DoD Awards $97.5M Rotary Wing Airlift Contract to Construction Helicopters, Inc
Contract Overview
Contract Amount: $97,538,336 ($97.5M)
Contractor: Construction Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-05-11
End Date: 2021-05-28
Contract Duration: 1,113 days
Daily Burn Rate: $87.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IGF::OT::IGF AFGHANISTAN ROTARY WING AIRLIFT SUPPORT.
Plain-Language Summary
Department of Defense obligated $97.5 million to CONSTRUCTION HELICOPTERS, INC. for work described as: IGF::OT::IGF AFGHANISTAN ROTARY WING AIRLIFT SUPPORT. Key points: 1. Contract awarded to Construction Helicopters, Inc. for Afghan airlift support. 2. Full and open competition was utilized. 3. The contract value is $97.5 million. 4. The period of performance spans over three years.
Value Assessment
Rating: fair
The contract value of $97.5 million for three years of airlift support appears reasonable given the operational context. However, without specific performance metrics or detailed cost breakdowns, a precise value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing by allowing all qualified vendors to bid.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required services.
Public Impact
Ensures critical airlift capabilities for U.S. operations in Afghanistan. Supports logistical needs for military personnel and equipment. Potential impact on regional stability and mission success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical instability in Afghanistan could impact contract performance.
- Reliance on a single contractor for critical airlift.
- Potential for cost overruns due to unforeseen operational challenges.
Positive Signals
- Contract awarded through full and open competition.
- Clear period of performance defined.
- Firm fixed price contract structure limits cost escalation.
Sector Analysis
This contract falls under the transportation sector, specifically air transportation services. Spending benchmarks for similar airlift support contracts in complex operational environments can vary significantly based on duration, scope, and geopolitical factors.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight of this contract would likely be managed by USTRANSCOM, with potential involvement from the DoD Inspector General to ensure performance and financial accountability.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Geopolitical instability in Afghanistan.
- Operational complexity of rotary wing support.
- Potential for unforeseen cost increases.
- Dependence on contractor performance for critical logistics.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.5 million to CONSTRUCTION HELICOPTERS, INC.. IGF::OT::IGF AFGHANISTAN ROTARY WING AIRLIFT SUPPORT.
Who is the contractor on this award?
The obligated recipient is CONSTRUCTION HELICOPTERS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $97.5 million.
What is the period of performance?
Start: 2018-05-11. End: 2021-05-28.
What specific performance metrics were established to ensure the effectiveness of the airlift support?
The provided data does not detail specific performance metrics. Effective airlift support would typically include on-time delivery rates, cargo/passenger capacity utilization, aircraft availability, and safety incident reports. Without these, assessing the true effectiveness of the $97.5 million investment is difficult.
What are the primary risks associated with providing rotary wing airlift in Afghanistan, and how were they mitigated?
Key risks include security threats, challenging terrain, weather disruptions, and potential equipment failures in a demanding environment. Mitigation strategies might involve robust security protocols, detailed flight planning, maintenance schedules, and contingency plans, though these are not explicitly detailed in the award data.
How does the per-unit cost of this contract compare to similar airlift operations in other theaters or historical contracts?
A direct per-unit cost comparison is not feasible without knowing the specific units of service (e.g., flight hours, miles, tons moved). Benchmarking would require detailed operational data and cost breakdowns from comparable contracts to determine if the $97.5 million represents good value.
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3679 BOWEN RD, HOWELL, MI, 48855
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $97,538,336
Exercised Options: $97,538,336
Current Obligation: $97,538,336
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71117DR017
IDV Type: IDC
Timeline
Start Date: 2018-05-11
Current End Date: 2021-05-28
Potential End Date: 2021-08-31 00:00:00
Last Modified: 2022-06-10
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