DoD awards $35.3M for air transport to Niger, Erickson Helicopters wins via full and open competition
Contract Overview
Contract Amount: $35,270,061 ($35.3M)
Contractor: Erickson Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-07-13
End Date: 2020-06-15
Contract Duration: 703 days
Daily Burn Rate: $50.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IGF::OT::IGF TRANSPORTATION SERVICES IN SUPPORT OF ARLIT,NIGER
Plain-Language Summary
Department of Defense obligated $35.3 million to ERICKSON HELICOPTERS, INC. for work described as: IGF::OT::IGF TRANSPORTATION SERVICES IN SUPPORT OF ARLIT,NIGER Key points: 1. Significant contract value of $35.3M for specialized air transportation. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to operational complexity and geopolitical factors in Niger. 4. Sector is transportation, specifically nonscheduled chartered passenger air. 5. Contract type is Firm Fixed Price, providing cost certainty.
Value Assessment
Rating: good
The contract value of $35.3M for nonscheduled chartered passenger air transportation appears reasonable given the duration and specialized nature of the service. Benchmarking against similar complex international logistics contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are utilized efficiently through a competitive bidding process for essential transportation services.
Public Impact
Ensures critical logistical support for U.S. operations in Niger. Supports military readiness and personnel movement in a challenging environment. Provides employment opportunities within the aviation and logistics sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical instability in Niger could impact service delivery.
- Reliance on a single award for a critical service.
- Potential for cost overruns if unforeseen operational challenges arise.
Positive Signals
- Firm Fixed Price contract limits cost uncertainty.
- Full and open competition suggests competitive pricing.
- Supports U.S. strategic interests in the region.
Sector Analysis
This contract falls within the transportation sector, specifically air charter services. Spending in this area is often driven by operational needs, particularly in remote or high-risk environments, and can be subject to fluctuations based on global events.
Small Business Impact
The data does not indicate if small businesses were involved in this specific contract award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded as a delivery order under a larger contract vehicle, suggesting some level of pre-qualification. Oversight would focus on performance, adherence to flight schedules, and safety regulations.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Geopolitical instability in the region.
- Operational complexity of nonscheduled flights.
- Potential for security risks to personnel and assets.
- Dependence on specialized aircraft and maintenance.
- Logistical challenges in a remote environment.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.3 million to ERICKSON HELICOPTERS, INC.. IGF::OT::IGF TRANSPORTATION SERVICES IN SUPPORT OF ARLIT,NIGER
Who is the contractor on this award?
The obligated recipient is ERICKSON HELICOPTERS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $35.3 million.
What is the period of performance?
Start: 2018-07-13. End: 2020-06-15.
What was the competitive landscape like for this specific air transportation service in Niger?
The contract was awarded under 'full and open competition,' suggesting that multiple qualified vendors were solicited and allowed to bid. This implies a competitive process aimed at securing the best value for the government. However, the specific number of bids received and the range of pricing offered are not detailed in this data, which would provide a clearer picture of the competitive intensity.
What are the primary risks associated with providing air transportation services in Niger?
Key risks include the volatile geopolitical situation in Niger, which could lead to operational disruptions, security threats, or changes in airspace access. Additionally, the remote and potentially austere operating environment poses logistical challenges, maintenance difficulties, and potential for increased operational costs. Weather conditions and the need for specialized aircraft also contribute to risk.
How effectively does this contract support the overall mission objectives in the region?
This contract is crucial for enabling logistical support and personnel movement, directly impacting the effectiveness of U.S. operations in Niger. By ensuring reliable air transportation, it facilitates mission continuity, rapid response capabilities, and the sustainment of forces. The firm fixed price structure also contributes to budget predictability for these essential services.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HTC71116RR023
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Erickson Incorporated (UEI: 076414135)
Address: 5550 SW MACADAM AVE STE 200, PORTLAND, OR, 97239
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $105,023,361
Exercised Options: $35,270,061
Current Obligation: $35,270,061
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71117DR009
IDV Type: IDC
Timeline
Start Date: 2018-07-13
Current End Date: 2020-06-15
Potential End Date: 2023-06-15 00:00:00
Last Modified: 2021-09-27
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