DHS Spends $20.8M on Unscheduled Air Charter Services for ICE in Arizona
Contract Overview
Contract Amount: $20,798,398 ($20.8M)
Contractor: CSI Aviation, Inc
Awarding Agency: Department of Homeland Security
Start Date: 2010-04-02
End Date: 2013-02-28
Contract Duration: 1,063 days
Daily Burn Rate: $19.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: UNSCHEDULED AIR CHARTER SERVICES FROM MESA, AZ FOR THE PERIOD OF PERFORMANCE FROM APRIL 2, 2010 THRU APRIL 1, 2011.
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85212
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $20.8 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES FROM MESA, AZ FOR THE PERIOD OF PERFORMANCE FROM APRIL 2, 2010 THRU APRIL 1, 2011. Key points: 1. Significant expenditure on unscheduled air charter services highlights potential for cost optimization. 2. Competition method is 'Full and Open', suggesting a structured procurement process. 3. Risk of price escalation exists due to the nature of unscheduled services. 4. Sector context is critical for understanding the necessity and efficiency of these services.
Value Assessment
Rating: fair
The total award of $20.8 million over a 3-year period for unscheduled air charter services appears substantial. Benchmarking against similar contracts for ad-hoc aviation needs would be necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. However, the nature of 'unscheduled' services might limit the effectiveness of price discovery compared to predictable, scheduled transportation.
Taxpayer Impact: Taxpayer funds are utilized for essential but potentially variable transportation needs. Ensuring cost-effectiveness through competitive bidding and monitoring service utilization is key.
Public Impact
Ensures critical transportation for U.S. Immigration and Customs Enforcement operations. Supports rapid response capabilities for unforeseen logistical requirements. Potential for cost savings if demand can be better predicted or consolidated.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High cost for unscheduled services
- Potential for price creep over time
- Limited transparency on specific usage patterns
Positive Signals
- Full and open competition utilized
- Supports critical law enforcement functions
Sector Analysis
This expenditure falls within the transportation and logistics sector, specifically aviation services. Benchmarking against government and commercial rates for similar unscheduled charter flights is crucial for assessing value.
Small Business Impact
The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight would focus on ensuring the necessity of each unscheduled charter, verifying competitive pricing for each call order, and tracking overall expenditure against budget and mission requirements.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- High total expenditure
- Potential for inefficient use of funds due to 'unscheduled' nature
- Lack of specific cost-per-unit data for benchmarking
- Need for detailed usage analysis to justify costs
Tags
nonscheduled-chartered-passenger-air-tra, department-of-homeland-security, az, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $20.8 million to CSI AVIATION, INC. UNSCHEDULED AIR CHARTER SERVICES FROM MESA, AZ FOR THE PERIOD OF PERFORMANCE FROM APRIL 2, 2010 THRU APRIL 1, 2011.
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 $20.8 million.
What is the period of performance?
Start: 2010-04-02. End: 2013-02-28.
What is the average cost per flight hour or trip for these unscheduled charters, and how does it compare to market rates?
Determining the average cost per flight hour or trip is essential for assessing value. Without detailed call order data, it's difficult to benchmark against market rates. However, the significant total award suggests a need for rigorous cost analysis of individual flights to ensure efficiency and prevent overspending on ad-hoc transportation.
What are the primary drivers for the 'unscheduled' nature of these air charter services, and could some demand be forecasted?
The 'unscheduled' nature likely stems from the unpredictable operational needs of U.S. Immigration and Customs Enforcement, such as emergency response, fugitive apprehension, or rapid deployment. However, analyzing historical data might reveal patterns that allow for better forecasting and potentially more cost-effective scheduled or block charter arrangements.
How effectively does the 'Full and Open Competition' method ensure competitive pricing for services that are inherently unpredictable?
While 'Full and Open Competition' is a strong procurement method, its effectiveness for unpredictable services depends on the structure of the contract (e.g., BPA call). It ensures a broad base of potential bidders, but the actual price discovery for each specific, unscheduled flight relies on the terms negotiated within the contract and the competitive environment at the time of each call.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3700 RIO GRANDE BLVD NW STE 1, ALBUQUERQUE, NM, 87107
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: $20,798,398
Exercised Options: $20,798,398
Current Obligation: $20,798,398
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: HSCECR10A00006
IDV Type: BPA
Timeline
Start Date: 2010-04-02
Current End Date: 2013-02-28
Potential End Date: 2013-02-28 00:00:00
Last Modified: 2017-07-31
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