Interior Department awarded $22.3M for air transport, with Phoenix Air Group Inc. as the sole contractor

Contract Overview

Contract Amount: $22,255,395 ($22.3M)

Contractor: Phoenix AIR Group, Inc.

Awarding Agency: Department of the Interior

Start Date: 2011-03-01

End Date: 2016-08-31

Contract Duration: 2,010 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: PHOENIX AIR GROUP NAVY LEAR JETS

Place of Performance

Location: CARTERSVILLE, BARTOW County, GEORGIA, 30120

State: Georgia Government Spending

Plain-Language Summary

Department of the Interior obligated $22.3 million to PHOENIX AIR GROUP, INC. for work described as: PHOENIX AIR GROUP NAVY LEAR JETS Key points: 1. The contract value represents a significant investment in specialized air transportation services. 2. Competition dynamics appear limited, with a single awardee for this specific service. 3. The fixed-price structure with economic price adjustment introduces potential cost escalation risks. 4. Performance duration spans over five years, indicating a long-term need for these services. 5. This contract positions Phoenix Air Group as a key provider for the Department of the Interior's aviation needs. 6. The contract's focus on nonscheduled chartered passenger air transportation highlights a niche service requirement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service rates. The fixed-price with economic price adjustment (FPEPA) contract type can lead to cost overruns if not carefully managed. However, the duration of the contract suggests a stable, long-term need, which might justify the overall expenditure if service delivery has been consistent and reliable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, only one award was made to Phoenix Air Group, Inc. This suggests that while the competition was open, Phoenix Air Group was the most advantageous offer for the government based on the evaluation criteria. The limited number of bidders responding to this specific solicitation could indicate a specialized market or high barriers to entry.

Taxpayer Impact: A full and open competition, even with a single awardee, generally benefits taxpayers by ensuring that the government explored all available options and secured the best value. However, the lack of multiple competing bids could mean less downward pressure on pricing than in a more crowded field.

Public Impact

The Department of the Interior benefits from reliable and specialized air transportation for its operations. Services delivered include nonscheduled chartered passenger air transportation, likely for personnel or cargo movement. The geographic impact is likely national, supporting various departmental missions across different regions. Workforce implications may include support for remote or difficult-to-access operational areas requiring air transport.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to economic price adjustment clause.
Limited competition may reduce price negotiation leverage.
Dependence on a single contractor for critical air transport services.

Positive Signals

Long-term contract award suggests contractor reliability and satisfaction.
Full and open competition process indicates adherence to procurement regulations.
Fixed-price element provides some cost certainty.

Sector Analysis

The aviation services sector is diverse, encompassing scheduled airlines, cargo carriers, and specialized charter services. This contract falls into the latter category, providing nonscheduled chartered passenger air transportation. The market for such services is often characterized by specialized aircraft, stringent safety regulations, and the need for rapid deployment. Comparable spending benchmarks would typically involve analyzing rates for similar charter services across government agencies or private sector contracts, considering factors like aircraft type, flight hours, and operational complexity.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as the awardee is Phoenix Air Group, Inc., which is not identified as a small business in this context. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary focus was on securing the specialized air transport service, and opportunities for small business subcontracting may be limited unless initiated by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the Department of the Interior. Accountability measures would be tied to the contract's performance work statement, delivery schedules, and safety standards. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

Department of the Interior Aviation Management
Nonscheduled Air Charter Services
Government Aviation Contracts
Fixed-Price Contracts with Economic Price Adjustment

Risk Flags

Potential for cost overruns due to economic price adjustment.
Limited competition may impact long-term pricing.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $22.3 million to PHOENIX AIR GROUP, INC.. PHOENIX AIR GROUP NAVY LEAR JETS

Who is the contractor on this award?

The obligated recipient is PHOENIX AIR GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2011-03-01. End: 2016-08-31.

What is the historical spending pattern for nonscheduled chartered passenger air transportation by the Department of the Interior?

Analyzing historical spending for nonscheduled chartered passenger air transportation by the Department of the Interior requires access to detailed procurement data over multiple fiscal years. While this specific contract awarded $22.3 million between 2011 and 2016, understanding the broader trend involves examining all similar contracts awarded by the agency. Factors influencing spending include mission requirements, operational tempo, availability of government-owned aircraft, and the cost-effectiveness of chartering versus other options. A comprehensive review would likely reveal fluctuations based on specific projects, emergencies, or shifts in departmental priorities. Without broader data, it's difficult to ascertain if this $22.3 million represents a typical, increased, or decreased level of investment for this service category.

How does the per-hour cost of Phoenix Air Group's service compare to market rates for similar aircraft and routes?

Determining the per-hour cost comparison for Phoenix Air Group's service requires detailed data on the specific aircraft utilized, flight hours, routes flown, and the contract's pricing structure, including any economic price adjustments. The provided data indicates a total contract value of $22,255,394.88 over a period from March 1, 2011, to August 31, 2016. To calculate an average hourly rate, one would need to know the total number of flight hours procured under the contract. Comparing this to market rates would involve researching published charter rates for similar aircraft (e.g., Learjets, as suggested by the data's 'NAVY LEAR JETS' reference, though the contract is with DOI) from other providers, considering factors like crew, fuel, maintenance, and overhead. Without specific flight hour data and detailed pricing breakdowns, a precise comparison is not feasible. However, the fixed-price with economic price adjustment (FPEPA) structure suggests that costs could fluctuate, making a single benchmark rate potentially misleading.

What are the specific performance metrics and quality assurance measures associated with this contract?

The provided data does not detail the specific performance metrics or quality assurance (QA) measures for this contract. Typically, such metrics would be outlined in the Performance Work Statement (PWS) and could include on-time performance, aircraft availability, safety incident rates, passenger satisfaction, and adherence to flight schedules. Quality assurance would involve government personnel monitoring these metrics, conducting inspections, and providing feedback. The contract type (Fixed Price with Economic Price Adjustment) implies that the contractor is responsible for delivering a defined service, and the government would have mechanisms to ensure the service meets the agreed-upon standards. Without the PWS or contract clauses related to QA, a thorough assessment of these measures is not possible.

What is Phoenix Air Group, Inc.'s track record with government contracts, particularly for aviation services?

Phoenix Air Group, Inc. has a history of performing government contracts, including aviation services. Their involvement with the Department of the Interior on this $22.3 million contract for nonscheduled chartered passenger air transportation indicates a capacity to handle significant government requirements. Further investigation into their contract history, available through public databases like FPDS, would reveal the types of services provided, agencies served, contract values, and performance ratings. A positive performance history, including timely delivery, adherence to safety standards, and effective cost management, would be crucial indicators of their reliability as a government contractor. Conversely, any past performance issues, disputes, or contract terminations would raise concerns.

What is the risk associated with the 'economic price adjustment' clause in this contract?

The 'economic price adjustment' (EPA) clause in this contract introduces a risk of cost escalation for the government. This clause allows the contractor to adjust the contract price based on fluctuations in specific economic factors, such as fuel costs, labor rates, or material prices, as defined in the contract. While intended to protect the contractor from unforeseen cost increases and ensure fair pricing, it can lead to higher-than-anticipated expenditures for the government if these factors rise significantly. The extent of this risk depends on the specific indices used for adjustment, the frequency of adjustments allowed, and the caps or limitations placed on such adjustments within the contract terms. Careful monitoring and negotiation of EPA clauses are essential to mitigate potential cost overruns.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 100 PHOENIX AIR DR SW, CARTERSVILLE, GA, 30120

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

Financial Breakdown

Contract Ceiling: $22,255,395

Exercised Options: $22,255,395

Current Obligation: $22,255,395

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline