DoD Spent $40.5M on Afghan Rotary Wing Airlift with Erickson Helicopters
Contract Overview
Contract Amount: $40,499,155 ($40.5M)
Contractor: Erickson Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-12-01
End Date: 2011-11-30
Contract Duration: 364 days
Daily Burn Rate: $111.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: AFGHANISTAN ROTARY WING AIRLIFT
Plain-Language Summary
Department of Defense obligated $40.5 million to ERICKSON HELICOPTERS, INC. for work described as: AFGHANISTAN ROTARY WING AIRLIFT Key points: 1. Significant spending on specialized airlift services for Afghanistan operations. 2. Erickson Helicopters secured the contract under full and open competition. 3. Contract duration was one year, indicating a specific operational need. 4. The contract was awarded as Firm Fixed Price, providing cost certainty.
Value Assessment
Rating: fair
The contract value of $40.5M for a one-year period of performance is substantial. Benchmarking against similar airlift contracts is difficult without more specific service details, but the price appears to be within a reasonable range for specialized, deployed rotary-wing support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: Taxpayer funds were used for critical logistical support in a high-cost operational environment. The competitive award aims to ensure value for money.
Public Impact
Ensured critical logistical support for U.S. and allied forces in Afghanistan. Supported troop movement and essential cargo delivery in a challenging theater. Demonstrates the reliance on private sector aviation for military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical risk associated with operations in Afghanistan.
- Potential for cost overruns in high-demand, specialized aviation services.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Full and open competition likely yielded competitive pricing.
Sector Analysis
This contract falls under the transportation and logistics sector, specifically aviation services. Spending on military airlift, especially in deployed or austere environments, is a significant component of defense budgets, often involving specialized and costly equipment and operations.
Small Business Impact
The data indicates the prime contractor is Erickson Helicopters, Inc. There is no explicit information provided regarding small business participation in this specific contract award.
Oversight & Accountability
The contract was awarded by USTRANSCOM, a component of the Department of Defense responsible for global transportation and logistics. Oversight would typically involve contract management and performance monitoring to ensure mission accomplishment and fiscal responsibility.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Operational risks in a conflict zone.
- Potential for high per-unit costs due to specialization.
- Dependence on a single prime contractor for critical services.
- Limited duration may indicate evolving needs or future re-competition.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.5 million to ERICKSON HELICOPTERS, INC.. AFGHANISTAN ROTARY WING AIRLIFT
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 $40.5 million.
What is the period of performance?
Start: 2010-12-01. End: 2011-11-30.
What was the specific nature of the rotary-wing airlift services provided, and how did it compare to standard commercial rates?
The specific services involved nonscheduled chartered passenger air transportation in Afghanistan. Without detailed operational requirements and performance metrics, a direct comparison to standard commercial rates is challenging. However, the context of military operations in a high-risk zone suggests that specialized certifications, security protocols, and operational tempo would command premium pricing compared to routine civilian charter services.
What were the primary risks associated with this contract, and how were they mitigated?
Key risks included operational hazards in Afghanistan (security threats, difficult terrain), potential for equipment downtime, and fluctuating fuel costs. Mitigation likely involved stringent security measures, robust maintenance schedules, contingency planning for operational disruptions, and contract clauses addressing fuel price adjustments or fixed pricing strategies.
How effective was this contract in meeting the Department of Defense's airlift requirements in Afghanistan?
The effectiveness is presumed high given the contract's fulfillment of a critical logistical need. The sustained requirement for such services implies its necessity for mission success. However, a definitive assessment would require post-contract performance reviews, operational impact analyses, and feedback from end-users regarding timeliness, reliability, and cargo/passenger capacity.
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, 06
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $40,499,155
Exercised Options: $40,499,155
Current Obligation: $40,499,155
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71109D0023
IDV Type: IDC
Timeline
Start Date: 2010-12-01
Current End Date: 2011-11-30
Potential End Date: 2011-11-30 00:00:00
Last Modified: 2013-05-07
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