DHS ICE Spends $164M on Unscheduled Air Charters from CSI Aviation, Inc

Contract Overview

Contract Amount: $164,010,566 ($164.0M)

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: $105.8K/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 MESA, ARIZONA.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 $164.0 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF MESA, ARIZONA.IGF::OT::IGF Key points: 1. Significant spending on air charter services highlights reliance on flexible transportation. 2. CSI Aviation, Inc. secured a substantial contract, indicating potential market concentration. 3. The contract's duration and value suggest a consistent need for these services. 4. Fixed-price contracts can offer cost predictability but may limit flexibility for the government. 5. The 'All Other Travel Arrangement' category is broad, potentially obscuring specific service details.

Value Assessment

Rating: fair

The $164M contract for air charter services appears substantial. Benchmarking against similar government or commercial air charter contracts would be necessary to assess if the pricing is competitive, especially given the fixed-price nature which can sometimes lead to overpayment if not carefully managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust process to solicit bids. However, the specific details of the bidding process and the number of bidders are not provided, which limits the assessment of price discovery effectiveness.

Taxpayer Impact: Taxpayer funds are being utilized for essential but potentially high-cost transportation services. Effective competition and oversight are crucial to ensure value for money.

Public Impact

Ensures operational flexibility for critical missions, especially in remote or time-sensitive situations. Supports law enforcement and border security operations by providing rapid deployment capabilities. Potential for significant cost if charter needs are not optimized or if market rates fluctuate. Transparency in how these services are utilized and priced is important for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details within the broad PSC code.
Potential for cost overruns if demand fluctuates significantly.
Limited insight into the competitive landscape beyond 'full and open'.

Positive Signals

Awarded under full and open competition.
Fixed-price contract provides cost certainty.
Long-term contract indicates a sustained, recognized need.

Sector Analysis

The spending falls under travel arrangement services, specifically air charters, which are often critical for government agencies like DHS for operational flexibility and rapid response. Benchmarks for such services can vary widely based on aircraft type, duration, and destination.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by U.S. Immigration and Customs Enforcement (ICE) under the Department of Homeland Security. Oversight would involve monitoring service delivery, adherence to contract terms, and financial accountability to ensure funds are used appropriately.

Related Government Programs

All Other Travel Arrangement and Reservation Services
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

High contract value warrants scrutiny for cost-effectiveness.
Broad service category may lack specificity.
Potential for uncaptured costs if not managed tightly.
Reliance on a single vendor for a significant duration.
Limited transparency on specific operational use cases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $164.0 million to CSI AVIATION, INC. UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF MESA, ARIZONA.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 $164.0 million.

What is the period of performance?

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

What was the average cost per flight hour or per trip under this contract, and how does it compare to market rates for similar unscheduled air charter services?

The provided data does not include specific cost breakdowns per flight hour or trip, making direct comparison to market rates difficult. The total contract value of $164M over approximately 4 years suggests a significant expenditure. A detailed analysis of invoices and service logs would be required to calculate average costs and assess value for money against industry benchmarks for unscheduled air charters.

What specific operational needs or mission requirements necessitated the use of unscheduled air charters totaling $164 million over four years?

The data indicates the services were for 'UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF MESA, ARIZONA' for U.S. Immigration and Customs Enforcement (ICE). These likely supported critical law enforcement, border security, or personnel transport needs where standard commercial travel was insufficient due to urgency, location, or security requirements. Specific mission details are not provided but are presumed to be operational necessities.

How effectively did the 'full and open competition' process ensure competitive pricing and prevent potential vendor lock-in or over-reliance on a single provider for these critical services?

While 'full and open competition' suggests a broad solicitation, the data doesn't reveal the number of bids received or the specific evaluation criteria. This process aims to foster competition and achieve fair pricing. However, without more details on the bidding process and subsequent contract performance, it's difficult to definitively assess its effectiveness in securing the best value or preventing long-term reliance on CSI Aviation.

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-00009

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: $236,639,425

Exercised Options: $176,837,509

Current Obligation: $164,010,566

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS33F0025V

IDV Type: FSS

Timeline