Interior Department awards $26.1M for Antarctic air transport, with full and open competition

Contract Overview

Contract Amount: $26,134,366 ($26.1M)

Contractor: Kenn Borek AIR Ltd

Awarding Agency: Department of the Interior

Start Date: 2011-09-01

End Date: 2017-02-28

Contract Duration: 2,007 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: ANTARCTIC FIXED WING PROGRAM

Plain-Language Summary

Department of the Interior obligated $26.1 million to KENN BOREK AIR LTD for work described as: ANTARCTIC FIXED WING PROGRAM Key points: 1. Contract awarded to Kenn Borek Air Ltd for fixed-wing air transportation in Antarctica. 2. Significant spending on specialized aviation services for polar research and logistics. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration spans over five years, indicating a long-term need.

Value Assessment

Rating: good

The contract value of $26.1 million over approximately 5.3 years suggests a reasonable annual spend for specialized Antarctic aviation services. Benchmarking against similar niche transportation contracts is difficult due to limited comparable data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors had the opportunity to bid, which typically drives competitive pricing. The award to a single vendor suggests they offered the best value proposition.

Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for essential Antarctic operations.

Public Impact

Ensures critical logistical support for scientific research and operations in the remote Antarctic environment. Supports the U.S. presence and activities in Antarctica, contributing to scientific discovery. Provides specialized air transport capabilities not readily available domestically.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational challenges in Antarctica are underestimated.
Dependence on a single vendor for critical transportation services.
Limited availability of alternative providers for such specialized operations.

Positive Signals

Competitive bidding process likely secured a fair price.
Long-term contract provides stability for essential services.
Supports vital scientific research and national interests in Antarctica.

Sector Analysis

This contract falls within the transportation sector, specifically specialized air charter services. Spending on polar aviation is a niche but critical component of national science and logistics budgets, often involving unique operational challenges and higher costs.

Small Business Impact

The data indicates this contract was not awarded to small businesses. The specialized nature of Antarctic aviation may limit the pool of qualified small business vendors.

Oversight & Accountability

The use of a definitive contract with full and open competition suggests a structured procurement process. Further oversight would involve monitoring performance against contract requirements and ensuring adherence to safety and operational standards.

Related Government Programs

Nonscheduled Chartered Passenger Air Transportation
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

High cost for specialized services.
Potential for operational disruptions in extreme environments.
Dependence on a single vendor.
Limited competition pool for Antarctic aviation.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $26.1 million to KENN BOREK AIR LTD. ANTARCTIC FIXED WING PROGRAM

Who is the contractor on this award?

The obligated recipient is KENN BOREK AIR LTD.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2011-09-01. End: 2017-02-28.

What specific operational requirements in Antarctica justify the $26.1 million expenditure over five years?

The expenditure likely covers the high costs associated with operating aircraft in extreme Antarctic conditions, including specialized maintenance, fuel logistics, pilot training for polar environments, and ensuring year-round operational readiness. This includes supporting scientific field camps, transporting personnel and equipment, and potentially search and rescue capabilities, all critical for maintaining a U.S. presence and advancing research in this challenging region.

What are the primary risks associated with relying on a single vendor for Antarctic fixed-wing transportation?

The primary risks include service disruption due to vendor financial instability, equipment failure, or unforeseen operational issues unique to Antarctica. A sole-source situation limits leverage for price renegotiation and could lead to increased costs if demand rises or if the vendor faces challenges. Contingency planning and robust performance monitoring are crucial to mitigate these risks.

How effectively does this contract support the Department of the Interior's broader mission in Antarctica?

This contract is crucial for enabling the Department of the Interior's logistical support for its Antarctic programs, which may include environmental monitoring, research station operations, and resource management. By ensuring reliable air transport, the contract directly facilitates the execution of scientific objectives and operational requirements in a region where ground transportation is often impractical or impossible.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Borek Construction Ltd (UEI: 200957371)

Address: 290 MCTAVISH RD NE, CALGARY

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $26,134,366

Exercised Options: $26,134,366

Current Obligation: $26,134,366

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline