DHS spent $12.5M on emergency charter flights for deportees, raising value-for-money questions

Contract Overview

Contract Amount: $12,491,276 ($12.5M)

Contractor: Capital Aviation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-03-14

End Date: 2012-09-19

Contract Duration: 1,650 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Sector: Other

Official Description: EMERGENCY CHARTER TO RETURN DEPORTEES

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77024

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.5 million to CAPITAL AVIATION, INC. for work described as: EMERGENCY CHARTER TO RETURN DEPORTEES Key points: 1. The contract awarded to Capital Aviation, Inc. for emergency charter services appears to be a significant expenditure for transporting deportees. 2. The duration of the contract (over 4 years) suggests ongoing operational needs for these services. 3. The specific nature of 'emergency charter' may imply a premium cost compared to scheduled or less urgent transportation. 4. The contract's value of $12.5 million warrants scrutiny regarding cost-effectiveness and potential for alternative, more economical solutions. 5. The 'All Other Miscellaneous Store Retailers' NAICS code seems incongruous with aviation charter services, suggesting a potential misclassification or broad categorization. 6. The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific, though not entirely unrestricted, competitive process.

Value Assessment

Rating: questionable

The $12.5 million expenditure for emergency charter flights over approximately four years represents a substantial investment. Benchmarking the per-flight cost against commercial airfare or other charter services would be crucial to assess value. Given the emergency nature, costs might be higher, but the scale of spending necessitates a thorough review to ensure it aligns with market rates and operational necessity. Without detailed breakdowns of flights, passenger numbers, and destinations, a precise value-for-money assessment is challenging.

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 indicates that while the competition was open, there were specific reasons for excluding certain sources, which could potentially limit the breadth of competition. The number of bidders is not specified, making it difficult to fully assess the competitive landscape and its impact on price discovery. The exclusion of sources warrants further investigation into the rationale behind it.

Taxpayer Impact: The competitive process, while open, had exclusions, which could mean taxpayers did not benefit from the widest possible range of offers, potentially impacting the final price paid.

Public Impact

Immigrants being deported are directly impacted by the transportation services provided under this contract. U.S. Immigration and Customs Enforcement (ICE) is the primary beneficiary, utilizing these services to fulfill its mandate. The services are geographically focused on the transportation of individuals, likely originating from or destined for various locations within the U.S. and potentially abroad. The contract supports the operational workforce of ICE and potentially the aviation services sector through Capital Aviation, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated costs due to the 'emergency' nature of the charter flights.
The NAICS code 'All Other Miscellaneous Store Retailers' is highly unusual for an aviation charter service, raising concerns about data accuracy or categorization.
Lack of transparency regarding the specific number of flights, passengers, and cost per flight makes value assessment difficult.
The 'exclusion of sources' in the competition process could limit competitive pressure and potentially increase costs.

Positive Signals

The contract was awarded through a competitive process, suggesting some level of market vetting.
Capital Aviation, Inc. was selected, implying they met the necessary qualifications for providing these services.
The contract duration indicates a sustained need and a potentially stable provider for ICE's operations.

Sector Analysis

The aviation charter services sector is diverse, ranging from general aviation to specialized emergency and government contracts. Government contracts for transportation, particularly for law enforcement and immigration services, often involve unique requirements and can command premium pricing due to urgency and security needs. Benchmarking this contract against similar government charters for deportation or repatriation would provide better context on its cost-effectiveness. The total federal spending on aviation services is substantial, and this contract represents a niche within that broader category.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided in the data. The contract value suggests it is unlikely to be exclusively a small business set-aside. Further analysis would be needed to determine if any subcontracting opportunities were directed towards small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal review processes and potentially the U.S. Immigration and Customs Enforcement (ICE) oversight mechanisms. The Inspector General for DHS would have jurisdiction to investigate potential waste, fraud, or abuse. Transparency is limited by the available data, particularly concerning the detailed justification for 'emergency' status and the specifics of the competitive exclusion.

Related Government Programs

Department of Homeland Security Contracts
Immigration and Customs Enforcement Operations
Federal Aviation Services
Deportation and Repatriation Services
Emergency Charter Services

Risk Flags

Potential for inflated costs due to 'emergency' designation.
Unusual NAICS code assignment raises data accuracy concerns.
Limited transparency on competition details (number of bidders, specific exclusions).
Lack of detailed performance metrics (flights, passengers) hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.5 million to CAPITAL AVIATION, INC.. EMERGENCY CHARTER TO RETURN DEPORTEES

Who is the contractor on this award?

The obligated recipient is CAPITAL AVIATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2008-03-14. End: 2012-09-19.

What was the specific justification for excluding certain sources during the 'Full and Open Competition After Exclusion of Sources' process?

The justification for excluding sources in a 'Full and Open Competition After Exclusion of Sources' award typically relates to specific technical requirements, security clearances, or unique capabilities that only a limited number of vendors possess. For emergency charter flights, this could involve aircraft type, range, availability on short notice, or specific security protocols required for transporting detainees. Without the specific contract details or agency documentation, the exact reasons remain unknown. However, such exclusions can sometimes limit competition, potentially leading to higher prices than if a broader range of vendors were considered.

How does the per-flight cost of these emergency charters compare to standard commercial airfare or other charter services for similar routes?

A direct comparison of per-flight costs is challenging without detailed data on the number of flights, passenger loads, specific routes, and the duration of each flight under this $12.5 million contract. Emergency charter services inherently command a premium due to the immediate availability requirement, specialized handling, and often less predictable scheduling compared to commercial flights. To assess value, one would need to aggregate the total cost, divide by the number of flights or passengers, and then benchmark this against market rates for comparable charter services, factoring in the 'emergency' premium. If the per-unit cost significantly exceeds typical charter rates for non-emergency situations, it would indicate a potential area for cost-saving.

What is the rationale behind the NAICS code 'All Other Miscellaneous Store Retailers' being assigned to an aviation charter contract?

The assignment of the NAICS code 'All Other Miscellaneous Store Retailers' (713990, though the provided code is 'ND') to Capital Aviation, Inc. for charter services is highly unusual and likely indicates a data entry error, a broad categorization by the government, or a misinterpretation of the company's primary business activity. Aviation charter services typically fall under codes related to Air Transportation (e.g., 481219 - Other Nonscheduled Air Transportation). This discrepancy raises concerns about the accuracy of the contract data and could complicate efforts to find comparable contracts or analyze spending within the correct industry sector. It suggests a need for data validation.

What was the total number of flights and passengers transported under this contract, and how did this align with the initial projections?

The provided data does not specify the total number of flights or passengers transported under this contract, nor does it offer initial projections. This information is critical for a comprehensive performance and value assessment. Knowing the volume of services delivered allows for a more accurate calculation of cost per flight or cost per passenger, which is essential for benchmarking against industry standards or alternative service providers. Without this data, it's difficult to determine if the $12.5 million expenditure was justified by the actual operational demand and service delivery.

What is the track record of Capital Aviation, Inc. in handling government contracts, particularly those involving sensitive operations like deportation?

The provided data indicates Capital Aviation, Inc. was awarded this contract, suggesting they met the basic qualifications required by ICE. However, it does not detail their broader track record with government contracts, including past performance, any disputes, or specific experience with deportation or repatriation charters. A thorough assessment would involve reviewing their contract history across federal agencies, looking for performance evaluations, and understanding their capacity and reliability in managing high-stakes, time-sensitive operations. Their ability to consistently meet contractual obligations, safety standards, and security requirements is paramount for such services.

Are there any planned or existing alternative methods for deportee transportation that could be more cost-effective than emergency charters?

The feasibility of alternative, more cost-effective methods for deportee transportation depends heavily on the specific circumstances and operational requirements. While emergency charters offer speed and flexibility, they are often the most expensive option. ICE might utilize scheduled commercial flights for less urgent cases, government-owned aircraft, or potentially coordinate with other agencies or international partners for repatriation. The decision to use emergency charters likely stems from situations where standard options are insufficient due to time constraints, security concerns, or logistical complexities. A review of ICE's overall transportation strategy would reveal if a balanced approach exists or if reliance on costly emergency charters is a consistent pattern.

Industry Classification

NAICS: Retail Trade › Other Miscellaneous Store Retailers › All Other Miscellaneous Store Retailers (except Tobacco Stores)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

Contractor Details

Address: 44081 PIPELINE PLAZA, ASHBURN, VA, 20147

Business Categories: Category Business, Small Business

Parent Contract

Parent Award PIID: HSCEOP07A00040

IDV Type: BPA

Timeline