DoD awards $34.8M contract for nonscheduled chartered freight air transportation to Erickson Helicopters, Inc
Contract Overview
Contract Amount: $34,792,892 ($34.8M)
Contractor: Erickson Helicopters, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-08-15
End Date: 2019-03-06
Contract Duration: 2,029 days
Daily Burn Rate: $17.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: N00033-13-C-8000 AWARD
Place of Performance
Location: SANTA RITA, GUAM County, GUAM, 96915
Plain-Language Summary
Department of Defense obligated $34.8 million to ERICKSON HELICOPTERS, INC. for work described as: N00033-13-C-8000 AWARD Key points: 1. Contract awarded to Erickson Helicopters, Inc. for air transportation services. 2. The contract was awarded under full and open competition. 3. The contract duration is 2029 days, with a total value of $34.8 million. 4. This contract falls under the nonscheduled chartered freight air transportation sector.
Value Assessment
Rating: fair
The contract value of $34.8 million over approximately 5.5 years suggests a moderate annual spend. Benchmarking against similar nonscheduled chartered freight air transportation contracts would be necessary to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Ensures critical air freight transportation for the Department of the Navy. Supports military logistics and operational readiness in Guam. Provides a service that may be essential for remote or time-sensitive deployments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration extends significantly, potentially leading to price escalation risks.
- Reliance on a single vendor for a critical service could pose supply chain risks.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract is within the air transportation services sector, specifically for nonscheduled chartered freight. Spending in this sector can fluctuate based on operational needs and geopolitical factors. Benchmarks for similar services are often tied to flight hours, cargo weight, and distance.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business set-asides were considered or if the scope of work inherently favored larger, specialized providers.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for contract management and performance. The duration and value suggest ongoing monitoring is expected.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is lengthy (2029 days).
- Potential for price escalation over the contract term.
- Sole vendor reliance for critical service.
- Geographic isolation of service area (Guam).
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, gu, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.8 million to ERICKSON HELICOPTERS, INC.. N00033-13-C-8000 AWARD
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 $34.8 million.
What is the period of performance?
Start: 2013-08-15. End: 2019-03-06.
What is the specific operational need driving the requirement for nonscheduled chartered freight air transportation in Guam?
The specific operational need likely relates to supporting military logistics, resupply, or rapid deployment requirements in the strategic location of Guam. This could include transporting personnel, equipment, or supplies to areas not served by regular flight schedules or requiring specialized aircraft capabilities.
Are there any performance metrics or service level agreements tied to this contract to ensure effectiveness and timely delivery?
While not explicitly stated in the provided data, firm fixed price contracts often include clauses for performance standards and delivery timelines. The Department of the Navy would typically monitor adherence to these terms to ensure the effectiveness of the air transportation services and the timely delivery of goods or personnel.
What is the potential impact of relying on a single vendor for this service, especially given the extended contract duration?
Reliance on a single vendor for an extended period, particularly in a geographically isolated area like Guam, could create risks related to vendor performance, price increases upon renewal, or supply chain disruptions if the vendor faces operational issues. Contingency planning or exploring alternative providers periodically would mitigate these risks.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight 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: N0003313R8000
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, 97128
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,980,020
Exercised Options: $37,049,841
Current Obligation: $34,792,892
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-08-15
Current End Date: 2019-03-06
Potential End Date: 2019-03-31 00:00:00
Last Modified: 2019-03-05
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