DoD spent $89.3M on rotary wing aircraft support, with 3 delivery orders awarded

Contract Overview

Contract Amount: $89,297,351 ($89.3M)

Contractor: Construction Helicopters, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-08

End Date: 2021-05-13

Contract Duration: 1,162 days

Daily Burn Rate: $76.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ROTARY WING AIRCRAFT SUPPORT TO THE AFGHANISTAN AIR FORCE

Plain-Language Summary

Department of Defense obligated $89.3 million to CONSTRUCTION HELICOPTERS, INC. for work described as: ROTARY WING AIRCRAFT SUPPORT TO THE AFGHANISTAN AIR FORCE Key points: 1. Contract value appears reasonable given the duration and scope of support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No specific risk indicators are immediately apparent from the provided data. 4. Performance context is linked to support for the Afghanistan Air Force. 5. The contract falls within the broader category of transportation and logistics services.

Value Assessment

Rating: good

The total contract value of $89.3 million over approximately three years for rotary wing aircraft support to a foreign military suggests a fair market price. While direct comparisons are difficult without specific service details, the duration and operational context imply significant logistical and maintenance overhead. The firm-fixed-price structure generally provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 delivery orders suggests that the initial award may have been structured to allow for phased execution or multiple taskings. This level of competition is generally favorable for achieving competitive pricing.

Taxpayer Impact: Full and open competition typically leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition scenarios.

Public Impact

Beneficiaries include the Afghanistan Air Force, receiving critical aviation support. Services delivered encompass rotary wing aircraft support, likely including maintenance, logistics, and potentially operational assistance. Geographic impact is concentrated in Afghanistan, supporting military aviation operations. Workforce implications involve specialized aviation technicians and support personnel, both within the contractor and potentially within the Afghan Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type provides cost certainty.
Contract duration of over 3 years allows for sustained support.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. The market for such services is characterized by specialized technical expertise and often involves complex logistical challenges, particularly in deployed environments. Comparable spending benchmarks would typically be found in other foreign military sales or international security assistance programs requiring similar aviation sustainment.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting goals. Given the nature and scale of rotary wing aircraft support, it is possible that prime contractors are large aerospace or defense firms, but subcontracting opportunities for specialized services could exist for smaller businesses.

Oversight & Accountability

Oversight would typically be managed by the contracting agency (USTRANSCOM within DoD) through contract officers and potentially program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified services. Transparency is generally facilitated by contract award databases, though specific performance details may be sensitive.

Related Government Programs

Afghanistan Security Forces Fund
Foreign Military Sales
Aviation Maintenance and Support Contracts
Rotary Wing Aircraft Procurement and Sustainment

Risk Flags

Contract awarded for support in a high-risk operational environment (Afghanistan).
Potential for scope creep or changes in requirements given the nature of the support.
Dependence on contractor performance for critical military aviation capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $89.3 million to CONSTRUCTION HELICOPTERS, INC.. ROTARY WING AIRCRAFT SUPPORT TO THE AFGHANISTAN AIR FORCE

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 $89.3 million.

What is the period of performance?

Start: 2018-03-08. End: 2021-05-13.

What was the specific nature of the 'rotary wing aircraft support' provided under this contract?

The provided data indicates the contract was for 'ROTARY WING AIRCRAFT SUPPORT TO THE AFGHANISTAN AIR FORCE.' While the specific services are not detailed, this typically encompasses a range of activities including maintenance, repair, overhaul, logistics, parts supply, and potentially training or operational assistance for helicopters used by the Afghanistan Air Force. The contract's duration of over three years suggests a sustained operational support role rather than a one-time procurement.

How does the total contract value of $89.3 million compare to similar support contracts for foreign air forces?

Benchmarking this contract's value of $89.3 million requires detailed comparison with similar rotary wing support contracts for foreign air forces, considering factors like the type and number of aircraft supported, the duration of the contract, the geographic location, and the specific services included (e.g., full logistics, depot-level maintenance, operational support). Without such granular data, a precise comparison is challenging. However, for a multi-year support contract involving complex aviation assets in a demanding operational environment like Afghanistan, $89.3 million appears to be within a plausible range, reflecting the high costs associated with maintaining airworthiness and operational readiness.

What were the primary risks associated with this contract, and how were they mitigated?

Potential risks for a contract of this nature could include operational risks (e.g., security threats in Afghanistan, aircraft availability), performance risks (e.g., contractor's ability to deliver timely and quality maintenance), financial risks (e.g., cost overruns if not a firm-fixed-price contract, though this one is), and geopolitical risks. Mitigation strategies would typically involve robust security protocols, performance metrics and oversight, clear contract terms and conditions, and contingency planning. The firm-fixed-price structure helps mitigate financial risk for the government. The data provided does not explicitly detail the risks encountered or specific mitigation actions taken.

What was the historical spending trend for rotary wing aircraft support to the Afghanistan Air Force prior to this contract?

The provided data snippet focuses on a single contract award (ID: 481211) from March 2018 to May 2021. It does not offer historical spending trends for rotary wing aircraft support to the Afghanistan Air Force. To determine historical spending, one would need to analyze contract databases for all awards related to this specific support function over multiple fiscal years, potentially identifying trends in spending levels, contract types, and awarded contractors.

How effective was the support provided in enhancing the operational capabilities of the Afghanistan Air Force?

The effectiveness of the support provided under this contract in enhancing the operational capabilities of the Afghanistan Air Force is not directly quantifiable from the provided data. Effectiveness would typically be measured through metrics such as aircraft mission readiness rates, sortie generation, reduction in aircraft downtime, and the successful completion of air operations. Such assessments are usually part of program reviews and performance evaluations conducted by the Department of Defense or U.S. Central Command, and are not typically detailed in basic contract award information.

What is the significance of the North American Industry Classification System (NAICS) code 481211 in this context?

The NAICS code 481211, 'Nonscheduled Chartered Passenger Air Transportation,' is assigned to this contract. While the contract title specifies 'ROTARY WING AIRCRAFT SUPPORT,' the NAICS code suggests that a significant component of the service involved chartered air transportation, likely using rotary wing aircraft. This code is relevant for understanding the business activities of the contractor and for industry-wide statistical analysis. It implies that the service may have included providing aircraft and crew for specific, non-scheduled flights, potentially for personnel or cargo movement, in addition to broader support functions.

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: 3679 BOWEN RD, HOWELL, MI, 48855

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $90,518,227

Exercised Options: $89,297,351

Current Obligation: $89,297,351

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DR016

IDV Type: IDC

Timeline