Forest Service Awards $4.4M for Light Fixed-Wing Aircraft Services, Boosting Firefighting Capabilities

Contract Overview

Contract Amount: $4,425,049 ($4.4M)

Contractor: Mountain Aviation Enterprises Ltd

Awarding Agency: Department of Agriculture

Start Date: 2022-04-27

End Date: 2026-12-31

Contract Duration: 1,709 days

Daily Burn Rate: $2.6K/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 SANTA MARIA

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87106

State: New Mexico Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.4 million to MOUNTAIN AVIATION ENTERPRISES LTD for work described as: 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS SANTA MARIA Key points: 1. The contract supports critical aerial firefighting and surveillance operations. 2. Competition was full and open after exclusion of sources, suggesting a robust price discovery process. 3. The fixed-price contract with economic price adjustment introduces some risk related to fuel cost fluctuations. 4. Spending falls within the typical range for specialized aviation services in the public sector.

Value Assessment

Rating: good

The award amount of $4.4M over approximately 4 years appears reasonable for specialized light fixed-wing aircraft services. Benchmarking against similar contracts for aerial firefighting or surveillance would provide a more precise assessment, but the pricing seems competitive given the niche nature of the service.

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. This method generally promotes competitive pricing by allowing all eligible vendors to bid, leading to a more efficient price discovery process and potentially better value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential services like wildfire management.

Public Impact

Enhances the Forest Service's ability to combat wildfires and conduct aerial surveillance. Supports critical infrastructure for national resource protection and emergency response. Provides vital services for monitoring and managing public lands, particularly in New Mexico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause may increase costs due to fuel price volatility.
Dependence on a single delivery order for a significant duration.
Potential for operational disruptions if aircraft availability is impacted.

Positive Signals

Full and open competition ensures competitive pricing.
Supports critical national resource protection missions.
Long-term contract provides service stability.

Sector Analysis

This contract falls under the Nonscheduled Chartered Passenger Air Transportation (NAICS 481211) sector, which includes specialized aviation services. Spending benchmarks for similar aerial support contracts, especially those for firefighting and resource management, typically range from hundreds of thousands to several million dollars annually, depending on aircraft type and mission scope.

Small Business Impact

The data indicates this contract was awarded to Mountain Aviation Enterprises Ltd. There is no explicit information provided regarding small business participation or subcontracting goals within this specific award. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Forest Service, an agency within the Department of Agriculture, is responsible for this contract. Oversight would involve monitoring performance, adherence to contract terms, and financial accountability to ensure the effective delivery of aviation services and proper use of federal funds.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to economic price adjustment.
Limited visibility into small business participation.
Dependence on specialized aircraft and pilot availability.
Geographic concentration of services in New Mexico.
Contract duration may not align with evolving long-term needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.4 million to MOUNTAIN AVIATION ENTERPRISES LTD. 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS SANTA MARIA

Who is the contractor on this award?

The obligated recipient is MOUNTAIN AVIATION ENTERPRISES LTD.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $4.4 million.

What is the period of performance?

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

What is the specific breakdown of services covered by this contract, and how does it align with the Forest Service's wildfire suppression and resource management needs?

This contract specifically covers light fixed-wing aircraft services, including base operations and four option years. These services are crucial for aerial reconnaissance, initial attack support, and monitoring of wildfires and other land management activities. The duration and scope suggest a commitment to sustained aerial support for critical missions, ensuring the Forest Service has the necessary assets for effective wildfire management and environmental protection across its operational areas.

What are the primary risks associated with the 'Fixed Price with Economic Price Adjustment' contract type, and how are they mitigated?

The primary risk is cost escalation due to fluctuations in fuel prices, which are a significant component of aviation operating costs. Mitigation strategies typically involve careful negotiation of the economic price adjustment formula, setting reasonable caps on adjustments, and robust monitoring of market fuel prices by the contracting officer to ensure fairness and prevent excessive cost increases for the government.

How does the 'full and open competition after exclusion of sources' method impact the overall value and effectiveness of this contract?

This competition method, while allowing broad participation, involves a pre-qualification or exclusion phase. It aims to ensure that only capable and responsible sources are invited to bid, potentially streamlining the process while still fostering competition. This can lead to effective price discovery and a contract that delivers good value, provided the exclusion criteria are justified and do not unduly limit competition.

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: 2502 CLARK CARR SE LOOP, ALBUQUERQUE, NM, 87106

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

Financial Breakdown

Contract Ceiling: $4,425,049

Exercised Options: $4,425,049

Current Obligation: $4,425,049

Actual Outlays: $3,456,249

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA22T9118

IDV Type: IDC

Timeline