DoD spent $142M on fixed-wing air services in Afghanistan, awarded to Berry Aviation, Inc

Contract Overview

Contract Amount: $142,075,174 ($142.1M)

Contractor: Berry Aviation, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-12-09

End Date: 2015-11-30

Contract Duration: 1,817 days

Daily Burn Rate: $78.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIXED WING SERVICES IN AFGHANISTAN, RFTOP-01F

Plain-Language Summary

Department of Defense obligated $142.1 million to BERRY AVIATION, INC. for work described as: FIXED WING SERVICES IN AFGHANISTAN, RFTOP-01F Key points: 1. Value for money appears fair given the operational context and duration of the contract. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, reflecting the inherent complexities of operating in a contingency environment. 4. Performance context is tied to critical logistical support in Afghanistan. 5. Sector positioning is within defense logistics and transportation services.

Value Assessment

Rating: fair

The contract's total value of $142 million over nearly five years suggests a significant investment in fixed-wing air services for operations in Afghanistan. Benchmarking this against similar contingency support contracts is challenging due to unique operational risks and demands. However, the firm-fixed-price contract type provides cost certainty for the government. The average annual spend was approximately $28.4 million, which, while substantial, must be viewed within the context of the high operational tempo and security requirements of the period and location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a reasonable level of competition for this specialized service. A competitive process generally aids in price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers by allowing multiple qualified vendors to vie for the contract, driving down costs through market forces.

Public Impact

Beneficiaries include U.S. and allied forces operating in Afghanistan, requiring reliable air transport. Services delivered encompass scheduled and nonscheduled chartered passenger air transportation. Geographic impact is focused on supporting operations within Afghanistan. Workforce implications include the employment of pilots, maintenance crews, and support staff for Berry Aviation, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Operational risks inherent in providing air services in a conflict zone.
Potential for cost overruns if unforeseen operational challenges arise, despite fixed-price contract.
Dependence on a single contractor for critical logistical support in a remote theater.

Positive Signals

Successful delivery of air transportation services over a multi-year period.
Awarded through a competitive process, suggesting a potentially fair market price.
Firm-fixed-price contract provides cost predictability for the government.

Sector Analysis

This contract falls within the broader defense logistics and transportation sector, specifically focusing on air charter services. The market for such services in contingency operations is specialized, often characterized by high operational costs, stringent safety requirements, and significant risk premiums. Comparable spending benchmarks are difficult to establish precisely due to the unique geopolitical and operational environment of Afghanistan during the contract period.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of significant subcontracting opportunities for small businesses in the provided data. The primary awardee, Berry Aviation, Inc., is a small business itself, but the contract's nature and scale may not lend themselves to extensive small business subcontracting.

Oversight & Accountability

Oversight would typically be managed by USTRANSCOM and potentially the Department of Defense's Inspector General, especially concerning operational performance and adherence to contract terms. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost breakdowns may be less publicly accessible for operational security reasons.

Related Government Programs

Air Mobility Command Services
Contingency Logistics Support
Afghanistan Security Operations Support
Department of Defense Air Transportation Contracts

Risk Flags

Operational Risk in Contingency Environment
Security Threats
Logistical Challenges in Austere Locations
Dependence on Specialized Air Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $142.1 million to BERRY AVIATION, INC.. FIXED WING SERVICES IN AFGHANISTAN, RFTOP-01F

Who is the contractor on this award?

The obligated recipient is BERRY AVIATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $142.1 million.

What is the period of performance?

Start: 2010-12-09. End: 2015-11-30.

What was Berry Aviation, Inc.'s track record prior to this award?

Information regarding Berry Aviation, Inc.'s specific track record prior to this $142 million contract award is not detailed in the provided data. However, as a recipient of a significant Department of Defense contract, it can be inferred that the company possessed the necessary certifications, operational capabilities, and experience to be considered a viable bidder in a full and open competition. Companies seeking such contracts typically undergo rigorous vetting processes by the government, including assessments of past performance, financial stability, and safety records. Further investigation into government contract databases and industry reviews would be necessary to provide a comprehensive overview of their prior performance.

How does the per-unit cost of this contract compare to similar air services in other theaters?

A direct per-unit cost comparison for this contract is not feasible with the provided data, as specific metrics like cost per flight hour or cost per passenger mile are not available. Furthermore, comparing air services across different theaters is complex due to vastly different operational environments, risk factors, security costs, and logistical challenges. Services in a high-risk, contingency zone like Afghanistan during the contract period (2010-2015) would inherently command higher prices than similar services in more stable, lower-risk regions. Factors such as overflight permits, security escorts, and specialized maintenance in austere conditions contribute to higher costs in contingency operations.

What were the primary risks associated with providing fixed-wing services in Afghanistan during this period?

The primary risks associated with providing fixed-wing air services in Afghanistan during 2010-2015 were multifaceted. These included significant security threats such as enemy fire, improvised explosive devices (IEDs) targeting airfields or aircraft, and potential for insider threats. Operational risks involved challenging weather conditions, limited and sometimes degraded airfield infrastructure, and the need for highly specialized navigation and landing procedures. Logistical risks included maintaining aircraft in remote and austere environments, ensuring availability of parts and qualified maintenance personnel, and managing complex flight scheduling amidst dynamic operational requirements. Furthermore, political and geopolitical instability could impact flight operations and safety.

How effective was this contract in meeting the air transportation needs of U.S. forces?

The effectiveness of this contract in meeting air transportation needs is suggested by its duration and substantial value, implying sustained demand and successful service delivery over nearly five years. As a firm-fixed-price contract awarded through full and open competition, it was designed to provide reliable and cost-effective air mobility. While specific performance metrics are not detailed, the continued operation of these services indicates that Berry Aviation, Inc. met the essential requirements for transporting personnel and potentially cargo within Afghanistan. The absence of contract modifications or disputes data (if available) could further indicate successful execution of the contract's objectives.

What is the historical spending trend for similar fixed-wing services by the DoD?

Historical spending trends for similar fixed-wing services by the DoD are substantial and fluctuate based on global operational requirements, particularly during periods of heightened military engagement in theaters like Afghanistan and Iraq. The DoD consistently allocates significant budgets to air transportation and mobility, encompassing a wide range of services from scheduled airlift to specialized charter operations. Spending in this category is influenced by factors such as troop levels, mission scope, and the availability of organic military airlift assets. While this specific $142 million contract represents a notable expenditure, it is part of a larger, ongoing investment in maintaining robust air support capabilities for global operations.

Were there any significant contract modifications or disputes related to this award?

The provided data does not contain information regarding significant contract modifications or disputes related to this award. Typically, such details would be found in more comprehensive contract files or procurement databases. The absence of readily available information on modifications or disputes does not necessarily mean none occurred, but it suggests that any changes or disagreements were either minor, resolved internally, or not publicly documented in the summary data. For a definitive answer, a review of the contract's official modification history and any associated legal or administrative records would be required.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HTC71110RR002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1807 AIRPORT DR, SAN MARCOS, TX, 78666

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

Financial Breakdown

Contract Ceiling: $142,075,174

Exercised Options: $142,075,174

Current Obligation: $142,075,174

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71110DR018

IDV Type: IDC

Timeline