Interior Department awards $28M flight services contract to Bristow LLC, highlighting fixed-price with economic adjustment terms

Contract Overview

Contract Amount: $27,961,033 ($28.0M)

Contractor: Bristow LLC

Awarding Agency: Department of the Interior

Start Date: 2019-09-17

End Date: 2020-09-30

Contract Duration: 379 days

Daily Burn Rate: $73.8K/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 $28.0 million to BRISTOW LLC for work described as: BSEE FLIGHT SERVICES Key points: 1. Contract value of $27.96 million for flight services. 2. Awarded under full and open competition. 3. Fixed-price contract with economic price adjustment clauses. 4. Duration of 379 days. 5. Service area primarily Louisiana. 6. North American Industry Classification System (NAICS) code 481211 for Nonscheduled Chartered Passenger Air Transportation.

Value Assessment

Rating: fair

The contract value of $27.96 million for flight services over approximately one year appears within a reasonable range for specialized air transportation. However, without specific details on the type of aircraft, flight hours, and operational complexity, a precise value-for-money assessment is challenging. The fixed-price with economic price adjustment structure aims to manage cost fluctuations but can introduce some risk if adjustments are not carefully monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield fair market prices and encourage efficiency. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity and its direct impact on price discovery.

Taxpayer Impact: Full and open competition suggests that taxpayers benefited from a process designed to solicit the best possible pricing and service offerings from the market.

Public Impact

Provides essential nonscheduled chartered passenger air transportation services. Supports operations within the Department of the Interior, likely for personnel transport, logistical support, or emergency response. Geographic impact is concentrated in Louisiana, supporting regional activities. Indirect workforce implications for the aviation sector, particularly in Louisiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clauses can lead to increased costs if not managed effectively.
Lack of specific performance metrics makes it difficult to assess operational efficiency.
Limited duration of the contract may necessitate future competitive procurements, leading to potential transition costs.

Positive Signals

Awarded through full and open competition, promoting market-based pricing.
Fixed-price element provides a baseline cost control measure.
Contract supports critical operational needs of the Department of the Interior.

Sector Analysis

The aviation services sector, particularly nonscheduled chartered passenger air transportation, is a critical component of logistics and operational support for various government agencies. This contract falls within the broader transportation and logistics industry. Benchmarking against similar government contracts for specialized air charter services would provide further context on pricing and service levels, but such data is not readily available in this summary.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition, it is possible that small businesses could have participated, but there is no explicit information on subcontracting plans or their impact on the small business ecosystem. Further review of the contract details would be needed to ascertain any small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting and program management offices. Accountability measures are inherent in the fixed-price structure, with performance expectations tied to service delivery. Transparency is facilitated by the public nature of federal contract awards, though detailed operational oversight mechanisms are not specified here.

Related Government Programs

Department of the Interior Aviation Management
Federal Aviation Administration (FAA) Regulations
General Services Administration (GSA) Schedules (if applicable)

Risk Flags

Economic Price Adjustment (EPA) clauses can lead to cost increases.
Lack of detailed performance metrics.
Limited contract duration may require future procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $28.0 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 $28.0 million.

What is the period of performance?

Start: 2019-09-17. End: 2020-09-30.

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

Bristow LLC is a well-established global aviation services provider with a significant history of operating helicopters and fixed-wing aircraft for various sectors, including oil and gas, search and rescue, and government operations. They have held numerous contracts with federal agencies, often involving complex logistical support and transportation in challenging environments. A detailed review of their past performance on similar Department of the Interior or other federal contracts would reveal their reliability, safety record, and ability to meet stringent performance requirements. Past performance evaluations and any documented disputes or contract terminations would be key indicators of their suitability for future awards.

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

Comparing the pricing of this $27.96 million contract requires detailed knowledge of the specific services rendered, such as aircraft types, flight hours, operational areas, and required support. Without these specifics, a direct benchmark is difficult. However, the fixed-price with economic price adjustment structure is common for services where fuel costs or other operational expenses are volatile. Generally, government contracts are subject to competitive bidding to ensure fair market value. If this contract was awarded through full and open competition, it suggests the pricing was deemed competitive at the time of award. Further analysis would involve comparing the per-flight-hour cost or per-mile cost against industry averages for similar charter services, adjusted for government-specific requirements.

What are the primary risks associated with a fixed-price contract with economic price adjustment?

The primary risks associated with a fixed-price contract with economic price adjustment (FP-EPA) involve cost overruns and potential disputes over adjustment calculations. While the fixed-price element provides a baseline cost certainty, the economic price adjustment allows for modifications based on predefined economic factors, most commonly fuel costs. The risk for the government lies in the potential for significant price increases if these economic factors escalate beyond initial projections. Conversely, the contractor bears the risk if the economic adjustments do not fully cover their increased costs. Effective risk mitigation requires clear, objective, and verifiable economic indicators in the contract, robust monitoring of these indicators, and a transparent process for calculating adjustments.

What is the expected effectiveness of these flight services in supporting the Department of the Interior's mission?

The effectiveness of these flight services is directly tied to the Department of the Interior's operational needs in Louisiana and potentially surrounding regions. Nonscheduled chartered passenger air transportation is crucial for accessing remote areas, transporting personnel for inspections, surveys, or emergency response, and facilitating logistical movements that ground transportation cannot efficiently support. Assuming Bristow LLC meets its contractual obligations regarding safety, reliability, and availability, these services are expected to be highly effective in enabling the Department to carry out its diverse missions, which include managing public lands, conserving natural resources, and overseeing energy development.

What are the historical spending patterns for similar flight services within the Department of the Interior?

Historical spending patterns for flight services within the Department of the Interior can vary significantly based on agency needs, geographic scope, and the types of operations conducted. Agencies like the Bureau of Land Management (BLM), National Park Service (NPS), and U.S. Fish and Wildlife Service often require aviation support for land management, wildlife monitoring, and fire suppression. Spending on nonscheduled chartered air transportation can fluctuate annually due to project requirements, emergency events (like natural disasters), and the availability of government-owned aircraft. Analyzing past contract awards for similar services, including their values, durations, and competitive landscapes, would provide insight into the typical investment in this area and help contextualize the $27.96 million award.

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: $27,961,033

Exercised Options: $27,961,033

Current Obligation: $27,961,033

Actual Outlays: $27,961,033

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND16PC00212

IDV Type: IDC

Timeline