Interior Department awards $9.6M for turbojet flight services, with a significant portion allocated for a single delivery order

Contract Overview

Contract Amount: $9,604,482 ($9.6M)

Contractor: Phoenix AIR Group, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-11-12

End Date: 2025-11-30

Contract Duration: 383 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE YEAR TURBOJET FLIGHT SERVICES IN SUPPORT OF NAVSEA PEO IWS.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23501

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $9.6 million to PHOENIX AIR GROUP, INC. for work described as: BASE YEAR TURBOJET FLIGHT SERVICES IN SUPPORT OF NAVSEA PEO IWS. Key points: 1. Value for money appears fair, with a substantial base year cost for specialized flight services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, given the specialized nature of the services and fixed-price contract type. 4. Performance context is tied to NAVSEA PEO IWS support, implying critical operational needs. 5. Sector positioning is within nonscheduled air transportation, a niche but essential service area.

Value Assessment

Rating: fair

The base year cost of $9.6 million for turbojet flight services is substantial. Benchmarking against similar contracts for specialized aviation support is difficult without more detailed service scope. However, the fixed-price contract type provides some cost certainty for the government. The value proposition hinges on the criticality and uniqueness of the support provided to NAVSEA PEO IWS.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The specific number of bidders is not provided, but the open competition suggests a robust market response. This process is generally expected to yield competitive pricing and a wider range of technical solutions.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a broader pool of qualified contractors.

Public Impact

Naval Sea Systems Command (NAVSEA) Program Executive Office Integrated Warfare Systems (PEO IWS) benefits from specialized flight support. Services delivered include turbojet flight operations crucial for defense-related missions. The geographic impact is not specified but likely supports national defense operations. Workforce implications involve skilled pilots and aviation support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'support' is broader than anticipated.
Dependence on a single contractor for critical flight services could pose a risk if performance issues arise.

Positive Signals

Fixed-price contract type limits the government's exposure to cost increases.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contract is for a defined base year, allowing for reassessment of needs and performance.

Sector Analysis

The contract falls within the nonscheduled air transportation sector, a segment of the broader aerospace and defense industry. This sector provides specialized aviation services not covered by scheduled airline routes. Spending in this area is often driven by unique government requirements, such as intelligence, surveillance, reconnaissance, or specialized transport. Benchmarking against broader transportation or defense spending is challenging due to the niche nature of the service.

Small Business Impact

The data indicates that small business participation (ss and sb flags) is not a primary focus for this specific contract award, as both are false. There is no explicit mention of small business set-asides. Subcontracting opportunities for small businesses are not detailed in this summary, but would depend on the prime contractor's strategy and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting and financial management offices, as well as the specific program office (NAVSEA PEO IWS) that requires the services. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award notice, but detailed performance metrics and oversight reports are not publicly available.

Related Government Programs

NAVSEA PEO IWS Support Contracts
Nonscheduled Air Transportation Services
Department of Defense Aviation Support
Federal Aviation Contracts

Risk Flags

Specialized Service Requirement
Potential for Performance Issues
Dependence on Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $9.6 million to PHOENIX AIR GROUP, INC.. BASE YEAR TURBOJET FLIGHT SERVICES IN SUPPORT OF NAVSEA PEO IWS.

Who is the contractor on this award?

The obligated recipient is PHOENIX AIR GROUP, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.6 million.

What is the period of performance?

Start: 2024-11-12. End: 2025-11-30.

What is the historical spending pattern for turbojet flight services by NAVSEA PEO IWS or similar entities?

Analyzing historical spending for similar turbojet flight services by NAVSEA PEO IWS or comparable defense entities is crucial for contextualizing the current $9.6 million award. Without specific historical data, it's difficult to determine if this amount represents an increase, decrease, or stable expenditure. Trends in defense aviation spending, technological advancements in aircraft, and evolving mission requirements can all influence these patterns. A review of past contracts, including their duration, scope, and cost, would reveal whether this award is typical, an outlier, or indicative of a new or expanded requirement. Understanding these historical trends helps assess the long-term financial commitment and potential for future spending in this category.

How does the per-flight-hour cost of this contract compare to industry benchmarks for similar turbojet services?

To assess the value for money, a comparison of the per-flight-hour cost against industry benchmarks for similar turbojet services is essential. The provided data does not include a per-flight-hour rate, only the total base year cost. To perform this comparison, one would need to know the estimated number of flight hours included in the $9.6 million base year. Once derived, this rate could be benchmarked against publicly available data from aviation service providers, industry reports, or government databases that track aviation costs. Significant deviations from market rates, whether higher or lower, would warrant further investigation into the specific service requirements, operational complexities, and contractor's cost structure.

What specific mission requirements necessitate the use of turbojet flight services under this contract?

The contract specifies 'turbojet flight services in support of NAVSEA PEO IWS.' This implies that the flights are critical for supporting the Program Executive Office for Integrated Warfare Systems, which focuses on developing and acquiring advanced combat systems for the Navy. The exact mission requirements could range from personnel transport for high-priority individuals, rapid deployment of specialized equipment, aerial testing and evaluation of systems, or potentially intelligence, surveillance, and reconnaissance (ISR) missions, depending on the aircraft's capabilities and configuration. Understanding these specific needs is key to evaluating the necessity and appropriateness of the contracted service and its associated cost.

What is Phoenix Air Group, Inc.'s track record with similar government contracts, particularly for defense aviation support?

Phoenix Air Group, Inc. has a history of providing aviation services to government entities. Assessing their track record involves reviewing past contract performance, including on-time delivery, quality of service, and any instances of disputes or contract modifications. Specifically for defense aviation support, it's important to examine their experience with similar aircraft types, operational tempo, and adherence to stringent military or defense-related requirements. Information from sources like the Federal Procurement Data System (FPDS) or contract award databases can provide insights into their past performance ratings, the types of services they've rendered, and their success in competitive bidding processes. A strong track record with comparable contracts would indicate a lower performance risk for this current award.

Are there any identified risks associated with the contractor's financial stability or operational capacity to fulfill this contract?

Assessing the contractor's financial stability and operational capacity is a standard part of federal procurement risk management. While the award notice itself doesn't detail these aspects, contracting officers are expected to perform due diligence. This might involve reviewing the contractor's financial statements, assessing their existing fleet and maintenance capabilities, and verifying their personnel qualifications. For a contract involving specialized turbojet services, ensuring the contractor has the necessary certifications, safety records, and the capacity to meet the demanding operational tempo is critical. Any identified weaknesses in these areas could represent a significant risk to the successful execution of the contract and the timely delivery of essential support to NAVSEA PEO IWS.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Other Nonscheduled Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 PHOENIX AIR DR SW, CARTERSVILLE, GA, 30120

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

Financial Breakdown

Contract Ceiling: $9,604,482

Exercised Options: $9,604,482

Current Obligation: $9,604,482

Actual Outlays: $9,243,011

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0425D0001

IDV Type: IDC

Timeline