DHS's ICE Spent $32M on Unscheduled Air Charters from CSI Aviation in 2010-2011

Contract Overview

Contract Amount: $32,064,863 ($32.1M)

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: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: UNSCHEDULED AIR CHARTER SERVICES FROM SAN ANTONIO, TX FOR THE PERIOD OF PERFORMANCE FROM APRIL 2, 2010 THRU APRIL 1, 2011.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78216

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.1 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES FROM SAN ANTONIO, TX 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. Sole reliance on CSI Aviation for this period warrants investigation into competitive sourcing alternatives. 3. The extended performance period and high cost suggest a critical operational need, but also a risk of vendor lock-in. 4. Spending in the transportation services sector, specifically air charter, can be volatile and subject to external factors.

Value Assessment

Rating: questionable

The contract value of $32M over approximately one year for unscheduled air charters appears high. Benchmarking against similar government or commercial air charter contracts would be necessary to determine if the pricing was competitive and represented good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract was awarded under full and open competition, the specific details of the bidding process and the number of bids received are not provided. This lack of detail makes it difficult to assess the effectiveness of the price discovery mechanism.

Taxpayer Impact: Taxpayer funds were used for this expenditure. Without a clear understanding of the necessity and cost-effectiveness, the impact on taxpayers is uncertain and potentially negative if better value could have been achieved.

Public Impact

Unscheduled air charters are often used for critical or time-sensitive missions, such as law enforcement or emergency response. The high cost could be attributed to the flexibility and rapid deployment required for unscheduled flights. Transparency in the justification for using unscheduled charters and the competitive process is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High expenditure on a service that may have alternative, more cost-effective solutions.
Lack of detailed information on the competitive bidding process.
Potential for cost overruns or inefficiencies in unscheduled service contracts.

Positive Signals

Contract awarded under full and open competition, suggesting an initial attempt at market engagement.
Services provided likely supported critical government operations.

Sector Analysis

The transportation sector, particularly air charter services, can be expensive due to operational demands and market fluctuations. Government agencies often utilize such services for specialized needs, but careful oversight is required to ensure cost efficiency compared to scheduled or alternative transport methods.

Small Business Impact

The data does not indicate whether small businesses were involved in providing these services. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Oversight of unscheduled service contracts is critical to ensure that they are used only when necessary and that costs are reasonable. The Department of Homeland Security and U.S. Immigration and Customs Enforcement should have internal controls and auditing processes to monitor such expenditures.

Related Government Programs

Nonscheduled Chartered Passenger Air Transportation
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

High expenditure on unscheduled services.
Potential lack of cost-effectiveness.
Limited transparency on competitive process details.
Extended performance period without clear justification for unscheduled nature.
Vendor lock-in risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.1 million to CSI AVIATION, INC. UNSCHEDULED AIR CHARTER SERVICES FROM SAN ANTONIO, TX 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 $32.1 million.

What is the period of performance?

Start: 2010-04-02. End: 2013-02-28.

What was the specific operational need driving the requirement for unscheduled air charter services, and could alternative, more cost-effective transportation methods have met these needs?

The specific operational needs for unscheduled air charter services, such as rapid deployment or transport of sensitive personnel/materials, are not detailed in the provided data. A thorough review of mission logs and justifications would be required to ascertain the necessity. Investigating whether scheduled flights, commercial airlines with charter options, or other modes of transport could have fulfilled these requirements at a lower cost is essential for assessing value for money.

How did the agency ensure fair pricing and prevent potential overcharges given the nature of 'unscheduled' services, which can sometimes command premium rates?

Ensuring fair pricing for unscheduled services typically involves establishing pre-negotiated rates or using established pricing indices for charter services. The agency should have had mechanisms to compare quotes, verify market rates, and potentially negotiate discounts based on volume or commitment. The 'full and open competition' award suggests an attempt at market discovery, but the specifics of the bidding and evaluation process are crucial to confirm price reasonableness.

What was the overall effectiveness of these air charter services in supporting the mission objectives of U.S. Immigration and Customs Enforcement during the contract period?

The effectiveness of the air charter services in supporting ICE's mission objectives would be measured by factors such as timeliness of deployment, successful completion of missions facilitated by the transport, and overall operational impact. Without specific performance metrics or mission outcome data linked to these flights, it is difficult to definitively assess their effectiveness beyond the assumption that they fulfilled a critical need.

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: $32,064,863

Exercised Options: $32,064,863

Current Obligation: $32,064,863

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSCECR10A00006

IDV Type: BPA

Timeline