DHS awarded over $117M for air charter services, with CSI Aviation Inc. securing a significant portion

Contract Overview

Contract Amount: $117,155,166 ($117.2M)

Contractor: CSI Aviation, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2014-04-02

End Date: 2018-06-30

Contract Duration: 1,550 days

Daily Burn Rate: $75.6K/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 $117.2 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF ALEXANDRIA, LOUISIANA.IGF::OT::IGF Key points: 1. The contract value suggests a substantial need for unscheduled air charter services, potentially indicating unique or urgent transportation requirements. 2. A single awardee for such a large sum warrants scrutiny regarding competition and potential for price optimization. 3. The duration of the contract (over 4 years) implies ongoing operational reliance on these services. 4. The fixed-price nature of the contract shifts risk to the contractor but requires careful initial pricing. 5. The geographic origin (Alexandria, Louisiana) may point to specific operational hubs or needs within DHS. 6. The North American Industry Classification System (NAICS) code 561599 covers a broad range of travel services, suggesting flexibility in the scope of services procured.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the types of aircraft, routes, and service levels provided. However, an $117 million expenditure over four years for unscheduled air charter services is a significant investment. While the firm-fixed-price structure provides cost certainty, the lack of multiple comparable contracts in the provided data makes a direct value-for-money assessment difficult. Further analysis would require comparing unit costs (e.g., per flight hour, per mile) against industry standards for similar charter operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, with a single awardee (CSI Aviation, Inc.) for the entire $117 million, it raises questions about the number of actual bidders and the level of competition achieved. A robust competition typically involves several strong proposals, driving down prices. The fact that one company secured the entire award suggests they may have been the most competitive offer, or that the specific requirements favored their capabilities significantly.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, a single award for a large sum necessitates verification that the competition was indeed robust and that the pricing reflects competitive pressures rather than a lack of viable alternatives.

Public Impact

U.S. Immigration and Customs Enforcement (ICE) personnel benefit from flexible and potentially rapid transportation for operational needs. The services facilitate law enforcement activities, investigations, and personnel movement across various locations. The contract supports the Department of Homeland Security's broader mission of border security and national security. Geographic impact is likely widespread, depending on the operational requirements of ICE, with a specific origin point in Alexandria, Louisiana. The contract supports the aviation and travel services industry through the provision of charter flights.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single vendor for critical transportation needs.
Lack of detailed performance metrics in the provided data makes it difficult to assess service quality and efficiency.
The significant contract value could indicate a lack of smaller, more specialized providers being able to compete or be utilized.

Positive Signals

Awarded through full and open competition, suggesting an attempt to leverage market forces.
Firm-fixed-price contract structure provides cost predictability for the agency.
The contract duration implies a stable and reliable service provision for the agency's needs.

Sector Analysis

The air charter services sector is a niche but critical component of the broader transportation and logistics industry. It caters to clients requiring flexible, on-demand, or specialized air travel solutions that scheduled commercial airlines cannot provide. This contract falls within the travel arrangement and reservation services category (NAICS 561599). Spending in this area can fluctuate based on agency operational tempo, security needs, and the availability of alternative transportation. Comparable spending benchmarks are difficult to establish without detailed service scope, but large government contracts in this space often reflect unique mission requirements.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (sb: false) and the primary awardee, CSI Aviation, Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contracts often have subcontracting goals, which could indirectly benefit small businesses if CSI Aviation engages them for specific services.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within the Department of Homeland Security. The contract's firm-fixed-price nature simplifies some aspects of financial oversight, but performance monitoring remains crucial. Transparency is facilitated by contract databases like FPDS, but detailed operational oversight and accountability measures are internal to the agency. The Inspector General for the Department of Homeland Security would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

DHS Unscheduled Air Charter Services
ICE Transportation Services
Federal Aviation Services Procurement
Government Travel and Transportation Contracts
Department of Homeland Security Logistics

Risk Flags

Significant contract value awarded to a single vendor.
Lack of detailed performance metrics in provided data.
Potential for limited future competition due to single award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $117.2 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 $117.2 million.

What is the period of performance?

Start: 2014-04-02. End: 2018-06-30.

What is the track record of CSI Aviation, Inc. with government contracts, particularly within DHS?

CSI Aviation, Inc. has a history of securing government contracts, including those with the Department of Homeland Security (DHS) and other federal agencies. Their specialization in aviation services, including charter operations, positions them as a key provider for government needs requiring flexible air transportation. Analyzing their past performance on similar contracts, including on-time delivery, safety records, and adherence to contractual terms, would provide further insight into their reliability and capability. A review of contract award data and performance evaluations, where available, would be necessary to fully assess their track record. Their ability to consistently win large-value contracts suggests a strong existing relationship and proven performance with government clients.

How does the per-flight cost or per-hour rate for this contract compare to industry benchmarks for similar unscheduled air charter services?

Determining the precise per-flight cost or per-hour rate requires access to the detailed pricing structure within the contract, which is not fully provided. This includes information on aircraft types, seating capacity, operational range, and specific service inclusions (e.g., catering, ground support). Without these specifics, a direct comparison to industry benchmarks for unscheduled air charter services is difficult. Generally, unscheduled charters are more expensive than commercial flights due to the flexibility and on-demand nature. However, for large government operations involving specific security or logistical needs, these costs can be justified. A thorough analysis would involve obtaining the contract's detailed pricing schedule and comparing rates for comparable aircraft and mission profiles against publicly available charter rate data or rates from other government contracts.

What specific operational needs or risks led DHS to award such a large, long-term contract for unscheduled air charter?

The substantial value and duration of this contract suggest that U.S. Immigration and Customs Enforcement (ICE) has significant and ongoing requirements for unscheduled air charter services. These needs likely stem from operational imperatives such as rapid deployment of personnel for law enforcement operations, secure transportation of individuals, or movement of sensitive equipment across diverse geographic locations where commercial air travel is insufficient or impractical. The 'unscheduled' nature points to a need for flexibility to respond to dynamic situations, potentially related to border security, investigations, or emergency response. The risks mitigated by such a contract could include delays associated with commercial travel, security vulnerabilities, or the inability to access remote areas, thereby ensuring mission continuity and operational effectiveness for ICE.

What is the historical spending pattern for unscheduled air charter services by DHS or ICE, and how does this contract compare?

To assess historical spending patterns, one would need to analyze prior contract awards for similar services by DHS and ICE over several fiscal years. This contract, valued at over $117 million over approximately four years, represents a significant annual expenditure, averaging around $29 million per year. If historical data shows consistently high spending in this category, it indicates a sustained reliance on such services. Conversely, if this award represents a substantial increase, it might signal a shift in operational tempo, new mission requirements, or a consolidation of previously fragmented services. A detailed historical analysis would involve aggregating data on all air charter contracts awarded by these agencies to understand trends, identify peak spending periods, and evaluate the consistency of demand.

What are the potential implications of a single awardee for such a large contract on future competition and pricing?

A single awardee for a contract of this magnitude can have several implications for future competition and pricing. On one hand, it might indicate that CSI Aviation, Inc. possesses unique capabilities or offered the most compelling value proposition, potentially leading to a strong, reliable service. However, it could also suggest that the market for such specialized services is limited, or that the contract's structure or scope discouraged broader participation. If CSI Aviation becomes deeply embedded as the sole provider, it might create barriers to entry for new competitors in the future, potentially leading to less competitive pricing in subsequent contract renewals. Conversely, a successful long-term relationship could foster efficiencies and cost savings that benefit the government over time. Monitoring market dynamics and encouraging new entrants will be key to ensuring continued competitive pricing.

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-14-Q-00008

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: $157,650,533

Exercised Options: $142,866,923

Current Obligation: $117,155,166

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS33F0025V

IDV Type: FSS

Timeline