DHS ICE Spends $51.8M on Unscheduled Air Charters from CSI Aviation in Arizona

Contract Overview

Contract Amount: $51,814,360 ($51.8M)

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: $138.5K/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 MESA, ARIZONA.

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85201

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $51.8 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES OPERATING OUT OF MESA, ARIZONA. Key points: 1. Significant expenditure on unscheduled air charter services highlights a critical operational need for flexibility. 2. CSI Aviation, Inc. is the sole provider under this contract, raising questions about competition. 3. The contract's duration and value suggest a substantial, ongoing requirement for rapid deployment or specialized transport. 4. Focus on Arizona operations indicates potential regional security or immigration enforcement priorities.

Value Assessment

Rating: fair

The total award of $51.8M over approximately one year is substantial for unscheduled air charter services. Benchmarking is difficult without specific flight details, but the scale suggests significant operational tempo.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a BPA Call, which can sometimes limit direct competition compared to open solicitations. While the data states 'FULL AND OPEN COMPETITION', the BPA Call mechanism warrants further scrutiny regarding the breadth of actual bidders.

Taxpayer Impact: Taxpayer funds are used to cover the costs of these essential but potentially high-cost transportation services. Ensuring competitive pricing within the BPA framework is key to maximizing value.

Public Impact

Supports critical law enforcement and national security operations by providing rapid, flexible transportation. Enables movement of personnel or assets to remote or time-sensitive locations. Potential for high per-flight costs due to the unscheduled and on-demand nature of the service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite 'full and open' claim
High dollar value for unscheduled services
Potential for cost overruns if not managed tightly

Positive Signals

Provides essential operational flexibility
Supports critical national security missions
Firm Fixed Price contract provides cost certainty

Sector Analysis

The aviation services sector is crucial for government operations requiring rapid deployment. Spending benchmarks for unscheduled charters are highly variable, depending on mission type, aircraft size, and urgency. This contract represents a significant portion of spending within this niche.

Small Business Impact

The contract was awarded to CSI Aviation, Inc., a single entity. There is no indication of small business participation in this specific award, suggesting larger prime contractors are utilized for these specialized services.

Oversight & Accountability

The use of a BPA Call suggests an existing framework for procurement. Oversight would focus on ensuring adherence to BPA terms, proper justification for calls, and monitoring performance and costs against contract requirements.

Related Government Programs

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

Risk Flags

Lack of clear small business participation
Potential for limited competition despite stated policy
High cost associated with unscheduled, on-demand services
Dependence on a single provider for critical transportation needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $51.8 million to CSI AVIATION, INC. UNSCHEDULED AIR CHARTER SERVICES OPERATING 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 $51.8 million.

What is the period of performance?

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

What specific operational needs justified the high expenditure on unscheduled air charters, and were alternative, more cost-effective solutions considered?

The high expenditure likely stems from the critical and time-sensitive nature of Department of Homeland Security operations, such as rapid deployment of personnel for border security, emergency response, or fugitive apprehension. Unscheduled charters offer unparalleled flexibility. However, a thorough review should confirm that less costly options, like scheduled commercial flights or pre-negotiated charter agreements with more competitive terms, were evaluated and deemed unsuitable for these specific mission requirements.

How was 'full and open competition' ensured when the award was made via a BPA Call, and what was the process for soliciting bids?

While the data indicates 'FULL AND OPEN COMPETITION', the award mechanism being a 'BPA CALL' suggests competition might have occurred within the bounds of an existing Basic Ordering Agreement (BOA) or similar framework. Ensuring true competition would involve verifying that multiple qualified vendors under the BPA were solicited, evaluated, and that the selection was based on the best value, not just the lowest price, considering the unique demands of unscheduled charter services.

What is the typical utilization rate and cost per flight hour for these unscheduled charters, and how does it compare to industry standards?

Determining the exact cost per flight hour is challenging without detailed flight logs and aircraft specifications. However, unscheduled, on-demand charter services inherently command a premium over scheduled flights due to immediate availability requirements. Benchmarking against industry standards would require analyzing the types of aircraft used, flight durations, operational areas, and the specific services provided (e.g., passenger vs. cargo, security escorts) to assess if the pricing reflects fair market value for the unique service provided.

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-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: $53,146,620

Exercised Options: $53,146,620

Current Obligation: $51,814,360

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSCECR10A00006

IDV Type: BPA

Timeline