DoD Navy awards Erickson Helicopters $32.8M for air transport services over 5 years
Contract Overview
Contract Amount: $32,881,452 ($32.9M)
Contractor: Erickson Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-10-01
End Date: 2014-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $18.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: FIRM PERIOD, DETACHMENT ALPHA PER DIEM
Place of Performance
Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $32.9 million to ERICKSON HELICOPTERS, INC. for work described as: FIRM PERIOD, DETACHMENT ALPHA PER DIEM Key points: 1. Contract awarded to Erickson Helicopters, Inc. for nonscheduled chartered passenger air transportation. 2. Significant contract value of over $32.8 million spanning five years. 3. Full and open competition was utilized for this award. 4. The contract falls under the 'Nonscheduled Chartered Passenger Air Transportation' category.
Value Assessment
Rating: fair
The contract's total value is $32.8M over 5 years. Without specific per-unit cost data or comparison points for similar air charter services, assessing value for money is challenging. The firm fixed price contract provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process for soliciting bids. This method generally promotes competitive pricing, but the specific pricing outcomes require further analysis of bid data.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure the best possible price for the government. However, the ultimate impact depends on the competitiveness of the bids received and the final negotiated price.
Public Impact
Ensures operational readiness and logistical support for the Department of the Navy. Supports critical transportation needs for personnel and potentially equipment. Provides a long-term service agreement, offering stability for both the agency and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost data hinders precise value assessment.
- Potential for price escalation over the 5-year contract duration.
- Dependence on a single contractor for essential air transport services.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost predictability.
- Long-term contract (5 years) offers stability.
Sector Analysis
This contract falls within the transportation services sector, specifically air charter. Spending benchmarks for nonscheduled passenger air transportation can vary widely based on aircraft type, duration, and operational requirements. The $32.8M over five years suggests a significant and ongoing need.
Small Business Impact
The data indicates the contract was awarded to Erickson Helicopters, Inc. There is no explicit information provided regarding small business participation or subcontracting opportunities within this award. Further investigation would be needed to determine any small business involvement.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would involve monitoring contract performance, adherence to terms, and financial accountability throughout the 5-year period to ensure taxpayer funds are used effectively.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is long (5 years).
- Potential for price volatility in the aviation sector.
- Sole awardee for a critical service.
- Lack of detailed cost breakdown.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.9 million to ERICKSON HELICOPTERS, INC.. FIRM PERIOD, DETACHMENT ALPHA 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 $32.9 million.
What is the period of performance?
Start: 2009-10-01. End: 2014-09-30.
What is the average cost per flight hour or per passenger mile under this contract, and how does it compare to industry benchmarks for similar services?
Without specific line-item costs for flight hours or passenger miles, a direct comparison is impossible. However, the total contract value of $32.8M over 1825 days (approx. $18,000/day) suggests a substantial operational tempo. Industry benchmarks vary greatly, but this daily average could be considered fair to high depending on the type of helicopter, mission profile, and geographic location.
What are the key performance indicators (KPIs) used to measure the effectiveness and reliability of Erickson Helicopters' air transportation services?
Effective oversight would likely involve tracking KPIs such as on-time performance, mission completion rates, aircraft availability, safety incident reports, and adherence to flight plans. The Department of the Navy would need to establish clear performance standards and regularly review Erickson Helicopters' performance against these metrics to ensure mission success and accountability.
What specific risks were identified during the procurement process, and what mitigation strategies are in place to address potential cost overruns or service disruptions?
Potential risks include unforeseen operational costs (fuel price volatility, maintenance), regulatory changes, or contractor performance issues. Mitigation strategies might involve contract clauses for fuel adjustments, robust performance monitoring, contingency planning for alternative transport, and clear communication channels. The firm fixed price nature helps mitigate cost overruns unless specific escalation clauses are present.
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: N0003309R1000
Offers Received: 2
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: $73,819,774
Exercised Options: $39,785,597
Current Obligation: $32,881,452
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-10-01
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2014-09-22
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