Interior Department awards $89.4M for helicopter services, with a significant portion for Outer Continental Shelf support

Contract Overview

Contract Amount: $89,351,154 ($89.4M)

Contractor: Bristow LLC

Awarding Agency: Department of the Interior

Start Date: 2006-06-28

End Date: 2011-09-30

Contract Duration: 1,920 days

Daily Burn Rate: $46.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: HELICOPTER FLIGHT SERVICES IN SUPPORT OF MMS AND USCG OUTER CONTINENTAL SHELF ACTIVITIES.

Place of Performance

Location: LAKE CHARLES, CALCASIEU County, LOUISIANA, 70605

State: Louisiana Government Spending

Plain-Language Summary

Department of the Interior obligated $89.4 million to BRISTOW LLC for work described as: HELICOPTER FLIGHT SERVICES IN SUPPORT OF MMS AND USCG OUTER CONTINENTAL SHELF ACTIVITIES. Key points: 1. Contract value indicates substantial, long-term need for specialized aviation support. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed Price with Economic Price Adjustment contract type introduces some inflation risk. 4. Contract duration of 1920 days (over 5 years) points to program stability. 5. The award to Bristow LLC, a major player, suggests market concentration. 6. Focus on Outer Continental Shelf activities highlights critical infrastructure support.

Value Assessment

Rating: good

The contract value of $89.4 million over approximately five years suggests a significant investment in helicopter services. Benchmarking this against similar contracts for offshore support is challenging without more specific service details. However, the fixed-price nature with economic price adjustments aims to control costs while accounting for market fluctuations. The per-unit cost is not directly calculable from the provided data, but the overall award size reflects a substantial operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The presence of four bidders (no) suggests a reasonable level of interest and competition for this specialized service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, preventing potential overspending.

Public Impact

Provides essential helicopter transportation for Minerals Management Service (MMS) and U.S. Coast Guard (USCG) operations. Supports critical activities related to the Outer Continental Shelf, including resource management and safety. Ensures operational continuity for federal agencies involved in offshore energy and environmental oversight. Likely supports a workforce of pilots, mechanics, and support staff in the Louisiana region. Facilitates access to remote offshore locations for personnel and equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost increases due to inflation.
Long contract duration may reduce flexibility to adopt newer, potentially more efficient technologies.
Reliance on a single contractor for a critical service could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contractor (Bristow LLC) is a well-established provider of aviation services.
Clear definition of services for Outer Continental Shelf activities indicates focused mission support.

Sector Analysis

This contract falls within the aviation services sector, specifically supporting government operations in the energy and maritime domains. The market for specialized offshore helicopter services is often characterized by a few large, experienced providers due to high capital investment and stringent safety requirements. The Department of the Interior's reliance on such services for Outer Continental Shelf activities is a common practice to ensure operational reach and safety in remote marine environments.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the specialized nature of offshore helicopter services and the large contract value, it is less likely to be primarily focused on small business participation, though subcontractors could potentially be involved. Further analysis would be needed to determine subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of the Interior's relevant program offices responsible for Outer Continental Shelf activities. Accountability measures would be defined in the contract's performance work statement, with potential for government quality assurance representatives monitoring service delivery. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Offshore Oil and Gas Support Services
Aviation Logistics
Maritime Security Support
Federal Aviation Administration (FAA) Oversight
Minerals Management Service (MMS) Operations
U.S. Coast Guard (USCG) Aviation Contracts

Risk Flags

Potential for cost increases due to economic price adjustment clause.
Long contract duration may limit adoption of future technological advancements.
Dependence on a single provider for critical offshore support.
Weather-related disruptions common in the Gulf of Mexico region.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $89.4 million to BRISTOW LLC. HELICOPTER FLIGHT SERVICES IN SUPPORT OF MMS AND USCG OUTER CONTINENTAL SHELF ACTIVITIES.

Who is the contractor on this award?

The obligated recipient is BRISTOW LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $89.4 million.

What is the period of performance?

Start: 2006-06-28. End: 2011-09-30.

What is the historical spending pattern for helicopter flight services by the Department of the Interior for Outer Continental Shelf activities?

Historical spending data for helicopter flight services by the Department of the Interior for Outer Continental Shelf activities prior to this $89.4 million award would provide crucial context. Analyzing previous contract values, durations, and awarded contractors can reveal trends in demand, pricing, and market stability. For instance, if previous contracts were significantly smaller or awarded more frequently, it might indicate a shift towards larger, longer-term agreements or an increase in operational tempo. Conversely, consistent spending patterns would suggest a stable requirement. Without specific historical data, it's difficult to ascertain if this $89.4 million award represents an increase, decrease, or continuation of prior investment levels in this critical service area.

How does the pricing structure (Fixed Price with Economic Price Adjustment) compare to other similar government aviation contracts?

The Fixed Price with Economic Price Adjustment (FPEPA) structure is common for long-term service contracts where input costs (like fuel and labor) are subject to market volatility. Compared to pure Fixed Price (FP) contracts, FPEPA offers the government some protection against extreme price spikes while allowing the contractor to adjust for inflation, potentially leading to more stable bids. However, it introduces more risk than FP contracts as costs can increase. Pure Cost-Plus (CP) contracts offer the most flexibility but carry the highest risk of cost overruns for the government. For similar long-duration, specialized aviation services, FPEPA is often a preferred method to balance cost certainty with market realities, though the specific adjustment indices and caps are critical for effective cost control.

What is Bristow LLC's track record with government contracts, particularly in aviation support for offshore operations?

Bristow LLC is a major global provider of offshore helicopter transportation and aviation support services. Their track record with government contracts, including those for military and civilian agencies requiring similar operational capabilities, is extensive. They have historically secured significant contracts for troop transport, search and rescue, and resource support in challenging environments. For offshore operations specifically, Bristow has a long history supporting the oil and gas industry, which directly translates to experience relevant to the Department of the Interior's needs for Outer Continental Shelf activities. Evaluating their past performance ratings, any past disputes or contract terminations, and their safety records on similar government contracts would provide a comprehensive view of their reliability and capability.

What are the key performance indicators (KPIs) used to measure the success of this helicopter flight services contract?

Key Performance Indicators (KPIs) for a contract like this would likely focus on mission accomplishment, safety, and operational efficiency. Specific KPIs could include on-time performance for flights, mission completion rates (e.g., successful transport of personnel and equipment to designated offshore locations), aircraft availability rates, fuel efficiency, and adherence to safety protocols (e.g., incident/accident rates, compliance with aviation regulations). The contract's Performance Work Statement (PWS) would detail these KPIs, along with acceptable performance levels and any associated incentives or penalties. Regular performance reviews between the Department of the Interior and Bristow LLC would assess adherence to these KPIs.

How does the geographic focus on Louisiana (LA) and the Gulf of Mexico impact the cost and logistics of this contract?

The geographic focus on Louisiana (LA) and the broader Gulf of Mexico region significantly influences the cost and logistics of this helicopter flight services contract. Louisiana serves as a primary hub for offshore oil and gas activities, meaning established infrastructure, maintenance facilities, and a skilled workforce are likely available, potentially reducing mobilization costs. However, operating in the Gulf of Mexico presents unique logistical challenges, including weather volatility (hurricanes), extended flight distances to offshore platforms, and stringent safety regulations for offshore operations. These factors necessitate specialized aircraft, robust maintenance schedules, and experienced crews, all of which contribute to the contract's overall cost. The proximity to operational areas likely makes this region more cost-effective than supporting similar activities in more remote or less developed offshore regions.

Industry Classification

NAICS: Transportation and Warehousing › Scheduled Air Transportation › Scheduled 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

Solicitation ID: 8005-58

Offers Received: 4

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

Evaluated Preference: NONE

Contractor Details

Parent Company: Seacor Holdings Inc. (UEI: 610337990)

Address: 600 AIRPORT SERVICE RD, LAKE CHARLES, LA, 03

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $95,072,520

Exercised Options: $89,351,154

Current Obligation: $89,351,154

Timeline