DoD's $10.3M Contract for Air Transport Services Awarded to Berry Aviation, Inc

Contract Overview

Contract Amount: $10,352,716 ($10.4M)

Contractor: Berry Aviation, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-11-23

End Date: 2010-09-30

Contract Duration: 1,772 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92132

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to BERRY AVIATION, INC. for work described as: Key points: 1. The contract value is $10.3 million over its duration. 2. Competition was full and open after exclusion of sources. 3. The contract duration is 1772 days. 4. The award was made by USTRANSCOM. 5. The NAICS code is 481211 for Nonscheduled Chartered Passenger Air Transportation.

Value Assessment

Rating: fair

The contract's total value is $10.3 million. Without specific per-unit cost data or benchmarks for similar air charter services, it is difficult to definitively assess pricing effectiveness. The firm fixed price structure suggests an attempt to control costs.

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.' This suggests that while competition was sought, certain sources were initially excluded, potentially impacting the breadth of price discovery.

Taxpayer Impact: The firm fixed price contract aims to provide cost certainty for taxpayers, but the effectiveness of the competition method in securing the best possible price is not fully clear.

Public Impact

Provides essential air transportation services for the Department of Defense. Supports military personnel movement and logistical operations. Ensures readiness and operational capability through reliable transport.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

  • Potential for limited price discovery due to source exclusion.
  • Long contract duration may not reflect current market rates.

Positive Signals

  • Firm fixed price contract provides cost predictability.
  • Full and open competition, even with exclusions, aims for a competitive outcome.

Sector Analysis

This contract falls under the Transportation sector, specifically air charter services. Spending benchmarks for such services can vary significantly based on aircraft type, route, and demand. The $10.3 million over nearly five years indicates a substantial, ongoing need for specialized air transport.

Small Business Impact

The data indicates that the awardee, BERRY AVIATION, INC., is not listed as a small business (sb: false). Therefore, this contract does not appear to directly benefit small businesses through prime award.

Oversight & Accountability

The contract was awarded by USTRANSCOM, a component of the Department of Defense, suggesting oversight from a major federal agency. Further review would be needed to assess specific oversight mechanisms and accountability measures for this particular contract.

Related Government Programs

  • Nonscheduled Chartered Passenger Air Transportation
  • Department of Defense Contracting
  • USTRANSCOM Programs

Risk Flags

  • Potential for limited competition due to source exclusion.
  • Long contract duration may lead to price misalignment with market conditions.
  • Lack of detailed cost breakdown makes value assessment difficult.
  • Awardee is not a small business, missing small business utilization opportunity.

Tags

nonscheduled-chartered-passenger-air-tra, department-of-defense, ca, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to BERRY AVIATION, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is BERRY AVIATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2005-11-23. End: 2010-09-30.

What was the rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion impact the final price?

The rationale for excluding sources typically relates to specific technical requirements, past performance, or security clearances that only a subset of potential offerors can meet. While intended to ensure suitability, such exclusions can sometimes limit the competitive landscape, potentially leading to higher prices than if a broader pool of bidders were considered. A detailed review of the solicitation and award documents would be necessary to confirm the specific reasons and price impact.

How does the firm fixed price of this contract compare to market rates for similar nonscheduled chartered passenger air transportation services over the contract's duration?

Assessing the firm fixed price against market rates requires detailed analysis of current air charter market data, considering factors like aircraft size, range, passenger capacity, and specific route demands. Without access to this granular market data and a breakdown of the contract's unit pricing, a direct comparison is challenging. However, the contract's duration of nearly five years suggests that the fixed price might not fully capture fluctuations in fuel costs or market demand over time.

What mechanisms are in place to ensure the effectiveness and efficiency of the air transportation services provided by Berry Aviation, Inc. under this contract?

Effectiveness and efficiency are typically ensured through performance standards outlined in the contract, regular performance reviews by the contracting officer's representative (COR), and reporting requirements. The Department of Defense likely has established procedures for monitoring flight schedules, passenger satisfaction, safety compliance, and adherence to logistical requirements. Penalties for non-performance or incentives for exceptional performance may also be included to drive desired outcomes.

Industry Classification

NAICS: Transportation and WarehousingNonscheduled Air TransportationNonscheduled Chartered Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1807 AIRPORT DR, SAN MARCOS, TX, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2005-11-23

Current End Date: 2010-09-30

Potential End Date: 2010-09-30 00:00:00

Last Modified: 2011-02-28

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