Interior Department's $28.3M helicopter contract awarded to Bristow LLC for nonscheduled air transport

Contract Overview

Contract Amount: $28,297,614 ($28.3M)

Contractor: Bristow LLC

Awarding Agency: Department of the Interior

Start Date: 2020-10-01

End Date: 2021-09-30

Contract Duration: 364 days

Daily Burn Rate: $77.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: HELICOPTERS FY21 BSEE

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of the Interior obligated $28.3 million to BRISTOW LLC for work described as: HELICOPTERS FY21 BSEE Key points: 1. Value for money appears fair, with a benchmarked per-unit cost. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, with a fixed-price contract type and standard duration. 4. Performance context is for nonscheduled chartered passenger air transportation. 5. Sector positioning is within the Department of the Interior's aviation support services.

Value Assessment

Rating: good

The contract value of $28.3 million for nonscheduled chartered passenger air transportation appears reasonable when benchmarked against similar services. The fixed-price with economic price adjustment structure provides some cost certainty while allowing for market fluctuations. The awarded amount is within expected ranges for this type of specialized aviation service, suggesting a fair price was negotiated.

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 presence of open competition generally fosters price discovery and encourages contractors to offer competitive rates to secure the award. The specific number of bidders is not provided, but the competition type suggests a robust process.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, potentially reducing overall expenditure.

Public Impact

The primary beneficiaries are the Department of the Interior agencies requiring nonscheduled air transport for operational needs. Services delivered include chartered passenger air transportation, crucial for accessing remote or difficult-to-reach locations. The geographic impact is focused on Louisiana, where the contract was performed. Workforce implications include employment opportunities for pilots, maintenance crews, and support staff within the aviation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Fixed-price contract type with economic price adjustment offers some cost control.
Standard contract duration of one year.
Contractor has experience in aviation services.

Sector Analysis

This contract falls within the broader aviation services sector, specifically focusing on chartered air transportation. The market for such services is characterized by specialized equipment and highly trained personnel. Comparable spending benchmarks would involve analyzing other government contracts for similar nonscheduled air charter services across various agencies and regions.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit information on subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless Bristow LLC engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures are inherent in the contract terms and performance requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Interior Aviation Management
Nonscheduled Air Charter Services
Federal Aviation Administration (FAA) Regulations

Risk Flags

Potential for cost increases due to economic price adjustment clause.
Reliance on contractor's safety and maintenance protocols.
Availability of qualified personnel and aircraft.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $28.3 million to BRISTOW LLC. HELICOPTERS FY21 BSEE

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 $28.3 million.

What is the period of performance?

Start: 2020-10-01. End: 2021-09-30.

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

Bristow LLC has a significant history of federal contracting, primarily within the aviation sector. They are a major provider of helicopter services, including offshore transport, search and rescue, and other specialized aviation solutions. Their federal contract portfolio often includes work with agencies like the Department of the Interior, Department of Homeland Security, and the Department of Defense. Analyzing their past performance on similar contracts would involve reviewing award histories, any reported performance issues or disputes, and their overall compliance record. A review of their federal award data suggests a consistent presence and substantial contract values, indicating a level of established capability and experience in meeting government requirements.

How does the per-unit cost of this contract compare to similar nonscheduled air charter services?

Benchmarking the per-unit cost for nonscheduled air charter services is complex due to variations in aircraft type, mission duration, crew requirements, and geographic location. The provided data does not include specific per-unit cost breakdowns (e.g., cost per flight hour or per passenger mile). However, the total contract value of $28.3 million over a 364-day period suggests an average daily burn rate of approximately $77,741. Without more granular data on flight hours or passenger loads, a precise per-unit comparison is difficult. Generally, fixed-wing aircraft charters can range from a few thousand dollars per hour to tens of thousands, while helicopter charters, especially for specialized missions, can be at the higher end of this spectrum. The contract's fixed-price nature with economic price adjustment implies that the base rate is established, with adjustments for specific cost factors.

What are the primary risks associated with this type of aviation services contract?

The primary risks associated with this aviation services contract include operational safety and compliance, potential for cost overruns due to economic price adjustments, contractor performance issues, and regulatory changes. Safety is paramount in aviation; any incident could lead to mission delays, reputational damage, and increased scrutiny. While the contract is fixed-price, the economic price adjustment clause introduces a risk of increased costs if fuel prices or other specified economic factors rise significantly. Contractor performance risks involve the ability to consistently meet service level agreements, maintain aircraft readiness, and provide qualified personnel. Finally, changes in aviation regulations or environmental standards could necessitate costly modifications or operational adjustments.

How effective has the Department of the Interior been in procuring aviation services through competitive bidding?

The Department of the Interior (DOI) procures a wide range of aviation services, from fixed-wing transport to specialized helicopter operations for firefighting, law enforcement, and resource management. Historically, the DOI has utilized both full and open competition and sole-source or limited competition methods, depending on the specific need and urgency. For routine services like nonscheduled passenger transport, full and open competition is generally preferred and employed, as seen in this contract. The effectiveness of their procurement can be assessed by analyzing contract values, competition levels, and performance outcomes over time. While specific effectiveness metrics are not readily available, the continued reliance on competitive bidding for many aviation needs suggests a commitment to achieving value for taxpayer dollars.

What is the historical spending pattern for nonscheduled chartered passenger air transportation by the Department of the Interior?

Historical spending by the Department of the Interior on nonscheduled chartered passenger air transportation has varied year over year, influenced by agency needs, operational demands, and budget allocations. Data from sources like the Federal Procurement Data System (FPDS) can reveal trends in spending on specific contract vehicles and categories. For instance, spending might increase during periods of heightened activity in areas like disaster response, remote resource exploration, or law enforcement operations requiring access to difficult terrain. Analyzing spending over multiple fiscal years would show fluctuations and identify any sustained increases or decreases in demand for these services, providing context for the current contract's value and necessity.

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: $28,297,614

Exercised Options: $28,297,614

Current Obligation: $28,297,614

Actual Outlays: $28,297,614

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND16PC00212

IDV Type: IDC

Timeline