DoD's $30.3M contract for helicopter services awarded to Erickson Helicopters, Inc. over 5 years
Contract Overview
Contract Amount: $30,327,276 ($30.3M)
Contractor: Erickson Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2013-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $16.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: FIRM PERIOD DETACHMENT PER DIEM
Place of Performance
Location: SANTA RITA, GUAM County, GUAM, 96915
Plain-Language Summary
Department of Defense obligated $30.3 million to ERICKSON HELICOPTERS, INC. for work described as: FIRM PERIOD DETACHMENT PER DIEM Key points: 1. Spending: $30.3M over 5 years for helicopter services. 2. Competition: Awarded under full and open competition. 3. Risk: Potential for price increases due to fixed-price contract. 4. Sector: Transportation and logistics support.
Value Assessment
Rating: fair
The contract value of $30.3M over 5 years averages $6.06M annually. Benchmarking against similar nonscheduled chartered passenger air transportation contracts is difficult without specific service details, but the annual average appears moderate for specialized aviation services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary transportation services.
Public Impact
Ensures critical transportation and detachment support for naval operations in Guam. Supports military readiness by providing reliable air charter services. Contract duration of 5 years provides stability for service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific service details for precise cost benchmarking.
- Potential for price escalation in fixed-price contracts over long durations.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides service stability.
Sector Analysis
This contract falls within the transportation sector, specifically air charter services. Spending benchmarks for nonscheduled chartered passenger air transportation can vary widely based on aircraft type, duration, and operational area. The $30.3M total value over five years suggests a significant, ongoing requirement.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business set-asides were considered or if the prime contractor subcontracted to small businesses.
Oversight & Accountability
Oversight would involve monitoring contract performance, adherence to service level agreements, and financial expenditures to ensure value for money and accountability for the $30.3M awarded.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded to a single vendor.
- Long contract duration may limit flexibility.
- Fixed-price contract could lead to cost inefficiencies if not managed well.
- Lack of small business participation noted.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, gu, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.3 million to ERICKSON HELICOPTERS, INC.. FIRM PERIOD DETACHMENT PER DIEM
Who is the contractor on this award?
The obligated recipient is ERICKSON HELICOPTERS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $30.3 million.
What is the period of performance?
Start: 2008-10-01. End: 2013-09-30.
What specific types of aircraft and operational requirements were included in this contract to justify the $30.3M expenditure?
Without detailed contract specifications, it's challenging to precisely justify the $30.3M expenditure. However, contracts for nonscheduled chartered passenger air transportation, especially for military detachments in remote locations like Guam, often involve specialized helicopters (like those Erickson is known for), demanding flight hours, maintenance, crew, and logistical support, which collectively contribute to the overall cost.
What were the key performance indicators (KPIs) and how was performance measured to ensure effectiveness and value?
Effectiveness and value are typically ensured through defined Key Performance Indicators (KPIs) within the contract. These might include on-time performance, aircraft availability, safety incident rates, and adherence to flight schedules. Regular performance reviews by the Department of the Navy would assess Erickson Helicopters' compliance with these KPIs, impacting future contract decisions and ensuring taxpayer value.
Were there any identified risks or challenges during the contract period, and how were they mitigated?
Potential risks for such a contract could include operational disruptions due to weather, mechanical issues, or changes in mission requirements. Mitigation strategies likely involved contingency planning, robust maintenance schedules, and clear communication protocols between Erickson Helicopters and the Department of the Navy. The fixed-price nature also shifts some cost overrun risk to the contractor.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003308R1002
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Erickson Incorporated (UEI: 076414135)
Address: 3850 THREE MILE LN, MCMINNVILLE, OR, 06
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,530,477
Exercised Options: $38,170,229
Current Obligation: $30,327,276
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2013-10-23
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