USDA Forest Service Awards $4.8M for Light Fixed-Wing Aircraft Services to Elkhorn Aviation

Contract Overview

Contract Amount: $4,814,318 ($4.8M)

Contractor: Elkhorn 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: $2.8K/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 SAN BERNARDINO, CA

Place of Performance

Location: BAKER CITY, BAKER County, OREGON, 97814

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.8 million to ELKHORN AVIATION, INC. for work described as: 2022 NATIONAL AIR ATTACK, LIGHT FIXED WING ATGS BASE AND 4 OPTION YEARS SAN BERNARDINO, CA Key points: 1. Contract awarded to Elkhorn Aviation, Inc. for light fixed-wing aircraft services. 2. The contract has a base value of $4.8 million with four option years. 3. Competition method was 'Full and Open Competition After Exclusion of Sources', indicating a specific reason for source exclusion. 4. The sector is primarily transportation and aviation services supporting agency operations.

Value Assessment

Rating: fair

The contract's fixed-price with economic price adjustment structure can lead to cost fluctuations. Benchmarking against similar aviation service contracts is needed to assess if the pricing is competitive, especially considering the potential for price increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests that while open to all, specific sources were initially excluded, which may limit the competitive pool and potentially impact price discovery.

Taxpayer Impact: The economic price adjustment clause introduces uncertainty in the final taxpayer cost, which could be higher than initially projected if economic factors escalate.

Public Impact

Supports critical Forest Service missions, likely including aerial surveillance, transport, and firefighting support. The contract duration extends through December 2026, ensuring continuity of essential services. Potential for increased costs due to economic price adjustments could impact the overall value for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause
Limited competition method
Lack of detailed cost breakdown

Positive Signals

Supports essential government operations
Long-term service provision

Sector Analysis

This contract falls within the aviation services sector, specifically for light fixed-wing aircraft. Spending in this area is crucial for agencies like the Forest Service for operational needs, but costs can vary significantly based on aircraft type, mission, and duration.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or if this contract specifically targeted small business participation. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract's oversight would involve monitoring performance, adherence to delivery schedules, and managing the economic price adjustment clause to ensure fair pricing and service delivery.

Related Government Programs

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

Risk Flags

Potential for cost escalation due to EPA
Limited competition may reduce price competitiveness
Lack of transparency on source exclusion justification
Need for detailed cost-benefit analysis

Frequently Asked Questions

What is this federal contract paying for?

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

Who is the contractor on this award?

The obligated recipient is ELKHORN 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: 2022-04-27. End: 2026-12-31.

What specific factors justify the 'Exclusion of Sources' in the competition method, and how did this impact the final price?

The justification for excluding specific sources needs to be thoroughly documented by the agency. Typically, such exclusions are based on unique capabilities, prior performance, or specific technical requirements. Understanding these reasons is crucial to assess if the limited competition resulted in a fair and reasonable price or if alternative approaches could have yielded better value for taxpayers.

How will the economic price adjustment clause be managed to mitigate potential cost overruns for taxpayers?

Effective management of the economic price adjustment (EPA) clause requires clear indices and caps to limit unpredictable cost increases. The agency must actively monitor economic indicators tied to the EPA and ensure that any price adjustments are justified and within reasonable bounds. Regular reporting and justification for adjustments are key to taxpayer accountability.

What is the benchmark cost per flight hour or per operational hour for similar light fixed-wing aircraft services in the region or nationally?

Benchmarking against industry standards for similar light fixed-wing aircraft operations is essential. This involves comparing the contract's proposed rates (base and potential adjusted rates) against publicly available data or industry reports for comparable services. A significant deviation from benchmarks could indicate either exceptional value or potential overpricing, warranting further investigation.

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: 43769 HEILNER DR, BAKER CITY, OR, 97814

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

Financial Breakdown

Contract Ceiling: $4,814,318

Exercised Options: $4,814,318

Current Obligation: $4,814,318

Actual Outlays: $3,721,406

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA22T9114

IDV Type: IDC

Timeline