DHS's $30.5M Unscheduled Air Charter Contract Awarded to CSI Aviation, Inc. for Travel Services

Contract Overview

Contract Amount: $30,514,918 ($30.5M)

Contractor: CSI Aviation, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2013-03-28

End Date: 2014-04-01

Contract Duration: 369 days

Daily Burn Rate: $82.7K/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 SAN ANTONIO, TEXAS. 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 $30.5 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF SAN ANTONIO, TEXAS. IGF::OT::IGF Key points: 1. Value for money assessed through comparison to market rates for similar charter services. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing. 3. Risk indicators include reliance on a single contractor for a critical service. 4. Performance context is tied to the delivery of essential travel arrangements. 5. Sector positioning within travel arrangement services, a niche but vital support function.

Value Assessment

Rating: fair

The contract value of $30.5 million over approximately one year for unscheduled air charter services appears substantial. Benchmarking against similar contracts is challenging without more specific service details (e.g., aircraft type, flight hours, destinations). However, the per-unit cost, if calculable, would be a key metric. Given the nature of unscheduled charters, flexibility and rapid response likely command a premium, but oversight is needed to ensure this premium is justified and not excessive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. The presence of two bidders indicates some level of market interest, but a higher number of bidders would typically provide stronger price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of this competition.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces, encouraging multiple vendors to offer competitive pricing.

Public Impact

Benefits U.S. Immigration and Customs Enforcement (ICE) by providing essential transportation for operational needs. Facilitates unscheduled travel, crucial for time-sensitive law enforcement and operational deployments. Geographic impact is primarily focused on operations originating from San Antonio, Texas, but likely extends to national or international destinations as required. Workforce implications include enabling personnel to reach necessary locations efficiently, supporting mission objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if follow-on contracts are not competitively re-bid.
Dependence on a single contractor could lead to service disruptions if the contractor faces operational issues.
Ensuring compliance with safety and regulatory standards for all charter flights is paramount.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting process.
Contract duration provides a period of stable service delivery for ICE operations.
Fixed-price contract type helps to control costs and budget predictability.

Sector Analysis

This contract falls within the broader travel arrangement and reservation services sector, specifically focusing on the niche of unscheduled air charters. This sector is characterized by specialized providers capable of offering on-demand aviation solutions. The market size for such services can fluctuate based on government and private sector needs for rapid, flexible transportation. Comparable spending benchmarks would typically involve analyzing other government contracts for similar charter services, considering factors like aircraft size, range, and operational tempo.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless CSI Aviation, Inc. voluntarily engages small businesses for support services. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures would be tied to performance metrics outlined in the contract, including on-time performance, safety compliance, and adherence to service level agreements. Transparency is facilitated through contract databases like FPDS, which record award details, though detailed operational performance data may be less accessible.

Related Government Programs

Government-wide Travel Services Contracts
Department of Homeland Security Transportation Services
Air Charter Services
Logistics and Support Services

Risk Flags

Potential for sole-source justification if competition dwindles in future procurements.
Need for robust performance monitoring to ensure value for money.
Safety and regulatory compliance oversight is critical for aviation services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.5 million to CSI AVIATION, INC. UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF SAN ANTONIO, TEXAS. 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 $30.5 million.

What is the period of performance?

Start: 2013-03-28. End: 2014-04-01.

What is the track record of CSI Aviation, Inc. in fulfilling government contracts, particularly for air charter services?

CSI Aviation, Inc. has a history of performing government contracts, including those related to aviation and transportation services. Their experience often involves providing air charter solutions for various federal agencies, frequently supporting logistical and operational needs. Analyzing their past performance on similar contracts, including any reported issues, contract modifications, or performance evaluations, would provide a clearer picture of their reliability and capability. Specific data on their on-time performance, safety records, and client satisfaction from previous government engagements would be crucial for a comprehensive assessment. Their longevity in the market suggests a degree of established competence, but detailed contract-specific performance data is essential for a thorough evaluation.

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

Determining the precise market rate comparison for this $30.5 million contract is complex without granular data on the specific services rendered. Unscheduled air charters are inherently variable, with pricing influenced by aircraft type, flight duration, passenger/cargo load, destination, and urgency. A comprehensive comparison would require benchmarking against industry rate sheets for comparable aircraft and flight profiles, adjusted for factors like surge pricing during high demand periods. Given the 'full and open competition' and 'firm fixed price' nature, the government likely aimed for competitive pricing. However, the absence of multiple bids (only two indicated) might suggest that the market for such specialized, on-demand services is limited, potentially impacting the degree of price competition achieved.

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

Key risks include potential overpricing due to the specialized nature of unscheduled charters, reliance on a single provider for critical transport, and ensuring consistent safety and regulatory compliance across all flights. Mitigation strategies likely involve robust contract oversight by ICE, performance metrics tied to service delivery and safety, and potentially contingency planning for alternative transport options. The firm fixed-price structure helps mitigate cost overrun risks for the government. However, the risk of service disruption if CSI Aviation, Inc. faces unforeseen operational challenges remains. Continuous monitoring of the contractor's safety record and operational status is crucial for ongoing risk management.

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

Analyzing historical spending for unscheduled air charter services by DHS and ICE is vital to contextualize the $30.5 million award. This involves examining past contract awards for similar services over several fiscal years to identify trends in spending levels, contractor choices, and pricing. Significant year-over-year increases or decreases could indicate shifts in operational tempo, policy changes, or evolving needs. Understanding the historical average cost per flight hour or per mission for similar charters would provide a benchmark against which the current contract's value can be assessed. This historical data helps determine if the current spending is an anomaly or part of a consistent pattern, informing future budget projections and procurement strategies.

What specific operational needs does this contract fulfill for U.S. Immigration and Customs Enforcement (ICE)?

This contract primarily fulfills ICE's need for flexible and rapid air transportation that cannot be met through scheduled commercial flights or other standard government aviation assets. Such unscheduled charters are critical for time-sensitive operations, including the movement of personnel for investigations, enforcement actions, witness protection, or emergency response across various geographic locations. The ability to charter aircraft on demand allows ICE to adapt quickly to evolving operational requirements, ensuring that agents and resources can be deployed efficiently to wherever they are needed, often to remote or difficult-to-access areas. This capability is essential for maintaining operational readiness and effectiveness in border security and law enforcement missions.

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-00024

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: $37,685,137

Exercised Options: $30,514,918

Current Obligation: $30,514,918

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS33F0025V

IDV Type: FSS

Timeline