State Dept. Awards $418M for Aviation Support Services to Phoenix Air Group
Contract Overview
Contract Amount: $418,325,384 ($418.3M)
Contractor: Phoenix AIR Group, Inc.
Awarding Agency: Department of State
Start Date: 2019-09-01
End Date: 2026-02-28
Contract Duration: 2,372 days
Daily Burn Rate: $176.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: MULTI-MISSION AVIATION AND SUPPORT SERVICES
Place of Performance
Location: CARTERSVILLE, BARTOW County, GEORGIA, 30120
State: Georgia Government Spending
Plain-Language Summary
Department of State obligated $418.3 million to PHOENIX AIR GROUP, INC. for work described as: MULTI-MISSION AVIATION AND SUPPORT SERVICES Key points: 1. Significant contract value of $418.3M over nearly 5 years. 2. Phoenix Air Group, Inc. is the sole awardee. 3. Contract type is Firm Fixed Price, indicating price certainty. 4. The sector involves nonscheduled chartered passenger air transportation.
Value Assessment
Rating: fair
The contract value is substantial, but without specific performance metrics or benchmarks for aviation support services, a precise value assessment is difficult. The firm fixed price structure provides cost predictability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a limited competition, potentially impacting price discovery. Further details on the exclusion of sources are needed.
Taxpayer Impact: Taxpayer funds are committed to a long-term aviation support contract. The effectiveness of the limited competition in securing competitive pricing is a key consideration.
Public Impact
Ensures continued operational support for State Department missions. Potential impact on smaller aviation service providers due to limited competition. Reliability of air transportation is critical for diplomatic and security operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about optimal pricing.
- Lack of transparency regarding excluded sources.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Long-term award ensures service continuity.
Sector Analysis
This contract falls within the air transportation sector, specifically nonscheduled chartered passenger services. Benchmarks for similar government aviation support contracts would be useful for comparison.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests opportunities for small businesses in this sector may be limited or were not pursued.
Oversight & Accountability
Oversight will be crucial to ensure the contractor meets performance requirements and that the limited competition does not lead to sustained overpricing. The Department of State's contracting office is responsible.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of State Contracting
- Department of State Programs
Risk Flags
- Limited competition may result in higher costs.
- Lack of transparency regarding source exclusion.
- Potential for price creep if not closely monitored.
- Dependence on a single provider for critical services.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-state, ga, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $418.3 million to PHOENIX AIR GROUP, INC.. MULTI-MISSION AVIATION AND SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is PHOENIX AIR GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $418.3 million.
What is the period of performance?
Start: 2019-09-01. End: 2026-02-28.
What specific factors led to the exclusion of other sources in this 'limited' full and open competition, and how were these justified?
The justification for excluding sources in a limited competition is critical for understanding the procurement's integrity. Typically, such exclusions are based on specific technical requirements, unique capabilities, or prior performance that only a limited number of entities can meet. Without detailed documentation, it's difficult to assess if these exclusions were appropriate or if they unduly restricted competition, potentially leading to higher costs for taxpayers.
How does the pricing structure of this $418M contract compare to industry benchmarks for similar nonscheduled chartered passenger air transportation services?
A comprehensive comparison against industry benchmarks is essential to determine if the $418.3 million awarded price represents good value. Factors like aircraft type, operational tempo, flight hours, and geographic coverage need to be considered. If the per-unit costs or overall contract price significantly exceed established benchmarks, it could indicate potential overspending or suboptimal price negotiation, warranting further investigation into the contract's cost-effectiveness.
What are the key performance indicators (KPIs) for this contract, and how will the State Department ensure effective service delivery and accountability from Phoenix Air Group, Inc.?
Effective oversight relies on clearly defined KPIs and a robust performance management system. For aviation support services, KPIs might include on-time performance, aircraft availability, safety records, and response times. The State Department must actively monitor these metrics to ensure Phoenix Air Group, Inc. is delivering services effectively and meeting contractual obligations. Regular performance reviews and clear communication channels are vital for accountability.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 PHOENIX AIR DR SW, CARTERSVILLE, GA, 30120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $418,325,384
Exercised Options: $418,325,384
Current Obligation: $418,325,384
Actual Outlays: $216,092,951
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 19AQMM19D0125
IDV Type: IDC
Timeline
Start Date: 2019-09-01
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-10-31
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