DOJ's US Marshals Service Leased Aircraft Insurance and Maintenance for $2.27M
Contract Overview
Contract Amount: $22,720,800 ($22.7M)
Contractor: Sundowner 102, LLC
Awarding Agency: Department of Justice
Start Date: 2011-10-01
End Date: 2013-09-30
Contract Duration: 730 days
Daily Burn Rate: $31.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: AIRCRAFT, INSURANCE AND MAINTENANCE (AIM/"DRY") LEASING
Place of Performance
Location: OKLAHOMA CITY, CLEVELAND County, OKLAHOMA, 73159
State: Oklahoma Government Spending
Plain-Language Summary
Department of Justice obligated $22.7 million to SUNDOWNER 102, LLC for work described as: AIRCRAFT, INSURANCE AND MAINTENANCE (AIM/"DRY") LEASING Key points: 1. Leasing aircraft insurance and maintenance services for the US Marshals Service. 2. The contract was awarded to SUNDOWNER 102, LLC. 3. This spending falls under the Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing sector. 4. The contract was awarded under full and open competition.
Value Assessment
Rating: fair
The total award amount is $2,272,080 over two years. Without specific per-unit cost breakdowns for insurance and maintenance, it's difficult to definitively assess value. However, the firm fixed-price structure suggests some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The firm fixed-price contract aims to control costs for taxpayers by establishing a set price for the services rendered.
Public Impact
Ensures operational readiness of aircraft for the US Marshals Service. Supports law enforcement activities requiring air transportation. Provides essential insurance and maintenance to mitigate risks associated with aircraft operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown makes value assessment challenging.
- Limited contract duration (2 years) may necessitate future re-competition and associated administrative costs.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost predictability.
Sector Analysis
This contract falls within the transportation equipment rental and leasing sector, specifically for commercial aircraft. Benchmarks for aircraft insurance and maintenance leasing can vary significantly based on aircraft type, age, and operational tempo.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the service made it unsuitable for small business involvement.
Oversight & Accountability
The contract was awarded by the Department of Justice to the U.S. Marshals Service. Oversight would typically involve contract management by the agency to ensure services are delivered as specified and within budget.
Related Government Programs
- Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing
- Department of Justice Contracting
- U.S. Marshals Service Programs
Risk Flags
- Cost transparency
- Contract duration
- Service provider performance risk
- Insurance premium volatility
Tags
commercial-air-rail-and-water-transporta, department-of-justice, ok, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $22.7 million to SUNDOWNER 102, LLC. AIRCRAFT, INSURANCE AND MAINTENANCE (AIM/"DRY") LEASING
Who is the contractor on this award?
The obligated recipient is SUNDOWNER 102, 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 $22.7 million.
What is the period of performance?
Start: 2011-10-01. End: 2013-09-30.
What is the average cost per aircraft for insurance and maintenance under this contract?
The provided data does not specify the number of aircraft covered or offer a per-unit cost breakdown for insurance and maintenance. The total award is $2,272,080 over 730 days. To determine the average cost per aircraft, we would need to know the fleet size and the specific allocation of funds towards insurance versus maintenance.
What are the primary risks associated with leasing aircraft insurance and maintenance services?
Key risks include potential cost overruns if maintenance needs are underestimated, increased insurance premiums due to unforeseen events or regulatory changes, and operational disruptions if service providers fail to meet contractual obligations. Ensuring robust contract terms and performance monitoring is crucial to mitigate these risks.
How effectively does this contract support the US Marshals Service's mission?
This contract is essential for maintaining the operational readiness of the US Marshals Service's aviation assets, which are critical for law enforcement operations, fugitive apprehension, and transportation. Reliable insurance and maintenance ensure aircraft availability and safety, directly contributing to mission effectiveness.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4949 HARRISON AVE, ROCKFORD, IL, 17
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,659,304
Exercised Options: $22,720,800
Current Obligation: $22,720,800
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-10-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2012-11-08
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