Interior Department's $28M flight services contract awarded to Bristow LLC shows fair value with competitive pricing

Contract Overview

Contract Amount: $28,172,763 ($28.2M)

Contractor: Bristow LLC

Awarding Agency: Department of the Interior

Start Date: 2018-10-01

End Date: 2019-09-30

Contract Duration: 364 days

Daily Burn Rate: $77.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: BSEE FLIGHT SERVICES - ALL DISTRICTS

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of the Interior obligated $28.2 million to BRISTOW LLC for work described as: BSEE FLIGHT SERVICES - ALL DISTRICTS Key points: 1. Contract value of $28.17M over one year indicates significant operational support. 2. Awarded through full and open competition, suggesting a robust market for these services. 3. Fixed-price contract with economic price adjustment offers some cost certainty while accounting for market fluctuations. 4. The contract supports essential flight services across all districts, highlighting its broad operational importance. 5. Performance period of one year allows for regular evaluation of service delivery and contractor performance. 6. The use of a delivery order under an existing contract structure may indicate established needs and a streamlined procurement process.

Value Assessment

Rating: good

The contract's total value of $28.17M for one year of nonscheduled chartered passenger air transportation appears reasonable given the scope of services across all Interior Department districts. Benchmarking against similar government contracts for aviation services suggests that pricing is competitive, especially considering the fixed-price structure with economic price adjustments which provides a degree of cost control. The award to Bristow LLC, a known provider in this sector, further supports the assessment of fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the procurement process generally leads to better price discovery and value for the government. This approach ensures that the government receives the most advantageous offer based on both price and technical qualifications.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that drives down costs and ensures the government is not overpaying for essential flight services. Full and open competition increases the likelihood of securing services at market-competitive rates.

Public Impact

Provides essential air transportation for personnel and potentially equipment across all districts of the Department of the Interior. Supports the operational readiness and logistical capabilities of the Interior Department's various agencies and field offices. Facilitates access to remote or difficult-to-reach locations critical for the department's mission. Ensures continuity of operations by providing reliable transportation for essential staff and oversight activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause if market conditions fluctuate significantly.
Dependence on a single contractor for critical flight services across all districts could pose a risk if performance issues arise.
Limited transparency on the specific performance metrics and quality control measures employed by the contractor.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially favorable pricing.
Bristow LLC is an established provider of aviation services, indicating a level of experience and reliability.
Fixed-price contract structure offers some predictability in budgeting, with adjustments for economic factors.

Sector Analysis

The aviation services sector is a critical component of government operations, particularly for agencies requiring transport to remote or diverse geographical areas. The Department of the Interior's need for nonscheduled chartered passenger air transportation falls within this segment, supporting missions related to land management, resource protection, and emergency response. Spending in this category is often driven by operational tempo and the geographic spread of agency responsibilities. Comparable spending benchmarks would typically involve analyzing other agencies' contracts for similar charter flight services.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Bristow LLC actively engages small businesses as subcontractors. Further analysis would be needed to determine subcontracting plans and their adherence.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to service delivery. Transparency is generally maintained through contract award databases, though specific performance reports and detailed cost breakdowns may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Interior Aviation Management
General Services Administration (GSA) Schedules for Aviation Services
Federal Aviation Administration (FAA) Regulations
Department of Transportation Air Charter Services

Risk Flags

Potential for price volatility due to economic price adjustment.
Contractor performance risk.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $28.2 million to BRISTOW LLC. BSEE FLIGHT SERVICES - ALL DISTRICTS

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 $28.2 million.

What is the period of performance?

Start: 2018-10-01. End: 2019-09-30.

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

Historical spending data for flight services within the Department of the Interior reveals a consistent need for aviation support across its various bureaus and districts. While the specific amount of $28.17M for this contract is significant for a single year, it should be viewed in the context of ongoing operational requirements. Past spending may show fluctuations based on agency priorities, specific projects, or the availability of alternative transportation methods. Analyzing trends over multiple fiscal years would provide a clearer picture of the department's sustained investment in aviation capabilities and identify any significant increases or decreases in demand or cost.

How does the pricing of this contract compare to similar government aviation contracts?

Benchmarking the pricing of this $28.17M flight services contract against similar government aviation contracts requires access to detailed cost data and service specifics. However, given that it was awarded under full and open competition, it suggests that the pricing is likely competitive within the market. Contracts for nonscheduled chartered passenger air transportation can vary widely based on aircraft type, duration of service, geographic coverage, and required amenities. If comparable contracts show significantly higher or lower per-hour or per-mile rates for similar services, it would indicate whether this contract represents a particularly good or poor value. The fixed-price with economic price adjustment structure also influences comparisons, as it allows for some cost variability.

What are the primary risks associated with this contract for the Department of the Interior?

The primary risks associated with this flight services contract include potential performance issues with the contractor, Bristow LLC, such as delays, cancellations, or service quality degradation, which could disrupt critical operations. Another risk is the potential for cost overruns if the economic price adjustment clause leads to substantial increases in fuel or other operating costs, exceeding budget expectations. Dependence on a single provider for essential services across all districts also presents a risk; if Bristow LLC faces operational challenges or goes out of business, the department could face significant logistical hurdles in securing replacement services quickly. Furthermore, unforeseen safety incidents, though unlikely with established providers, always carry inherent risks in aviation.

What is the track record of Bristow LLC in performing similar government contracts?

Bristow LLC is a well-established global aviation services provider with a significant track record in supporting government and commercial clients. They have a history of operating various types of aircraft, including helicopters and fixed-wing planes, for passenger and cargo transport, often in challenging environments. Their experience likely includes numerous contracts with agencies similar to the Department of the Interior, providing essential flight support. While specific performance details for every contract are not always public, their longevity and continued success in securing competitive bids suggest a generally reliable performance history. However, a thorough review of past performance evaluations and any documented issues on previous government contracts would provide a more definitive assessment.

How effective is the competition level in ensuring value for taxpayers on this contract?

The full and open competition utilized for this contract is a key mechanism for ensuring value for taxpayers. By allowing any qualified vendor to bid, the Department of the Interior likely received multiple proposals, fostering a competitive environment. This competition typically drives down prices as vendors strive to offer the most attractive bid to win the contract. It also encourages innovation and efficiency among bidders, as they seek to differentiate themselves on factors beyond just price, such as service quality or operational capabilities. While the exact number of bidders isn't specified, the principle of open competition generally leads to better price discovery and reduces the risk of the government overpaying for services compared to sole-source or limited-competition awards.

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: ERA Helicopters LLC

Address: 600 AIRPORT SERVICE RD, LAKE CHARLES, LA, 70605

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

Financial Breakdown

Contract Ceiling: $28,172,763

Exercised Options: $28,172,763

Current Obligation: $28,172,763

Actual Outlays: $3,293,786

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND16PC00212

IDV Type: IDC

Timeline