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 WarehousingNonscheduled Air TransportationNonscheduled Chartered Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRANSPORTATION 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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