Interior Department awards $4.1M rotary-wing flight services contract to Air Center Helicopters, Inc

Contract Overview

Contract Amount: $4,098,278 ($4.1M)

Contractor: AIR Center Helicopters, Inc

Awarding Agency: Department of the Interior

Start Date: 2025-08-01

End Date: 2026-07-31

Contract Duration: 364 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRST EXCLUSIVE USE TASK ORDER UNDER 140D0425D0042 FOR ROTARY-WING FLIGHT SERVICES IN SUPPORT OF NAVSEA PEO IWS

Place of Performance

Location: BURLESON, JOHNSON County, TEXAS, 76028

State: Texas Government Spending

Plain-Language Summary

Department of the Interior obligated $4.1 million to AIR CENTER HELICOPTERS, INC for work described as: FIRST EXCLUSIVE USE TASK ORDER UNDER 140D0425D0042 FOR ROTARY-WING FLIGHT SERVICES IN SUPPORT OF NAVSEA PEO IWS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract vehicle. 3. Services are for rotary-wing flight support, indicating specialized aviation needs. 4. The duration of the contract is one year, with a potential for follow-on work. 5. The contract type is Firm Fixed Price, which sets a ceiling on costs. 6. The award value represents a significant investment in aviation support services.

Value Assessment

Rating: good

The contract value of $4.1 million for one year of rotary-wing flight services appears reasonable given the specialized nature of the requirement. Benchmarking against similar contracts for chartered passenger air transportation (NAICS 481211) would provide a more precise assessment, but the firm fixed price structure offers cost predictability. The award to a single contractor, Air Center Helicopters, Inc., suggests they were the most competitive bidder under the established criteria.

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 offers. The specific number of bidders is not provided, but the designation implies a robust competitive environment. This approach is generally favored to ensure the government receives the best value through market forces.

Taxpayer Impact: A full and open competition allows taxpayers to benefit from potentially lower prices and higher quality services as contractors vie for the award.

Public Impact

The primary beneficiaries are likely the Department of the Interior's programs requiring aerial support, potentially for operations in remote or difficult-to-access areas. The contract delivers essential rotary-wing flight services, which could include personnel transport, cargo delivery, or specialized surveillance. The geographic impact is specified as Texas (ST: TX, SN: TEXAS), suggesting operations will be based in or focused on this region. The contract supports the aviation sector workforce, including pilots, mechanics, and support staff employed by Air Center Helicopters, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's past performance.
The duration of one year, while standard, limits long-term performance evaluation without follow-on orders.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely favored a capable provider.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, Air Center Helicopters, Inc., has been selected, implying they met the government's requirements.

Sector Analysis

Rotary-wing flight services fall under the broader air transportation sector, specifically nonscheduled chartered passenger air transportation (NAICS 481211). This market involves companies providing aircraft and crew for specific, non-regularly scheduled flights. The demand is driven by government agencies, businesses, and individuals requiring flexible and often specialized aerial transport. Spending in this sector can fluctuate based on operational needs and project requirements.

Small Business Impact

The provided data indicates that small business participation (SB: false) and set-asides (SS: false) were not applicable to this specific contract award. Therefore, this contract does not appear to directly benefit small businesses through a set-aside provision. Subcontracting opportunities for small businesses would depend on Air Center Helicopters, Inc.'s internal policies and the specific needs of the service delivery.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Interior. Performance monitoring would likely involve tracking flight hours, adherence to schedules, and compliance with safety regulations. Transparency is facilitated through contract award databases, though detailed operational reports are usually internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of the Interior Aviation Management
Naval Sea Systems Command (NAVSEA) PEO IWS (as indicated by the parent contract)
General Services Administration (GSA) Schedules (potential vehicle for similar services)
Other agency aviation support contracts

Risk Flags

Potential for performance issues
Reliance on a single contractor
Cost predictability under Firm Fixed Price

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.1 million to AIR CENTER HELICOPTERS, INC. FIRST EXCLUSIVE USE TASK ORDER UNDER 140D0425D0042 FOR ROTARY-WING FLIGHT SERVICES IN SUPPORT OF NAVSEA PEO IWS

Who is the contractor on this award?

The obligated recipient is AIR CENTER HELICOPTERS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2025-08-01. End: 2026-07-31.

What is the track record of Air Center Helicopters, Inc. with federal contracts, particularly for similar rotary-wing services?

A review of federal contract databases would be necessary to fully assess Air Center Helicopters, Inc.'s track record. Information such as past performance ratings, previous contract values, and any history of disputes or contract terminations would provide insight into their reliability and experience. Given this is a delivery order under a larger contract (140D0425D0042), their performance on that parent contract and any prior awards would be key indicators. Without specific data on their federal performance history, it's difficult to definitively gauge their suitability beyond meeting the minimum requirements for this specific award.

How does the awarded price of $4.1 million compare to market rates for similar rotary-wing flight services in Texas?

To benchmark the $4.1 million award, one would need to compare it against industry data for nonscheduled chartered passenger air transportation (NAICS 481211) in the Texas region. This would involve analyzing hourly rates, aircraft types, crew costs, and operational overhead for comparable services. Factors such as the specific capabilities of the helicopters (e.g., capacity, range, specialized equipment), the required flight hours, and the complexity of the missions would influence the market rate. A firm fixed price contract suggests the government sought predictable costs, but a detailed market analysis would reveal if this price is competitive relative to other providers.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential performance failures by the contractor (e.g., flight delays, safety incidents), cost overruns if the firm fixed price is not well-managed, and reliance on a single provider. Mitigation strategies often involve robust contract oversight, clear performance standards, regular reporting requirements, and contingency planning. The government's ability to enforce contract terms and potentially seek remedies for non-performance are crucial. The selection process under full and open competition aims to mitigate the risk of selecting an unqualified contractor.

How effective is the current contract vehicle (140D0425D0042) in facilitating efficient procurement of aviation services?

The effectiveness of the contract vehicle (140D0425D0042) can be assessed by its ability to streamline the acquisition process, attract a competitive field of bidders, and deliver services at reasonable prices. As a vehicle that supports multiple delivery orders, its success depends on its structure, the clarity of its terms, and the contracting agency's management. If this is the first exclusive use task order under this vehicle, its long-term effectiveness is yet to be fully determined. Evaluating the number of task orders issued, the competition levels achieved, and overall satisfaction with the services procured through it would provide a clearer picture.

What is the historical spending pattern for rotary-wing flight services by the Department of the Interior?

Analyzing historical spending data for the Department of the Interior on rotary-wing flight services would reveal trends in demand, average contract values, and typical durations. This context is crucial for understanding if the current $4.1 million award is an anomaly or in line with past expenditures. Examining spending across different bureaus within the DOI and for various operational purposes (e.g., law enforcement, resource management, emergency response) would provide a comprehensive view. Such analysis helps in budget forecasting and identifying potential areas for cost savings or efficiency improvements.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger 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: 308 E RENFRO ST, BURLESON, TX, 76028

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

Financial Breakdown

Contract Ceiling: $5,951,508

Exercised Options: $5,951,508

Current Obligation: $4,098,278

Actual Outlays: $1,465,763

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0425D0042

IDV Type: IDC

Timeline