State Department awards $9M emergency aero medical contract to Phoenix Aviation Limited

Contract Overview

Contract Amount: $9,084,502 ($9.1M)

Contractor: Phoenix Aviation Limited

Awarding Agency: Department of State

Start Date: 2025-05-01

End Date: 2026-04-30

Contract Duration: 364 days

Daily Burn Rate: $25.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OMTX25SO04E4215EMERGENCY AERO MEDICAL AND AVIATION.

Plain-Language Summary

Department of State obligated $9.1 million to PHOENIX AVIATION LIMITED for work described as: OMTX25SO04E4215EMERGENCY AERO MEDICAL AND AVIATION. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration is one year, suggesting a need for immediate or short-term services. 3. The fixed-price contract type provides cost certainty for the government. 4. The specific nature of 'emergency aero medical and aviation' implies critical operational support. 5. The absence of a small business set-aside raises questions about broader economic impact.

Value Assessment

Rating: questionable

The contract value of approximately $9.1 million for a one-year period for emergency aero medical and aviation services appears high given the lack of competition. Without comparable sole-source contracts or detailed service breakdowns, it is difficult to benchmark the value effectively. The fixed-price nature is positive for cost control, but the absence of competitive bidding prevents a thorough assessment of whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to specialized capabilities or urgent needs. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to lower prices. The government did not benefit from the potential cost savings that typically arise from a competitive bidding process.

Public Impact

Provides critical emergency aero medical and aviation support, likely for personnel or sensitive operations. Benefits personnel requiring rapid medical evacuation or specialized air transport in potentially remote or high-risk areas. Geographic impact is likely tied to the operational needs of the Department of State, potentially global. Workforce implications are minimal for the public, but critical for the personnel supported by these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Lack of competition may result in a higher price than a competed contract.
Emergency nature of the contract could indicate potential risks or unforeseen circumstances.

Positive Signals

Fixed-price contract provides cost certainty.
Contract addresses critical emergency medical and aviation needs.

Sector Analysis

The aviation services sector is diverse, encompassing commercial airlines, cargo, and specialized services like emergency medical transport. The Department of State's need for emergency aero medical and aviation falls into a niche requiring rapid response and specialized aircraft, often involving significant operational costs. Benchmarking this specific type of sole-source emergency service against broader aviation contracts is challenging, but the value suggests a high level of operational criticality.

Small Business Impact

The contract was not competed and there is no indication of a small business set-aside. This means small businesses were not specifically targeted for this procurement. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is likely minimal unless Phoenix Aviation Limited voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures would be defined by the contract terms and performance metrics. Transparency is limited due to the sole-source nature of the award; public disclosure of detailed justifications for the sole-source award would be key to assessing transparency.

Related Government Programs

Department of State Aviation Services
Emergency Medical Services Contracts
Aviation Support Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $9.1 million to PHOENIX AVIATION LIMITED. OMTX25SO04E4215EMERGENCY AERO MEDICAL AND AVIATION.

Who is the contractor on this award?

The obligated recipient is PHOENIX AVIATION LIMITED.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $9.1 million.

What is the period of performance?

Start: 2025-05-01. End: 2026-04-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, which is synonymous with a sole-source award. The specific justification for this sole-source award is not detailed in the provided data. Typically, sole-source procurements are justified when only one responsible source is available to meet the government's needs. This could be due to unique capabilities, specialized equipment, urgent and compelling circumstances, or specific government requirements that only one contractor can fulfill. Without the official justification document (e.g., a Justification and Approval or J&A), it is impossible to ascertain the precise reasons why Phoenix Aviation Limited was the only viable option for these emergency aero medical and aviation services.

How does the cost of this contract compare to similar emergency aero medical services?

Benchmarking the cost of this $9.1 million, one-year emergency aero medical and aviation contract is challenging without more specific details on the services provided and the operational tempo. Sole-source contracts, by their nature, lack direct competitive pricing data. To assess value, one would need to compare it against other sole-source awards for similar emergency services, if available, or against publicly available rates for comparable private sector emergency medical transport services, adjusted for the scale and scope required by the Department of State. The fixed-price nature offers some cost control, but the absence of competition means a definitive value comparison is difficult.

What are the potential risks associated with a sole-source emergency aviation contract?

A primary risk of a sole-source emergency aviation contract is the potential for inflated pricing due to the lack of competitive pressure. The government may not be receiving the best possible value for its money. Another risk is vendor lock-in, where the government becomes dependent on a single provider, potentially limiting flexibility in future procurements. Furthermore, if the sole-source justification is weak or if the contractor fails to perform adequately, the government has limited recourse compared to a competitively awarded contract where alternative vendors could be readily engaged. The emergency nature itself implies inherent operational risks that the contractor must manage.

What performance metrics or oversight mechanisms are in place for this contract?

The provided data does not specify the performance metrics or detailed oversight mechanisms for this contract. However, standard government contracting practice dictates that a contract of this nature would include performance standards, delivery schedules, and quality assurance provisions. The Department of State's contracting officer and relevant program managers would be responsible for monitoring contractor performance against these terms. The fixed-price nature implies that the contractor is responsible for delivering the specified services within the agreed-upon price. Any deviations or failures would be addressed according to the contract's terms and conditions, potentially including remedies for non-performance.

What is the historical spending pattern for emergency aero medical and aviation services by the Department of State?

The provided data snippet focuses on a single contract award and does not offer historical spending patterns. To analyze historical spending, one would need to query federal procurement databases (like USASpending.gov or FPDS) for previous contracts awarded by the Department of State for 'emergency aero medical and aviation' services or similar categories. This analysis would reveal trends in contract values, award types (competed vs. sole-source), and the number of contractors utilized over time. Understanding historical spending is crucial for identifying potential increases in costs, shifts in procurement strategies, or reliance on specific vendors.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation

Product/Service Code: MEDICAL SERVICES › SPECIALIZED TECHNICAL/ MEDICAL SUPPORT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: HANGAR 19-21, WILSON AIRPORT, NAIROBI

Business Categories: Category Business, Foreign Owned, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $9,084,502

Exercised Options: $9,084,502

Current Obligation: $9,084,502

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM25D0468

IDV Type: IDC

Timeline