Agriculture's $4M Ponderosa Aviation contract for air attack services awarded under full and open competition

Contract Overview

Contract Amount: $3,999,114 ($4.0M)

Contractor: Ponderosa Aviation Inc

Awarding Agency: Department of Agriculture

Start Date: 2022-04-27

End Date: 2026-12-31

Contract Duration: 1,709 days

Daily Burn Rate: $2.3K/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 SISKIYOU

Place of Performance

Location: SAFFORD, GRAHAM County, ARIZONA, 85546

State: Arizona Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.0 million to PONDEROSA AVIATION INC for work described as: 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS SISKIYOU Key points: 1. Contract awarded to Ponderosa Aviation Inc. for light fixed-wing air attack services. 2. The contract has a base period and four option years, extending through late 2026. 3. Awarded under 'Full and Open Competition After Exclusion of Sources', indicating a competitive process. 4. The contract type is Fixed Price with Economic Price Adjustment, allowing for cost fluctuations. 5. Services are for nonscheduled chartered passenger air transportation, likely supporting firefighting or land management. 6. The contract value is approximately $4 million over its potential duration. 7. The primary service area appears to be Arizona, based on the state code (AZ).

Value Assessment

Rating: good

The contract value of approximately $4 million for air attack services over nearly four years appears reasonable given the specialized nature of the services. 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 market volatility.

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,' which implies that while the initial process might have had some exclusions, the final award was made through a competitive solicitation open to all eligible sources. The specific number of bidders is not provided, but this designation suggests a robust competition was intended and likely achieved, which typically leads to better pricing for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down prices through market forces. This approach minimizes the risk of overpaying for essential services.

Public Impact

The primary beneficiaries are likely the U.S. Forest Service and other Department of Agriculture agencies requiring aerial support for land management, wildfire suppression, or other operational needs. The services delivered include nonscheduled chartered passenger air transportation, specifically for light fixed-wing aircraft used in air attack roles. The geographic impact is primarily focused on Arizona (AZ), where the aircraft and operations will likely be based or frequently deployed. This contract supports a specialized aviation workforce, including pilots and support personnel, contributing to the operational capacity of federal land management agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to the Economic Price Adjustment clause if fuel or labor costs rise significantly.
Dependence on a single contractor, Ponderosa Aviation Inc., for critical air support services in the specified region.
The 'Exclusion of Sources' aspect of the competition, while ultimately leading to full and open, warrants understanding the initial exclusions.

Positive Signals

Awarded through a competitive process, suggesting a fair market price was likely achieved.
Contract duration provides stability and predictability for essential air support services.
Fixed-price element offers some cost control for the government.

Sector Analysis

The aviation services sector is critical for government operations, including defense, emergency response, and land management. Contracts for specialized air support, such as air attack platforms, are essential for agencies like the Forest Service. The market for these services is often specialized, with a limited number of qualified providers capable of meeting stringent safety and operational requirements. Spending in this area is benchmarked against similar contracts for aerial firefighting and surveillance, which can vary significantly based on aircraft type, duration, and mission complexity.

Small Business Impact

The data indicates that small business participation (sb: false) and set-asides (ss: false) were not primary considerations for this specific contract award. This suggests the contract was likely awarded based on best value or technical qualifications rather than a small business preference. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting these critical services.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Forest Service contracting officers and program managers within the Department of Agriculture. Accountability measures are embedded in the contract terms, including performance standards and delivery requirements. Transparency is facilitated through contract databases like SAM.gov, where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Wildfire Suppression Support
Aerial Surveillance Contracts
Fixed-Wing Aircraft Charter Services
Department of Agriculture Aviation Operations
Forest Service Operational Support

Risk Flags

Potential for cost escalation due to Economic Price Adjustment.
Dependence on a single contractor for critical services.
Limited transparency on the number of bidders in the final competition phase.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.0 million to PONDEROSA AVIATION INC. 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS SISKIYOU

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 $4.0 million.

What is the period of performance?

Start: 2022-04-27. End: 2026-12-31.

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

Analyzing historical spending for similar air attack services by the Forest Service in Arizona requires accessing detailed contract databases and filtering by agency, service type, and geographic region over several fiscal years. While this specific contract is valued at approximately $4 million over its potential duration, understanding the average annual spend, the number of contracts awarded, and the typical contract values for light fixed-wing air attack platforms would provide crucial context. For instance, if the average annual spend for such services in Arizona has been consistently higher or lower than the prorated amount for this contract, it could indicate whether this award represents an increase or decrease in investment, or if pricing has changed significantly. Without access to a comprehensive historical database, it's challenging to provide precise figures, but such an analysis would reveal trends in demand, pricing, and contractor utilization.

How does the pricing structure (Fixed Price with Economic Price Adjustment) compare to other government aviation contracts?

The Fixed Price with Economic Price Adjustment (FP-EPA) contract type is common for services where input costs, such as fuel or labor, are subject to significant market fluctuations. Compared to a firm Fixed Price (FP) contract, FP-EPA offers the government some protection against extreme cost increases while allowing the contractor to remain whole, thus potentially encouraging more competitive bids. Conversely, it offers less cost certainty than FP. Other government aviation contracts might use FP for services with stable costs or Cost Plus contracts for highly uncertain R&D or complex, undefined missions. For routine, recurring services like air attack, FP-EPA strikes a balance, acknowledging the volatility of aviation fuel and operational expenses while aiming for a predictable baseline cost.

What are the specific risks associated with relying on Ponderosa Aviation Inc. for these critical air support services?

The primary risks associated with relying on a single contractor, Ponderosa Aviation Inc., for critical air support services include potential disruptions due to the contractor's operational issues (e.g., aircraft maintenance, pilot availability, financial instability), or a lack of competitive pressure on pricing and performance over time. If Ponderosa faces unforeseen challenges, the Forest Service could experience service gaps, impacting its ability to conduct essential operations like wildfire suppression or land management. Furthermore, without ongoing robust competition, there's a risk that prices could become less competitive in future contract renewals. Mitigation strategies could involve close performance monitoring, ensuring robust contingency plans are in place, and preparing for future competitive procurements well in advance.

What is the typical performance standard for nonscheduled chartered passenger air transportation in federal contracts?

Performance standards for nonscheduled chartered passenger air transportation in federal contracts typically revolve around safety, reliability, and timeliness. Key metrics often include on-time performance for departures and arrivals, adherence to flight plans and altitudes, aircraft airworthiness and maintenance logs, pilot qualifications and duty hour compliance, and passenger comfort and safety protocols. For air attack services, specific performance standards would also include response times to incidents, loiter times over target areas, and the ability to operate under challenging conditions (e.g., smoke, terrain). Contracts usually specify requirements for reporting flight data, incident logs, and maintenance records, with penalties or remedies for non-compliance.

How does the 'Full and Open Competition After Exclusion of Sources' designation impact the perceived fairness and competitiveness of the award?

The designation 'Full and Open Competition After Exclusion of Sources' indicates that while the initial solicitation process may have involved excluding certain sources based on specific criteria (e.g., geographic limitations, specific technical capabilities not widely available), the subsequent stages were fully open to all responsible sources meeting those criteria. This approach aims to ensure that the competition is meaningful and relevant to the specific needs of the requirement, rather than being overly broad. It suggests that the agency identified a need that might not be met by the entire market but sought the best solution from those capable. While it implies a more tailored competition, it generally still fosters a competitive environment, provided the exclusions were justified and the subsequent open period attracted sufficient bids.

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: $4,025,770

Exercised Options: $4,025,770

Current Obligation: $3,999,114

Actual Outlays: $3,239,742

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA22T9116

IDV Type: IDC

Timeline