DHS ICE Spends $44.7M on Unscheduled Air Charters from Miami via CSI Aviation
Contract Overview
Contract Amount: $44,738,336 ($44.7M)
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: $28.9K/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 MIAMI, FLORIDA.IGF::OT::IGF
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87107
Plain-Language Summary
Department of Homeland Security obligated $44.7 million to CSI AVIATION, INC for work described as: UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF MIAMI, FLORIDA.IGF::OT::IGF Key points: 1. Significant expenditure on unscheduled air charter services highlights potential for cost optimization. 2. CSI Aviation holds a substantial contract, raising questions about market competition and pricing. 3. The firm fixed-price contract structure may limit flexibility but provides cost certainty. 4. Focus on travel arrangement services suggests a niche but critical operational need for ICE.
Value Assessment
Rating: questionable
The total award of $44.7M over four years for air charter services appears high, especially without clear benchmarks for unscheduled flights. Pricing assessment is difficult due to the nature of the service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive process. However, the significant award amount to a single vendor warrants scrutiny regarding price discovery and potential for better rates.
Taxpayer Impact: Taxpayer funds are utilized for essential but potentially high-cost travel arrangements, necessitating efficient procurement to maximize value.
Public Impact
Ensures operational flexibility for critical ICE missions requiring rapid deployment. Supports personnel movement for law enforcement and security operations. Potential for significant cost if not managed efficiently, impacting budget allocation for other priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High total award value for a service with variable demand.
- Lack of specific per-unit cost data makes benchmarking difficult.
- Potential for cost overruns if demand fluctuates significantly.
Positive Signals
- Contract awarded through full and open competition.
- Firm fixed-price contract provides cost certainty.
- Supports critical operational needs of ICE.
Sector Analysis
The travel arrangement and reservation services sector, particularly for specialized needs like air charters, can be costly. Benchmarks are difficult to establish due to the unscheduled and often urgent nature of these services.
Small Business Impact
No information available on small business participation in this contract. Further analysis is needed to determine if small businesses had opportunities to compete.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract vehicle. Oversight should focus on the necessity and cost-effectiveness of each individual order placed.
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 total contract value.
- Lack of granular cost data for benchmarking.
- Potential for price creep over contract duration.
- Dependence on a single vendor for critical services.
Tags
all-other-travel-arrangement-and-reserva, department-of-homeland-security, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $44.7 million to CSI AVIATION, INC. UNSCHEDULED AIR CHARTER SERVICES ORIGINATING OUT OF MIAMI, FLORIDA.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 $44.7 million.
What is the period of performance?
Start: 2014-04-02. End: 2018-06-30.
What is the average cost per flight hour or per trip under this contract, and how does it compare to industry standards for similar unscheduled charter services?
Without detailed order data, calculating an average cost per flight hour or trip is not possible. Industry standards for unscheduled charters vary widely based on aircraft type, distance, and urgency. A thorough review of individual delivery orders would be necessary to establish a meaningful comparison and assess value for money.
What specific operational requirements necessitate unscheduled air charters, and have alternative, potentially more cost-effective, transportation methods been considered?
The need for unscheduled air charters likely stems from urgent operational requirements of U.S. Immigration and Customs Enforcement (ICE), such as rapid personnel deployment or transportation of individuals in sensitive situations. While cost-effectiveness is a concern, the nature of these operations may preclude standard travel arrangements. A review of mission logs and alternative transport feasibility studies would clarify this.
How effectively has the 'full and open competition' process translated into competitive pricing for these air charter services over the contract's duration?
While the initial award was competitive, the sustained high value of the contract suggests a need to monitor pricing trends. It's crucial to assess if subsequent delivery orders reflect competitive rates or if market conditions or vendor leverage have led to less favorable pricing over time. Periodic market research and price analysis are recommended.
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-00007
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: $66,758,388
Exercised Options: $56,817,314
Current Obligation: $44,738,336
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS33F0025V
IDV Type: FSS
Timeline
Start Date: 2014-04-02
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2023-12-29
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