Interior Department awards $29.6M for helicopter services, with Bristow LLC securing the contract

Contract Overview

Contract Amount: $29,586,922 ($29.6M)

Contractor: Bristow LLC

Awarding Agency: Department of the Interior

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $81.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: FY24 BSEE HELICOPTER SERVICES

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of the Interior obligated $29.6 million to BRISTOW LLC for work described as: FY24 BSEE HELICOPTER SERVICES Key points: 1. Contract value represents a significant investment in essential aviation support. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract with economic price adjustment introduces some cost fluctuation risk. 4. The contract duration of one year allows for flexibility and potential future re-competition. 5. Geographic focus on Louisiana indicates specific operational needs in that region. 6. The North American Industry Classification System (NAICS) code 481211 points to specialized air transport services.

Value Assessment

Rating: good

The contract value of approximately $29.6 million for one year of helicopter services appears reasonable given the specialized nature of nonscheduled chartered passenger air transportation. Benchmarking against similar contracts for aviation support in remote or operational areas would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment structure aims to balance cost certainty with market fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The specific number of bidders is not provided, but the method of competition suggests a robust process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, maximizing the value of federal dollars.

Public Impact

The Bureau of Safety and Environmental Enforcement (BSEE) within the Department of the Interior is the primary beneficiary, utilizing these services for operational oversight. Services include nonscheduled chartered passenger air transportation, crucial for accessing remote or offshore locations. The contract has a geographic impact primarily focused on Louisiana, suggesting operations in the Gulf of Mexico region. The contract supports the workforce within the aviation sector, including pilots, maintenance crews, and support staff.

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 aviation services during the contract period.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract provides essential services for regulatory oversight and safety in a key region.
Fixed-price element provides some cost control for the government.

Sector Analysis

The aviation services sector is highly specialized, with significant barriers to entry due to regulatory requirements, capital investment, and expertise. Nonscheduled chartered passenger air transportation, as indicated by NAICS code 481211, is a niche within this sector, often serving government agencies for specific operational needs. Spending in this area is driven by the unique logistical challenges of accessing certain environments, such as offshore platforms or remote land areas, where scheduled commercial services are insufficient.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Bristow LLC, may engage small businesses as subcontractors, contributing to the broader small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers responsible for BSEE operations. Accountability measures are embedded within the contract's performance standards and delivery requirements. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of the Interior may conduct audits or investigations related to contract performance and financial integrity.

Related Government Programs

BSEE Helicopter Services
Department of the Interior Aviation Support
Offshore Operations Support
Nonscheduled Air Charter Services

Risk Flags

Economic Price Adjustment (EPA) Clause
Potential for Service Disruptions
Dependence on Single Provider

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $29.6 million to BRISTOW LLC. FY24 BSEE HELICOPTER 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 $29.6 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What is Bristow LLC's track record with federal contracts, particularly for aviation services?

Bristow LLC has a significant history of performing federal contracts, primarily within the aviation services sector. They are a well-established provider of helicopter transportation for various government agencies, including defense, law enforcement, and civilian operations. Their experience often involves supporting complex missions in challenging environments, such as offshore oil and gas support, search and rescue, and troop transport. Federal procurement data indicates numerous awards to Bristow across different agencies and contract types. While specific performance metrics for each contract are not always publicly detailed, their continued success in winning competitive bids suggests a generally positive track record in meeting government requirements. However, as with any large contractor, past performance reviews and any documented issues or disputes would provide a more nuanced understanding of their reliability and effectiveness.

How does the awarded price compare to market rates for similar helicopter services?

Benchmarking the awarded price of approximately $29.6 million for one year of helicopter services against market rates requires detailed analysis of specific service parameters, aircraft types, operational tempo, and geographic location. Helicopter charter services are highly variable in cost, influenced by factors such as flight hours, passenger capacity, specialized equipment (e.g., hoist, surveillance gear), and the remoteness or difficulty of the operating environment. Given that this contract is for nonscheduled chartered passenger air transportation, likely supporting operational oversight in regions like Louisiana (potentially offshore), it suggests a need for specialized aircraft and potentially 24/7 availability. Without specific details on the required aircraft models, flight hours, and mission profiles, a precise comparison is challenging. However, the fixed-price with economic price adjustment structure suggests an attempt to align costs with market realities while providing some predictability. A comprehensive value-for-money assessment would involve comparing this contract's unit costs (e.g., per flight hour, per passenger mile) against publicly available data for similar government or commercial charters in comparable operational contexts.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns due to the economic price adjustment (EPA) clause, which allows for adjustments based on fluctuations in fuel and labor costs. This introduces an element of financial uncertainty for the government. Another risk is operational disruption if the contractor experiences equipment failures, pilot shortages, or other service delivery issues, which could impact the critical functions of the Bureau of Safety and Environmental Enforcement (BSEE). Furthermore, dependence on a single provider for a year, even with competition, carries inherent risks. Mitigation strategies likely include robust performance monitoring by the contracting officer, clear service level agreements (SLAs) within the contract, and potentially contingency planning by BSEE for alternative support if needed. The EPA clause itself is a mitigation tool, designed to ensure the contractor can maintain service levels by accounting for unavoidable cost increases, thereby preventing service withdrawal due to market volatility.

How effective is full and open competition in ensuring value for taxpayer money in specialized aviation contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, even in specialized sectors like aviation services. By allowing all responsible sources to compete, the government maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This process drives down costs as contractors vie for the award. In the context of specialized aviation, where unique capabilities and certifications are required, full and open competition ensures that a wide range of qualified providers can present their offerings. This prevents market concentration and reduces the risk of awarding contracts at inflated prices due to limited options. While specialized requirements might narrow the field of eligible bidders compared to more common services, the principle of broad competition remains crucial for achieving best value and fostering a healthy, competitive market that ultimately benefits the government and taxpayers.

What is the historical spending pattern for helicopter services by the Department of the Interior or BSEE?

Analyzing historical spending patterns for helicopter services by the Department of the Interior (DOI) and specifically the Bureau of Safety and Environmental Enforcement (BSEE) is crucial for understanding the scale and consistency of this requirement. While the provided data is for a single FY24 contract, a broader review would involve examining contract awards over multiple fiscal years. Typically, agencies like DOI, which manage vast natural resources and offshore activities (particularly BSEE in the Gulf of Mexico), rely on aviation support for inspection, enforcement, emergency response, and personnel transport. Historical data would likely show recurring needs for such services, potentially with fluctuating annual expenditures based on operational priorities, regulatory changes, and available funding. Examining past contract values, durations, and awarded contractors can reveal trends in pricing, competition levels, and the stability of service providers in the market. Significant year-over-year increases or decreases in spending could indicate shifts in program focus or changes in contracting strategies.

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: $29,586,922

Exercised Options: $29,586,922

Current Obligation: $29,586,922

Actual Outlays: $29,586,922

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D8021D0018

IDV Type: IDC

Timeline