DOE Spends $54M on Aviation Support with USA JET AIRLINES INC via Full and Open Competition
Contract Overview
Contract Amount: $54,368,402 ($54.4M)
Contractor: USA JET Airlines Inc
Awarding Agency: Department of Energy
Start Date: 2006-09-15
End Date: 2011-11-30
Contract Duration: 1,902 days
Daily Burn Rate: $28.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: AVIATION PROGRAM SUPPORT
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $54.4 million to USA JET AIRLINES INC for work described as: AVIATION PROGRAM SUPPORT Key points: 1. Significant contract value of $54.4 million over 5 years. 2. USA JET AIRLINES INC is the sole awardee. 3. Contract type is Firm Fixed Price, indicating price certainty. 4. Competition method was 'Full and Open Competition after Exclusion of Sources'.
Value Assessment
Rating: fair
The contract value of $54.4 million over approximately 5 years suggests a substantial but potentially variable per-year cost. Benchmarking against similar aviation support contracts would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating an initial exclusion followed by broader competition. This method can impact price discovery if the initial exclusion limits the pool of potential bidders.
Taxpayer Impact: Taxpayer funds are utilized for aviation program support. The competitive nature of the award aims to ensure reasonable pricing, but the specific exclusion of sources warrants scrutiny.
Public Impact
Ensures operational continuity for Department of Energy aviation programs. Supports critical missions requiring specialized air transportation. Potential for cost savings through competitive bidding, though the exclusion of sources needs review.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition method
- Lack of specific per-unit cost benchmark
- Long contract duration (5 years)
Positive Signals
- Firm Fixed Price contract type
- Full and Open Competition utilized
- Awarded to a single, established provider
Sector Analysis
This contract falls within the transportation and logistics sector, specifically air charter services. Spending benchmarks for similar government aviation support contracts would provide context for the $54.4 million award.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.
Oversight & Accountability
The 'Full and Open Competition after Exclusion of Sources' method suggests a specific process was followed. Oversight would focus on the justification for the initial exclusion and the effectiveness of the subsequent open competition.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for limited competition due to source exclusion
- Lack of detailed cost breakdown or per-unit pricing
- Long contract duration may reduce flexibility
- No indication of small business participation
Tags
nonscheduled-chartered-passenger-air-tra, department-of-energy, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $54.4 million to USA JET AIRLINES INC. AVIATION PROGRAM SUPPORT
Who is the contractor on this award?
The obligated recipient is USA JET AIRLINES INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $54.4 million.
What is the period of performance?
Start: 2006-09-15. End: 2011-11-30.
What was the justification for excluding certain sources prior to the full and open competition?
The justification for excluding specific sources before the full and open competition is crucial for understanding the procurement strategy. Without this information, it's difficult to assess if the exclusion was necessary for program requirements or if it potentially limited competition and impacted price discovery. A thorough review of the solicitation documents and any pre-award justifications would be required.
How does the $54.4 million contract value compare to industry benchmarks for similar aviation support services?
Comparing the $54.4 million contract value to industry benchmarks for similar aviation support services is essential for assessing value for money. Factors like aircraft type, flight hours, operational scope, and contract duration influence costs. Benchmarking would reveal if the Department of Energy received competitive pricing or if there's potential for cost savings through renegotiation or alternative sourcing.
What is the effectiveness of the 'Full and Open Competition after Exclusion of Sources' method in achieving both program needs and cost efficiency?
The effectiveness of 'Full and Open Competition after Exclusion of Sources' hinges on the rationale behind the initial exclusion. If the exclusion was justified by unique capabilities or security requirements, and the subsequent open competition yielded competitive bids, it could be effective. However, if the exclusion was arbitrary, it might have unnecessarily restricted the bidder pool, potentially leading to higher costs and reduced overall effectiveness.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Roadrunner Transportation Systems, Inc. (UEI: 114114531)
Address: 2068 E ST, BELLEVILLE, MI, 48111
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $54,368,402
Exercised Options: $54,368,402
Current Obligation: $54,368,402
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-15
Current End Date: 2011-11-30
Potential End Date: 2011-11-30 00:00:00
Last Modified: 2019-01-14
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