DOJ's $25.3M Boeing Aircraft Purchase: Full & Open Competition Amidst Sole-Source Exclusion
Contract Overview
Contract Amount: $25,325,000 ($25.3M)
Contractor: Aersale, Inc.
Awarding Agency: Department of Justice
Start Date: 2023-11-29
End Date: 2025-03-03
Contract Duration: 460 days
Daily Burn Rate: $55.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PURCHASE OF BOEING 737-700 OR 737-800 AIRCRAFT
Place of Performance
Location: DORAL, MIAMI-DADE County, FLORIDA, 33178
State: Florida Government Spending
Plain-Language Summary
Department of Justice obligated $25.3 million to AERSALE, INC. for work described as: PURCHASE OF BOEING 737-700 OR 737-800 AIRCRAFT Key points: 1. The Department of Justice is acquiring two Boeing 737 aircraft for $25.3 million. 2. Competition was full and open, but sources were initially excluded, raising questions about the process. 3. The firm-fixed-price contract with AERSALE, INC. suggests price certainty but requires scrutiny of the exclusion rationale. 4. This purchase falls under Aircraft Manufacturing, a sector with significant capital expenditure and potential for cost overruns.
Value Assessment
Rating: fair
The contract value of $25.3 million for two Boeing 737 aircraft appears within market ranges for similar commercial aircraft acquisitions. However, without specific aircraft configurations and options, a precise benchmark is difficult.
Cost Per Unit: $12,650,000
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after an initial exclusion of sources. This suggests a competitive process was ultimately employed, but the exclusion raises concerns about potential limitations on the initial pool of bidders and the discovery of the best price.
Taxpayer Impact: Taxpayer funds are being used for a significant capital expenditure on aircraft. While competition was sought, the initial exclusion warrants review to ensure maximum value for money.
Public Impact
Acquisition of critical transportation assets for the U.S. Marshals Service. Potential impact on commercial aircraft availability and pricing due to government procurement. Transparency concerns regarding the initial exclusion of sources in the competitive bidding process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Initial exclusion of sources raises transparency and competition concerns.
- Lack of detailed justification for source exclusion.
- Potential for price escalation if competition was unduly limited.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract provides cost certainty.
- Acquisition of essential operational assets.
Sector Analysis
The acquisition of commercial aircraft falls within the broader aerospace and manufacturing sector. Benchmarks for similar government aircraft procurements vary widely based on aircraft type, customization, and support packages. This purchase represents a significant investment in transportation infrastructure.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the vendor is AERSALE, INC. and the procurement is for large commercial aircraft manufacturing. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The contract's 'full and open competition after exclusion of sources' clause requires careful oversight to ensure the exclusion was justified and did not unduly restrict competition. The Department of Justice should maintain robust documentation and justification for such decisions.
Related Government Programs
- Aircraft Manufacturing
- Department of Justice Contracting
- U.S. Marshals Service Programs
Risk Flags
- Potential for limited competition due to initial source exclusion.
- Lack of detailed justification for source exclusion.
- Dependence on a single manufacturer (Boeing) for aircraft.
- Significant financial outlay requiring robust oversight.
Tags
aircraft-manufacturing, department-of-justice, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $25.3 million to AERSALE, INC.. PURCHASE OF BOEING 737-700 OR 737-800 AIRCRAFT
Who is the contractor on this award?
The obligated recipient is AERSALE, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (U.S. Marshals Service).
What is the total obligated amount?
The obligated amount is $25.3 million.
What is the period of performance?
Start: 2023-11-29. End: 2025-03-03.
What was the specific justification for excluding certain sources prior to the full and open competition, and did this exclusion impact the final price?
The justification for excluding sources prior to the full and open competition is not detailed in the provided data. This exclusion raises concerns about whether the government received the most competitive pricing possible. A thorough review of the solicitation process and any pre-award communications would be necessary to ascertain the impact on the final price and ensure fair market value was achieved.
What are the primary operational risks associated with acquiring these specific Boeing 737 models for the U.S. Marshals Service, and how are they being mitigated?
Primary risks include potential operational disruptions if aircraft delivery is delayed, maintenance challenges with a new fleet, and the suitability of the 737 models for the specific missions of the U.S. Marshals Service. Mitigation strategies would likely involve robust contract management, contingency planning for delivery schedules, and ensuring adequate training and support infrastructure are in place.
How does the firm-fixed-price contract structure ensure cost-effectiveness and value for taxpayer money in this aircraft acquisition?
A firm-fixed-price contract is designed to provide cost certainty by shifting most of the risk to the contractor. This structure is generally effective in controlling costs, as the contractor is obligated to deliver the aircraft at the agreed-upon price regardless of their actual costs. However, value for money also depends on the initial negotiation and the competitiveness of the bidding process.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 15M30023RA3700054
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 255 ALHAMBRA CIR STE 435, CORAL GABLES, FL, 33134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,325,000
Exercised Options: $25,325,000
Current Obligation: $25,325,000
Actual Outlays: $25,151,700
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-11-29
Current End Date: 2025-03-03
Potential End Date: 2025-03-03 00:00:00
Last Modified: 2024-12-30
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