Army awards $14.5M for CH-47 Chinook helicopter maintenance, with Columbia Helicopters Inc. securing the deal

Contract Overview

Contract Amount: $14,564,348 ($14.6M)

Contractor: Columbia Helicopters, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-19

End Date: 2026-02-28

Contract Duration: 1,258 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAINTENANCE AND OVERHAUL OF CH-47 CHINOOK ROTARY WING HEAD. NATIONAL STOCK NUMBER 1615-01-391-4399

Place of Performance

Location: AURORA, MARION County, OREGON, 97002

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to COLUMBIA HELICOPTERS, INC. for work described as: MAINTENANCE AND OVERHAUL OF CH-47 CHINOOK ROTARY WING HEAD. NATIONAL STOCK NUMBER 1615-01-391-4399 Key points: 1. The contract focuses on essential maintenance and overhaul for CH-47 Chinook rotary wing components. 2. Columbia Helicopters, Inc. was awarded this contract, indicating a specific capability in this niche. 3. The contract duration extends over three years, suggesting a need for sustained support. 4. The National Stock Number (NSN) 1615-01-391-4399 identifies a critical component for aviation readiness. 5. The procurement method, 'Full and Open Competition After Exclusion of Sources,' warrants further investigation into the exclusion rationale. 6. This award contributes to the operational readiness of the CH-47 Chinook fleet, a vital asset for the Army.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar overhaul services. The total award amount of $14.5 million over approximately 3.3 years suggests an average annual spend of roughly $4.4 million. This figure needs to be assessed against the complexity and scope of the maintenance required for CH-47 Chinook components. Without specific performance metrics or a clear comparison to other service providers for similar aircraft, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement approach implies that while the competition was intended to be open, specific sources were excluded. The rationale for this exclusion is not provided, which raises questions about the extent of true competition. Understanding why certain sources were excluded is crucial to determining if the government received the best possible pricing and service.

Taxpayer Impact: The exclusion of sources, even if justified, may limit the number of potential bidders, potentially impacting price competitiveness and the opportunity for taxpayers to benefit from broader market engagement.

Public Impact

The primary beneficiaries are the U.S. Army aviation units relying on the CH-47 Chinook for troop transport, cargo delivery, and special operations. The services delivered include critical maintenance and overhaul, ensuring the airworthiness and operational readiness of these heavy-lift helicopters. The geographic impact is primarily within the operational theaters where the CH-47 Chinook is deployed, ensuring mission success. This contract supports specialized technical jobs within the aerospace maintenance and repair sector, particularly those with expertise in rotary-wing aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the exclusion of sources in the procurement process.
Potential for limited competition to impact overall cost-effectiveness.
Dependence on a single contractor for critical maintenance could pose supply chain risks.

Positive Signals

Award to a known entity in helicopter maintenance suggests specialized expertise.
Contract duration indicates a commitment to sustained operational readiness.
Focus on a critical military asset like the CH-47 Chinook highlights its importance.

Sector Analysis

The aerospace maintenance, repair, and overhaul (MRO) sector is a critical component of the defense industrial base, supporting the operational readiness of military aviation assets. This contract falls within the broader category of aircraft parts and auxiliary equipment manufacturing and repair. The CH-47 Chinook is a significant platform, and its continued operational status relies on specialized MRO services. Spending in this area is often driven by fleet size, operational tempo, and the age of the aircraft.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Columbia Helicopters, Inc., is a large business. There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor's own supply chain may involve small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Federal Acquisition Regulation (FAR) provides the framework for contract administration and oversight. Transparency regarding the exclusion of sources and the justification for it would be a key area for Inspector General review if concerns arise. Performance monitoring and payment reviews are standard accountability measures.

Related Government Programs

CH-47 Chinook Helicopter Operations
Rotary Wing Aircraft Maintenance
Defense Logistics Agency Aviation Support
Army Aviation Sustainment Programs

Risk Flags

Limited competition due to source exclusion.
Lack of detailed cost breakdown for value assessment.
Potential for price inflation due to restricted bidder pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to COLUMBIA HELICOPTERS, INC.. MAINTENANCE AND OVERHAUL OF CH-47 CHINOOK ROTARY WING HEAD. NATIONAL STOCK NUMBER 1615-01-391-4399

Who is the contractor on this award?

The obligated recipient is COLUMBIA HELICOPTERS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2022-09-19. End: 2026-02-28.

What is the specific nature of the 'exclusion of sources' in this 'Full and Open Competition After Exclusion of Sources' award, and what was the justification?

The procurement type 'Full and Open Competition After Exclusion of Sources' (FAR 16.505(b)(2)(i)(B)) indicates that the agency solicited proposals from all responsible sources, but then excluded certain sources from the competition. The justification for such exclusion typically relates to specific circumstances, such as when an agency determines that only one or a limited number of sources are capable of satisfying the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent requirements where only certain contractors can respond effectively. Without further documentation from the Department of the Army, the precise reasons for excluding specific sources in this award for CH-47 Chinook maintenance remain unclear. This lack of clarity can hinder a full assessment of the competitive landscape and potential cost savings.

How does the awarded price of $14.5 million compare to historical spending on similar CH-47 Chinook maintenance contracts?

Comparing the $14.5 million award to historical spending requires access to detailed historical contract data for CH-47 Chinook maintenance. Without specific historical contract values, task orders, and the scope of work for previous maintenance efforts, a direct comparison is difficult. However, the duration of this contract (approximately 3.3 years) suggests an average annual spend of around $4.4 million. To assess value, this annual figure would need to be benchmarked against similar overhaul and maintenance contracts awarded by the Department of Defense or other agencies for comparable rotary-wing aircraft, considering factors like inflation, technological advancements, and the specific maintenance requirements of the CH-47.

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

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for aircraft maintenance and overhaul contracts, KPIs would focus on aspects such as on-time delivery of services, quality of repairs (e.g., defect rates, rework), adherence to technical specifications, and overall aircraft availability rates post-maintenance. The contract's performance would likely be monitored by the Army's program management office, with regular reviews to ensure that Columbia Helicopters, Inc. is meeting the agreed-upon standards and contributing to the operational readiness of the CH-47 fleet.

What is the track record of Columbia Helicopters, Inc. in performing similar maintenance and overhaul services for military aircraft?

Columbia Helicopters, Inc. has a significant track record in the aviation industry, particularly in heavy-lift helicopter operations and maintenance. They are known for their work with various helicopter platforms, including military variants. While specific details on their performance on past CH-47 Chinook overhaul contracts are not detailed here, their established presence suggests they possess the necessary certifications, expertise, and facilities to undertake such complex maintenance tasks. A deeper dive into their contract history with the Department of Defense and other government agencies would provide a more comprehensive view of their performance and reliability.

What is the potential risk associated with the limited competition indicated by the 'exclusion of sources' procurement method?

The primary risk associated with the 'exclusion of sources' procurement method is the potential for reduced competition, which can lead to higher prices and less innovation. When fewer bidders are involved, the incentive for contractors to offer their most competitive pricing may diminish. Furthermore, it raises concerns about whether the government truly explored all viable options to secure the best value. If the exclusion was not adequately justified or if alternative sources could have met the requirements, taxpayers may be overpaying for the services rendered. This method necessitates strong justification and oversight to mitigate these risks.

How does this contract contribute to the overall readiness and operational capability of the U.S. Army's CH-47 Chinook fleet?

This contract is directly linked to maintaining the airworthiness and operational readiness of the CH-47 Chinook fleet, which is a critical asset for the U.S. Army. The CH-47 is a heavy-lift helicopter used for a wide range of missions, including troop and cargo transport, battlefield resupply, and special operations. By ensuring that these helicopters undergo necessary maintenance and overhaul, the contract helps to minimize downtime, prevent mission failures due to equipment malfunction, and extend the service life of the aircraft. This directly supports the Army's ability to deploy and sustain forces effectively across various operational environments.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14452 ARNDT RD NE, AURORA, OR, 97002

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

Financial Breakdown

Contract Ceiling: $14,450,765

Exercised Options: $14,450,765

Current Obligation: $14,564,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W58RGZ19D0101

IDV Type: IDC

Timeline