Forest Service Awards $4.07M for Light Fixed-Wing Aircraft Services to Ponderosa Aviation Inc

Contract Overview

Contract Amount: $4,073,750 ($4.1M)

Contractor: Ponderosa Aviation Inc

Awarding Agency: Department of Agriculture

Start Date: 2022-04-22

End Date: 2026-12-31

Contract Duration: 1,714 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: Transportation

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

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 CHESTER Key points: 1. The contract is for light fixed-wing aircraft services, including base operations and four option years. 2. Ponderosa Aviation Inc. secured the award through full and open competition after exclusion of sources. 3. The contract type is Fixed Price with Economic Price Adjustment, indicating potential for cost fluctuations. 4. This spending falls under the Nonscheduled Chartered Passenger Air Transportation sector.

Value Assessment

Rating: good

The award amount of $4.07 million over approximately 4.7 years appears reasonable for specialized aviation services. Benchmarking against similar contracts for aerial firefighting or surveillance would provide a more precise assessment.

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, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The $4.07 million expenditure represents taxpayer investment in critical aerial support services for the Forest Service, aiming for efficient resource management and operational effectiveness.

Public Impact

Ensures continued aerial support for Forest Service operations, potentially including firefighting, surveillance, or transport. Supports a private sector aviation company, contributing to the aerospace and transportation industries. The economic price adjustment clause may lead to costs exceeding initial projections if fuel or other economic factors rise significantly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic Price Adjustment clause could increase final cost.
Limited information on specific performance metrics or service levels.

Positive Signals

Awarded through full and open competition.
Supports critical Forest Service operations.

Sector Analysis

The contract falls within the Nonscheduled Chartered Passenger Air Transportation sector, specifically for light fixed-wing aircraft. Spending in this area is often driven by seasonal needs like wildfire suppression or remote area access.

Small Business Impact

The data indicates that the awardee, Ponderosa Aviation Inc., is not a small business (ss: false). Therefore, this contract does not directly benefit small businesses through prime award.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Forest Service, a federal agency with established oversight mechanisms. The 'delivery order' nature suggests it's part of a larger framework, implying ongoing monitoring.

Related Government Programs

Nonscheduled Chartered Passenger Air Transportation
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Potential for cost overruns due to EPA.
Lack of explicit small business participation.
Limited detail on specific service requirements and performance metrics.
Dependence on a single contractor for a critical service.

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 CHESTER

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: 2022-04-22. End: 2026-12-31.

What is the specific operational need for these light fixed-wing aircraft services?

The specific operational need likely pertains to supporting the Forest Service's mission, which could include aerial reconnaissance for wildfire detection and monitoring, environmental surveys, transportation of personnel or equipment to remote areas, or other specialized aerial support functions critical for land management and conservation efforts.

What are the potential risks associated with the 'Economic Price Adjustment' clause?

The primary risk of an Economic Price Adjustment (EPA) clause is that the final contract cost could exceed the initial fixed price if underlying economic factors, such as fuel prices, labor costs, or material expenses, increase significantly over the contract period. This can lead to budget overruns and reduced cost certainty for the government.

How effectively will Ponderosa Aviation Inc. meet the Forest Service's performance requirements?

Effectiveness will depend on Ponderosa Aviation Inc.'s demonstrated performance history, adherence to safety standards, aircraft maintenance protocols, and timely response capabilities. The Forest Service will likely monitor key performance indicators (KPIs) related to flight hours, mission completion rates, and incident response times to ensure satisfactory service delivery.

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: $4,073,750

Exercised Options: $4,073,750

Current Obligation: $4,073,750

Actual Outlays: $3,225,118

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA22T9116

IDV Type: IDC

Timeline