DoD's $26M contract for air transport support awarded to SEAIR TRANSPORT SERVICES, INC. shows fair value

Contract Overview

Contract Amount: $25,975,690 ($26.0M)

Contractor: Seair Transport Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-11-29

End Date: 2011-01-31

Contract Duration: 3,350 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85365

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to SEAIR TRANSPORT SERVICES, INC. for work described as: Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The duration of the contract (3350 days) indicates a long-term need for these services. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially benefiting the government. 4. The award was made by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 488190 points to specialized air transportation support services.

Value Assessment

Rating: good

The contract's value of approximately $26 million over its duration suggests a reasonable annual expenditure for specialized air transport support. Benchmarking against similar long-term contracts for aviation services would provide a more precise value assessment. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that multiple bidders were likely considered. While the specific number of bids is not detailed, this procurement method generally fosters price discovery and encourages competitive offers. The exclusion of sources might suggest specific technical requirements or past performance considerations that narrowed the field.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging the best value proposals.

Public Impact

The primary beneficiaries are likely military personnel and operations requiring specialized air transportation support. Services delivered include essential support activities for air transportation, crucial for logistical and operational readiness. The contract's performance location in Arizona (AZ) suggests a regional impact on local economies and workforce. The contract supports the Department of the Army's aviation and logistical capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration if not managed proactively.
Reliance on a single contractor for critical air transport support could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

Firm-fixed-price contract type minimizes cost uncertainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Long contract duration provides stability and predictability for essential services.

Sector Analysis

The air transportation support sector is critical for national defense and logistics, encompassing a wide range of services from aircraft maintenance to specialized flight operations. This contract falls under the broader aerospace and defense industry, which is characterized by high technological requirements and significant government spending. Comparable spending benchmarks would involve analyzing other DoD contracts for similar aviation support services, considering factors like fleet size, operational tempo, and geographic scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless SEAIR TRANSPORT SERVICES, INC. actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to meet defined performance standards. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities may not be publicly detailed.

Related Government Programs

Department of Defense Aviation Support Contracts
Military Logistics and Transportation Services
Airfield Operations and Support
Fixed-Wing Aircraft Support Services

Risk Flags

Long contract duration may require proactive management to prevent cost creep or obsolescence.
Exclusion of sources, while potentially justified, warrants scrutiny to ensure fair competition principles were upheld.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to SEAIR TRANSPORT SERVICES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SEAIR TRANSPORT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2001-11-29. End: 2011-01-31.

What is the historical spending pattern of the Department of the Army on air transportation support services, and how does this contract compare?

Analyzing the historical spending of the Department of the Army on air transportation support services requires access to detailed budget and contract databases. Generally, the DoD allocates significant resources to aviation and logistics to maintain operational readiness. This $26 million contract, awarded in 2001 and spanning over 9 years, represents a substantial but likely typical investment for specialized support over an extended period. Without specific historical data points for comparable services, it's challenging to definitively state if this contract's value is higher or lower than average. However, the duration and scope suggest it was a significant procurement aimed at ensuring consistent support for critical operations.

What specific types of 'Other Support Activities for Air Transportation' are typically included in contracts like this?

Contracts under NAICS code 488190, 'Other Support Activities for Air Transportation,' can encompass a wide array of services beyond basic flight operations. For a military context like this DoD contract, it could include services such as aircraft maintenance and repair, ground support equipment operation and maintenance, air traffic control support, aerial port operations (loading/unloading cargo and passengers), flight planning and scheduling, weather services, and potentially specialized training for aircrews or ground personnel. The 'exclusion of sources' in the competition might indicate that specific technical expertise or certifications related to these specialized support activities were required, limiting the pool of eligible bidders.

How does the firm-fixed-price (FFP) contract type influence risk and cost for the government in this air transport support contract?

The firm-fixed-price (FFP) contract type is generally advantageous for the government as it shifts the majority of the financial risk to the contractor. Under an FFP agreement, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs. This means that if SEAIR TRANSPORT SERVICES, INC. incurs higher-than-expected expenses during the contract's 3350-day duration, their profit margin will decrease, but the government's payment obligation remains fixed. Conversely, if the contractor manages costs efficiently and completes the work for less than anticipated, their profit increases. This structure incentivizes the contractor to control costs and perform efficiently, providing cost certainty for the government.

What are the potential implications of a long contract duration (3350 days) for government oversight and contractor performance?

A long contract duration, such as 3350 days (over 9 years), presents both opportunities and challenges for government oversight and contractor performance. On the positive side, it provides stability and continuity of essential services, reducing the administrative burden and cost associated with frequent re-competitions. It also allows the contractor to invest in specialized equipment and personnel, potentially leading to improved efficiency and expertise. However, long durations can also lead to complacency, potential cost creep if not managed tightly, and difficulty in adapting to evolving technological requirements or changing mission needs. Robust oversight mechanisms, including regular performance reviews, audits, and clear communication channels, are crucial to ensure the contractor remains accountable and delivers value throughout the contract's life.

Given the 'exclusion of sources' in the competition, what specific factors might have led to this, and what does it mean for competition?

The phrase 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the procurement was intended to be open, certain potential bidders were excluded based on specific criteria. This exclusion is typically justified by factors such as unique technical capabilities, proprietary technology, past performance issues with certain vendors, or specific security requirements that only a limited number of firms can meet. While it implies a less broad competition than a truly unrestricted open competition, it still aims to ensure that the remaining eligible sources compete vigorously. The exclusion means the government believed these specific criteria were necessary to achieve the best overall value, balancing competition with essential performance or technical needs.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1415 18TH STREET SUITE 506, BAKERSFIELD, CA, 90

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline