Interior Department's $35M aviation support contract for Iraq/Afghanistan lacked competition, raising value concerns

Contract Overview

Contract Amount: $34,961,268 ($35.0M)

Contractor: Telford Aviation, Inc.

Awarding Agency: Department of the Interior

Start Date: 2005-10-31

End Date: 2007-08-14

Contract Duration: 652 days

Daily Burn Rate: $53.6K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AVIATION SUPPORT FOR IRAQ/AFGANISTAN

Plain-Language Summary

Department of the Interior obligated $35.0 million to TELFORD AVIATION, INC. for work described as: AVIATION SUPPORT FOR IRAQ/AFGANISTAN Key points: 1. The contract was awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. A Time and Materials contract type can lead to cost overruns if not closely managed. 3. The duration of the contract (652 days) suggests a significant operational need. 4. The services provided fall under 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The lack of competition is a key risk indicator for value for money. 6. The contractor, Telford Aviation, Inc., received a significant award for this specific service.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific operational context (support for Iraq/Afghanistan). Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. The Time and Materials pricing structure, while flexible, carries inherent risks of cost escalation if not meticulously monitored. The total award amount of over $35 million suggests a substantial investment, making the absence of competition a significant concern for ensuring optimal use of taxpayer funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means that only one vendor, Telford Aviation, Inc., was considered for the award. The lack of a competitive bidding process limits the government's ability to explore various pricing options and potentially secure a lower cost. It also suggests that either no other vendors were identified or deemed capable of meeting the specific requirements, or that a justification for other than full and open competition was accepted.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as competition is a primary driver for cost savings. This contract's value could have been reduced through a competitive process.

Public Impact

The primary beneficiaries were likely military or governmental operations in Iraq and Afghanistan requiring specialized aviation support. The services delivered were crucial for logistical and operational support in active conflict zones. The geographic impact was focused on the operational theaters of Iraq and Afghanistan. Workforce implications would include the personnel required by Telford Aviation, Inc. to fulfill the contract, potentially including pilots, mechanics, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition increases the risk of paying a premium.
Time and Materials contract type can lead to uncontrolled cost growth.
The broad service category makes it hard to assess specific performance metrics.
The operational context in Iraq/Afghanistan may have necessitated expedited or less-than-ideal contracting methods, but still warrants scrutiny.

Positive Signals

The contract was awarded to a single entity, potentially simplifying management and coordination.
The duration suggests a sustained need that was met by the contractor.
The award amount indicates a significant level of trust or capability attributed to Telford Aviation, Inc.

Sector Analysis

This contract falls within the broader 'Professional, Scientific, and Technical Services' sector, specifically related to aviation support. The market for such specialized services, particularly in support of military or governmental operations in challenging environments, can be concentrated among a few experienced providers. Benchmarking is difficult without comparable sole-source aviation support contracts in similar high-risk operational zones. The total value of $35 million is substantial for a single contract within this niche.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The focus was likely on specialized capabilities rather than small business participation.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer and relevant program managers within the Department of the Interior. Accountability measures would be tied to the terms of the Time and Materials contract, requiring detailed reporting of hours and materials. Transparency is limited due to the sole-source nature and the operational context, which may have restricted public disclosure. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) Aviation Support Contracts
Department of State - Diplomatic Security Service Aviation
US Air Force Air Mobility Command
Special Operations Command (SOCOM) Aviation Support

Risk Flags

Sole-source award
Time and Materials contract type
Lack of competition
Broad service category (541990)

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $35.0 million to TELFORD AVIATION, INC.. AVIATION SUPPORT FOR IRAQ/AFGANISTAN

Who is the contractor on this award?

The obligated recipient is TELFORD AVIATION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.0 million.

What is the period of performance?

Start: 2005-10-31. End: 2007-08-14.

What specific aviation support services did Telford Aviation, Inc. provide under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' While the data does not specify the exact nature of the aviation support, it was intended for operations in Iraq and Afghanistan. This could encompass a wide range of services such as aircraft charter, maintenance, logistical support, flight operations management, or specialized aerial reconnaissance. The Time and Materials contract type suggests that the scope might have been flexible or difficult to define precisely at the outset, requiring payment based on actual labor hours and material costs incurred.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and was awarded as a sole-source action. Typically, sole-source awards occur when only one responsible source is available or capable of meeting the requirement. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or specific government property requirements. Without further documentation (like a Justification for Other Than Full and Open Competition - JOFOC), the precise reason remains unclear, but it signifies a deliberate decision to bypass the standard competitive procurement process.

How does the Time and Materials (T&M) contract type potentially impact the cost-effectiveness of this $35M award?

Time and Materials contracts are often used when the government cannot accurately estimate the extent or duration of the work. While they offer flexibility, they carry a higher risk of cost overruns compared to fixed-price contracts. For a $35 million award, the government would need robust oversight to monitor labor hours, material costs, and indirect rates charged by Telford Aviation, Inc. to ensure that costs remain reasonable and that the contractor is not incentivized to prolong the work. The absence of a ceiling price or a competitive bidding process exacerbates these risks, making diligent administration crucial for cost control.

What is the significance of the contract's duration (652 days) in relation to its value?

A contract duration of 652 days (approximately 1.8 years) for a $35 million award suggests a substantial and ongoing operational requirement. This duration, combined with the sole-source award and T&M structure, indicates a potentially complex and long-term need for aviation support in a demanding environment. The extended period necessitates continuous monitoring to ensure continued relevance of services and adherence to pricing structures. It also implies that the initial requirement was significant enough to warrant such a lengthy commitment without re-competition.

Are there any comparable contracts or spending benchmarks for similar aviation support services in conflict zones?

Finding direct, publicly available benchmarks for sole-source aviation support contracts in active conflict zones like Iraq and Afghanistan is exceptionally difficult. Such contracts are often classified or awarded under specific emergency procurement authorities, limiting transparency. However, general spending on aviation support services for military and governmental operations globally runs into billions annually. The $35 million for Telford Aviation, Inc. represents a significant portion for a single contract, but its true value can only be assessed against internal cost estimates or classified program data, given the unique circumstances and lack of competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 458 MAIN STREET, BANGOR, ME, 02

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $34,961,268

Exercised Options: $34,961,268

Current Obligation: $34,961,268

Parent Contract

Parent Award PIID: INN05PC10701

IDV Type: IDC

Timeline