Agriculture's $4.8M Ponderosa Aviation contract for air attack services in Arizona awarded via full and open competition

Contract Overview

Contract Amount: $4,797,204 ($4.8M)

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: $2.8K/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 ALBUQUERQUE

Place of Performance

Location: SAFFORD, GRAHAM County, ARIZONA, 85546

State: Arizona Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.8 million to PONDEROSA AVIATION INC for work described as: 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS ALBUQUERQUE Key points: 1. Contract awarded to Ponderosa Aviation Inc. for light fixed-wing air attack services. 2. The contract spans over 4 years, from April 2022 to December 2026. 3. Services are for nonscheduled chartered passenger air transportation, likely supporting firefighting or land management. 4. Awarded under full and open competition, indicating a competitive bidding process. 5. The contract type is Fixed Price with Economic Price Adjustment, allowing for cost fluctuations. 6. Base year value is approximately $4.8 million, with potential for option years. 7. The contract is for services in Arizona, indicated by 'AZ' and 'ARIZONA'.

Value Assessment

Rating: good

The contract's value of approximately $4.8 million for a 4-year period for specialized air attack services appears reasonable given the nature of the work. Benchmarking against similar contracts for aerial firefighting or surveillance would provide a more precise value-for-money assessment. The Fixed Price with Economic Price Adjustment structure suggests an effort to balance cost certainty with the potential for volatile fuel or operational costs inherent in aviation services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was generally open, there might have been specific exclusions or justifications for limiting the pool initially before a broader competition. However, the primary designation suggests a robust competitive process was intended and likely executed, allowing multiple qualified vendors to bid.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging multiple bidders to offer their best prices.

Public Impact

The primary beneficiaries are likely the US Forest Service and other land management agencies within the Department of Agriculture, who will utilize these air attack services. Services delivered include nonscheduled chartered passenger air transportation, crucial for aerial observation, support, and potentially firefighting operations. The geographic impact is focused on Arizona, where the air attack services will be deployed. Workforce implications may include pilots, ground support personnel, and aviation mechanics employed by Ponderosa Aviation Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to economic price adjustment clauses, which could impact the final cost to taxpayers if market conditions fluctuate significantly.
Dependence on a single contractor for critical air support services in a specific region could pose a risk if performance issues arise or if the contractor faces operational challenges.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment that should drive value.
The contract duration of over 4 years provides stability and continuity for essential air support operations.
Fixed Price contract type, while adjusted, provides a baseline cost structure.

Sector Analysis

The aviation services sector is critical for government operations, including defense, emergency response, and land management. Contracts for specialized air transportation, such as air attack platforms, are essential for agencies like the Forest Service. The market for these services involves a mix of large aerospace companies and smaller, specialized operators. Benchmarking this contract's value against other government contracts for similar aerial support or firefighting aircraft would be informative.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not detailed in this summary, but larger prime contracts often include provisions for small business subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the US Forest Service, a branch of the Department of Agriculture. Accountability measures would be embedded in the contract's performance standards and delivery requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Forest Service Aerial Firefighting Contracts
Department of Agriculture Aviation Support
Nonscheduled Chartered Air Transportation Services
Fixed-Wing Aircraft Support Contracts

Risk Flags

Potential for cost escalation due to Economic Price Adjustment.
Dependence on a single contractor for critical services.
Need for robust performance monitoring to ensure service quality and safety.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.8 million to PONDEROSA AVIATION INC. 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS ALBUQUERQUE

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 $4.8 million.

What is the period of performance?

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

What is Ponderosa Aviation Inc.'s track record with federal contracts, particularly with the Department of Agriculture or Forest Service?

A review of federal procurement data would be necessary to fully assess Ponderosa Aviation Inc.'s track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract disputes or terminations. Understanding their experience with similar types of aviation services, contract values, and agencies like the Forest Service is crucial for evaluating their reliability and capability to fulfill the current contract requirements. Without specific historical data, it's difficult to definitively assess their past performance.

How does the $4.8 million contract value compare to similar air attack contracts awarded by the Forest Service or other agencies?

To benchmark the $4.8 million value, one would need to compare it against contracts for similar light fixed-wing air attack services, considering factors like duration, geographic scope, aircraft type, and specific mission requirements (e.g., firefighting, surveillance). For instance, if similar 4-year contracts for comparable services in other regions range from $3 million to $6 million, then $4.8 million would appear within a reasonable market range. Conversely, if comparable contracts are significantly lower, it might indicate potential overpricing or a higher level of service included in this specific award. Data from contract databases like FPDS or specialized industry reports would be essential for this comparison.

What are the primary risks associated with this contract, considering its duration and service type?

Key risks include operational risks such as aircraft maintenance issues, pilot availability, and weather disruptions impacting service delivery. Given the 'Economic Price Adjustment' clause, there's a financial risk of cost overruns if fuel prices or other operational expenses escalate beyond projections. There's also a performance risk if Ponderosa Aviation Inc. fails to meet the required service levels or safety standards. Furthermore, reliance on a single provider for critical air support in a specific region could pose a continuity risk if unforeseen events disable the contractor's operations.

How effective are nonscheduled chartered passenger air transportation contracts for supporting land management and firefighting missions?

Nonscheduled chartered air transportation is highly effective for land management and firefighting missions due to its flexibility and rapid deployment capabilities. These services provide essential aerial reconnaissance, logistical support (transporting personnel and equipment to remote areas), and direct support during fire suppression efforts (e.g., air attack coordination). The ability to charter aircraft on demand allows agencies to respond quickly to evolving situations without the overhead of maintaining a dedicated fleet. However, effectiveness is contingent on the reliability, responsiveness, and cost-efficiency of the chosen providers.

What has been the historical spending trend for similar air attack services by the Department of Agriculture over the past five years?

Analyzing historical spending trends for similar air attack services by the Department of Agriculture would require accessing detailed procurement data over the last five years. This would involve identifying contracts with similar North American Industry Classification System (NAICS) codes (like 481211 for Nonscheduled Chartered Passenger Air Transportation) and service descriptions. Observing whether spending has increased, decreased, or remained stable can indicate shifts in agency needs, budget allocations, or market competition. A consistent increase might suggest growing demand or inflation, while a decrease could point to efficiency gains or reduced operational requirements.

What specific performance metrics or service level agreements are included in this contract to ensure quality and reliability?

The provided data does not detail specific performance metrics or service level agreements (SLAs). Typically, such contracts would include requirements related to aircraft availability, response times for call-outs, safety standards (e.g., adherence to FAA regulations), pilot qualifications, and maintenance schedules. Performance would likely be monitored through delivery reports, flight logs, and potentially end-user feedback from the Forest Service. Failure to meet these metrics could result in penalties or contract termination, depending on the severity.

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: $4,797,204

Exercised Options: $4,797,204

Current Obligation: $4,797,204

Actual Outlays: $4,005,010

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA22T9116

IDV Type: IDC

Timeline