offerors.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for receiving the best value through a wide range of offers and competitive pricing.

Public Impact

Benefits the Department of the Interior by providing essential air transportation. Services delivered include nonscheduled chartered passenger air transportation. Geographic impact is primarily in Louisiana (ST, SN). Workforce implications may include support staff and pilots employed by Bristow LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to economic price adjustment clause.
Dependence on a single contractor for critical flight services.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Fixed-price element provides a baseline cost control.
Contract duration aligns with specific operational needs.

Sector Analysis

This contract falls within the air transportation and logistics sector, specifically focusing on nonscheduled chartered passenger services. The market for such services is often characterized by specialized aircraft, experienced crews, and stringent safety regulations. Comparable spending benchmarks would involve analyzing other government contracts for similar aerial support, particularly in regions requiring flexible and on-demand air mobility for operational purposes.

Small Business Impact

The data indicates that small business participation (SB flag is false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small businesses through subcontracting opportunities is not explicitly detailed. However, the prime contractor, Bristow LLC, may engage small businesses for ancillary services, though this is not guaranteed by the contract terms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed operational performance data may not be publicly available.

Related Government Programs

Department of the Interior Aviation Management
Federal Aviation Administration (FAA) Regulations
Government-wide Aviation Services Contracts

Risk Flags

Potential for cost escalation due to economic price adjustment.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $29.9 million to BRISTOW LLC. BSEE FLIGHT SERVICES

Who is the contractor on this award?

The obligated recipient is BRISTOW LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2022-09-23. End: 2023-09-30.

What is Bristow LLC's track record with government contracts, particularly for flight services?

Bristow LLC is a well-established provider of aviation services, including offshore oil and gas transport, search and rescue, and government contracts. Their experience often includes operating complex rotary-wing and fixed-wing aircraft in challenging environments. Government contract history can be reviewed through federal procurement databases like SAM.gov, which would detail past awards, performance ratings, and any past performance issues. A review of their specific performance on similar Department of the Interior or other agency contracts would be necessary to fully assess their track record for this particular service.

How does the pricing structure (Fixed Price with Economic Price Adjustment) compare to other government flight service contracts?

The Fixed Price with Economic Price Adjustment (FPEPA) structure is common for contracts where significant input cost fluctuations (like fuel) are anticipated. It provides a baseline fixed price but allows for adjustments based on pre-defined economic indices, protecting the contractor from extreme cost volatility while offering some predictability for the government. Compared to pure Fixed Price (FP) contracts, FPEPA may result in slightly higher initial bids to account for potential adjustments. Conversely, Cost Plus contracts offer less price certainty for the government. The appropriateness of FPEPA depends heavily on the stability of the market for the specific services and materials involved.

What are the primary risks associated with this specific flight services contract?

Key risks include operational disruptions due to weather, mechanical issues, or pilot availability, which could impact service continuity. The economic price adjustment clause introduces a risk of cost escalation for the government if fuel prices or other economic factors rise significantly. Dependence on a single awardee for a critical service like flight operations also presents a risk if the contractor faces financial difficulties or performance issues. Furthermore, regulatory changes in aviation safety or operations could necessitate contract modifications or impact service delivery.

How effective is the 'full and open competition' process in ensuring competitive pricing for specialized air transportation?

Full and open competition is designed to maximize the pool of potential offerors, thereby increasing the likelihood of competitive pricing. For specialized air transportation, its effectiveness depends on the number of qualified vendors capable of meeting the specific requirements (aircraft type, operational range, safety certifications). If the market for such specialized services is limited, even full and open competition might result in fewer bids than desired. However, it remains the preferred method for ensuring fair opportunity and driving down costs compared to sole-source or limited competition scenarios.

What is the historical spending trend for similar flight services within the Department of the Interior?

Analyzing historical spending trends for similar flight services within the Department of the Interior would require accessing historical contract databases. This would involve identifying previous contracts for nonscheduled chartered passenger air transportation, potentially by geographic region or specific operational needs. Comparing the annual or total spending over several fiscal years can reveal patterns of increasing, decreasing, or stable demand for these services. Such analysis helps in budgeting, forecasting future needs, and identifying potential cost-saving opportunities or areas where spending may have become excessive.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bristow Group Inc.

Address: 600 AIRPORT BLVD, LAKE CHARLES, LA, 70607

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

Financial Breakdown

Contract Ceiling: $29,949,947

Exercised Options: $29,949,947

Current Obligation: $29,949,947

Actual Outlays: $29,949,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D8021D0018

IDV Type: IDC

Timeline