Interior Department awards $29M helicopter services contract to Bristow LLC for FY22 operations

Contract Overview

Contract Amount: $29,065,464 ($29.1M)

Contractor: Bristow LLC

Awarding Agency: Department of the Interior

Start Date: 2021-10-01

End Date: 2022-09-30

Contract Duration: 364 days

Daily Burn Rate: $79.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: FY22 BSEE HELICOPTER SERVICES

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of the Interior obligated $29.1 million to BRISTOW LLC for work described as: FY22 BSEE HELICOPTER SERVICES Key points: 1. Contract value represents a significant investment in aerial support services. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Fixed-price contract with economic price adjustment introduces some cost fluctuation risk. 4. Contract duration of one year provides a defined period for service delivery. 5. Geographic focus on Louisiana indicates specific operational needs. 6. Service category for nonscheduled chartered passenger air transportation highlights specialized aviation requirements.

Value Assessment

Rating: good

The contract value of approximately $29 million for one year of helicopter services appears reasonable given the specialized nature of nonscheduled chartered passenger air transportation. Benchmarking against similar contracts for aerial support in remote or operational areas would provide further context. The fixed-price with economic price adjustment structure aims to balance cost certainty with market fluctuations, which is a common approach for long-term service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to meet the requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a wider pool of bidders vying for the contract.

Public Impact

The primary beneficiaries are likely the Department of the Interior's Bureau of Safety and Environmental Enforcement (BSEE) and potentially other agencies requiring aerial support for offshore operations or inspections. Services delivered include nonscheduled chartered passenger air transportation, crucial for accessing remote locations or responding to incidents. The geographic impact is focused on Louisiana, suggesting operations in the Gulf of Mexico region. Workforce implications may include pilots, maintenance crews, and support staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to economic price adjustment clause if fuel or labor costs increase significantly.
Dependence on a single contractor for critical aerial support could pose a risk if service disruptions occur.

Positive Signals

Awarded under full and open competition, suggesting a robust market and potential for competitive pricing.
Fixed-price contract structure provides a degree of cost control for the government.
Contract duration of one year allows for periodic review and potential re-competition.

Sector Analysis

The aviation services sector is highly specialized, with significant barriers to entry due to regulatory requirements, capital investment in aircraft, and skilled personnel. Contracts for nonscheduled chartered passenger air transportation are often awarded to companies with specific certifications and a proven track record in safety and operational reliability. The market size for such specialized government contracts can vary, but it is typically dominated by a few key players with the necessary infrastructure and expertise.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities.

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 and conditions, requiring the contractor to meet specific performance standards and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be sensitive.

Related Government Programs

BSEE Helicopter Services
Department of the Interior Aviation Support
Offshore Operations Support Contracts
Nonscheduled Air Charter Services

Risk Flags

Potential for cost escalation due to economic price adjustment.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $29.1 million to BRISTOW LLC. FY22 BSEE HELICOPTER 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 $29.1 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-09-30.

What is the historical spending pattern for helicopter services by the Department of the Interior, specifically for operations in Louisiana?

Analyzing historical spending for helicopter services by the Department of the Interior in Louisiana requires access to detailed federal procurement data over multiple fiscal years. While this specific contract is for FY22, understanding the trend would involve looking at previous years to see if this is a recurring need, if spending has increased or decreased, and if the same contractors have been awarded similar services. For instance, if the Department has consistently awarded multi-million dollar contracts for helicopter services in this region annually, it suggests a stable, ongoing requirement. Conversely, a sudden increase or decrease might indicate a change in operational scope or a shift in procurement strategy. Without access to a comprehensive historical database, it's difficult to provide precise figures, but the existence of a $29 million contract suggests a significant and potentially continuous demand for these specialized aviation services in the region.

How does the awarded price of $29 million compare to market rates for similar helicopter charter services in the Gulf Coast region?

Benchmarking the $29 million contract against market rates for similar helicopter charter services in the Gulf Coast region is crucial for assessing value for money. This comparison would ideally involve looking at rates charged by other aviation providers for comparable aircraft types, flight hours, and service levels (e.g., offshore transport, emergency response). Factors such as the specific types of helicopters used, the duration of flight operations, specialized equipment on board, and the level of crew experience can significantly influence pricing. Given that this contract is for nonscheduled chartered passenger air transportation, it implies a need for flexibility and rapid deployment, which can command premium pricing. A detailed market analysis would require access to industry rate cards, previous contract awards for similar services, and potentially consultation with aviation industry experts to determine if the awarded price is competitive and reflects fair market value for the services rendered.

What are the specific performance metrics and service level agreements (SLAs) associated with this helicopter services contract?

The specific performance metrics and service level agreements (SLAs) for this $29 million helicopter services contract are critical for ensuring the Department of the Interior receives the expected quality and reliability of service. While not detailed in the provided data, typical SLAs for such contracts would likely include response times for flight requests, aircraft availability rates (e.g., 95% operational readiness), on-time performance for scheduled flights, safety compliance records (e.g., zero major incidents), and maintenance schedules. Performance metrics might also cover fuel efficiency, crew duty hour compliance, and adherence to flight plans. The contract would outline penalties for non-compliance and potentially incentives for exceeding performance expectations. These SLAs are essential for the government to monitor contractor performance and hold Bristow LLC accountable for delivering the required nonscheduled chartered passenger air transportation services effectively and safely.

What is Bristow LLC's track record and experience in providing similar helicopter services to government agencies?

Bristow LLC is a well-established global aviation services provider with extensive experience in helicopter operations, including significant work with government agencies. They are known for providing offshore transportation, search and rescue, and other specialized aviation services. Their track record typically includes operating a large fleet of helicopters and adhering to stringent safety and regulatory standards. For government contracts, Bristow has historically secured agreements with various defense and civilian agencies, often involving complex logistical challenges and demanding operational environments. Assessing their specific track record for this particular type of nonscheduled chartered passenger air transportation service for the Department of the Interior would involve reviewing past performance evaluations, any past performance issues or commendations, and their overall safety record. Their long-standing presence in the industry suggests a substantial capacity and experience base relevant to this contract.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' (FPEPA) contract type for this helicopter service?

The 'Fixed Price with Economic Price Adjustment' (FPEPA) contract type for this $29 million helicopter services contract introduces specific risks related to cost fluctuations. While the base price is fixed, the economic price adjustment (EPA) clause allows for modifications to the contract price based on changes in specified economic factors, most commonly fuel costs and labor rates. The primary risk for the government is that these economic factors could increase significantly over the contract period, leading to higher overall expenditures than initially budgeted. This could potentially inflate the total cost beyond what might have been achieved with a firm fixed-price contract, especially if the EPA formula is generous or if market conditions lead to substantial cost escalations. Conversely, the EPA can protect the contractor from unforeseen cost increases, ensuring service continuity and potentially preventing bid protests or contract disputes related to cost overruns. The government's risk is managed by carefully defining the economic indicators and the adjustment formula within the contract to ensure fairness and prevent excessive price increases.

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: Bristow Group Inc.

Address: 600 AIRPORT BLVD, LAKE CHARLES, LA, 70607

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

Financial Breakdown

Contract Ceiling: $29,065,464

Exercised Options: $29,065,464

Current Obligation: $29,065,464

Actual Outlays: $29,065,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D8021D0018

IDV Type: IDC

Timeline