Forest Service awards $4.6M contract for aerial firefighting support, highlighting fixed-wing aircraft services

Contract Overview

Contract Amount: $4,571,965 ($4.6M)

Contractor: Ponderosa Aviation Inc

Awarding Agency: Department of Agriculture

Start Date: 2022-04-12

End Date: 2026-12-31

Contract Duration: 1,724 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS SIERRA VISTA

Place of Performance

Location: SAFFORD, GRAHAM County, ARIZONA, 85546

State: Arizona Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.6 million to PONDEROSA AVIATION INC for work described as: 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS SIERRA VISTA Key points: 1. Contract provides essential aerial support for wildfire suppression and other aviation needs. 2. Fixed-price contract with economic price adjustment offers some cost certainty while accounting for inflation. 3. Competition was full and open, suggesting a robust bidding process. 4. The contract duration of over 4 years indicates a long-term need for these services. 5. The primary contractor, Ponderosa Aviation Inc., will deliver services across Arizona. 6. This contract supports critical natural resource management and public safety missions.

Value Assessment

Rating: good

The contract value of approximately $4.6 million over four years averages to about $1.15 million annually. Benchmarking this against similar contracts for aerial firefighting or specialized aviation services would require detailed market analysis of aircraft types, operational hours, and specific mission requirements. However, the fixed-price nature with economic price adjustment suggests an attempt to balance cost control with market realities. Without specific per-hour or per-mission cost data, a precise value-for-money assessment is challenging, but the competitive award process provides a degree of confidence.

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,' indicating that the agency actively sought bids from all qualified sources after an initial exclusion period or process. This suggests a competitive environment where multiple companies had the opportunity to bid. The specific number of bidders is not provided, but the designation implies a deliberate effort to maximize competition, which typically leads to better pricing and service options for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive marketplace that drives down prices and encourages innovation. This approach ensures that the government is not locked into a single provider, allowing for potentially better deals and higher quality services.

Public Impact

The primary beneficiaries are the US Forest Service and other agencies involved in wildfire management and natural resource protection. Services delivered include aerial support for firefighting, potentially including water/retardant drops, reconnaissance, and personnel transport. The geographic impact is focused on Arizona, where the contractor will operate. This contract supports specialized aviation jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to economic price adjustment clause if inflation is high.
Dependence on a single contractor for critical aerial support services.
Limited visibility into the specific performance metrics and operational efficiency of the contractor.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Contract duration suggests a stable and predictable need for these services.
Fixed-price structure provides a baseline cost control mechanism.

Sector Analysis

The contract falls within the broader aviation services sector, specifically focusing on specialized fixed-wing aircraft operations for government purposes. This sector is characterized by high operational costs, stringent safety regulations, and specialized equipment. The market includes a range of providers from small, regional operators to larger, national companies. Government contracts often represent a significant portion of revenue for specialized aviation firms, particularly those supporting public safety and resource management.

Small Business Impact

The provided data indicates that small business participation (ss) and set-asides (sb) were not factors in this specific award (both are false). This suggests the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor engages in significant subcontracting with small businesses, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of Agriculture's Forest Service. Performance monitoring, adherence to delivery schedules, and compliance with contract terms are key oversight functions. Transparency is facilitated through contract databases like FPDS, which provide basic award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Wildfire Suppression Support
Aviation Services Contracts
Department of Agriculture Contracts
Forest Service Operations
Fixed-Wing Aircraft Charters

Risk Flags

Potential for cost escalation due to EPA
Reliance on single contractor for critical services
Limited transparency on specific performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.6 million to PONDEROSA AVIATION INC. 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS SIERRA VISTA

Who is the contractor on this award?

The obligated recipient is PONDEROSA AVIATION INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2022-04-12. End: 2026-12-31.

What is the track record of Ponderosa Aviation Inc. in fulfilling government contracts, particularly for aerial firefighting or similar services?

Assessing the track record of Ponderosa Aviation Inc. requires a review of their past performance on federal contracts. This would involve examining contract award histories, any reported performance issues, contract modifications, and past payment performance. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be crucial. A history of successful, on-time delivery of services meeting quality standards would indicate reliability, while a pattern of disputes, delays, or performance failures would raise concerns about their capacity to fulfill the current $4.6 million contract effectively over its multi-year term.

How does the awarded price compare to market rates for similar light fixed-wing aerial support services in Arizona?

A precise comparison of the awarded price to market rates requires detailed data on the specific services rendered, aircraft utilized, and operational hours. The contract's average annual value of approximately $1.15 million needs to be broken down into per-hour or per-mission costs for effective benchmarking. Factors such as aircraft type, crew size, fuel, maintenance, insurance, and mission complexity all influence pricing. Without access to the detailed pricing structure within the contract or data from comparable commercial or government contracts for identical services in the Arizona region, a definitive assessment of value for money is difficult. However, the full and open competition suggests the price achieved is likely competitive within the market.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential cost overruns due to the economic price adjustment clause, especially if inflation significantly outpaces projections. Operational risks, such as aircraft mechanical failures, weather disruptions, or pilot availability, could impact service delivery. There's also a risk of contractor underperformance or failure to meet stringent safety and operational standards. Mitigation strategies likely involve robust contract oversight by the Forest Service, clear performance metrics, adherence to safety protocols, and potentially contingency planning for service disruptions. The fixed-price component aims to mitigate budget uncertainty, while the economic price adjustment addresses inflationary pressures.

How effective is the Forest Service in leveraging this type of contract to meet its wildfire suppression and resource management objectives?

The effectiveness of this contract hinges on its ability to provide reliable, timely, and cost-efficient aerial support crucial for the Forest Service's mission. Light fixed-wing aircraft are vital for tasks like initial attack support, reconnaissance, and personnel transport in remote areas. The contract's duration and competitive award suggest a strategic approach to securing these capabilities. Effectiveness can be measured by the contractor's performance record, contribution to successful wildfire containment, and overall cost-benefit analysis compared to alternative methods or previous contracts. Consistent positive performance would indicate high effectiveness.

What are the historical spending patterns for similar aerial support services by the Forest Service or Department of Agriculture?

Analyzing historical spending patterns for aerial support services by the Forest Service and the broader Department of Agriculture would reveal trends in contract values, types of services procured, and contractor landscape. This contract's value of $4.6 million over four years ($1.15M annually) can be compared to previous years' expenditures on similar fixed-wing aircraft services. Understanding whether spending has increased, decreased, or remained stable provides context on the agency's evolving needs and budget allocation for aviation support. It also helps identify if this award represents a continuation of established support levels or a shift in strategy.

What is the potential impact of the economic price adjustment (EPA) clause on the total contract cost over its duration?

The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specified economic factors, typically inflation indices related to labor, fuel, or materials. The potential impact on the total cost of this $4.6 million contract depends heavily on the specific indices used, the base period, and the rate of inflation during the contract's performance period (2022-2026). If inflation is moderate, the EPA might only result in minor price increases. However, in periods of high inflation, the EPA could significantly increase the final cost above the initial estimated value, potentially leading to budget challenges if not adequately forecasted.

Industry Classification

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

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

Evaluated Preference: NONE

Contractor Details

Address: 4500 E AVIATION WAY STE A, SAFFORD, AZ, 85546

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

Financial Breakdown

Contract Ceiling: $4,571,965

Exercised Options: $4,571,965

Current Obligation: $4,571,965

Actual Outlays: $3,719,325

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA22T9116

IDV Type: IDC

Timeline