USDA Forest Service leases aircraft for $7.46M to support aerial supervision, with Tenax Aerospace LLC as the contractor

Contract Overview

Contract Amount: $7,456,261 ($7.5M)

Contractor: Tenax Aerospace LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT

Place of Performance

Location: RIDGELAND, MADISON County, MISSISSIPPI, 39157

State: Mississippi Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.5 million to TENAX AEROSPACE LLC for work described as: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT Key points: 1. Value for money appears reasonable given the specialized nature of aerial supervision aircraft. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of three years provides stability for program operations. 4. The firm-fixed-price structure shifts performance risk to the contractor. 5. This contract supports critical wildfire detection and management efforts. 6. Leasing aircraft avoids the significant capital investment and maintenance costs of ownership.

Value Assessment

Rating: good

The contract value of $7.46 million over three years for aerial supervision aircraft represents a significant investment. Benchmarking against similar specialized aircraft leases is challenging due to the niche market. However, the firm-fixed-price structure and the competitive award suggest a reasonable price point was achieved. The cost per day, approximately $6,809, falls within a plausible range for specialized aviation services, especially considering the operational requirements for aerial supervision.

Cost Per Unit: Approximately $6,809 per day (based on total contract value and duration).

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. This approach generally fosters a competitive environment, encouraging vendors to offer their best pricing and terms to secure the award. The specific number of bidders is not provided, but the designation suggests a robust bidding process was available.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are the USDA Forest Service and the public, through enhanced wildfire detection and monitoring capabilities. The services delivered include aerial supervision flights crucial for early wildfire detection and incident management. The geographic impact is national, supporting forest management across various regions. This contract supports the aviation sector and specialized aerospace service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased operational costs if fuel prices or maintenance needs exceed projections.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract insulates the government from cost overruns.
Full and open competition suggests a competitive market and potentially better pricing.
Leasing avoids upfront capital expenditure and long-term maintenance burdens of aircraft ownership.

Sector Analysis

The aviation services sector is a critical component of government operations, particularly for agencies like the Forest Service that require specialized aerial capabilities. This contract fits within the broader category of transportation equipment leasing, specifically focusing on aircraft for operational support. The market for such specialized leases is relatively niche, often dominated by a few key players capable of meeting stringent government requirements.

Small Business Impact

The contract was awarded to Tenax Aerospace LLC and does not indicate any specific small business set-aside provisions. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract award is not apparent from the data.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature simplifies financial oversight compared to cost-reimbursement contracts. Accountability is managed through performance metrics and delivery requirements outlined in the contract. Transparency is generally maintained through federal contract databases, though specific operational details may be sensitive.

Related Government Programs

Wildfire Management Programs
Aerial Surveillance Contracts
Forestry and Land Management Aviation Support
National Interagency Fire Center (NIFC) Operations

Risk Flags

Contract duration may be insufficient for long-term strategic planning.
Lack of specific performance metrics in summary data.
Potential for price volatility in specialized aviation markets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.5 million to TENAX AEROSPACE LLC. NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT

Who is the contractor on this award?

The obligated recipient is TENAX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What is the track record of Tenax Aerospace LLC in performing similar federal contracts?

Information regarding Tenax Aerospace LLC's specific track record with federal contracts, particularly for aerial supervision aircraft leases, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations from previous government engagements. Federal procurement databases and agency performance reports would be the primary sources for such an analysis. Without this specific data, it's difficult to definitively assess their reliability and past performance in delivering similar services.

How does the daily lease cost of $6,809 compare to market rates for similar aircraft?

The daily lease cost of approximately $6,809 for the NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT is a key metric for value assessment. Benchmarking this against market rates for similar specialized aircraft requires detailed knowledge of the aviation leasing market, including aircraft type, age, capabilities, and operational support included. Factors such as availability, demand, and specific lease terms (e.g., dry lease vs. wet lease, flight hour limitations) significantly influence pricing. While this figure appears plausible for specialized aviation services, a definitive comparison would necessitate access to industry rate sheets, competitor quotes, or historical data for comparable government or commercial leases.

What are the primary risks associated with this specific aircraft lease contract?

The primary risks associated with this aircraft lease contract include potential performance issues by the contractor, Tenax Aerospace LLC, which could disrupt critical aerial supervision operations. Another risk is unforeseen increases in operational costs (e.g., fuel, maintenance) that, while borne by the contractor under a fixed-price contract, could indirectly affect future pricing or contractor viability. Dependence on a single provider for a specialized service also presents a risk if the contractor faces financial difficulties or operational failures. Furthermore, the effectiveness of the aircraft in meeting the evolving needs of wildfire management could be a long-term risk if technology or mission requirements change.

How effective is aerial supervision in supporting wildfire management compared to other methods?

Aerial supervision plays a crucial role in wildfire management by providing early detection, real-time situational awareness, and support for ground operations. Aircraft equipped for this purpose can cover vast, often inaccessible, terrains quickly, identifying new ignitions or monitoring the spread of existing fires. This allows for faster response times, potentially minimizing the size and impact of wildfires. Compared to ground patrols, aerial supervision offers superior coverage and speed. However, it is a complement to, not a replacement for, ground-based firefighting efforts and other detection methods like lookout towers or satellite monitoring. Its effectiveness is maximized when integrated into a comprehensive wildfire management strategy.

What has been the historical spending trend for aerial supervision aircraft by the Forest Service?

Analyzing historical spending trends for aerial supervision aircraft by the Forest Service would provide context for the current $7.46 million contract. This would involve examining annual expenditures on similar leases or acquisitions over the past several years. Trends might reveal increasing or decreasing reliance on leased aircraft, changes in average contract values, or shifts in contracting strategies (e.g., from sole-source to competitive). Such data would help determine if the current spending is consistent with historical patterns, an increase due to heightened wildfire activity, or a strategic shift in resource allocation. Without specific historical data, it's difficult to place the current expenditure in a long-term perspective.

What are the specific capabilities and limitations of the leased aircraft for aerial supervision?

The provided data does not specify the exact type of aircraft leased or its particular capabilities and limitations for aerial supervision. Typically, aircraft used for this purpose are equipped with advanced sensors, cameras (including infrared), and communication systems to detect smoke, monitor fire behavior, and relay information to incident command. Limitations can include weather dependency (fog, heavy rain, high winds can ground aircraft), flight endurance, payload capacity for equipment or personnel, and operational range. Understanding these specifics is crucial for assessing the suitability of the leased asset for the Forest Service's mission requirements and for evaluating the value proposition of the contract.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 400 W PARKWAY PL, RIDGELAND, MS, 39157

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,687,261

Exercised Options: $7,456,261

Current Obligation: $7,456,261

Actual Outlays: $4,219,744

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline