GSA awards $37.8M for aircraft leasing, with BERRY AVIATION, INC. securing the contract

Contract Overview

Contract Amount: $37,816,356 ($37.8M)

Contractor: Berry Aviation, Inc.

Awarding Agency: General Services Administration

Start Date: 2010-09-28

End Date: 2014-09-27

Contract Duration: 1,460 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: OVERSEAS CONTRACT

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $37.8 million to BERRY AVIATION, INC. for work described as: OVERSEAS CONTRACT Key points: 1. The contract value of $37.8 million over four years suggests a significant need for aviation support services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. The duration of 1460 days (4 years) provides a stable period for service delivery. 5. The contract falls under the 'Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing' category, highlighting its specific service niche.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed service descriptions. The total award of $37.8 million over four years averages to approximately $9.45 million annually. This figure needs to be compared against the specific types of aircraft leased and the operational tempo required. Without more granular data on the services provided, it's difficult to definitively assess value for money or compare it to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of only one awardee, BERRY AVIATION, INC., does not necessarily indicate a lack of competition during the bidding phase, but rather that they were the selected offeror. The level of competition achieved is not explicitly detailed, but the process itself aims for price discovery through multiple bids.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service offerings.

Public Impact

This contract likely supports federal agencies requiring air transportation for personnel, equipment, or logistical operations. The services provided are essential for maintaining operational readiness and facilitating government functions that rely on air mobility. The geographic impact is primarily within Florida (ST/SN), suggesting a regional focus for the leased aircraft operations. The contract supports the aviation services sector, potentially impacting pilots, mechanics, and support staff within that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value for money.
The specific types of aircraft and their utilization rates are not detailed, hindering cost-benefit analysis.
Geographic concentration in Florida might limit broader applicability or indicate specific regional needs.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term duration (4 years) offers stability and predictability for service provision.

Sector Analysis

This contract falls within the broader transportation and logistics sector, specifically focusing on commercial air transportation equipment rental and leasing. The market for such services is driven by government and commercial demand for flexible and on-demand air mobility solutions. Comparable spending benchmarks would involve analyzing other government contracts for aircraft leasing and charter services across various agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, BERRY AVIATION, INC. The extent of such subcontracting is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA). Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Government Aircraft Leasing
Air Transportation Services
Federal Aviation Contracts
Commercial Air Charter

Risk Flags

Limited detail on performance metrics
Potential for uncompetitive pricing due to single awardee

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $37.8 million to BERRY AVIATION, INC.. OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is BERRY AVIATION, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $37.8 million.

What is the period of performance?

Start: 2010-09-28. End: 2014-09-27.

What is the historical spending pattern for similar aircraft leasing contracts by the GSA?

Analyzing historical spending patterns for similar aircraft leasing contracts by the GSA requires access to comprehensive contract databases. Generally, agencies like GSA procure aviation services to meet diverse needs, ranging from executive transport to logistical support. Spending can fluctuate based on agency priorities, operational tempo, and the availability of government-owned assets. Contracts for aircraft leasing are often awarded on a competitive basis, with pricing influenced by aircraft type, lease duration, operational hours, and geographic coverage. Over time, trends might show shifts towards more fuel-efficient aircraft, increased use of smaller, specialized aircraft for specific missions, or a greater reliance on commercial charter services due to cost-effectiveness compared to maintaining government fleets.

How does the pricing of BERRY AVIATION, INC. compare to market rates for similar aircraft leasing services?

A precise comparison of BERRY AVIATION, INC.'s pricing to market rates for similar aircraft leasing services is difficult without specific details on the aircraft models, lease terms, and operational requirements of this contract. Market rates are influenced by factors such as aircraft type (e.g., size, range, age), lease duration, number of flight hours included, maintenance responsibilities, and geographic location. Generally, firm-fixed-price contracts aim to establish a clear price, but the 'value for money' is determined by how this price aligns with the services rendered and the prevailing market conditions. To conduct a thorough comparison, one would need to benchmark against publicly available charter rates, industry reports on aircraft leasing costs, and potentially other government contracts for comparable services.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) for this contract. However, for aircraft leasing contracts, typical KPIs often include on-time performance (e.g., aircraft availability as scheduled), mission completion rates, safety compliance (e.g., adherence to aviation regulations and standards), fuel efficiency, and adherence to budget. For a firm-fixed-price contract, the primary measure of success is the contractor's ability to provide the agreed-upon services within the stipulated price and timeframe. Client satisfaction surveys or feedback from the end-users of the leased aircraft would also serve as qualitative performance indicators.

What is the track record of BERRY AVIATION, INC. in fulfilling federal contracts, particularly for aviation services?

Assessing the track record of BERRY AVIATION, INC. in fulfilling federal contracts requires reviewing their past performance history, including any awards, past performance evaluations, and any instances of contract disputes or terminations. Companies that consistently win and successfully execute federal contracts typically demonstrate reliability, adherence to contractual obligations, and quality service delivery. Information on their past performance can often be found in federal procurement databases or through specific past performance questionnaires submitted by government agencies. A positive track record suggests a lower risk for future contracts, while a history of issues might raise concerns about performance and reliability.

What is the potential risk associated with a sole awardee in a 'full and open competition' scenario?

While this contract was awarded under 'full and open competition,' having only one awardee can sometimes raise questions. It might indicate that only one bidder met all the stringent requirements, or it could suggest that the competition, while open, did not yield multiple competitive offers. The risk here is that the government might not have achieved the best possible price or terms due to limited competitive pressure. However, if the procurement process was robust and the single offeror provided a fair and reasonable price based on market analysis, the risk might be minimal. It's crucial to examine the solicitation details and the source selection evaluation to understand why only one award was made.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 4QDS97100038

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1807 AIRPORT DR, SAN MARCOS, TX, 78666

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,976,759

Exercised Options: $38,666,279

Current Obligation: $37,816,356

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline