Interior Department's $11.7M aircraft leasing contract awarded to Phoenix Air Group, Inc. for 5 years

Contract Overview

Contract Amount: $11,692,372 ($11.7M)

Contractor: Phoenix AIR Group, Inc.

Awarding Agency: Department of the Interior

Start Date: 2004-02-09

End Date: 2009-09-30

Contract Duration: 2,060 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: US NAVY - AEGIS

Place of Performance

Location: CARTERSVILLE, BARTOW County, GEORGIA, 30120

State: Georgia Government Spending

Plain-Language Summary

Department of the Interior obligated $11.7 million to PHOENIX AIR GROUP, INC. for work described as: US NAVY - AEGIS Key points: 1. The contract value of $11.7 million over five years suggests a moderate annual spend. 2. Competition dynamics for this contract need further examination to understand pricing pressures. 3. The fixed-price with economic price adjustment (EPA) structure introduces potential cost escalation risks. 4. Performance context is limited without specific details on aircraft utilization and mission success. 5. This contract falls within the transportation equipment rental and leasing sector. 6. The contract's duration of over five years indicates a long-term need for these services.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the type and hours of aircraft leased. The total award of $11.7 million over approximately five years averages to about $2.3 million annually. This figure needs to be compared against market rates for similar aircraft leasing services, considering factors like aircraft model, age, operational hours, and included maintenance. The fixed-price with EPA structure warrants scrutiny to ensure that price adjustments are reasonable and do not lead to excessive costs compared to market fluctuations.

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. The presence of two bidders suggests a degree of competition, but the specific number of proposals received and the evaluation process would provide a clearer picture of the competitive landscape. A higher number of bidders generally leads to more competitive pricing and better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing, potentially leading to cost savings.

Public Impact

The Department of the Interior benefits from access to specialized aircraft for its operations. Services delivered likely include transportation, surveillance, or other mission-critical support for the agency. The geographic impact is not specified but could extend across various regions where the Interior Department operates. Workforce implications may involve pilots, maintenance crews, and support staff associated with the leased aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the economic price adjustment clause.
Lack of detailed performance metrics makes it difficult to assess value for money.
Limited information on the specific types and capabilities of leased aircraft.
The duration of the contract may not align with evolving technological needs.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract appears to meet a specific operational need for the Department of the Interior.
Phoenix Air Group, Inc. has experience in aviation services, potentially ensuring reliable execution.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation services and equipment leasing. The market for government aircraft leasing is competitive, with specialized providers offering a range of aircraft and support. Comparable spending benchmarks would involve analyzing other government contracts for similar aircraft types and lease durations to assess pricing efficiency. The total value of $11.7 million positions this as a mid-sized contract within the federal aviation services landscape.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, Phoenix Air Group, Inc., would determine any subcontracting opportunities based on their operational needs and business strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Interior. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of the Interior Aviation Management
Federal Aviation Administration (FAA) Services
Government Aircraft Leasing Programs
Transportation Equipment Rental and Leasing

Risk Flags

Potential for cost escalation due to EPA clause.
Lack of detailed performance metrics.
Limited aircraft specification data.
Contract duration may exceed operational lifespan of leased assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $11.7 million to PHOENIX AIR GROUP, INC.. US NAVY - AEGIS

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 $11.7 million.

What is the period of performance?

Start: 2004-02-09. End: 2009-09-30.

What specific types of aircraft were leased under this contract and for what primary missions?

The provided data does not specify the exact types of aircraft leased or their primary missions. However, given the contractor's specialization and the Department of the Interior's diverse operational needs (which can include environmental monitoring, law enforcement support, search and rescue, and transportation), the leased aircraft could range from small utility planes to larger transport or surveillance aircraft. Further investigation into the contract's statement of work or related documentation would be necessary to ascertain the specific aircraft models and their intended uses. This information is crucial for a comprehensive value assessment.

How does the annual cost of this lease compare to market rates for similar aircraft and services?

The contract's total value of $11.7 million over approximately five years (2004-2009) equates to an average annual cost of roughly $2.3 million. To benchmark this against market rates, one would need to identify comparable aircraft (e.g., by size, capability, age) and lease terms in the commercial market during that period. Factors such as flight hours, maintenance inclusions, crew services, and insurance significantly influence lease pricing. Without these specifics, a direct comparison is difficult, but this annual figure provides a starting point for market analysis. A detailed review of aviation leasing industry data from 2004-2009 would be required for a precise comparison.

What is the potential financial risk associated with the 'Economic Price Adjustment' (EPA) clause in this contract?

The Economic Price Adjustment (EPA) clause allows for adjustments to the contract price based on fluctuations in specific economic factors, such as fuel costs, labor rates, or material prices. The primary financial risk for the government is potential cost escalation beyond initial projections. If the specified economic indicators rise significantly, the contract price could increase substantially, potentially exceeding the initially anticipated budget. The extent of this risk depends on the specific indices used in the EPA clause, the frequency of adjustments, and the caps or limitations placed on such adjustments. Careful monitoring and analysis of the EPA's triggers are essential to manage this risk.

What was the track record of Phoenix Air Group, Inc. in fulfilling similar government contracts prior to this award?

The provided data does not include information on Phoenix Air Group, Inc.'s prior contract history. To assess their track record, one would need to research past performance on federal contracts, particularly those involving aircraft leasing or aviation services. Key indicators would include on-time delivery, adherence to specifications, quality of service, and any history of disputes or contract modifications. A positive history with previous government clients would suggest a lower performance risk for this contract. Conversely, any past issues could indicate potential challenges.

How many proposals were received, and what was the evaluation process for this 'full and open competition' award?

The data indicates that the contract was awarded under 'full and open competition' and notes 'no' (number of bidders) as 2. This suggests that at least two proposals were submitted and considered. However, the specific number of proposals received and the detailed evaluation criteria and process are not provided. A thorough analysis would require accessing the contract award documentation, which typically outlines the evaluation factors (e.g., technical approach, past performance, price) and how they were weighted. Understanding the evaluation process is key to confirming that the award was made to the best-value offeror.

What is the historical spending pattern for aircraft leasing by the Department of the Interior in the years preceding and following this contract?

The provided data snippet focuses solely on this specific contract (2004-2009) and does not offer historical spending patterns for the Department of the Interior's aircraft leasing. To analyze historical spending, one would need to query federal procurement databases for all aircraft leasing contracts awarded by the Department of the Interior across multiple fiscal years. This would allow for the identification of trends, fluctuations in spending, and the identification of other major contractors or types of aircraft leased over time. Such analysis would provide context for the $11.7 million awarded in this instance.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

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

Contractor Details

Address: 100 PHOENIX AIR DR SW, CARTERSVILLE, GA, 11

Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,915,673

Exercised Options: $11,692,372

Current Obligation: $11,692,372

Contract Characteristics

Cost or Pricing Data: NO

Timeline