Agriculture's $4.1M Ponderosa Aviation contract for air attack services awarded via full and open competition

Contract Overview

Contract Amount: $4,094,295 ($4.1M)

Contractor: Ponderosa Aviation Inc

Awarding Agency: Department of Agriculture

Start Date: 2022-04-20

End Date: 2026-12-31

Contract Duration: 1,716 days

Daily Burn Rate: $2.4K/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 KLAMATH FALLS

Place of Performance

Location: SAFFORD, GRAHAM County, ARIZONA, 85546

State: Arizona Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.1 million to PONDEROSA AVIATION INC for work described as: 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS KLAMATH FALLS Key points: 1. Contract awarded to Ponderosa Aviation Inc. for light fixed-wing air attack services. 2. The contract includes a base year and four option years, indicating a long-term need. 3. Awarded through full and open competition, suggesting a robust bidding process. 4. The contract type is Fixed Price with Economic Price Adjustment, which can mitigate inflation risks. 5. Services are for nonscheduled chartered passenger air transportation, likely for firefighting or surveillance. 6. The contract duration is over 1700 days, spanning from April 2022 to December 2026. 7. The primary service area appears to be Arizona, based on the state code provided.

Value Assessment

Rating: good

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar air attack services. However, the fixed-price structure with economic price adjustment suggests an attempt to control costs while accounting for potential market fluctuations. The award to a single contractor after open competition implies that Ponderosa Aviation offered the best value among the bidders.

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 is a specific type of full and open competition. This indicates that the agency sought proposals from all responsible sources and the contract was awarded to the responsible source submitting the lowest price, technically acceptable proposal. The fact that it was competed broadly suggests multiple bidders likely participated, leading to competitive pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation from multiple vendors.

Public Impact

The primary beneficiaries are likely the US Forest Service and other agencies involved in wildland fire management and aerial surveillance. Services delivered include nonscheduled chartered passenger air transportation, essential for deploying personnel and equipment to remote areas. The geographic impact is primarily focused on Arizona, where the contract is managed and services are likely rendered. Workforce implications include support for pilots, ground crews, and aviation maintenance personnel employed by Ponderosa Aviation Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause if market conditions change significantly.
Dependence on a single contractor for critical air attack services could pose a risk if performance issues arise.
Limited transparency on specific performance metrics and outcomes without further contract details.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured favorable pricing.
Long-term contract duration (over 4 years) provides stability and ensures continuity of essential services.
Fixed-price structure with economic price adjustment offers some cost predictability while allowing for market adjustments.

Sector Analysis

The aviation services sector is critical for government operations, particularly in areas like defense, emergency response, and resource management. Contracts for specialized air transportation, such as air attack for firefighting, are vital for agencies like the Forest Service. The market for these services is competitive, with specialized operators offering a range of aircraft and capabilities. This contract fits within the broader category of nonscheduled chartered air transportation, supporting specific operational needs rather than routine flight schedules.

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 that the contract was not specifically targeted towards small businesses, and larger, established aviation companies were likely the primary participants in the bidding process. Subcontracting opportunities for small businesses are not explicitly detailed but could exist if Ponderosa Aviation Inc. chooses to engage them for specific services or parts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the US Forest Service. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases and public reporting, although specific operational details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Wildland Firefighting Support Services
Aerial Surveillance Contracts
Government Aviation Charters
Department of Agriculture Aviation Contracts
Forest Service Operational Support

Risk Flags

Potential for cost escalation due to Economic Price Adjustment clause.
Contractor performance risk in challenging operational environments.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.1 million to PONDEROSA AVIATION INC. 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS KLAMATH FALLS

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 $4.1 million.

What is the period of performance?

Start: 2022-04-20. End: 2026-12-31.

What is the historical spending pattern for similar air attack services by the US Forest Service?

Analyzing historical spending for similar air attack services by the US Forest Service is crucial for contextualizing the $4.1 million award to Ponderosa Aviation Inc. While specific historical data for this exact service is not provided, the Forest Service consistently invests significant funds in aviation support for wildfire suppression and management. This includes contracts for various aircraft types, such as fixed-wing air tankers, helicopters, and specialized observation planes. Spending can fluctuate annually based on wildfire activity, budget appropriations, and strategic procurement decisions. Past contracts often involve multi-year agreements to ensure readiness and availability of critical assets. Benchmarking this contract's value against previous awards for similar services, considering inflation and operational scope, would provide a clearer picture of its cost-effectiveness.

How does Ponderosa Aviation Inc.'s track record compare to other potential bidders for this type of contract?

Ponderosa Aviation Inc.'s track record is a key factor in assessing the value and risk associated with this $4.1 million contract. As a company specializing in aviation services, their history likely includes experience in charter operations, potentially including government contracts. A thorough review would examine their safety record, on-time performance, fleet maintenance, and past performance on similar government contracts, particularly those involving aerial firefighting or surveillance. Comparing this to the track records of other potential bidders, especially those who may have bid but did not win, would reveal if Ponderosa offered a superior combination of experience, reliability, and cost. A strong, unblemished track record generally reduces performance risk for the government and suggests a higher likelihood of successful contract execution.

What are the primary risks associated with this specific contract, beyond general contract risks?

Beyond general contract risks like cost overruns or performance failures, this specific contract for light fixed-wing air attack services carries unique risks. One primary risk is the operational environment: aerial firefighting and surveillance often occur in remote, challenging terrains and unpredictable weather conditions, increasing the potential for accidents. The reliance on a single contractor, even after full and open competition, poses a risk if Ponderosa Aviation Inc. experiences fleet grounding due to maintenance issues, pilot shortages, or unforeseen operational disruptions. Furthermore, the economic price adjustment (EPA) clause introduces a risk of cost escalation if fuel prices or other economic factors rise significantly beyond projections, potentially impacting the total cost to the government. Ensuring the contractor maintains rigorous safety protocols and operational readiness is paramount.

How effective are fixed-price contracts with economic price adjustment clauses in managing costs for long-term aviation services?

Fixed-price contracts with economic price adjustment (EPA) clauses aim to strike a balance between cost certainty and flexibility for long-term agreements like this $4.1 million air attack contract. The fixed-price component provides a baseline cost, offering predictability for the government. The EPA clause allows for adjustments based on specific economic factors, typically related to inflation, fuel costs, or labor rates, as defined in the contract. This mechanism is intended to protect both the contractor from unexpected cost increases that could lead to performance issues or contract disputes, and the government from paying excessive amounts if market conditions remain stable. The effectiveness hinges on how well the EPA formula is structured and whether it accurately reflects relevant market changes without incentivizing unnecessary cost escalations.

What is the typical duration and value range for similar nonscheduled chartered passenger air transportation contracts?

The typical duration and value range for similar nonscheduled chartered passenger air transportation contracts can vary widely depending on the specific service, agency, and operational requirements. Contracts for specialized services like aerial firefighting support, as indicated by this $4.1 million award to Ponderosa Aviation Inc., often involve multi-year durations (like the base plus four option years here) to ensure consistent availability and operational readiness. Values can range from tens of thousands to millions of dollars annually. Factors influencing duration and value include the type and number of aircraft required, the geographic area of operation, the intensity of service (e.g., daily availability vs. on-call), and the specific mission objectives. This contract's duration of over 1700 days and value of approximately $4.1 million appear to be within a reasonable range for specialized, long-term government aviation support.

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: $4,094,295

Exercised Options: $4,094,295

Current Obligation: $4,094,295

Actual Outlays: $3,362,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA22T9116

IDV Type: IDC

Timeline