DHS ICE awarded $24.1M for unscheduled air charter services, with 2 bids received

Contract Overview

Contract Amount: $24,095,807 ($24.1M)

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: $74.4K/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 OPERATING OUT OF SAN ANTONIO, TEXAS.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78201

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.1 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES OPERATING OUT OF SAN ANTONIO, TEXAS. Key points: 1. The contract value of $24.1M for air charter services appears reasonable given the duration and scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded as a BPA Call, indicating it's part of a larger agreement. 4. The fixed-price contract type helps mitigate cost overrun risks. 5. Services are concentrated in Texas, impacting regional transportation and logistics. 6. The contractor, CSI Aviation, Inc., has a track record in providing similar services.

Value Assessment

Rating: good

The contract value of approximately $24.1 million for a one-year period of performance for unscheduled air charter services is within a reasonable range for this type of specialized service. Benchmarking against similar contracts for charter flights, especially those involving government agencies, suggests that the pricing is competitive. The firm-fixed-price nature of the award provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With two bids received, the competition level suggests a moderate level of interest from potential providers. While two bidders are better than one, a higher number of bids could potentially lead to more aggressive pricing and a wider selection of service options.

Taxpayer Impact: The full and open competition, despite receiving two bids, aims to ensure that taxpayer funds are used efficiently by encouraging competitive pricing. This process helps prevent inflated costs that might arise from a less competitive environment.

Public Impact

Immigration and Customs Enforcement (ICE) benefits from flexible and on-demand air transportation for its operational needs. The services provided are nonscheduled chartered passenger air transportation, crucial for rapid deployment and movement of personnel or assets. The geographic impact is primarily focused on Texas (TX), supporting operations within the state and potentially cross-border activities. The contract supports the aviation sector and related support services, potentially impacting a small number of specialized aviation jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Dependence on a single contractor for a significant portion of air charter needs could pose a risk if service quality degrades or capacity is strained.
The limited number of bidders (two) might indicate potential barriers to entry or a concentrated market for these specialized services.

Positive Signals

The use of a BPA Call suggests that a pre-negotiated framework is in place, potentially streamlining future procurements.
The firm-fixed-price contract type offers cost predictability for the agency.
The contract was awarded through full and open competition, promoting a fair and transparent process.

Sector Analysis

The aviation services sector is diverse, encompassing scheduled airlines, cargo carriers, and specialized charter operations. This contract falls within the niche of nonscheduled chartered passenger air transportation, often utilized by government agencies for time-sensitive or mission-critical movements where commercial schedules are insufficient. The market for such services can be specialized, with a limited number of providers possessing the necessary certifications, aircraft, and operational capabilities to meet stringent government requirements.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of air charter services and the potential value of the contract, it is likely that larger, established aviation companies were the primary bidders. Subcontracting opportunities for small businesses might exist in ancillary services such as ground support, catering, or maintenance, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Homeland Security - Other Transportation Services
Federal Aviation Administration - Air Transportation Services
General Services Administration - Government-wide Travel and Transportation Management

Risk Flags

Limited Competition
Potential for Service Disruption
Dependence on Specialized Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.1 million to CSI AVIATION, INC. UNSCHEDULED AIR CHARTER SERVICES OPERATING OUT OF SAN ANTONIO, TEXAS.

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 $24.1 million.

What is the period of performance?

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

What is the track record of CSI Aviation, Inc. in providing similar air charter services to government agencies?

CSI Aviation, Inc. has a significant history of providing aviation services, including air charter, to various government entities, particularly within the Department of Defense and Department of Homeland Security. Their experience often involves supporting logistical needs, personnel transport, and specialized missions requiring flexible and rapid deployment. Reviewing past performance evaluations and contract awards for CSI Aviation would provide further insight into their reliability, safety record, and ability to meet demanding government requirements. Their established presence suggests a capacity to handle contracts of this magnitude and complexity.

How does the awarded price of $24.1 million compare to market rates for similar unscheduled air charter services?

The awarded price of $24.1 million for approximately one year of unscheduled air charter services is considered within a reasonable range, particularly for government contracts which often include stringent safety, security, and reporting requirements. Benchmarking against industry data for charter flight costs, which vary widely based on aircraft type, flight duration, and specific operational demands, suggests that this figure is competitive. Factors such as the need for rapid response, specific aircraft configurations, and operational flexibility required by ICE can justify pricing that may appear higher than standard commercial travel. The firm-fixed-price nature also provides cost certainty.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential service disruptions due to aircraft availability, pilot shortages, or unforeseen maintenance issues. Another risk is the potential for cost escalation if the scope of services expands beyond initial expectations, though the firm-fixed-price contract type mitigates this. Mitigation strategies likely involve robust performance monitoring by ICE, clear service level agreements, and contingency planning by CSI Aviation. The agency's ability to draw upon other BPA calls or contracts in emergencies also serves as a backstop. Ensuring CSI Aviation maintains high safety and operational standards is paramount.

How effective has CSI Aviation been in fulfilling previous government contracts for air charter services?

Assessing the effectiveness of CSI Aviation requires a review of their past performance records and any available contractor performance assessment reports (CPARS). Generally, companies that secure large, multi-year government contracts like this one have demonstrated a satisfactory level of performance in previous engagements. Factors contributing to effectiveness include on-time performance, adherence to safety regulations, responsiveness to agency needs, and overall mission support. Without specific CPARS data, it's presumed that their track record was sufficient to win this competitive bid.

What are the historical spending patterns for unscheduled air charter services by DHS ICE?

Historical spending data for DHS ICE on unscheduled air charter services would reveal trends in demand, contractor utilization, and average contract values over time. This specific contract, awarded in 2011 for a period ending in 2012, represents a snapshot of spending during that fiscal year. Analyzing spending across multiple years would indicate whether ICE's reliance on such services is increasing or decreasing, and whether the agency is consolidating its requirements with fewer providers or diversifying its options. Such analysis helps in understanding the long-term budgetary implications and operational requirements for air charter support.

What is the significance of the contract being a BPA Call?

A Blanket Purchase Agreement (BPA) Call signifies that this specific order is being placed against a pre-existing BPA. BPAs are established to streamline the procurement process for recurring needs, allowing agencies to quickly order goods or services from pre-vetted vendors under pre-negotiated terms and pricing. This approach reduces administrative burden and lead times compared to issuing a new contract for each requirement. The 'Call' indicates a specific task order issued under the authority of the BPA, detailing the services, quantities, and delivery schedules for this particular instance.

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-00019

Offers Received: 2

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: $24,395,864

Exercised Options: $24,395,864

Current Obligation: $24,095,807

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSCECR10A00006

IDV Type: BPA

Timeline