Interior's $10.3M air transport contract with Western Pilot Service Inc. awarded in 2005, ending 2008

Contract Overview

Contract Amount: $10,317,148 ($10.3M)

Contractor: Western Pilot Service Inc

Awarding Agency: Department of the Interior

Start Date: 2005-02-01

End Date: 2008-09-30

Contract Duration: 1,337 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: BLM-CWN-SEAT

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85007

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $10.3 million to WESTERN PILOT SERVICE INC for work described as: BLM-CWN-SEAT Key points: 1. Contract value of $10.3M over approximately 3.5 years suggests a moderate annual spend. 2. The contract was awarded using full and open competition, indicating a broad search for qualified vendors. 3. The fixed-price with economic price adjustment structure allows for cost fluctuations, potentially impacting final expenditure. 4. The duration of 1337 days (approx. 3.6 years) is typical for service contracts of this nature. 5. The contract's focus on nonscheduled chartered air transportation points to specialized logistical needs. 6. Awarding agency is the Department of the Interior, suggesting services likely support land management or related operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service rates for nonscheduled air charter in Arizona during the 2005-2008 period. The total value of $10.3 million over nearly four years averages to approximately $2.6 million annually, which appears reasonable for specialized air transport services. However, the economic price adjustment clause introduces variability, making a precise value-for-money assessment difficult without detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. The data indicates 22 offers were received, which is a healthy number and implies a competitive bidding process. A robust competition level generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award process for this contract likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are likely the Department of the Interior agencies requiring rapid, flexible air transport for personnel, equipment, or supplies across remote or inaccessible areas. Services delivered include nonscheduled chartered air transportation, essential for operations that cannot rely on fixed routes or schedules. The geographic impact is concentrated in Arizona (ST: AZ, SN: ARIZONA), supporting federal land management, emergency response, or other mission-critical activities within the state. Workforce implications are indirect, supporting the operational capacity of federal agencies rather than directly creating federal jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to costs exceeding initial projections.
Lack of specific performance metrics makes it difficult to assess operational efficiency.
Reliance on a single contractor for a significant period may limit flexibility if needs change.

Positive Signals

Awarded through full and open competition, indicating a broad market search.
Received 22 offers, suggesting strong vendor interest and a competitive environment.
Contract duration aligns with the nature of specialized air charter services.

Sector Analysis

The contract falls within the broader transportation and logistics sector, specifically focusing on air charter services. This niche market often serves government agencies and private entities requiring flexible, on-demand air transport for specialized purposes, such as remote access, emergency response, or cargo delivery where scheduled services are insufficient. The market size for such specialized air charter can vary significantly based on geographic demand and agency needs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SS: false, SB: false). There is no explicit information on subcontracting plans. Given the nature of air charter services, it's possible that the prime contractor utilizes specialized aircraft and crew, but the extent of small business involvement through subcontracting is not detailed in this record.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures would be tied to the contract's terms and conditions, including delivery schedules, service standards, and payment provisions. Transparency is facilitated by the contract's public award data, but detailed operational oversight records are generally internal.

Related Government Programs

Department of the Interior Air Operations
Federal Air Transportation Services
Nonscheduled Air Charter Contracts
Western US Federal Logistics Support

Risk Flags

Economic Price Adjustment Clause
Lack of Specific Performance Metrics
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10.3 million to WESTERN PILOT SERVICE INC. BLM-CWN-SEAT

Who is the contractor on this award?

The obligated recipient is WESTERN PILOT SERVICE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2005-02-01. End: 2008-09-30.

What was the historical spending pattern for nonscheduled chartered air transportation by the Department of the Interior prior to this contract?

Analyzing historical spending patterns for nonscheduled chartered air transportation by the Department of the Interior before the 2005 award of the Western Pilot Service Inc. contract requires access to detailed historical federal procurement data. Generally, such spending fluctuates based on agency operational needs, such as wildfire suppression, land surveys, or emergency response, particularly in remote regions like those in Arizona. Without specific historical data, it's difficult to provide precise figures, but the Department of the Interior, managing vast land resources, often requires flexible air support. This contract's value of $10.3 million over approximately 3.5 years suggests a significant, but not unprecedented, level of investment in this service category for the period.

How did the pricing of Western Pilot Service Inc. compare to other bids received under this full and open competition?

The provided data indicates that 22 offers were received for this contract, suggesting a competitive environment. However, specific pricing details of each bid, including Western Pilot Service Inc.'s exact price relative to others, are not publicly available in this summary. Generally, in a full and open competition with multiple bidders, the government aims to select the offer that represents the best value, considering both price and other factors like technical capability and past performance. While the award to Western Pilot Service Inc. implies their offer was deemed competitive and suitable, a direct price-by-price comparison requires access to the detailed bid tabulation and source selection decision documents, which are typically not released publicly.

What specific types of missions or operations was this air transportation contract used for?

The contract specifies 'Nonscheduled Chartered Freight Air Transportation.' This indicates the service was used for transporting goods or personnel on an as-needed basis, without adherence to fixed schedules or routes. Given the awarding agency is the Department of the Interior and the service area is Arizona, likely missions included supporting land management activities (e.g., wildlife surveys, fire detection/support, geological surveys), transporting equipment to remote field sites, or providing rapid personnel deployment for emergencies or inspections across the state's diverse and often rugged terrain. The flexibility of chartered air transport is crucial for operations in areas lacking conventional infrastructure.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' contract type for this service?

The 'Fixed Price with Economic Price Adjustment' (FP-EPA) contract type introduces specific risks. For the government, the primary risk is that costs could escalate beyond initial projections due to fluctuations in economic factors like fuel prices, labor costs, or material availability, as permitted by the economic price adjustment clause. This can lead to higher overall expenditure than a firm fixed-price contract. For the contractor, the risk is mitigated by the adjustment clause, but they still bear the responsibility for managing performance within the adjusted price. Effective oversight is crucial to ensure that price adjustments are justified by legitimate economic changes and do not simply inflate the contract value.

How does the geographic focus on Arizona impact the nature and cost of air transportation services?

Arizona's geography, characterized by vast desert expanses, mountainous terrain, and numerous remote areas, significantly impacts the need for and cost of air transportation. Nonscheduled chartered air services are often essential for accessing locations that are difficult or impossible to reach by road. This can include national parks, forests, tribal lands, and remote research or monitoring sites. The specialized nature of operating in such environments, potentially requiring specific aircraft capabilities (e.g., for landing on unimproved airstrips) and longer flight times due to terrain, can increase operational costs compared to services in more accessible regions. The demand for such specialized services in Arizona likely drives the need for contracts like this one.

What is the typical performance duration for similar nonscheduled air charter contracts awarded by federal agencies?

The performance duration for nonscheduled air charter contracts can vary widely depending on the specific needs and budget cycles of the awarding agency. Contracts can range from short-term, task-order-based agreements for specific events or emergencies to longer-term agreements covering multiple years, like the 1337-day (approx. 3.6 years) duration of this Department of the Interior contract. Longer durations often provide more stability and predictability for both the agency and the contractor, potentially allowing for better resource planning and economies of scale. However, shorter durations offer greater flexibility to adapt to changing requirements or re-compete services if market conditions or needs evolve.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: 8005-01

Offers Received: 22

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

Contractor Details

Address: 2803 N.7TH AVE., PHOENIX, AZ, 90

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $10,317,148

Exercised Options: $10,317,148

Current Obligation: $10,317,148

Timeline