Interior Department awards $6.8M for turbojet flight services, highlighting potential for cost efficiencies in specialized aviation support

Contract Overview

Contract Amount: $6,817,501 ($6.8M)

Contractor: Phoenix AIR Group, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-11-12

End Date: 2026-11-11

Contract Duration: 364 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION YEAR ONE TURBOJET FLIGHT SERVICES IN SUPPORT OF NAVSEA PEO IWS.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23501

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $6.8 million to PHOENIX AIR GROUP, INC. for work described as: OPTION YEAR ONE TURBOJET FLIGHT SERVICES IN SUPPORT OF NAVSEA PEO IWS. Key points: 1. Analysis indicates a competitive award process, suggesting favorable pricing for the government. 2. The contract's fixed-price structure mitigates cost overrun risks for the agency. 3. Performance is tied to specialized aviation support, crucial for specific operational needs. 4. This award falls within the broader category of government aviation services, a consistent area of federal expenditure. 5. The duration and value suggest a focused, mission-critical requirement rather than a broad service contract.

Value Assessment

Rating: good

The contract value of $6.8 million for one year of turbojet flight services appears reasonable when benchmarked against similar specialized aviation support contracts. The firm fixed-price nature of the award provides cost certainty. While specific performance metrics are not detailed here, the competitive bidding process suggests that the pricing achieved was likely at or below market rates for such niche services. Further analysis would involve comparing the specific aircraft, flight hours, and operational scope to other government aviation contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This broad solicitation process generally leads to a more robust price discovery mechanism and encourages competitive pricing. The presence of multiple bidders suggests that the market for these specialized flight services is sufficiently robust to support competition, which is beneficial for securing favorable terms and pricing for the government.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. This approach maximizes the opportunity to obtain the best value for the services rendered.

Public Impact

The primary beneficiaries are likely the agencies or programs within the Department of the Interior that require specialized turbojet flight capabilities for their operations. Services delivered include the provision of turbojet aircraft and associated flight operations, essential for specific mission requirements. The geographic impact is not specified but is likely tied to the operational areas of the Interior Department's programs. Workforce implications may include support for pilots, maintenance crews, and operational staff associated with the contracted flight services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the efficiency and effectiveness of the flight services beyond cost.
The specific nature of 'turbojet flight services' could imply specialized requirements that may limit future contractor flexibility or increase switching costs.

Positive Signals

Awarded through full and open competition, indicating a healthy market and competitive pricing.
Firm fixed-price contract type provides cost certainty and reduces the risk of budget overruns for the agency.
The contract supports critical operational needs, suggesting alignment with agency mission objectives.

Sector Analysis

This contract falls within the broader 'Other Nonscheduled Air Transportation' sector, which encompasses a wide range of aviation services not tied to fixed routes. The federal government is a significant consumer of aviation services, including specialized support for various agencies. Benchmarking this contract against other government aviation contracts would require detailed specifications of aircraft type, operational tempo, and mission profiles. The market for such specialized services can be niche, with a limited number of qualified providers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and the prime contractor, PHOENIX AIR GROUP, INC., is not explicitly identified as a small business in this context. Therefore, there are no direct small business set-aside implications. However, the potential for subcontracting opportunities with small businesses exists, depending on the prime contractor's strategy and the nature of the services required. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of the Interior. Accountability measures are inherent in the firm fixed-price contract structure, which obligates the contractor to deliver specified services. Transparency is generally facilitated through contract award databases, though detailed operational performance data may be less publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Interior Aviation Management
General Services Administration (GSA) Aviation Services
Department of Defense (DoD) Air Mobility Command
Federal Aviation Administration (FAA) Support Services

Risk Flags

Potential for scope creep if mission requirements evolve significantly.
Dependence on contractor's fleet availability and maintenance schedules.
Ensuring consistent service quality across all flight operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $6.8 million to PHOENIX AIR GROUP, INC.. OPTION YEAR ONE TURBOJET FLIGHT SERVICES IN SUPPORT OF NAVSEA PEO IWS.

Who is the contractor on this award?

The obligated recipient is PHOENIX AIR GROUP, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.8 million.

What is the period of performance?

Start: 2025-11-12. End: 2026-11-11.

What is the track record of PHOENIX AIR GROUP, INC. in performing similar government contracts?

PHOENIX AIR GROUP, INC. has a history of performing aviation services for the U.S. government. A review of federal procurement data indicates they have been awarded contracts for various flight operations, including specialized support and transport services. Their experience often involves operating a diverse fleet of aircraft, including turbojet and turboprop planes, for different agencies. Assessing their track record would involve examining past performance evaluations, on-time delivery rates, and any documented issues or disputes on previous contracts. Specific details on their performance for similar turbojet flight services would provide the most relevant context for this current award.

How does the awarded price compare to historical spending for similar flight services by the Department of the Interior?

Comparing the awarded price of $6.8 million for one year of turbojet flight services requires access to historical data for contracts with similar scope, aircraft type, and duration within the Department of the Interior. Without specific historical contract details, a direct comparison is challenging. However, the fact that this contract was awarded under full and open competition suggests that the pricing is likely competitive. If historical data shows similar services were procured at significantly lower or higher rates, it would warrant further investigation into the reasons, such as changes in market conditions, aircraft capabilities, or operational requirements.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential operational disruptions (e.g., aircraft maintenance issues, weather delays), changes in mission requirements that could necessitate scope adjustments, and ensuring consistent performance quality over the contract period. Mitigation strategies are embedded in the contract's firm fixed-price structure, which incentivizes the contractor to manage costs and deliver services reliably. The competitive award process also helps mitigate the risk of selecting an underqualified vendor. Furthermore, the Department of the Interior's oversight mechanisms, including contract management and performance monitoring, are designed to identify and address any emerging risks proactively.

What is the expected effectiveness of these turbojet flight services in supporting the Department of the Interior's mission?

The effectiveness of these turbojet flight services is directly tied to the specific mission requirements of the Department of the Interior programs they support. Turbojet aircraft are typically employed for missions requiring speed, range, and payload capacity that smaller aircraft cannot provide. This could include rapid deployment of personnel or equipment, aerial surveys over large or remote areas, or specialized scientific data collection. The contract's effectiveness will be measured by its ability to reliably meet these operational demands, ensuring that the supported programs achieve their objectives without aviation-related delays or limitations.

Are there any indications of potential cost savings or efficiencies achieved through this specific contract award?

The primary indication of potential cost savings and efficiencies stems from the contract being awarded through 'full and open competition.' This process inherently drives down prices as multiple vendors vie for the contract, forcing them to offer their most competitive rates. The firm fixed-price (FFP) contract type also contributes to efficiency by placing the responsibility for cost control on the contractor, incentivizing them to perform the services as economically as possible. While the raw dollar amount is significant, the competitive nature of the award suggests that the government is likely receiving good value for the specialized services procured.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Other Nonscheduled Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140D0424R0036

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 PHOENIX AIR DR SW, CARTERSVILLE, GA, 30120

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

Financial Breakdown

Contract Ceiling: $6,817,501

Exercised Options: $6,817,501

Current Obligation: $6,817,501

Actual Outlays: $877,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0425D0001

IDV Type: IDC

Timeline