DHS ICE spent over $33.7M on unscheduled air charter services, primarily for travel arrangement and reservation

Contract Overview

Contract Amount: $33,700,759 ($33.7M)

Contractor: CSI Aviation, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2013-03-27

End Date: 2014-04-01

Contract Duration: 370 days

Daily Burn Rate: $91.1K/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 ALEXANDRIA, LOUISIANA. IGF::OT::IGF

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87107

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.7 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF ALEXANDRIA, LOUISIANA. IGF::OT::IGF Key points: 1. Contract value of $33.7M for air charter services indicates significant demand for flexible transportation solutions. 2. The contract was awarded under full and open competition, suggesting a competitive market for these services. 3. A single delivery order was issued, potentially indicating a need for specific, time-sensitive services. 4. The fixed-price contract type helps manage cost certainty for the government. 5. Services were utilized in New Mexico, suggesting a geographic focus for operations. 6. The North American Industry Classification System (NAICS) code 561599 covers a broad range of travel services.

Value Assessment

Rating: fair

The total contract value of $33.7 million for unscheduled air charter services over approximately one year appears substantial. Benchmarking this against similar contracts for specialized air charter services is difficult without more specific details on the nature of the flights (e.g., passenger vs. cargo, distance, urgency). However, the fixed-price nature of the contract provides some cost control. The value suggests a significant operational need for rapid and flexible air transport.

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 offers. The presence of two bidders suggests a degree of competition, though the exact number of offers received is not detailed. A competitive process is generally favorable for price discovery and ensuring the government receives reasonable pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to bid, potentially driving down costs and increasing the likelihood of obtaining services at a competitive market rate.

Public Impact

U.S. Immigration and Customs Enforcement (ICE) benefits from flexible and rapid transportation for its operational needs. The services provided likely support law enforcement, personnel movement, or asset transport critical to ICE missions. Operations appear to have a geographic focus in New Mexico. The contract supports the aviation services sector, potentially involving pilots, ground crew, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the efficiency and effectiveness of the air charter services.
The specific nature of the 'unscheduled' flights and their operational necessity requires further clarification to understand the true value.
Limited information on the number of actual flights or passengers transported hinders a granular value-for-money assessment.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost certainty for the government.
The contract duration and value suggest a sustained need and reliable service provision.

Sector Analysis

The contract falls within the broader travel arrangement and reservation services sector, specifically focusing on unscheduled air charter. This niche market caters to clients requiring immediate, flexible, and often specialized air transportation that scheduled commercial flights cannot accommodate. The market size for such services is difficult to quantify precisely but is driven by government agencies, emergency services, and private entities with urgent travel needs. This contract represents a significant expenditure within this specialized segment.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. The contractor, CSI Aviation, Inc., is a mid-sized company. Without specific subcontracting plans or set-aside requirements, the direct impact on the small business ecosystem is likely minimal, though larger contracts can sometimes create opportunities for smaller suppliers within the aviation support chain.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within the Department of Homeland Security. Standard contract administration processes, including performance monitoring and invoice verification, would be in place. Transparency is generally maintained through contract databases like FPDS, though detailed operational specifics may be sensitive.

Related Government Programs

Department of Homeland Security - Transportation Services
Federal Aviation Administration - Air Charter Regulations
General Services Administration - Travel Management Services

Risk Flags

Cost Management: High expenditure requires scrutiny for value.
Operational Dependency: Reliance on unscheduled services may indicate underlying logistical challenges.
Performance Transparency: Lack of detailed performance data limits assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.7 million to CSI AVIATION, INC. UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF ALEXANDRIA, LOUISIANA. IGF::OT::IGF

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 $33.7 million.

What is the period of performance?

Start: 2013-03-27. End: 2014-04-01.

What was the primary purpose and operational context for these unscheduled air charter services?

The primary purpose of these unscheduled air charter services, contracted by U.S. Immigration and Customs Enforcement (ICE), was to provide flexible and rapid air transportation. While the specific operational context is not detailed in the provided data, such services are typically utilized for time-sensitive missions, personnel movement to remote or secure locations, emergency response, or the transport of sensitive assets where standard commercial travel is not feasible or appropriate. The significant expenditure suggests these flights were critical to ongoing ICE operations, potentially related to border security, investigations, or interdiction efforts requiring immediate deployment or relocation of personnel or resources.

How does the $33.7 million expenditure compare to historical spending on similar services by ICE or DHS?

Without access to historical spending data specifically for unscheduled air charter services by ICE or DHS, a direct comparison is challenging. However, a $33.7 million expenditure over a roughly one-year period for specialized air charter services is substantial. It suggests either a significant increase in operational tempo requiring such transport, or that this contract represents a primary mechanism for fulfilling a consistent, high-demand need for flexible air mobility within the agency. Further analysis would require examining prior contract awards for similar services to identify trends or anomalies in spending.

What risks are associated with relying on unscheduled air charter services for critical government operations?

Relying on unscheduled air charter services introduces several risks. Firstly, cost can be a significant factor, as charter flights are generally more expensive than commercial options. Secondly, availability can be a concern; securing aircraft on short notice may be challenging, potentially leading to delays. Thirdly, regulatory compliance and safety standards must be rigorously monitored to ensure adherence to all federal aviation regulations. Finally, the 'unscheduled' nature implies a reactive operational posture, which, while necessary at times, can indicate underlying planning or resource challenges if it becomes the norm rather than the exception.

What performance metrics or key performance indicators (KPIs) were likely used to evaluate CSI Aviation's service delivery?

While specific KPIs are not provided, typical performance metrics for air charter services would likely include on-time performance (departure and arrival), aircraft availability, adherence to flight plans, passenger/cargo manifest accuracy, safety incident rates, and overall client satisfaction. For a fixed-price contract, ensuring the service meets the agreed-upon scope and quality standards without cost overruns would be paramount. ICE contracting officers would monitor these aspects to ensure the value and reliability of the services provided by CSI Aviation.

What is the significance of the NAICS code 561599 (All Other Travel Arrangement and Reservation Services) in understanding this contract?

The NAICS code 561599, 'All Other Travel Arrangement and Reservation Services,' indicates that this contract encompasses a broad range of services beyond just booking flights. It suggests that CSI Aviation may have provided comprehensive travel management solutions, potentially including logistical planning, ground transportation coordination, accommodation booking, and other support services related to the air charter. This classification highlights that the contract's scope might be wider than just the aircraft charter itself, encompassing the end-to-end travel arrangements for ICE personnel or assets.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › All Other Travel Arrangement and Reservation Services

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-13-Q-00014

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: $33,907,000

Exercised Options: $33,907,000

Current Obligation: $33,700,759

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS33F0025V

IDV Type: FSS

Timeline