State Dept. Awards $40.2M for Colombia Eradication Wet Lease Air Services

Contract Overview

Contract Amount: $40,239,453 ($40.2M)

Contractor: Vertical DE Aviacion U.S.A., Inc

Awarding Agency: Department of State

Start Date: 2016-02-01

End Date: 2021-04-30

Contract Duration: 1,915 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO EXECUTE THE FIRST TASK ORDER FOR SERVICES OF THE COLOMBIA ERADICATION WETLEASE. IGF::OT::IGF

Plain-Language Summary

Department of State obligated $40.2 million to VERTICAL DE AVIACION U.S.A., INC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO EXECUTE THE FIRST TASK ORDER FOR SERVICES OF THE COLOMBIA ERADICATION WETLEASE. IGF::OT::IGF Key points: 1. Significant contract value for specialized air transportation services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to operational execution and geopolitical factors in Colombia. 4. Sector is transportation, specifically niche aviation services.

Value Assessment

Rating: fair

The contract value of $40.2M over approximately 5 years suggests an average annual spend of $8M. Benchmarking this against similar wet lease contracts for specialized operations is difficult without more granular data on aircraft type, flight hours, and specific mission requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The price discovery mechanism relies on the bids received from qualified vendors.

Taxpayer Impact: Taxpayer funds are being used for essential services related to international drug interdiction efforts, aiming for a positive impact on national security.

Public Impact

Supports U.S. international drug interdiction efforts in Colombia. Provides critical air transport for specialized eradication missions. Ensures operational capability in a challenging environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in operating region
Dependence on specialized aircraft and maintenance
Potential for mission creep or scope changes

Positive Signals

Clear purpose for eradication support
Competitive award process
Long-term contract duration allows for planning

Sector Analysis

This contract falls within the transportation sector, specifically non-scheduled chartered passenger air transportation. Spending benchmarks for such niche services are highly variable based on aircraft type, duration, and operational complexity.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The Department of State is responsible for overseeing this task order. Accountability relies on performance metrics, reporting requirements, and adherence to the contract terms.

Related Government Programs

Nonscheduled Chartered Passenger Air Transportation
Department of State Contracting
Department of State Programs

Risk Flags

Operational risks in a high-threat environment
Dependence on a single vendor for critical services
Potential for cost overruns if mission scope expands
Geopolitical factors impacting service delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $40.2 million to VERTICAL DE AVIACION U.S.A., INC. THE PURPOSE OF THIS TASK ORDER IS TO EXECUTE THE FIRST TASK ORDER FOR SERVICES OF THE COLOMBIA ERADICATION WETLEASE. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is VERTICAL DE AVIACION U.S.A., INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $40.2 million.

What is the period of performance?

Start: 2016-02-01. End: 2021-04-30.

What is the cost per flight hour or per mission, and how does it compare to industry standards for similar wet lease operations in challenging environments?

Determining the precise cost per flight hour or mission is not possible with the provided data. A comprehensive analysis would require breaking down the total contract value by the estimated number of flight hours or missions. Benchmarking against industry standards would then involve comparing these calculated rates to publicly available data for similar wet lease contracts, considering factors like aircraft type, crew, maintenance, insurance, and the specific operational risks associated with the Colombian environment.

What are the specific risks associated with operating aircraft in Colombia for eradication missions, and what mitigation strategies are in place?

Risks include potential threats from illicit organizations, challenging terrain affecting flight operations, and political instability. Mitigation strategies likely involve enhanced security protocols for aircraft and crews, specialized pilot training for operating in difficult conditions, robust maintenance schedules to ensure airworthiness, and close coordination with Colombian authorities and U.S. interagency partners to monitor and address evolving threats.

How effectively does this wet lease service contribute to the overall success of the Colombia eradication program and U.S. counternarcotics objectives?

The effectiveness hinges on the reliability and operational tempo of the leased aircraft and services. If the wet lease consistently provides the necessary air support for eradication missions without significant downtime or safety incidents, it directly contributes to achieving program goals. Success metrics would likely include the area eradicated, the volume of illicit crops removed, and the overall impact on drug production and trafficking in Colombia.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2020 PONCE DE LEON BLVD, CORAL GABLES, FL, 33134

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,239,453

Exercised Options: $40,239,453

Current Obligation: $40,239,453

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SWHARC16D0001

IDV Type: IDC

Timeline