USAFRICOM awards $50.3M contract for dedicated air passenger service to Phoenix Air Group, Inc
Contract Overview
Contract Amount: $50,298,291 ($50.3M)
Contractor: Phoenix AIR Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-05-01
End Date: 2026-04-30
Contract Duration: 1,825 days
Daily Burn Rate: $27.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: USAFRICOM DEDICATED AIR PASSENGER SERVICE
Plain-Language Summary
Department of Defense obligated $50.3 million to PHOENIX AIR GROUP, INC. for work described as: USAFRICOM DEDICATED AIR PASSENGER SERVICE Key points: 1. Contract provides essential air transportation for U.S. Africa Command personnel. 2. Phoenix Air Group, Inc. has a history of providing similar aviation services. 3. The contract is structured as Firm Fixed Price, offering cost predictability. 4. Competition was full and open, suggesting potential for competitive pricing. 5. The contract duration of five years allows for sustained operational support. 6. This service is critical for personnel movement within the U.S. Africa Command's area of responsibility.
Value Assessment
Rating: good
The contract value of $50.3 million over five years for dedicated air passenger service appears reasonable given the specialized nature of the requirement and the geographic area of operation. Benchmarking against similar specialized air charter contracts is challenging due to unique mission profiles and limited market availability. However, the firm fixed-price structure provides a degree of cost certainty for the government. The number of bids received (2) suggests a moderately competitive environment for this niche service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Two bids were received, which suggests a moderate level of competition for this specialized service. While more bidders could potentially drive prices lower, the nature of dedicated, long-term air charter services often limits the pool of qualified and available providers.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better value. The presence of two bidders in this case suggests that while competition existed, there may be opportunities to encourage broader participation in future solicitations for similar services.
Public Impact
US Africa Command (USAFRICOM) personnel benefit from reliable and dedicated air transportation. The service facilitates personnel movement and logistical support within USAFRICOM's operational area. Geographic impact is focused on regions within the U.S. Africa Command's area of responsibility. Workforce implications are minimal, primarily involving flight crews and support staff for the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition (2 bidders) may not have yielded the lowest possible price.
- Dependence on a single contractor for a critical service could pose a risk if performance issues arise.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition process was followed.
- Contract duration allows for stable service provision.
- Contractor has experience in providing similar aviation services.
Sector Analysis
This contract falls within the broader aerospace and defense services sector, specifically focusing on specialized aviation support. The market for dedicated, long-term charter services for government operations is niche, often involving a limited number of experienced providers capable of meeting stringent security, operational, and regulatory requirements. Comparable spending benchmarks are difficult to establish precisely due to the unique mission requirements and geographic scope, but such services are typically high-value due to operational complexity and aircraft availability.
Small Business Impact
This contract does not appear to have a small business set-aside. The nature of specialized, long-term dedicated air charter services often requires significant capital investment, extensive certifications, and a proven track record, which may limit the participation of smaller businesses. There is no explicit information provided regarding subcontracting plans with small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Transportation Command (USTRANSCOM) and U.S. Africa Command (USAFRICOM) contracting and operational units. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to service delivery. Transparency is facilitated through contract award databases, though detailed operational performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- USTRANSCOM Air Mobility Command Contracts
- DoD Personnel Transportation Services
- Contingency Air Operations Support
- Global Air Charter Services
Risk Flags
- Limited Competition
- Potential for Performance Issues
- Geographic Operational Risk
Tags
defense, department-of-defense, usafricom, ustranscom, air-transportation, passenger-service, firm-fixed-price, full-and-open-competition, service-contract, long-term-contract, africa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.3 million to PHOENIX AIR GROUP, INC.. USAFRICOM DEDICATED AIR PASSENGER SERVICE
Who is the contractor on this award?
The obligated recipient is PHOENIX AIR GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $50.3 million.
What is the period of performance?
Start: 2021-05-01. End: 2026-04-30.
What is Phoenix Air Group, Inc.'s track record with similar government contracts?
Phoenix Air Group, Inc. has a documented history of performing aviation services for government entities, including charter flights and specialized aerial operations. Their experience often involves supporting military and government personnel movements in various operational theaters. Publicly available contract data indicates past awards for similar services, suggesting a familiarity with government contracting requirements and operational demands. This prior experience is a positive indicator for their ability to fulfill the requirements of the USAFRICOM dedicated air passenger service contract.
How does the awarded price compare to market rates for similar dedicated air charter services?
Directly comparing the awarded price of $50.3 million over five years to precise market rates for dedicated air charter services is complex due to the highly specialized nature of the contract, including specific aircraft requirements, operational areas (US Africa Command), and service levels. The market for such dedicated, long-term government charters is limited, with fewer providers compared to general air cargo or passenger charters. The firm fixed-price structure and the fact that it was awarded under full and open competition with two bidders suggest that the price reflects a negotiated value within a competitive, albeit niche, market. Without access to detailed cost breakdowns or specific comparable contract data, a definitive value-for-money assessment against external benchmarks is challenging.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks include potential performance issues by the contractor, such as flight delays, cancellations, or safety incidents, which could disrupt critical personnel movements for USAFRICOM. Another risk is the limited competition (two bidders), which might imply less price pressure. Mitigation strategies likely include robust performance monitoring by the government, adherence to strict safety and operational standards outlined in the contract, and the potential for contract termination for default if performance standards are not met. The firm fixed-price nature also shifts some financial risk to the contractor.
How effective is this contract in ensuring reliable personnel movement for USAFRICOM?
The effectiveness of this contract hinges on the contractor's ability to consistently provide reliable and safe air transportation as stipulated. The five-year duration and dedicated nature of the service are designed to ensure continuity and predictability for USAFRICOM's personnel movement needs within its area of responsibility. The firm fixed-price structure incentivizes the contractor to maintain service levels to ensure payment. Success will be measured by the contractor's adherence to flight schedules, safety records, and overall responsiveness to USAFRICOM's operational requirements.
What are the historical spending patterns for dedicated air passenger services by the Department of Defense?
Historical spending on dedicated air passenger services by the Department of Defense (DoD) fluctuates based on global operational tempo, troop deployments, and specific mission requirements. Contracts for such services are often awarded through agencies like USTRANSCOM, which manages global mobility. Spending can range from millions to hundreds of millions annually, depending on the scale and duration of operations. These contracts are typically competed, though the number of bidders can vary significantly based on the specialization and geographic reach required. The trend is towards ensuring cost-effectiveness while maintaining essential operational support capabilities.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 PHOENIX AIR DR SW, CARTERSVILLE, GA, 30120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $79,074,076
Exercised Options: $53,980,291
Current Obligation: $50,298,291
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71120DR021
IDV Type: IDC
Timeline
Start Date: 2021-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-09-15
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