DoD's $144.6M Rotary Wing Contract Awarded to Erickson Helicopters Under Full and Open Competition
Contract Overview
Contract Amount: $144,587,398 ($144.6M)
Contractor: Erickson Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-28
End Date: 2023-08-27
Contract Duration: 1,794 days
Daily Burn Rate: $80.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: DEDICATED MEDIUM ROTARY WING
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $144.6 million to ERICKSON HELICOPTERS, INC. for work described as: DEDICATED MEDIUM ROTARY WING Key points: 1. Contract awarded to Erickson Helicopters for dedicated medium rotary wing services. 2. Significant spending of $144.6 million over nearly 5 years. 3. Full and open competition was utilized, suggesting potential for competitive pricing. 4. The sector is transportation/logistics, critical for military operations.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar aviation support contracts would be beneficial to fully assess value.
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, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the specialized aviation services.
Public Impact
Ensures critical medium rotary wing airlift capabilities for USTRANSCOM. Supports military logistics and personnel/cargo movement. Long-term contract (nearly 5 years) provides stability for operations.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Long contract duration provides operational stability.
Sector Analysis
This contract falls within the air transportation services sector, specifically for specialized rotary wing aircraft. Spending benchmarks for similar government aviation contracts vary widely based on aircraft type, mission, and duration.
Small Business Impact
The contract was not awarded to a small business, as indicated by 'sb': false. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Defense (DoD) through USTRANSCOM, implying oversight from a major federal agency. The 'aw' field indicates a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for cost overruns if operational tempo exceeds expectations.
- Limited insight into subcontractor utilization.
- Need for detailed benchmarking against industry standards.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, il, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $144.6 million to ERICKSON HELICOPTERS, INC.. DEDICATED MEDIUM ROTARY WING
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 $144.6 million.
What is the period of performance?
Start: 2018-09-28. End: 2023-08-27.
What is the specific mission profile for these dedicated medium rotary wing aircraft?
The specific mission profile is not detailed in the provided data. However, 'Nonscheduled Chartered Passenger Air Transportation' suggests flexibility in routes and purposes, likely supporting troop movement, cargo delivery, or special operations where fixed-wing aircraft are unsuitable. The duration and cost indicate a significant and ongoing operational requirement.
Are there any performance metrics or service level agreements tied to this contract?
Performance metrics and service level agreements are not explicitly detailed in the provided data. However, as a firm fixed-price contract for critical transportation services, Erickson Helicopters is expected to meet availability and operational readiness standards. Failure to do so could result in penalties or contract termination, depending on the specific terms not shown here.
How does the awarded price compare to industry benchmarks for similar rotary wing charter services?
Without specific details on the aircraft model, operational hours, and geographic area, a precise comparison is difficult. However, the total contract value of $144.6 million over nearly five years suggests a substantial investment. A detailed cost analysis comparing the per-hour or per-flight-hour rates against market data for comparable medium rotary wing aircraft would be necessary for a definitive benchmark assessment.
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: HTC71118RR004
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Erickson Incorporated
Address: 5550 SW MACADAM AVE STE 200, PORTLAND, OR, 97239
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $144,587,398
Exercised Options: $144,587,398
Current Obligation: $144,587,398
Actual Outlays: $22,339,068
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71118DR023
IDV Type: IDC
Timeline
Start Date: 2018-09-28
Current End Date: 2023-08-27
Potential End Date: 2023-08-27 00:00:00
Last Modified: 2023-09-25
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