DHS's ICE awards $258.5M for daily charter flights, with CSI Aviation Inc. securing the contract

Contract Overview

Contract Amount: $258,529,725 ($258.5M)

Contractor: CSI Aviation, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-07-03

End Date: 2024-04-03

Contract Duration: 275 days

Daily Burn Rate: $940.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DAILY CHARTER FLIGHTS

Place of Performance

Location: INDIALANTIC, BREVARD County, FLORIDA, 32903

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $258.5 million to CSI AVIATION, INC for work described as: DAILY CHARTER FLIGHTS Key points: 1. The contract value represents a significant investment in air charter services for immigration enforcement operations. 2. Competition dynamics for this large-scale aviation service contract warrant close examination to ensure optimal pricing. 3. Performance history and on-time delivery rates will be key indicators of value for money. 4. The duration of the contract suggests a sustained need for these services. 5. This contract positions CSI Aviation as a key provider within the federal aviation services sector. 6. The fixed-price nature of the contract aims to provide cost certainty for the government.

Value Assessment

Rating: good

The contract value of $258.5 million for daily charter flights over approximately 9 months is substantial. Benchmarking this against similar large-scale aviation service contracts for government agencies is crucial. While specific per-unit cost data is not provided, the fixed-price structure suggests an attempt to control costs. Further analysis would require comparing the number of flights, passenger capacity, and routes to similar contracts to definitively assess value for money.

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 level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The number of bidders and the specific evaluation criteria used would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition increases the likelihood that taxpayer funds are used efficiently by driving down prices through market forces.

Public Impact

Immigration and Customs Enforcement (ICE) personnel and detainees benefit from reliable daily charter flight services. The services facilitate the movement of individuals for enforcement and removal operations across various locations. The contract's geographic impact is likely nationwide, supporting ICE's operational needs across the United States. The contract supports jobs within the aviation industry, including pilots, ground crew, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if operational needs expand beyond initial projections.
Reliance on a single contractor for critical daily flight operations could pose a risk if performance issues arise.
Fluctuations in fuel prices could impact the contractor's profitability and potentially lead to future cost adjustment requests, despite the fixed-price nature.

Positive Signals

The contract was awarded through full and open competition, suggesting a competitive bidding process.
The fixed-price contract type provides cost certainty for the government.
The contractor, CSI Aviation, Inc., has a track record in providing aviation services, which can be a positive indicator of capability.
The contract duration of 275 days indicates a clear and defined period of service requirement.

Sector Analysis

The federal aviation services market is a significant sector, encompassing a wide range of needs from passenger transport to specialized cargo. This contract falls within the broader category of travel arrangement and reservation services, specifically focusing on charter flights. Government agencies frequently utilize such services for logistical support, particularly for personnel movement and, as in this case, for operational requirements related to law enforcement and immigration. Benchmarking against other federal contracts for similar charter flight services would provide context on pricing and scope.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless CSI Aviation, Inc. voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting plans would be necessary to fully assess the impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Accountability measures would likely include performance metrics, delivery schedules, and adherence to safety regulations. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration (FAA) regulations
Department of Homeland Security (DHS) operational budgets
U.S. Immigration and Customs Enforcement (ICE) travel and logistics
Government travel services contracts
Air charter services procurement

Risk Flags

Potential for performance issues
Reliance on single contractor
Scope creep risk
Contractor financial stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $258.5 million to CSI AVIATION, INC. DAILY CHARTER FLIGHTS

Who is the contractor on this award?

The obligated recipient is CSI AVIATION, INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $258.5 million.

What is the period of performance?

Start: 2023-07-03. End: 2024-04-03.

What is CSI Aviation, Inc.'s track record with federal contracts, particularly for aviation services?

CSI Aviation, Inc. has a history of securing federal contracts, primarily within the Department of Defense and Department of Homeland Security, for aviation services. Their experience often includes charter flights, air ambulance services, and logistical support. Analyzing past performance on similar contracts, including any reported issues or successes, would provide a clearer picture of their reliability and capability in fulfilling the requirements of this $258.5 million award. Specific details on contract performance metrics from previous awards would be valuable for a comprehensive assessment.

How does the per-flight cost of this contract compare to market rates for similar charter services?

Without specific data on the number of flights, routes, aircraft types, and passenger capacity, it is challenging to calculate a precise per-flight cost for direct comparison. However, the total contract value of $258.5 million over approximately 275 days suggests a significant daily operational expenditure. To benchmark effectively, one would need to identify comparable charter flight contracts (e.g., similar routes, duration, aircraft size) awarded by government agencies or even private sector entities and then derive a per-flight or per-hour cost for comparison. The 'All Other Travel Arrangement and Reservation Services' PSC code is broad, making direct comparisons difficult without more granular data.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract include potential performance failures by CSI Aviation, Inc., such as flight cancellations, delays, or safety incidents, which could disrupt critical ICE operations. There's also a risk of cost overruns if the fixed-price contract doesn't adequately account for unforeseen operational demands or if scope creep occurs. Over-reliance on a single provider for daily critical services could create vulnerabilities. Furthermore, ensuring consistent compliance with all federal regulations and contract terms requires diligent oversight.

How effective is the 'full and open competition' process in ensuring competitive pricing for large aviation contracts?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for large contracts, as it allows all responsible sources to submit bids. This broad participation increases the likelihood of receiving multiple competitive offers, driving down prices through market forces. However, the effectiveness can be influenced by factors such as the complexity of the requirement, the number of qualified bidders, and the clarity of the solicitation. For large aviation contracts, the market might be more concentrated, potentially limiting the number of truly competitive bids, but it still provides a strong framework for price discovery compared to other methods.

What is the historical spending trend for daily charter flight services by ICE or DHS?

Analyzing historical spending data for daily charter flight services by ICE or DHS would provide crucial context for this $258.5 million award. If spending in this category has been consistently high or increasing, it suggests a sustained operational need. Conversely, a sudden spike in spending could indicate a new initiative or a shift in operational strategy. Without access to historical spending reports specifically for this service category, it's difficult to ascertain trends. However, the scale of this current contract suggests a significant and ongoing requirement for such services.

What are the implications of the 'FIRM FIXED PRICE' contract type on potential cost savings or overruns?

The 'FIRM FIXED PRICE' (FFP) contract type is designed to provide the government with cost certainty. Under an FFP contract, the contractor assumes the risk of cost overruns. This means CSI Aviation, Inc. is obligated to perform the work for the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to manage their expenses efficiently. For the government, it eliminates the risk of paying more than the agreed price. However, if the fixed price was set too high due to inadequate market analysis or competitive bidding, the government might not achieve the lowest possible price.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › All Other Travel Arrangement and Reservation Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6006 REESE CREEK RD, KILLEEN, TX, 76549

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $283,745,410

Exercised Options: $263,917,853

Current Obligation: $258,529,725

Actual Outlays: $258,529,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS33F0025V

IDV Type: FSS

Timeline