CBP Air Charter Flight Hours contract awarded to Zephyr Aviation for $2.1M, covering 120 days

Contract Overview

Contract Amount: $21,095,500 ($21.1M)

Contractor: Zephyr Aviation, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-20

End Date: 2023-04-19

Contract Duration: 120 days

Daily Burn Rate: $175.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CBP AIR CHARTER FLIGHT HOURS 3-MONTH PROGRAM

Place of Performance

Location: MINERAL, LOUISA County, VIRGINIA, 23117

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.1 million to ZEPHYR AVIATION, LLC for work described as: CBP AIR CHARTER FLIGHT HOURS 3-MONTH PROGRAM Key points: 1. Value for money assessed based on duration and scope of services. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include contract duration and fixed-price nature. 4. Performance context is within air charter services for border protection. 5. Sector positioning is within government support services.

Value Assessment

Rating: fair

The contract value of $2.1 million for 120 days of air charter flight hours appears to be within a reasonable range for specialized government aviation services. Benchmarking against similar contracts for flight hours is difficult without specific details on aircraft type, mission profile, and operational tempo. However, the fixed-price nature suggests an attempt to control costs, though potential for over or under-utilization exists.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five bids received. This indicates a healthy level of market interest and suggests that the government likely received competitive pricing. The presence of multiple bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive bidding process for air charter services helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging providers to offer their best value.

Public Impact

U.S. Customs and Border Protection benefits from increased operational flexibility and reach. Services delivered include essential air charter flight hours for border surveillance and interdiction. Geographic impact is likely focused on border regions requiring aerial support. Workforce implications may involve pilots, support staff, and mission personnel for CBP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for underutilization of flight hours if operational needs are lower than anticipated.
Risk of cost overruns if unforeseen operational challenges arise, despite fixed-price contract.
Dependence on a single contractor for critical flight operations.

Positive Signals

Awarded through full and open competition, suggesting fair market pricing.
Fixed-price contract provides cost certainty for the government.
Clear contract duration limits exposure and allows for re-evaluation.

Sector Analysis

The air charter services sector for government agencies is a niche but critical market. This contract fits within the broader category of professional services and logistics support for federal agencies. Comparable spending benchmarks are highly variable based on specific mission requirements, aircraft types, and operational durations. The market includes specialized aviation providers capable of meeting stringent government security and operational standards.

Small Business Impact

This contract does not appear to have a small business set-aside. Analysis of subcontracting opportunities for small businesses would require further investigation into Zephyr Aviation's subcontracting plan, if applicable. The direct award to a single entity may limit immediate opportunities for small businesses within the direct performance of this specific contract.

Oversight & Accountability

Oversight is likely managed by the U.S. Customs and Border Protection contracting officer's representative (COR) who monitors performance against contract requirements. Accountability is ensured through the firm fixed-price structure and delivery order terms. Transparency is facilitated by the contract award data being publicly available.

Related Government Programs

CBP Air Operations
Department of Homeland Security Aviation Contracts
Federal Aviation Services
Border Security Support Services

Risk Flags

Potential for underutilization
Dependence on single provider
Fixed-price contract risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.1 million to ZEPHYR AVIATION, LLC. CBP AIR CHARTER FLIGHT HOURS 3-MONTH PROGRAM

Who is the contractor on this award?

The obligated recipient is ZEPHYR AVIATION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2022-12-20. End: 2023-04-19.

What is the typical utilization rate for air charter flight hours in similar CBP operations?

Determining a typical utilization rate for air charter flight hours in similar CBP operations is challenging without access to internal CBP operational data and specific mission requirements. Factors influencing utilization include the intensity of border surveillance, the need for rapid response, and the availability of alternative transportation methods. Contracts often specify minimum guaranteed hours or performance metrics that dictate utilization. For a 120-day contract valued at $2.1 million, the implied hourly rate is substantial, suggesting high-value or specialized missions. Without comparative data on mission tempo and aircraft type, assessing whether the utilization will be optimal or suboptimal remains speculative. CBP likely has internal metrics to gauge the effectiveness of these flight hours against their operational objectives.

How does the awarded price compare to market rates for similar air charter services?

Comparing the awarded price of $2.1 million for 120 days of air charter flight hours to market rates requires detailed knowledge of the specific aircraft, crew, maintenance, insurance, and operational support included. Zephyr Aviation's price, derived from a competitive bidding process with five bidders, suggests it is likely aligned with market expectations for such services. However, without knowing the exact specifications (e.g., type of aircraft, range, payload, sensor equipment), a precise benchmark is impossible. Government contracts often include additional security and compliance overhead that can influence pricing. The fixed-price nature aims to provide cost certainty, but the underlying value proposition depends heavily on the service specifics and the competitive landscape at the time of bidding.

What are the primary risks associated with this contract for CBP?

The primary risks associated with this contract for CBP include potential underutilization of the contracted flight hours if operational needs decrease or if alternative methods prove more effective, leading to wasted expenditure. Conversely, unforeseen operational demands or logistical challenges could strain the fixed-price agreement, although the contractor bears the primary risk of cost overruns. Dependence on a single provider for critical aviation support introduces supply chain risk; any disruption to Zephyr Aviation's operations could impact CBP's mission readiness. Furthermore, ensuring consistent adherence to stringent security protocols and operational standards throughout the contract duration requires diligent oversight.

What is the track record of Zephyr Aviation in performing similar government contracts?

Assessing Zephyr Aviation's track record requires reviewing their past performance on government contracts, particularly those involving air charter services for federal agencies. Publicly available data, such as contract databases and performance evaluations (if disclosed), would provide insights into their reliability, quality of service, and adherence to contractual obligations. A history of successful contract completions, positive past performance reviews, and minimal disputes would indicate a lower risk profile. Conversely, any history of performance issues, contract disputes, or significant delays would raise concerns about their capability to meet CBP's requirements effectively and on time.

How has CBP's spending on air charter services evolved over the past five years?

Analyzing CBP's spending on air charter services over the past five years would reveal trends in demand, operational focus, and contractor utilization. This specific contract for $2.1 million represents a portion of that overall spending. Examining historical data could show whether spending has increased, decreased, or remained stable, potentially correlating with changes in border security strategies, funding allocations, or the deployment of aerial assets. Understanding this historical context is crucial for evaluating whether the current contract represents a typical investment or a significant deviation, and for forecasting future needs and budget requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B03C23Q00000021

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Zephyr Aviation LLC

Address: 318 LOIS LN, MINERAL, VA, 23117

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,095,500

Exercised Options: $21,095,500

Current Obligation: $21,095,500

Actual Outlays: $21,095,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS33F0011V

IDV Type: FSS

Timeline