Forest Service awards $25.4M contract for exclusive helicopter services to Helicopter Express LLC

Contract Overview

Contract Amount: $25,406,486 ($25.4M)

Contractor: Helicopter Express LLC

Awarding Agency: Department of Agriculture

Start Date: 2018-05-01

End Date: 2019-04-30

Contract Duration: 364 days

Daily Burn Rate: $69.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 20

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS - EXCLUSIVE USE, INITIAL ATTACK HELICOPTER SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $25.4 million to HELICOPTER EXPRESS LLC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - EXCLUSIVE USE, INITIAL ATTACK HELICOPTER SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Fixed Price with Economic Price Adjustment, which can mitigate inflation risks for the contractor. 3. The duration of the contract is 364 days, indicating a short-term operational need. 4. The contract was awarded to a single vendor, Helicopter Express LLC. 5. The service category is Nonscheduled Chartered Freight Air Transportation. 6. The contract was awarded under the Forest Service's operational needs.

Value Assessment

Rating: fair

The contract value of $25.4 million for a 364-day period for exclusive helicopter services appears to be within a reasonable range for specialized aerial support, particularly for critical functions like those implied by 'IGF CRITICAL FUNCTIONS'. Benchmarking against similar exclusive-use helicopter contracts for firefighting or resource management would provide a clearer picture of value for money. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost-effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was open, there might have been specific justifications for excluding certain sources initially, or that the exclusion was a procedural step within an otherwise open process. The number of bidders is not specified, but the 'full and open' designation suggests multiple entities had the opportunity to bid.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. However, the 'after exclusion of sources' clause warrants further scrutiny to ensure no potential cost savings were foregone.

Public Impact

The primary beneficiaries are likely the US Forest Service, enabling critical functions and exclusive use of helicopter services. Services delivered include nonscheduled chartered freight air transportation, essential for remote operations and logistical support. The geographic impact is focused on Georgia (ST: GA, SN: GEORGIA), where the Forest Service operates. Workforce implications are primarily for the contractor's operational staff and pilots, with potential indirect impacts on support industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess operational effectiveness.
The 'exclusive use' nature of the contract could limit flexibility if needs change.
Economic price adjustment clauses can introduce cost volatility if not carefully managed.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract addresses critical functions, indicating essential operational support.
The fixed-price element provides some cost certainty, despite the economic price adjustment.

Sector Analysis

The contract falls within the air transportation services sector, specifically nonscheduled chartered freight. This sector is vital for government operations, particularly for agencies like the Forest Service that require specialized aerial support for remote access, logistics, and critical functions. The market for such services is often specialized, with a limited number of providers capable of meeting stringent operational and safety requirements. Comparable spending benchmarks would typically be found in contracts for aerial firefighting, emergency response, or remote resource management.

Small Business Impact

The data indicates that small business participation (SB: false) was not a primary consideration or requirement for this specific contract. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the primary focus was on securing the specialized services required, rather than on promoting small business engagement through this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the US Forest Service contracting officers and program managers. The Inspector General's office for the Department of Agriculture may also conduct audits or investigations into contract performance and financial management. Transparency is facilitated through contract databases, but detailed operational oversight information is usually internal.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Aerial Support Contracts
Nonscheduled Chartered Air Transportation Services
Critical Function Support Contracts

Risk Flags

Potential for cost overruns due to economic price adjustments.
Limited transparency on specific 'critical functions' supported.
Exclusion of sources in competition warrants further review.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.4 million to HELICOPTER EXPRESS LLC. IGF::CT::IGF CRITICAL FUNCTIONS - EXCLUSIVE USE, INITIAL ATTACK HELICOPTER SERVICES

Who is the contractor on this award?

The obligated recipient is HELICOPTER EXPRESS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2018-05-01. End: 2019-04-30.

What specific 'critical functions' does this contract support, and how does the exclusive use of helicopter services contribute to their effectiveness?

The term 'IGF CRITICAL FUNCTIONS' is not explicitly defined in the provided data. However, in the context of the Forest Service, critical functions often relate to wildfire suppression, aerial reconnaissance, emergency medical services, search and rescue, or logistical support for remote operations. The exclusive use of helicopter services implies that these functions require dedicated, on-demand aerial assets that cannot be shared or substituted easily. This exclusivity ensures immediate availability and tailored operational capabilities, which are crucial for time-sensitive missions where delays could have severe consequences. The effectiveness is measured by the ability to rapidly deploy resources, access difficult terrain, and provide continuous support, thereby enhancing the overall success and safety of the mission.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process differ from standard full and open competition, and what are the implications for cost?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (F&O CAES) is a specific procurement method where, after an initial determination that full and open competition is not practicable, the agency may exclude certain sources and then conduct a full and open competition among the remaining eligible sources. This is distinct from a standard full and open competition where all responsible sources are permitted to compete without restriction. The implications for cost can be varied. On one hand, it still involves competition, which generally drives down prices. However, by excluding certain sources, the pool of potential bidders is smaller, which could potentially lead to higher prices than if all responsible sources were allowed to compete. The justification for excluding sources is critical; if the exclusion was based on valid technical or operational reasons, the resulting price might still represent the best value. Conversely, if sources were excluded without strong justification, taxpayers might have paid more than necessary.

What is the typical cost range for exclusive-use helicopter services for government agencies, and how does this contract compare?

The typical cost range for exclusive-use helicopter services for government agencies can vary significantly based on the type of helicopter, mission requirements, duration, geographic location, and specific services provided (e.g., hoist operations, cargo transport, surveillance). For specialized, exclusive-use contracts, daily rates can range from several thousand dollars to tens of thousands of dollars. Considering the $25.4 million contract value over approximately one year (364 days), the average daily cost is roughly $69,800. This figure encompasses not just flight time but also operational readiness, maintenance, pilot salaries, insurance, and potentially exclusive availability. Without knowing the specific helicopter model and operational demands, a precise comparison is difficult, but this daily rate suggests a significant investment for dedicated, high-demand aerial support, likely for critical government functions.

What are the potential risks associated with a Fixed Price with Economic Price Adjustment (FP-EPA) contract for air transportation services?

A Fixed Price with Economic Price Adjustment (FP-EPA) contract aims to provide cost certainty while acknowledging potential fluctuations in key economic factors, such as fuel prices or labor costs. For air transportation services, the primary risk associated with FP-EPA lies in the volatility of fuel prices, which can significantly impact operating expenses. While the EPA clause is designed to protect the contractor from unforeseen cost increases, it also means the final price paid by the government could be higher than the initial fixed price if economic conditions worsen. Conversely, if economic conditions improve, the price could be adjusted downwards. The risk for the government is that the EPA might not fully capture the actual cost savings or that the adjustments lead to a higher overall expenditure than anticipated, especially if the adjustment formula is not tightly controlled or if market conditions are highly unpredictable. Careful monitoring of the economic indicators used for adjustment is crucial.

How does the contract's duration of 364 days impact its strategic value and potential for future procurements?

A contract duration of 364 days is common for government procurements, often used to avoid certain regulatory thresholds or to align with annual budget cycles. Strategically, this short duration suggests that the requirement might be for a specific project, a temporary surge in demand, or a pilot program. It allows the agency to re-evaluate needs and market conditions before committing to a longer-term contract. For future procurements, this 364-day contract provides valuable data on contractor performance, actual costs, and operational effectiveness. This information can inform the structure and terms of subsequent contracts, potentially leading to better-defined requirements, more competitive pricing, or a shift towards different contract types if the initial approach proves suboptimal. It also allows for market testing and encourages ongoing competition.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AG-024B-S-17-9002

Offers Received: 20

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 2025 FLIGHTWAY DR, ATLANTA, GA, 30341

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

Financial Breakdown

Contract Ceiling: $25,406,486

Exercised Options: $25,406,486

Current Obligation: $25,406,486

Actual Outlays: $14,824,715

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline