Homeland Security's $47.9M air charter contract with CSI Aviation, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $47,900,143 ($47.9M)

Contractor: CSI Aviation, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2011-05-13

End Date: 2012-04-01

Contract Duration: 324 days

Daily Burn Rate: $147.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF MESA, ARIZONA.

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85201

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $47.9 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF MESA, ARIZONA. Key points: 1. Contract awarded for unscheduled air charter services, indicating a need for flexible and on-demand transportation. 2. The contract was awarded to CSI Aviation, Inc. by U.S. Immigration and Customs Enforcement (DHS). 3. Full and open competition was utilized, suggesting a robust bidding process. 4. The contract type is Firm Fixed Price, providing cost certainty for the government. 5. The duration of the contract was 324 days. 6. The contract was a BPA Call, indicating it was placed against an existing Blanket Purchase Agreement.

Value Assessment

Rating: fair

The total value of this contract was approximately $47.9 million. Benchmarking this against similar air charter services is challenging without more specific details on the nature of the flights (e.g., passenger capacity, distance, frequency, urgency). However, the firm fixed-price nature suggests an attempt to control costs. The number of bids received (2) is on the lower side for a full and open competition, which could imply less competitive pricing than ideal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. However, only two bids were received. While the process was open, the limited number of bidders may suggest a specialized market or potential barriers to entry for other providers. This could impact the government's ability to secure the most competitive pricing.

Taxpayer Impact: A limited number of bidders in a full and open competition can mean that taxpayers may not be receiving the most cost-effective service possible, as competition is a key driver of lower prices.

Public Impact

This contract directly benefits U.S. Immigration and Customs Enforcement (ICE) by providing essential air transportation for its operations. The services delivered are unscheduled air charter flights, crucial for rapid deployment and movement of personnel or assets. The geographic impact is primarily originating out of Mesa, Arizona, suggesting a key operational hub for ICE. The contract supports the aviation services sector and potentially the workforce employed by CSI Aviation, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) for a contract of this value could lead to higher costs for taxpayers.
The specific nature of 'unscheduled' flights might indicate a lack of proactive planning or an over-reliance on ad-hoc solutions.
Lack of detailed performance metrics or outcomes makes it difficult to assess the true value for money beyond the price paid.

Positive Signals

Awarded under full and open competition, adhering to principles of fair opportunity.
Firm Fixed Price contract type provides cost certainty and reduces the risk of cost overruns for the government.
The contract was a BPA Call, suggesting it leveraged an existing, potentially pre-vetted, agreement.

Sector Analysis

The aviation services sector is diverse, encompassing scheduled airlines, cargo carriers, and specialized charter services. This contract falls into the latter category, providing on-demand air transportation. The market for unscheduled charter services can be niche, often driven by government needs for flexibility, security, or access to remote locations. Comparable spending benchmarks would depend heavily on the specific mission requirements, aircraft types, and operational tempo, which are not detailed here.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of specialized air charter services, it is possible that larger, more established companies like CSI Aviation, Inc. are the primary providers. Further analysis would be needed to determine if subcontracting opportunities were available to small businesses.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security, specifically U.S. Immigration and Customs Enforcement. Oversight would typically be managed by contracting officers within ICE, ensuring compliance with the terms of the Firm Fixed Price BPA Call. Transparency is generally maintained through contract databases, though specific operational details of unscheduled flights may be sensitive.

Related Government Programs

Department of Homeland Security Contracts
U.S. Immigration and Customs Enforcement Contracts
Air Transportation Services
Charter Flight Services
Blanket Purchase Agreements

Risk Flags

Limited competition despite full and open award
Lack of detailed performance metrics
Potential for higher costs due to limited bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $47.9 million to CSI AVIATION, INC. UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF MESA, ARIZONA.

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 $47.9 million.

What is the period of performance?

Start: 2011-05-13. End: 2012-04-01.

What was the specific mission or purpose of these unscheduled air charter services?

The provided data indicates the contract was for 'UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF MESA, ARIZONA.' While the exact mission is not detailed, given the awarding agency is U.S. Immigration and Customs Enforcement (ICE), these flights likely supported operational requirements such as personnel transport, surveillance support, or rapid response missions. The 'unscheduled' nature suggests a need for flexibility and immediate deployment capabilities, potentially related to border security, investigations, or enforcement actions. Without more specific documentation, the precise operational context remains inferred.

How does the price per flight hour or per mile compare to industry benchmarks for similar unscheduled charter services?

Benchmarking the per-unit cost for this contract is difficult without more granular data. The total award of $47.9 million over approximately 324 days (less than a year) for unscheduled flights originating from Mesa, Arizona, does not provide enough detail on flight duration, distance, aircraft type, or passenger load. Industry benchmarks for unscheduled charter services vary significantly based on these factors. For instance, a small turboprop charter would have a vastly different cost structure than a larger jet. The firm fixed-price nature suggests a negotiated rate, but without knowing the specific services rendered per unit, a direct comparison to market rates is not feasible with the available information.

What is CSI Aviation, Inc.'s track record with government contracts, particularly with DHS or ICE?

CSI Aviation, Inc. has a history of securing contracts with various government agencies, including the Department of Homeland Security. Their specialization in aviation services, including charter and air medical transport, makes them a frequent contractor for agencies requiring flexible air support. While this specific $47.9 million contract with ICE is a significant award, their broader portfolio likely includes numerous other contracts. A deeper dive into their contract history would reveal the volume, value, and performance of their past government work, providing context for their capabilities and reliability in fulfilling such requirements.

Were there any performance issues or contract modifications during the life of this BPA Call?

The provided data does not include information on contract modifications or performance issues for this specific BPA Call. Typically, contract modification details (like supplemental agreements for changes in scope, price, or delivery) and performance records (including past performance evaluations or documented issues) are maintained within the agency's contract management system. To assess performance, one would need to consult official contract databases or agency records that track contract history beyond the basic award information. The absence of readily available modification data does not necessarily imply a lack of them, but rather that such details are not part of this summary dataset.

What is the historical spending trend for unscheduled air charter services by ICE or DHS?

Analyzing the historical spending trend for unscheduled air charter services by ICE or DHS requires access to multi-year spending data. This single contract award of $47.9 million represents a specific instance of spending. To understand trends, one would need to aggregate spending on similar services over several fiscal years. This would involve searching contract databases for all awards related to 'air charter,' 'unscheduled flights,' or similar terms issued by ICE and DHS. Such an analysis could reveal whether spending in this category is increasing, decreasing, or remaining stable, and identify key periods of high or low expenditure.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSCECR-11-Q-00015

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3700 RIO GRANDE BLVD NW, 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: $63,806,176

Exercised Options: $63,806,176

Current Obligation: $47,900,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCECR10A00006

IDV Type: BPA

Timeline