Navy awards $46.1M contract for VERTREP services to Air Center Helicopters, Inc

Contract Overview

Contract Amount: $46,153,352 ($46.2M)

Contractor: AIR Center Helicopters, Inc

Awarding Agency: Department of Defense

Start Date: 2021-08-18

End Date: 2026-07-28

Contract Duration: 1,805 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: N102B - J. DYER - PM6 - VERTREP SERVICE

Place of Performance

Location: HAGATNA, GUAM County, GUAM, 96910

Plain-Language Summary

Department of Defense obligated $46.2 million to AIR CENTER HELICOPTERS, INC for work described as: N102B - J. DYER - PM6 - VERTREP SERVICE Key points: 1. Contract awarded to Air Center Helicopters, Inc. for VERTREP services. 2. Significant contract value of $46.1 million over its period of performance. 3. Competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting potential limitations. 4. The sector is primarily transportation and logistics within the Department of Defense.

Value Assessment

Rating: fair

The contract's fixed price structure provides some cost certainty. However, without detailed cost breakdowns or benchmarks for similar specialized VERTREP services, a precise value assessment is difficult. The award amount appears substantial for the duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while open to all, certain sources were initially excluded, potentially limiting the competitive pool and impacting price discovery. The specific reasons for exclusion are not detailed.

Taxpayer Impact: Taxpayer funds are being used for essential military logistics support. The effectiveness of the competition method in securing the best possible price for this specialized service is a key consideration for taxpayer impact.

Public Impact

Ensures critical vertical replenishment (VERTREP) services for naval operations. Supports military readiness by providing essential logistical support. Contract duration extends over multiple fiscal years, indicating long-term need. Potential impact on smaller, specialized aviation service providers due to exclusion clauses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources.
Lack of detailed cost data for value assessment.
Potential for price escalation if excluded sources offered better value.

Positive Signals

Provides essential VERTREP services for military operations.
Definitive contract provides a framework for services over several years.
Firm Fixed Price contract offers cost predictability.

Sector Analysis

This contract falls within the aerospace and defense logistics sector, specifically focusing on specialized aviation services for military support. Benchmarks for similar VERTREP contracts are scarce due to the niche nature of the service.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. The nature of specialized aviation services might favor larger, established companies.

Oversight & Accountability

The contract is a definitive contract, suggesting a structured agreement. Oversight would focus on service delivery, adherence to terms, and financial accountability throughout the contract's life. The 'exclusion of sources' warrants scrutiny.

Related Government Programs

Nonscheduled Chartered Freight Air Transportation
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition.
Lack of transparency in source exclusion.
Potential for suboptimal price discovery.
Difficulty in benchmarking specialized service costs.
Long contract duration without clear performance milestones.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.2 million to AIR CENTER HELICOPTERS, INC. N102B - J. DYER - PM6 - VERTREP SERVICE

Who is the contractor on this award?

The obligated recipient is AIR CENTER HELICOPTERS, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $46.2 million.

What is the period of performance?

Start: 2021-08-18. End: 2026-07-28.

What was the justification for excluding specific sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and did this exclusion limit potential cost savings?

The justification for excluding specific sources is crucial for understanding the competitive landscape. If highly qualified competitors were excluded without clear, objective reasons, it could suggest a less competitive environment. This limitation might have prevented the government from securing the most cost-effective solution, potentially leading to higher overall spending than if a truly open competition had occurred.

How does the per-unit cost or operational cost of these VERTREP services compare to industry standards or historical Navy expenditures for similar services?

Assessing the per-unit or operational cost against benchmarks is vital for value. Without specific metrics like cost per flight hour or cost per ton delivered, it's challenging to determine if $46.1 million represents a fair price. Historical data or comparisons with similar specialized aviation contracts would be needed to identify potential overspending or cost efficiencies.

What performance metrics are in place to ensure the effectiveness and reliability of Air Center Helicopters, Inc.'s VERTREP services, and how are these monitored?

Effectiveness is measured by the successful and timely execution of VERTREP missions. Key performance indicators (KPIs) likely include on-time performance, mission completion rates, aircraft availability, and safety compliance. Robust government oversight and regular performance reviews are essential to ensure the contractor meets these standards and that taxpayer funds are yielding the expected operational benefits.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N3220521R4134

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 308 EAST RENFRO STE. 104, BURLESON, TX, 76028

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

Financial Breakdown

Contract Ceiling: $52,026,480

Exercised Options: $51,512,312

Current Obligation: $46,153,352

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline