Interior Department awards $675K fixed-wing air charter contract to 40-Mile Air, Ltd. in Alaska

Contract Overview

Contract Amount: $67,565 ($67.6K)

Contractor: 40-Mile AIR, Ltd.

Awarding Agency: Department of the Interior

Start Date: 2025-01-01

End Date: 2025-12-31

Contract Duration: 364 days

Daily Burn Rate: $186/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Transportation

Official Description: ALASKA FIXED WING ON CALL

Place of Performance

Location: FAIRBANKS, FAIRBANKS NORTH STAR County, ALASKA, 99709

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $67,565.09 to 40-MILE AIR, LTD. for work described as: ALASKA FIXED WING ON CALL Key points: 1. Contract awarded for fixed-wing air charter services in Alaska. 2. Sole awardee is 40-Mile Air, Ltd. 3. Contract value is $675,650.09. 4. Service period is January 1, 2025, to December 31, 2025.

Value Assessment

Rating: fair

The contract value of $675,650.09 for a one-year period appears reasonable for specialized fixed-wing air charter services in a remote location like Alaska. Benchmarking against similar contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources. This method suggests a competitive process was intended, but the specific exclusion of sources warrants further investigation into the rationale and its impact on price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential transportation services in a remote region, with the competitive process aiming for cost-effectiveness.

Public Impact

Ensures critical transportation for Interior Department operations in remote Alaskan areas. Supports access to areas not served by conventional air carriers. Potential for economic impact on the local provider and associated services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in a full and open competition needs clarification.
Economic price adjustment clause could lead to cost increases.
Limited competition history for this specific service.

Positive Signals

Awarded to a single, established provider.
Contract duration aligns with operational needs.
Fixed price component provides some cost certainty.

Sector Analysis

This contract falls under nonscheduled chartered passenger air transportation, a sector critical for government operations in remote or underserved regions. Spending benchmarks for such specialized services are highly variable based on location, aircraft type, and mission requirements.

Small Business Impact

The data does not indicate if 40-Mile Air, Ltd. is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

The contract was awarded through a competitive process, suggesting oversight was applied. However, the 'exclusion of sources' clause requires scrutiny to ensure fairness and prevent potential collusion or undue influence.

Related Government Programs

Nonscheduled Chartered Passenger Air Transportation
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for cost escalation due to Economic Price Adjustment.
Lack of clarity on 'exclusion of sources' rationale.
Limited visibility into small business participation.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $67,565.09 to 40-MILE AIR, LTD.. ALASKA FIXED WING ON CALL

Who is the contractor on this award?

The obligated recipient is 40-MILE AIR, LTD..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $67,565.09.

What is the period of performance?

Start: 2025-01-01. End: 2025-12-31.

What specific factors necessitated the exclusion of certain sources in this full and open competition, and did this exclusion impact the final price?

The exclusion of sources in a full and open competition typically occurs when specific capabilities, certifications, or geographic limitations are required that only a subset of potential bidders can meet. Without detailed documentation, it's unclear if this exclusion limited competition to the point of negatively impacting price discovery or if it was a necessary step to ensure the government received the most suitable service provider for unique operational needs in Alaska.

How will the economic price adjustment (EPA) clause be managed to mitigate potential cost overruns for taxpayers?

The economic price adjustment clause allows for adjustments to the contract price based on fluctuations in specific economic factors, such as fuel costs or labor rates. Effective management requires clear, pre-defined indices and caps on adjustments, rigorous monitoring of the factors, and a transparent process for approving any price changes to ensure they are justified and do not unduly inflate costs beyond what is necessary for the contractor to perform.

What is the historical performance record of 40-Mile Air, Ltd. with the Department of the Interior or similar government agencies?

A review of 40-Mile Air, Ltd.'s past performance is crucial for assessing the reliability and effectiveness of this award. Examining previous contracts, client feedback, and any documented issues or commendations would provide insight into their ability to meet service requirements, adhere to schedules, and maintain safety standards, thereby informing the overall risk assessment of this current contract.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: MILE 1313 ALASKA HWY, TOK, AK, 99780

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,565

Exercised Options: $67,565

Current Obligation: $67,565

Actual Outlays: $42,565

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D8121D0004

IDV Type: IDC

Timeline