DoD's $731.5M Rotary Wing Airlift Contract with Columbia Helicopters Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $731,541,195 ($731.5M)
Contractor: Columbia Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-05-03
End Date: 2021-05-28
Contract Duration: 1,486 days
Daily Burn Rate: $492.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF ROTARY WING AIRLIFT SERVICES IN AFGHANISTAN
Plain-Language Summary
Department of Defense obligated $731.5 million to COLUMBIA HELICOPTERS, INC. for work described as: IGF::OT::IGF ROTARY WING AIRLIFT SERVICES IN AFGHANISTAN Key points: 1. Significant contract value of $731.5 million awarded to Columbia Helicopters. 2. Competition method was 'Full and Open', but effectiveness needs review. 3. Potential risks include cost overruns and lack of robust price discovery. 4. Sector context is critical for airlift services in complex operational environments.
Value Assessment
Rating: questionable
The contract's value of $731.5 million is substantial. Without detailed cost breakdowns or benchmarks for similar rotary-wing airlift services, assessing its value for money is difficult. The firm fixed-price structure aims to control costs, but the overall price needs further validation against market rates and performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific details of the bidding process and the number of responsive bids are crucial to determine if true competition was achieved and if the pricing reflects the best possible outcome for taxpayers.
Taxpayer Impact: The significant expenditure of $731.5 million necessitates careful oversight to ensure taxpayer funds are used efficiently and effectively for essential airlift services.
Public Impact
Ensures critical airlift capabilities for military operations. Potential for high costs impacts overall defense budget allocation. Transparency in contract execution is vital for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost justification.
- Potential for price creep despite fixed-price contract.
- Effectiveness of competition needs deeper analysis.
Positive Signals
- Awarded under full and open competition.
- Provides essential operational support.
Sector Analysis
This contract falls within the aviation services sector, specifically focusing on rotary-wing airlift. Benchmarking this cost against similar government or commercial contracts for specialized helicopter services in demanding environments is essential for a comprehensive value assessment.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or achievements for small businesses on this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight is critical for a contract of this magnitude. Regular performance reviews, audits, and monitoring of expenditures are necessary to ensure accountability and prevent waste, fraud, and abuse, especially given the operational context.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- High contract value requires rigorous oversight.
- Potential for cost escalation.
- Need for detailed performance and cost benchmarking.
- Limited insight into specific competition dynamics.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $731.5 million to COLUMBIA HELICOPTERS, INC.. IGF::OT::IGF ROTARY WING AIRLIFT SERVICES IN AFGHANISTAN
Who is the contractor on this award?
The obligated recipient is COLUMBIA HELICOPTERS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $731.5 million.
What is the period of performance?
Start: 2017-05-03. End: 2021-05-28.
What specific performance metrics were used to evaluate bids and ensure the $731.5 million contract delivers optimal value for airlift services?
The provided data lacks specific performance metrics used in bid evaluation. A thorough review would require access to the solicitation documents and the source selection criteria. Understanding these metrics is key to assessing if the contract's value proposition extends beyond just the price, encompassing reliability, safety, and operational effectiveness.
How does the cost per flight hour for this contract compare to industry benchmarks for similar rotary-wing airlift services in comparable operational theaters?
Benchmarking the cost per flight hour is crucial for assessing value. Without specific data on flight hours and associated costs, a direct comparison is impossible. However, given the contract's scale and the specialized nature of rotary-wing airlift, costs could be significantly higher than standard commercial operations due to mission requirements and risk factors.
What mechanisms are in place to ensure ongoing cost control and prevent potential overruns throughout the contract's duration, despite the firm fixed-price structure?
While a firm fixed-price contract aims to cap costs, mechanisms like robust contract administration, performance monitoring, and change order controls are vital. The Department of Defense must actively manage the contract to prevent scope creep or unforeseen circumstances from driving up costs beyond the initially agreed-upon price.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation
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: HTC71117RR001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14452 ARNDT RD NE, AURORA, OR, 97002
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $731,541,195
Exercised Options: $731,541,195
Current Obligation: $731,541,195
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71117DR018
IDV Type: IDC
Timeline
Start Date: 2017-05-03
Current End Date: 2021-05-28
Potential End Date: 2021-05-28 00:00:00
Last Modified: 2022-05-26
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