DoD's $25.5M Rotary Wing Services Contract for Afghanistan: Erickson Helicopters Awarded Amidst Full and Open Competition
Contract Overview
Contract Amount: $25,465,315 ($25.5M)
Contractor: Erickson Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-12-01
End Date: 2010-11-30
Contract Duration: 364 days
Daily Burn Rate: $70.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: ROTARY WING SERVICES IN AFGHANISTAN
Plain-Language Summary
Department of Defense obligated $25.5 million to ERICKSON HELICOPTERS, INC. for work described as: ROTARY WING SERVICES IN AFGHANISTAN Key points: 1. Contract awarded to Erickson Helicopters, Inc. for rotary wing services in Afghanistan. 2. The contract value is approximately $25.5 million. 3. Competition was conducted under a full and open basis. 4. The contract type is Firm Fixed Price, indicating price certainty. 5. This falls under the Nonscheduled Chartered Passenger Air Transportation NAICS code.
Value Assessment
Rating: fair
The contract value of $25.5M for a 364-day duration appears reasonable for specialized rotary wing services in a challenging operational environment. Benchmarking against similar contracts for aerial support in conflict zones would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. The impact on price discovery is likely positive, as multiple bidders would have been incentivized to offer competitive rates.
Taxpayer Impact: Taxpayer funds are being utilized for essential transportation services in a critical operational theater. The competitive award process aims to ensure efficient use of these funds.
Public Impact
Ensures critical air transport capabilities for military operations in Afghanistan. Supports troop movement, logistics, and potentially casualty evacuation. Provides essential services in a high-risk, complex operational environment. The contract's duration suggests ongoing operational needs. Relies on specialized aircraft and skilled personnel for mission success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical instability in Afghanistan could impact service delivery and costs.
- Reliance on a single awardee for critical services carries inherent risk.
- Firm Fixed Price contracts can be challenging if unforeseen operational changes occur.
Positive Signals
- Full and open competition promotes competitive pricing.
- Essential service for military operations.
- Clear contract type (FFP) provides cost certainty.
Sector Analysis
This contract falls within the transportation and logistics sector, specifically air charter services. Spending in this area is often driven by operational tempo and geographic requirements, particularly in support of defense missions.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by USTRANSCOM, a component of the Department of Defense responsible for global transportation. Oversight would likely involve monitoring performance, adherence to contract terms, and financial accountability.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Operational environment risks (security, weather, terrain).
- Potential for cost overruns if unforeseen issues arise with FFP.
- Dependence on a single contractor for critical services.
- Logistical complexities of operating in Afghanistan.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.5 million to ERICKSON HELICOPTERS, INC.. ROTARY WING SERVICES IN AFGHANISTAN
Who is the contractor on this award?
The obligated recipient is ERICKSON HELICOPTERS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $25.5 million.
What is the period of performance?
Start: 2009-12-01. End: 2010-11-30.
What was the specific nature of the rotary wing services provided, and how did they directly contribute to mission objectives in Afghanistan?
The services likely encompassed troop transport, cargo delivery, and potentially medical evacuation via helicopters. These are critical for maintaining operational readiness, enabling troop movement across difficult terrain, and ensuring timely delivery of supplies and personnel to forward operating bases, directly supporting the military's mission effectiveness in Afghanistan.
Given the operational environment, what were the primary risks associated with this contract, and how were they mitigated?
Primary risks included security threats to aircraft and personnel, potential for equipment damage or loss due to harsh conditions, and logistical challenges in remote areas. Mitigation likely involved robust security protocols, stringent maintenance schedules, contingency planning for operational disruptions, and potentially insurance coverage for high-risk operations.
How effectively did the full and open competition process ensure value for money for the taxpayer in this specific contract award?
The full and open competition process is designed to foster a competitive environment, theoretically leading to better pricing. However, the actual value for money depends on the number and quality of bids received, the specific requirements of the service, and the prevailing market rates for specialized aviation in a high-risk zone. A detailed post-award analysis would be needed for a definitive assessment.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HTC71108R0020
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Evergreen Holdings, Inc (UEI: 097009625)
Address: 3850 THREE MILE LN, MCMINNVILLE, OR, 97128
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,465,315
Exercised Options: $25,465,315
Current Obligation: $25,465,315
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71109D0023
IDV Type: IDC
Timeline
Start Date: 2009-12-01
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2018-10-17
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