Bering Air Inc. awarded $357K contract for Alaska helicopter services, highlighting fixed-price adjustments

Contract Overview

Contract Amount: $35,687 ($35.7K)

Contractor: Bering AIR, Inc.

Awarding Agency: Department of the Interior

Start Date: 2026-04-01

End Date: 2026-09-30

Contract Duration: 182 days

Daily Burn Rate: $196/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 HELICOPTER ON CALL - CONTRACTOR PROVIDED HELICOPTER FLIGHT SERVICES FOR USGS ASC FERRUM

Place of Performance

Location: KOBUK, NORTHWEST ARCTIC County, ALASKA, 99751

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $35,687 to BERING AIR, INC. for work described as: ALASKA HELICOPTER ON CALL - CONTRACTOR PROVIDED HELICOPTER FLIGHT SERVICES FOR USGS ASC FERRUM Key points: 1. Contract value of $357K for helicopter flight services in Alaska. 2. Fixed Price with Economic Price Adjustment (FPEPA) contract type. 3. Competition was full and open after exclusion of sources. 4. Contract duration of 182 days. 5. Services provided for USGS ASC Ferrum. 6. Delivery Order awarded under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $357K for 182 days of helicopter services appears reasonable given the specialized nature of operations in Alaska. The fixed-price with economic price adjustment structure allows for flexibility while providing a baseline cost. Benchmarking against similar on-call helicopter services in remote regions would provide further insight into value for money, but initial assessment suggests fair pricing for the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after the exclusion of sources, indicating a competitive bidding process. While the specific number of bidders is not detailed, this approach generally promotes price discovery and allows multiple qualified vendors to participate. The exclusion of sources suggests a specific reason, possibly related to unique capabilities or prior performance, which warrants further investigation.

Taxpayer Impact: A competitive process, even with source exclusions, is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and terms.

Public Impact

USGS ASC Ferrum benefits from on-call helicopter flight services. Ensures operational continuity and support for scientific or logistical missions in Alaska. Supports workforce and operations within the remote Alaskan region. Facilitates access to challenging terrain for critical tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to economic price adjustment clause.
Limited duration of 182 days may require re-competition or extension, impacting continuity.
Geographic remoteness of Alaska can introduce logistical and operational risks.

Positive Signals

Fixed price component provides cost certainty for a portion of the contract.
On-call nature ensures rapid response capability.
Award to Bering Air, Inc. suggests established presence and capability in the region.

Sector Analysis

This contract falls within the air transportation services sector, specifically nonscheduled chartered passenger air transportation. The market for such services in remote areas like Alaska is often specialized, with a limited number of providers possessing the necessary certifications, equipment, and operational experience. Spending in this category supports essential government functions requiring access to difficult terrain.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this specific delivery order. The award to Bering Air, Inc. does not inherently indicate whether they are a small or large business, nor does it detail any subcontracting opportunities for small businesses. Further analysis of the prime contractor's size status and subcontracting goals would be needed.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting and program management offices. The delivery order structure suggests it is part of a larger contract with established oversight mechanisms. Transparency is facilitated through contract databases, but specific performance monitoring details are not provided here. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

USGS Scientific Support Contracts
Federal Aviation Administration (FAA) Services
Department of the Interior Aviation Management

Risk Flags

Economic Price Adjustment Clause
Limited Contract Duration
Remote Operational Environment

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $35,687 to BERING AIR, INC.. ALASKA HELICOPTER ON CALL - CONTRACTOR PROVIDED HELICOPTER FLIGHT SERVICES FOR USGS ASC FERRUM

Who is the contractor on this award?

The obligated recipient is BERING AIR, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35,687.

What is the period of performance?

Start: 2026-04-01. End: 2026-09-30.

What is the track record of Bering Air, Inc. in providing similar helicopter flight services to government agencies?

Bering Air, Inc. has a history of providing aviation services, including charter flights, in Alaska. Their experience likely includes operations in challenging environments similar to those required by the USGS. Government contract databases may contain records of past performance, including on-time delivery, safety incidents, and customer satisfaction ratings. A review of these records would indicate their reliability and suitability for this contract. Their established presence in Alaska suggests familiarity with local regulations, weather patterns, and logistical challenges inherent in operating in the region, which are critical factors for successful contract execution.

How does the pricing structure (Fixed Price with Economic Price Adjustment) compare to industry standards for on-call helicopter services in remote areas?

The Fixed Price with Economic Price Adjustment (FPEPA) structure is common for services where input costs (like fuel) can fluctuate significantly, especially in remote locations. The 'fixed price' component provides a baseline cost, while the 'economic price adjustment' allows for modifications based on agreed-upon indices, typically related to fuel or labor costs. For on-call helicopter services in Alaska, this structure is often preferred by both the government and the contractor to mitigate risks associated with unpredictable operating expenses. Benchmarking against similar contracts would reveal if the adjustment mechanisms and base rates are competitive and reflect fair market value for the specialized services and operational risks involved.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include operational challenges due to Alaska's extreme weather and remote terrain, potential for equipment failure, and fluctuations in fuel prices impacting the economic price adjustment. Safety is paramount, and incidents could lead to service disruptions. Mitigation strategies likely involve stringent maintenance schedules, pilot training and certification, adherence to safety protocols, and the economic price adjustment clause to manage fuel cost volatility. The government's oversight and the contractor's experience in the region are also critical risk mitigation factors. The limited duration also presents a risk of discontinuity if not managed proactively.

What is the historical spending pattern for helicopter flight services by the Department of the Interior in Alaska?

Historical spending data for helicopter flight services by the Department of the Interior (DOI) in Alaska would likely show consistent demand due to the agency's extensive operations and the challenging geography. Spending patterns would vary based on specific mission requirements, such as scientific research, land management, or emergency response. Analyzing past contract awards, including values, durations, and contractors, would reveal trends in pricing, competition levels, and the types of services most frequently procured. This context helps assess whether the current $357K award is within historical norms or represents an outlier, potentially due to increased demand or specific project scope.

How does the 'full and open competition after exclusion of sources' procurement method impact cost and contractor selection?

This procurement method, while technically 'full and open,' implies that certain potential sources were excluded for specific reasons, such as unique capabilities, prior performance, or proprietary technology. This can limit the pool of bidders compared to a purely 'full and open' competition. While it aims to ensure the best fit for specific needs, it may reduce competitive pressure if the excluded sources represent significant market players. The impact on cost depends on the number of remaining bidders and the justification for exclusion; if the exclusion was valid and competition remains robust among qualified vendors, costs can still be competitive. However, it warrants scrutiny to ensure it doesn't unduly restrict competition.

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: 1470 SEPPALA DR, NOME, AK, 99762

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

Financial Breakdown

Contract Ceiling: $35,687

Exercised Options: $35,687

Current Obligation: $35,687

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D8122D0010

IDV Type: IDC

Timeline