DoD's $16.3M fixed-wing air transport contract with Berry Aviation Inc. saw limited competition

Contract Overview

Contract Amount: $16,353,585 ($16.4M)

Contractor: Berry Aviation, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2015-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIXED WING AIR TRANSPORTATION - DEDICATED AIRCRAFT SERVICES NAVAL AIR STATION (NAS) NORTH ISLAND CA AND NAVAL AUXILIARY LANDING FIELD (NALF) SAN CLEMENTE ISLAND CA

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to BERRY AVIATION, INC. for work described as: FIXED WING AIR TRANSPORTATION - DEDICATED AIRCRAFT SERVICES NAVAL AIR STATION (NAS) NORTH ISLAND CA AND NAVAL AUXILIARY LANDING FIELD (NALF) SAN CLEMENTE ISLAND CA Key points: 1. The contract provided dedicated aircraft services for fixed-wing air transport, supporting Naval operations. 2. Berry Aviation, Inc. was awarded this contract, which spanned nearly five years. 3. The contract utilized a Firm Fixed Price (FFP) pricing structure, offering cost certainty. 4. Competition was limited, raising questions about potential price discovery and value for money. 5. The contract's duration of 1825 days suggests a need for sustained, reliable air transport. 6. The primary service involved nonscheduled chartered passenger air transportation. 7. This contract falls under the broader category of fixed-wing air transportation services.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without detailed cost breakdowns and comparable service rates from the 2010-2015 period. The $16.3 million total award amount over five years averages to approximately $3.27 million annually. Given the nature of dedicated aircraft services for military installations, this figure may be within a reasonable range, but the limited competition suggests potential for higher-than-market pricing. Further analysis would require access to detailed performance metrics and cost-per-flight-hour data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a competitive process was intended, certain sources were excluded. This suggests that the pool of potential bidders was restricted, potentially limiting the overall competition. With only 5 bids received, the level of competition was moderate, but the exclusion of sources raises concerns about whether the most competitive offers were fully considered. This limited competition could impact price negotiation and overall value.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as the government may not receive the full benefit of a broader, more aggressive bidding environment. This could translate to less efficient use of taxpayer funds.

Public Impact

Naval Air Station North Island and Naval Auxiliary Landing Field San Clemente Island benefit from reliable air transport. Military personnel and potentially critical cargo are transported via dedicated aircraft services. The services directly support the operational readiness and logistical needs of the U.S. Navy. The geographic impact is concentrated in Southern California, serving key naval installations. The contract supports jobs within the aviation sector, including pilots, maintenance crews, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in suboptimal pricing for taxpayers.
The exclusion of sources in the competition process warrants further investigation.
Lack of detailed performance metrics makes a comprehensive value assessment difficult.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
The contract duration indicates a stable, long-term need for these services.
Berry Aviation, Inc. was selected to provide essential air transport services.

Sector Analysis

The fixed-wing air transportation sector is critical for military logistics and personnel movement. This contract falls within the broader aerospace and defense services industry. The market for dedicated charter services can be specialized, with a limited number of providers capable of meeting stringent military requirements for safety, reliability, and operational tempo. Comparable spending benchmarks are difficult to establish without specific operational details, but government contracts for dedicated aviation support often represent significant investments due to the high operational costs and regulatory compliance involved.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The primary award went to Berry Aviation, Inc., a company that may or may not be classified as a small business itself. Without specific data on subcontracting plans or performance, the direct impact on the small business ecosystem is unclear, but it appears to be a large prime contract likely awarded to an established player in the aviation services market.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Transportation Command (USTRANSCOM) and the Department of Defense. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to successful service delivery. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Airlift Services
Aircraft Charter and Rental Services
Logistics and Transportation Services
Fixed-Wing Aircraft Operations
Government Aviation Contracts

Risk Flags

Limited competition may impact value for money.
Exclusion of sources requires justification and transparency.
Performance metrics not readily available for full assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to BERRY AVIATION, INC.. FIXED WING AIR TRANSPORTATION - DEDICATED AIRCRAFT SERVICES NAVAL AIR STATION (NAS) NORTH ISLAND CA AND NAVAL AUXILIARY LANDING FIELD (NALF) SAN CLEMENTE ISLAND CA

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 $16.4 million.

What is the period of performance?

Start: 2010-10-01. End: 2015-09-30.

What was Berry Aviation, Inc.'s track record with the government prior to this contract?

Prior to this specific $16.3 million contract awarded in October 2010, Berry Aviation, Inc. had a history of receiving government contracts, primarily from the Department of Defense. Data from the Federal Procurement Data System (FPDS) indicates that the company had been awarded numerous contracts for aviation services, including airlift and charter operations, dating back several years. These prior awards suggest established experience in meeting government requirements for flight operations, maintenance, and compliance. However, a detailed analysis of their performance on those earlier contracts, including any past performance issues or commendations, would require a deeper dive into specific contract records and performance evaluations beyond the scope of this summary.

How does the average annual cost of this contract compare to similar dedicated air transport services for military bases?

The average annual cost for this contract was approximately $3.27 million ($16.3M / 5 years). Benchmarking this against similar dedicated air transport services for military bases is challenging due to the variability in mission requirements, aircraft types, flight hours, and geographic locations. However, dedicated military airlift contracts can range significantly. Contracts for smaller aircraft or shorter durations might cost less, while those involving larger aircraft, longer ranges, or more complex logistical support could easily exceed this figure. Without specific details on the aircraft utilized, the number of flight hours, and the specific routes flown under this contract, a precise comparison is difficult. Generally, dedicated services are more expensive than on-demand charters due to guaranteed availability and operational readiness.

What were the primary risks associated with this contract, and how were they mitigated?

Primary risks associated with this contract likely included operational disruptions (e.g., weather, mechanical issues), potential cost overruns if not managed tightly under the FFP structure, and ensuring consistent service quality and safety compliance. Mitigation strategies would typically involve robust maintenance schedules, contingency planning for flight disruptions, strict adherence to safety protocols, and performance monitoring by the contracting agency (USTRANSCOM). The FFP pricing structure itself acts as a risk mitigation tool for the government by capping costs. However, the limited competition could introduce a risk of inflated pricing if the contractor faced less pressure to optimize costs.

How effective was this contract in meeting the air transportation needs of NAS North Island and NALF San Clemente Island?

The effectiveness of this contract in meeting the air transportation needs is inferred from its five-year duration and the renewal or continuation of such services. The contract provided dedicated fixed-wing air transport, suggesting a consistent and reliable demand for these services to support naval operations, personnel movement, and potentially cargo. The fact that the Department of Defense entered into a multi-year agreement indicates a perceived need and likely satisfaction with the service provided by Berry Aviation, Inc. However, a definitive assessment of 'effectiveness' would require specific performance metrics, such as on-time performance rates, mission completion success, and user feedback from the supported naval commands.

What are the historical spending patterns for fixed-wing air transportation services by the Department of Defense?

Historical spending patterns for fixed-wing air transportation by the Department of Defense (DoD) are substantial and multifaceted, encompassing a wide range of services from large-scale strategic airlift (like C-17 operations) to smaller, dedicated charter services for specific missions and locations. The DoD consistently allocates significant portions of its budget to aviation logistics, including troop transport, cargo delivery, and specialized support missions. Spending fluctuates based on global operational tempo, force structure changes, and technological advancements. Contracts like the one awarded to Berry Aviation represent a segment of this broader spending, focusing on dedicated, often nonscheduled, passenger and light cargo transport for specific installations or operational needs. Overall, DoD aviation spending is a major component of its overall budget, reflecting the critical role of air power and logistics.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' signifies a specific procurement approach. It implies that the initial solicitation was intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, 'after exclusion of sources' indicates that during the solicitation or evaluation process, certain potential offerors were excluded from consideration. The reasons for exclusion must be justified and documented, often related to capability, security, or other specific requirements. This approach differs from a standard sole-source award or a truly unrestricted full and open competition. It suggests an attempt to broaden the bidder pool initially but ultimately narrowed it down based on specific criteria, which can impact the level of competition achieved and potentially the final price.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation

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

Solicitation ID: HTC71110RR009

Offers Received: 5

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,850,310

Exercised Options: $16,353,585

Current Obligation: $16,353,585

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline