DHS's $38.5M air charter contract with CSI Aviation awarded via full and open competition

Contract Overview

Contract Amount: $38,474,774 ($38.5M)

Contractor: CSI Aviation, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2012-03-23

End Date: 2013-04-01

Contract Duration: 374 days

Daily Burn Rate: $102.9K/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, PASCO County, FLORIDA, 33576

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.5 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES OPERATING OUT OF SAN ANTONIO, TEXAS. Key points: 1. Contract awarded through a competitive process, suggesting potential for favorable pricing. 2. The contract's duration and value indicate a significant, ongoing need for air charter services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The agency's reliance on a single contractor for this service warrants monitoring for potential price creep. 5. Performance context is limited without specific delivery metrics or service quality data. 6. Sector positioning within government logistics and transportation services.

Value Assessment

Rating: fair

The contract value of $38.5 million over approximately one year represents a substantial expenditure for unscheduled air charter services. Benchmarking this against similar contracts is challenging without more granular data on flight hours, routes, and aircraft types. However, the firm-fixed-price structure provides some cost certainty. The number of bids (2) suggests moderate competition, which may have influenced the final pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. While competition is present, a low number of bidders can sometimes limit price discovery and potentially lead to higher prices than if more offers were considered. The agency's process for soliciting and evaluating these bids would be key to understanding the effectiveness of the competition.

Taxpayer Impact: A competitive award process is generally favorable for taxpayers, as it aims to secure the best value. However, with only two bidders, the potential for savings might be constrained compared to a more robustly competed contract.

Public Impact

Benefits U.S. Immigration and Customs Enforcement (ICE) by providing essential transportation for operational needs. Facilitates the movement of personnel or assets, crucial for law enforcement and security operations. Geographic impact is primarily focused on supporting operations originating from or requiring services in San Antonio, Texas, and potentially broader regions depending on flight plans. Supports the aviation services industry through contract awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not have driven the lowest possible price.
Lack of detailed performance metrics makes assessing value for money difficult.
Potential for contractor lock-in if future needs are met by sole-source or limited competition.

Positive Signals

Awarded through full and open competition, adhering to procurement best practices.
Firm-fixed-price contract type provides cost predictability.
Contract duration suggests a sustained operational requirement met by this award.

Sector Analysis

The unscheduled air charter services market is a niche segment within the broader transportation and logistics sector. Government agencies often utilize such services for time-sensitive missions or operations in remote locations where commercial options are insufficient. Spending in this area can fluctuate based on agency operational tempo and specific mission requirements. Comparable spending benchmarks are difficult to establish without detailed service parameters.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not provided in the data. Therefore, the impact on the small business ecosystem cannot be assessed from the available details.

Oversight & Accountability

Oversight of this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Transparency is dependent on the agency's public disclosure policies regarding contract awards and performance. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Government-wide Travel and Transportation Services
Department of Homeland Security Logistics Support
Immigration and Customs Enforcement Operational Support

Risk Flags

Limited competition may impact price optimization.
Lack of detailed performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.5 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 $38.5 million.

What is the period of performance?

Start: 2012-03-23. End: 2013-04-01.

What is the historical spending pattern for unscheduled air charter services by the Department of Homeland Security, specifically ICE?

Analyzing historical spending for unscheduled air charter services by DHS and ICE requires access to comprehensive contract databases and budget reports. Without specific data points for this contract's predecessors or related service categories, it's difficult to establish a precise trend. However, government reliance on charter services often correlates with operational tempo, national security events, or specific enforcement initiatives. A significant expenditure like $38.5 million suggests a consistent or increasing demand for such flexible transportation solutions within ICE's mission scope. Further investigation into prior fiscal years' spending on similar services would be necessary to identify patterns of increase, decrease, or stability.

How does the per-flight hour cost of this contract compare to industry benchmarks for similar charter services?

Determining the per-flight hour cost requires breaking down the total contract value ($38,474,773.52) by the total estimated or actual flight hours. This information is not explicitly provided in the contract data. Furthermore, industry benchmarks for unscheduled air charter services vary significantly based on aircraft type (e.g., turboprop, light jet, heavy jet), range, passenger capacity, and operational specifics (e.g., crew, maintenance, fuel included/excluded). Without knowing the specific types of aircraft and the total flight hours procured under this contract, a direct comparison to market rates is not feasible. Generally, unscheduled charters are more expensive per hour than scheduled commercial flights due to the flexibility and on-demand nature.

What specific types of missions or operations does ICE utilize these unscheduled air charters for?

Unscheduled air charters are typically employed by agencies like ICE for missions that require flexibility, speed, and access to locations not served by commercial aviation. This can include the transportation of law enforcement personnel for critical operations, rapid deployment to border regions, relocation of detainees or personnel requiring secure transport, or supporting investigations that necessitate immediate travel. Given ICE's mission, these charters likely facilitate operational readiness, emergency response, and the efficient movement of personnel and potentially sensitive assets across various geographic areas, often on short notice.

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

CSI Aviation, Inc. has a history of securing and performing on government contracts, including those with the Department of Homeland Security and its components like ICE. Their experience often involves providing aviation support services, including charter flights, for various federal agencies. A review of federal procurement data would reveal the extent of their past performance, including contract values, types of services rendered, and any reported performance issues or commendations. Their ability to win this $38.5 million contract suggests a demonstrated capability and competitive positioning within the government aviation services market.

Were there any performance issues or disputes reported during the execution of this contract?

The provided data summary does not include information on performance issues, disputes, or contract modifications during the execution of this specific contract (awarded March 23, 2012, ending April 1, 2013). Assessing performance typically requires reviewing contract performance reports, payment histories, and any official records of disputes or corrective actions. Without access to these detailed records, it is not possible to determine if any performance issues arose during the contract period.

What is the significance of the BPA Call award type for this contract?

The 'BPA Call' award type indicates that this contract was likely issued under a Blanket Purchase Agreement (BPA). A BPA is a simplified acquisition vehicle that allows federal agencies to fill anticipated repetitive needs for supplies or services by establishing charge accounts with qualified sources. When a specific need arises, a 'call' or order is placed against the established BPA. This method streamlines the procurement process for recurring requirements, potentially offering better pricing through pre-negotiated terms and conditions established within the BPA itself. It signifies that CSI Aviation was likely an incumbent or pre-qualified vendor under a broader BPA framework.

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-12-Q-00017

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: $39,896,154

Exercised Options: $39,896,154

Current Obligation: $38,474,774

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCECR10A00006

IDV Type: BPA

Timeline