State Department's $48M aviation support contract awarded to Phoenix Air Group, Inc. for emergency medical deployments

Contract Overview

Contract Amount: $48,076,355 ($48.1M)

Contractor: Phoenix AIR Group, Inc.

Awarding Agency: Department of State

Start Date: 2016-04-04

End Date: 2019-11-07

Contract Duration: 1,312 days

Daily Burn Rate: $36.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS CONTRACT PROVIDES MULTI-MISSION AIRCRAFT AND AVIATION SUPPORT SERVICES TO THE DEPARTMENT OF STATE (DOS), BUREAU OF MEDICAL SERVICES, OFFICE OF OPERATIONAL MEDICINE (MED/OM). THE CONTRACTOR IS RESPONSIBLE FOR PROVIDING ON-CALL AIRCRAFT SERVICES FOR USE BY DOS TO PERFORM EMERGENCY DEPLOYMENT OF PERSONNEL AND EQUIPMENT, AND RETRIEVAL OF ELIGIBLE PERSONNEL, INCLUDING PERSONNEL THAT ARE CRITICALLY ILL AND MAY OR MAY NOT BE INFECTED WITH UNIQUE AND HIGHLY COMMUNICABLE PATHOGENS. IGF::CT::IGF

Place of Performance

Location: CARTERSVILLE, BARTOW County, GEORGIA, 30120

State: Georgia Government Spending

Plain-Language Summary

Department of State obligated $48.1 million to PHOENIX AIR GROUP, INC. for work described as: THIS CONTRACT PROVIDES MULTI-MISSION AIRCRAFT AND AVIATION SUPPORT SERVICES TO THE DEPARTMENT OF STATE (DOS), BUREAU OF MEDICAL SERVICES, OFFICE OF OPERATIONAL MEDICINE (MED/OM). THE CONTRACTOR IS RESPONSIBLE FOR PROVIDING ON-CALL AIRCRAFT SERVICES FOR USE BY DOS TO PERFORM EMERG… Key points: 1. Value for money assessed against similar emergency medical transport services. 2. Sole-source award raises questions about price discovery and potential overpayment. 3. Risk indicators include reliance on a single contractor for critical medical evacuations. 4. Performance context involves rapid response for personnel and equipment deployment. 5. Sector positioning within government aviation support services for diplomatic missions.

Value Assessment

Rating: fair

The contract's total value of approximately $48 million over its period of performance (2016-2019) for on-call aviation support is difficult to benchmark without detailed service utilization data. However, given the specialized nature of emergency medical evacuation and the need for immediate availability, the pricing may reflect significant readiness costs. Comparisons to other government contracts for similar niche aviation services would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one contractor possesses the unique capabilities or resources required for the service. The lack of competition means there was no direct price comparison with other potential providers, which could potentially lead to less favorable pricing for the government.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not benefit from competitive bidding, which usually drives down costs. This could result in higher overall expenditure for the services provided compared to a competed contract.

Public Impact

Benefits State Department personnel requiring urgent medical evacuation or deployment. Delivers critical aviation services for emergency response and personnel safety. Geographic impact is global, supporting State Department operations worldwide. Workforce implications include reliance on specialized aviation personnel and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Potential for increased costs due to lack of bidding.
Dependence on a single provider for critical services poses a risk.

Positive Signals

Contract addresses a critical need for emergency medical aviation support.
Phoenix Air Group likely possesses specialized capabilities for this mission.
Fixed-price contract provides some cost certainty once awarded.

Sector Analysis

This contract falls within the broader government aviation services sector, specifically focusing on specialized, on-call support for emergency medical and personnel deployment. The market for such niche services is relatively small, often dominated by a few experienced providers capable of meeting stringent readiness and operational requirements. Comparable spending benchmarks would likely involve other agencies requiring similar rapid-response aviation capabilities for high-risk environments.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, Phoenix Air Group, Inc., is a medium-sized business. There is no explicit information on subcontracting plans with small businesses, suggesting that the primary focus was on securing the specialized capabilities of the prime contractor rather than promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. The Inspector General's office for the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is limited due to the sole-source nature and the specialized operational context, making public oversight challenging.

Related Government Programs

Department of Defense Medical Evacuation Services
Emergency Medical Services Contracts
Government Aviation Support Services
State Department Diplomatic Security

Risk Flags

Sole-source award
Critical service dependency
Lack of competitive pricing data

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $48.1 million to PHOENIX AIR GROUP, INC.. THIS CONTRACT PROVIDES MULTI-MISSION AIRCRAFT AND AVIATION SUPPORT SERVICES TO THE DEPARTMENT OF STATE (DOS), BUREAU OF MEDICAL SERVICES, OFFICE OF OPERATIONAL MEDICINE (MED/OM). THE CONTRACTOR IS RESPONSIBLE FOR PROVIDING ON-CALL AIRCRAFT SERVICES FOR USE BY DOS TO PERFORM EMERGENCY DEPLOYMENT OF PERSONNEL AND EQUIPMENT, AND RETRIEVAL OF ELIGIBLE PERSONNEL, INCLUDING PERSONNEL THAT ARE CRITICALLY ILL AND MAY OR MAY NOT BE INFECTED WITH UNIQUE AND HIGHLY COMMUNICABLE PATHOGENS. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is PHOENIX AIR GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $48.1 million.

What is the period of performance?

Start: 2016-04-04. End: 2019-11-07.

What is the track record of Phoenix Air Group, Inc. in providing similar aviation support services to government agencies?

Phoenix Air Group, Inc. has a history of providing specialized aviation services, including air ambulance, cargo transport, and special mission support. They have previously contracted with various government entities, including the Department of Defense and other agencies requiring rapid deployment and medical evacuation capabilities. Their experience often involves operating in challenging environments and meeting strict operational timelines. A review of their past performance on similar contracts would be crucial to assess their reliability and capability in fulfilling the State Department's requirements under this specific award.

How does the pricing of this contract compare to market rates for similar on-call emergency medical aviation services?

Benchmarking the pricing for this contract is challenging due to its sole-source nature and the highly specialized, on-call requirements for emergency medical aviation. Standard market rate comparisons for routine charter services would not be appropriate. The approximately $48 million value over three years suggests significant costs associated with maintaining aircraft readiness, specialized medical equipment, and highly trained personnel available 24/7 for immediate deployment globally. A detailed cost analysis, if available, would be needed to assess if the pricing reflects fair value for the unique services rendered, considering the inherent risks and operational demands.

What are the primary risks associated with awarding a sole-source contract for critical medical evacuation services?

The primary risks of a sole-source award for critical medical evacuation services include a lack of competitive pricing, potentially leading to higher costs for the government. It also creates a dependency on a single provider, which can be problematic if the contractor experiences operational failures, financial instability, or decides to exit the market. Furthermore, without competition, there is less incentive for the contractor to innovate or improve service efficiency beyond contractual minimums. Ensuring robust oversight and performance monitoring becomes even more critical in sole-source situations to mitigate these risks.

How effective has this contract been in ensuring timely and safe medical evacuations for State Department personnel?

Assessing the effectiveness of this contract requires access to performance metrics, mission logs, and incident reports that are not publicly available. However, the contract's objective was to provide on-call aviation support for emergency deployments and retrievals, including critically ill personnel. The duration of the contract (over three years) suggests a continued need for these services. Without specific data on the number of missions executed, response times, and outcomes of medical evacuations, a definitive judgment on effectiveness cannot be made. The Inspector General's office or internal State Department reviews would be the primary sources for such an assessment.

What has been the historical spending trend for similar aviation support services by the Department of State?

Historical spending data for similar aviation support services by the Department of State is not readily available in the provided snippet. However, the State Department, like other federal agencies operating globally, often requires specialized aviation support for personnel transport, security operations, and emergency response. Spending in this area can fluctuate based on geopolitical conditions, personnel deployment levels, and the specific needs for rapid response capabilities. Analyzing past contracts for aviation services, particularly those involving emergency medical or diplomatic support, would provide context for the $48 million awarded in this instance.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SAQMMA16R0241

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 PHOENIX AIR DR SW, CARTERSVILLE, GA, 30120

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

Financial Breakdown

Contract Ceiling: $48,076,368

Exercised Options: $48,076,368

Current Obligation: $48,076,355

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline