DOI's $23.7M helicopter services contract for Antarctic program awarded to PHI Aviation, LLC

Contract Overview

Contract Amount: $23,756,695 ($23.8M)

Contractor: PHI Aviation, LLC

Awarding Agency: Department of the Interior

Start Date: 2013-05-01

End Date: 2018-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF HELICOPTER FLIGHT SERVICES HELICOPTER FLIGHT SERVICES FOR UNITED STATES ANTARCTIC PROGRAM (USAP) IN SUPPORT OF THE NATIONAL SCIENCE FOUNDATION (NSF) HYBRID COMMERCIAL CONTRACT: FFP AND T&M

Plain-Language Summary

Department of the Interior obligated $23.8 million to PHI AVIATION, LLC for work described as: IGF::OT::IGF HELICOPTER FLIGHT SERVICES HELICOPTER FLIGHT SERVICES FOR UNITED STATES ANTARCTIC PROGRAM (USAP) IN SUPPORT OF THE NATIONAL SCIENCE FOUNDATION (NSF) HYBRID COMMERCIAL CONTRACT: FFP AND T&M Key points: 1. Contract provides essential flight services for the U.S. Antarctic Program, supporting critical scientific research. 2. PHI Aviation, LLC, a single awardee, delivered services over a five-year period. 3. The contract utilized a hybrid Fixed Price and Time & Materials structure, indicating flexibility for varying operational needs. 4. Performance period spanned from May 2013 to April 2018. 5. The contract was awarded under full and open competition, suggesting a robust bidding process. 6. The total value of the contract was approximately $23.7 million.

Value Assessment

Rating: good

The contract's value of $23.7 million over five years for specialized Antarctic helicopter operations appears reasonable given the unique and demanding environment. Benchmarking against similar specialized aviation contracts in remote or extreme conditions would provide further context, but the pricing structure (FFP/T&M) suggests a balance between cost certainty and adaptability to unforeseen operational requirements. The absence of significant cost overruns or disputes, if documented, would further support a 'good' value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bids suggests a competitive landscape, which typically drives better pricing and service offerings for the government. This level of competition is generally favorable for ensuring fair market value and preventing price gouging.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely resulted in more cost-effective services for essential Antarctic operations.

Public Impact

The primary beneficiaries are the scientists and support staff operating within the U.S. Antarctic Program, enabling their research and logistical needs. Essential services include transportation of personnel and equipment across the Antarctic continent. The geographic impact is concentrated in Antarctica, supporting U.S. scientific endeavors in a unique and challenging environment. Workforce implications include the employment of pilots, mechanics, and support staff for specialized aviation operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if T&M components are not closely managed.
Dependence on a single contractor for critical Antarctic logistics.
Environmental risks associated with operating heavy machinery in a fragile polar ecosystem.

Positive Signals

Successful completion of a five-year contract term.
Awarded through full and open competition, indicating a fair process.
Supported critical scientific missions in a challenging environment.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on specialized aviation services. The market for Antarctic logistics and support is niche, with a limited number of companies possessing the expertise and equipment to operate in such extreme conditions. Comparable spending benchmarks would likely be found in contracts for remote area support, polar research logistics, or specialized aerial support for government agencies operating in challenging terrains.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting plans for this contract. Given the specialized nature of Antarctic helicopter operations, it is plausible that the primary contractor is a larger entity with the requisite capabilities. Further investigation into subcontracting would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting and program management offices. The National Science Foundation, as the end-user agency for the Antarctic Program, would also have significant oversight responsibilities. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Science Foundation (NSF) Antarctic Program Logistics
Department of Defense (DoD) Polar Operations Support
U.S. Coast Guard (USCG) Icebreaker Operations Support
National Oceanic and Atmospheric Administration (NOAA) Arctic Research Support

Risk Flags

Potential for operational disruptions due to extreme weather.
Reliance on specialized equipment and maintenance in remote locations.
Environmental sensitivity of Antarctic operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $23.8 million to PHI AVIATION, LLC. IGF::OT::IGF HELICOPTER FLIGHT SERVICES HELICOPTER FLIGHT SERVICES FOR UNITED STATES ANTARCTIC PROGRAM (USAP) IN SUPPORT OF THE NATIONAL SCIENCE FOUNDATION (NSF) HYBRID COMMERCIAL CONTRACT: FFP AND T&M

Who is the contractor on this award?

The obligated recipient is PHI AVIATION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2013-05-01. End: 2018-04-30.

What is the track record of PHI Aviation, LLC with government contracts, particularly those involving specialized or remote operations?

PHI Aviation, LLC has a history of performing aviation services for various government agencies. While specific details on all their contracts require deeper database searches, their ability to secure and execute a five-year contract for the demanding U.S. Antarctic Program suggests a proven capability. Analyzing their past performance on similar contracts, including any reported issues or commendations, would provide a more comprehensive understanding of their reliability and expertise in challenging operational environments. Their experience in supporting scientific missions or operations in remote regions would be particularly relevant.

How does the per-unit cost or operational cost of these helicopter services compare to similar contracts in other extreme environments?

Benchmarking the per-unit cost of these helicopter services against similar contracts in other extreme environments, such as Arctic operations, remote scientific support, or disaster relief in challenging terrains, is crucial for a comprehensive value assessment. The unique logistical hurdles, specialized equipment requirements, and inherent risks associated with Antarctic operations likely command a premium. Without direct comparative data, it's difficult to definitively state if the cost is high or low. However, the hybrid FFP/T&M structure suggests an effort to balance cost control with the unpredictable nature of Antarctic missions. A detailed analysis would involve comparing metrics like cost per flight hour, cost per passenger mile, or cost per ton mile, adjusted for environmental and operational complexities.

What were the primary risks identified during the solicitation and award process for this contract, and how were they mitigated?

The primary risks associated with a contract for Antarctic helicopter services likely included operational safety in extreme weather, equipment reliability in sub-zero temperatures, logistical challenges of resupply and maintenance, environmental impact, and the potential for mission delays due to weather. During the solicitation, these risks would be communicated to potential bidders, who would then propose mitigation strategies in their technical and cost proposals. Mitigation efforts might include stringent maintenance protocols, use of specialized cold-weather equipment, robust safety procedures, contingency planning for weather delays, and adherence to environmental protection guidelines. The government's evaluation process would assess the adequacy of these proposed mitigations.

How effective has this contract been in supporting the scientific objectives of the U.S. Antarctic Program?

The effectiveness of this contract in supporting the U.S. Antarctic Program's scientific objectives is primarily measured by the reliability and availability of the helicopter services provided. Anecdotal evidence and program reports from the 2013-2018 period would indicate whether scientists and support staff were able to conduct their research and logistical operations as planned. Key performance indicators could include on-time flight operations, successful transport of personnel and critical equipment to research sites, and minimal disruptions to scientific fieldwork due to aviation issues. The continued operation and success of the Antarctic Program during this period would indirectly reflect the contract's effectiveness.

What has been the historical spending trend for helicopter flight services supporting the U.S. Antarctic Program over the last decade?

Analyzing the historical spending trend for helicopter flight services supporting the U.S. Antarctic Program over the last decade (e.g., 2010-2020) would reveal patterns in contract values, duration, and potentially the number of awards. This specific contract ($23.7M over 5 years) represents a significant portion of spending during its performance period. Understanding if spending has increased, decreased, or remained stable provides context on the program's evolving needs, operational tempo, and potentially the cost-effectiveness of contracted services over time. It would also highlight any shifts in contracting strategies or major equipment procurements.

Were there any significant performance issues or contract modifications during the life of this contract that impacted its value or delivery?

Assessing significant performance issues or contract modifications is crucial for understanding the true value and execution of this contract. Performance issues could include missed flights, safety incidents, or equipment failures that disrupted operations. Contract modifications, such as changes in scope, duration, or funding, could indicate evolving needs or unforeseen challenges. Reviewing contract modification history and any associated performance reports or dispute resolutions would provide insight into whether the initial award represented the final cost and scope, or if adjustments were necessary, potentially impacting the overall value proposition for the government.

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

Solicitation ID: D12PS00090

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2001 SE EVANGELINE THRUWAY, LAFAYETTE, LA, 70508

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,756,695

Exercised Options: $23,756,695

Current Obligation: $23,756,695

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline