DOJ's US Marshals Service Leased Two Large Aircraft for $11.1M from Sundowner Oklahoma City, LLC
Contract Overview
Contract Amount: $11,112,597 ($11.1M)
Contractor: Sundowner Oklahoma City, LLC
Awarding Agency: Department of Justice
Start Date: 2007-12-10
End Date: 2008-12-09
Contract Duration: 365 days
Daily Burn Rate: $30.4K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 154575 AIRCRAFT, INSURANCE, MAINTENANCE (AIM / "DRY") LEASE OF TWO LARGE AIRCRAFT.
Place of Performance
Location: ALEXANDRIA, RAPIDES County, LOUISIANA, 71303
Plain-Language Summary
Department of Justice obligated $11.1 million to SUNDOWNER OKLAHOMA CITY, LLC for work described as: 154575 AIRCRAFT, INSURANCE, MAINTENANCE (AIM / "DRY") LEASE OF TWO LARGE AIRCRAFT. Key points: 1. The contract is for aircraft lease, insurance, and maintenance, indicating a need for specialized aviation support. 2. Competition was limited, with the award going to Sundowner Oklahoma City, LLC. 3. The primary risk lies in the potential for cost overruns or service disruptions given the specialized nature of the service. 4. The sector is primarily 'Other Miscellaneous Store Retailers', which is an unusual classification for aircraft leasing.
Value Assessment
Rating: fair
The contract value of $11.1M for two large aircraft over one year appears high, especially given the broad 'Other Miscellaneous Store Retailers' NAICS code. Benchmarking against similar specialized aircraft leases would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition method is not specified, but the award to a single vendor suggests it may have been limited or sole-source. This lack of transparent competition could impact price discovery and potentially lead to higher costs.
Taxpayer Impact: Taxpayer funds are being used for this lease. Without clear competition, it's difficult to ascertain if the best possible price was achieved, potentially impacting the efficient use of public funds.
Public Impact
The US Marshals Service requires aircraft for its operations, impacting law enforcement and fugitive apprehension efforts. The lease duration and cost are significant, suggesting a substantial operational requirement. The unusual NAICS code raises questions about the procurement process and vendor selection.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Unusual NAICS code for aircraft leasing.
- Limited information on competition.
- High contract value for a one-year lease.
Positive Signals
- Contract addresses a specific operational need for the US Marshals Service.
- Fixed price contract provides some cost certainty.
Sector Analysis
The sector is broadly classified under 'All Other Miscellaneous Store Retailers', which is atypical for aviation services. This suggests a potential misclassification or a unique procurement pathway. Benchmarking against aviation service contracts would be more relevant.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
Further oversight is needed to understand the competition process and the rationale behind the NAICS code selection. Accountability for ensuring fair pricing and effective service delivery rests with the Department of Justice.
Related Government Programs
- All Other Miscellaneous Store Retailers (except Tobacco Stores)
- Department of Justice Contracting
- U.S. Marshals Service Programs
Risk Flags
- Unusual NAICS code classification.
- Lack of transparency in competition.
- High contract value for a single year.
- Potential for price inefficiency due to limited competition.
Tags
all-other-miscellaneous-store-retailers-, department-of-justice, la, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $11.1 million to SUNDOWNER OKLAHOMA CITY, LLC. 154575 AIRCRAFT, INSURANCE, MAINTENANCE (AIM / "DRY") LEASE OF TWO LARGE AIRCRAFT.
Who is the contractor on this award?
The obligated recipient is SUNDOWNER OKLAHOMA CITY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (U.S. Marshals Service).
What is the total obligated amount?
The obligated amount is $11.1 million.
What is the period of performance?
Start: 2007-12-10. End: 2008-12-09.
What was the justification for selecting Sundowner Oklahoma City, LLC, and what process ensured fair pricing?
The provided data does not detail the justification for vendor selection or the specific price discovery mechanisms employed. Understanding the competitive landscape and the rationale for choosing this vendor is crucial for assessing value for money. Further investigation into the contract file would be required to answer this.
What are the risks associated with leasing aircraft under an 'Other Miscellaneous Store Retailers' NAICS code?
The primary risk is that this classification may not accurately reflect the specialized nature of aircraft leasing, potentially leading to less rigorous oversight or a failure to benchmark against appropriate industry standards. It could also indicate a non-standard procurement approach, increasing the risk of inadequate service or inflated costs.
How effectively does this aircraft lease support the US Marshals Service's mission?
The data indicates a significant investment in aircraft leasing, suggesting it is critical for the US Marshals Service's operational requirements, likely related to transportation, surveillance, or law enforcement activities. The effectiveness hinges on the reliability and suitability of the leased aircraft for their intended purpose.
Industry Classification
NAICS: Retail Trade › Other Miscellaneous Store Retailers › All Other Miscellaneous Store Retailers (except Tobacco Stores)
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
Contractor Details
Address: 5900 AIR CARGO DR, OKLAHOMA CITY, OK, 73159
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $15,705,673
Exercised Options: $11,112,597
Current Obligation: $11,112,597
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS07F9204S
IDV Type: FSS
Timeline
Start Date: 2007-12-10
Current End Date: 2008-12-09
Potential End Date: 2008-12-09 00:00:00
Last Modified: 2021-11-29
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