USDA Forest Service leases aircraft for $7.8M to support aerial supervision, with a 5-year term

Contract Overview

Contract Amount: $7,804,552 ($7.8M)

Contractor: Tenax Aerospace LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2028-12-31

Contract Duration: 1,826 days

Daily Burn Rate: $4.3K/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 $7.8 million to TENAX AEROSPACE LLC for work described as: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT Key points: 1. The contract value of $7.8 million over five years suggests a significant investment in aerial surveillance capabilities. 2. Full and open competition was utilized, indicating a broad market engagement for this service. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The lease duration of five years allows for sustained operational support. 5. The specific NAICS code 532411 points to the rental and leasing of commercial transportation equipment. 6. The contract is a delivery order under a larger agreement, suggesting a structured procurement process.

Value Assessment

Rating: good

The contract value of $7.8 million for a five-year aircraft lease appears reasonable given the specialized nature of aerial supervision. Benchmarking against similar contracts for specialized aircraft leasing would provide a more precise value assessment. The firm-fixed-price structure helps manage cost risks for the government. The absence of a specific dollar amount for the base period or options makes a detailed price comparison challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This approach typically fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the 'full and open' designation implies a robust competition was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting market efficiency and potentially driving down costs through vendor rivalry.

Public Impact

The primary beneficiaries are the USDA Forest Service, which gains essential aerial supervision capabilities. The services delivered include aerial monitoring and surveillance, crucial for wildfire detection and management. The geographic impact is likely nationwide, supporting forest management across various regions. The contract supports the aviation sector and specialized leasing companies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased operational costs if market rates for specialized aircraft leasing rise significantly during the contract term.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise.

Positive Signals

The use of full and open competition suggests a wide range of potential providers were considered, promoting a healthy market.
The firm-fixed-price contract type provides budget certainty for the Forest Service.
A five-year lease term allows for consistent and reliable access to necessary aerial assets.

Sector Analysis

The contract falls within the broader transportation equipment rental and leasing sector, specifically focusing on specialized aviation assets. The market for aerial surveillance and support aircraft is niche, often involving companies with specific certifications and operational expertise. The $7.8 million value over five years represents a significant, albeit specialized, segment of federal spending on aviation support services.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. As the contract was awarded under full and open competition, it is possible that small businesses could have participated directly or indirectly. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight is likely managed by the USDA Forest Service contracting officers and program managers responsible for aerial operations. Transparency is facilitated through federal contract databases where such awards are reported. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Wildfire Management Support Services
Aviation Support Contracts
Federal Aircraft Leasing
Forestry and Land Management Equipment

Risk Flags

Potential for cost overruns if maintenance costs exceed projections.
Risk of technological obsolescence over the five-year lease term.
Dependence on contractor performance for critical aerial supervision missions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.8 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 $7.8 million.

What is the period of performance?

Start: 2024-01-01. End: 2028-12-31.

What is the historical spending pattern for aerial supervision aircraft by the USDA Forest Service?

Analyzing historical spending for aerial supervision aircraft by the USDA Forest Service is crucial for understanding trends and justifying current expenditures. While specific data for this contract is limited to its current award, a review of past contracts would reveal fluctuations in demand, pricing, and the types of aircraft utilized. For instance, periods of high wildfire activity often correlate with increased spending on aerial resources. Examining the duration and value of previous leases, as well as the number of competitors, can provide context for the $7.8 million award. This historical perspective helps assess whether the current contract represents an increase or decrease in investment and whether it aligns with long-term strategic needs for forest management and protection.

How does the per-unit cost of this aircraft lease compare to similar federal contracts?

A direct per-unit cost comparison for this aircraft lease is challenging without more granular data on the specific aircraft type, capabilities, and operational hours included in the $7.8 million contract. However, the overall value of $7.8 million spread over a five-year period (approximately $1.56 million per year) can be benchmarked against industry standards for similar specialized aerial supervision platforms. Factors such as aircraft model, age, maintenance requirements, crew costs, and included flight hours significantly influence per-unit pricing. If this contract involves advanced sensor packages or specific performance metrics, the cost may be higher than standard leasing. Comparing this annual cost to leases for similar fixed-wing or rotorcraft used for surveillance by other agencies like the Department of the Interior or Department of Defense could reveal cost efficiencies or potential overspending.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

Key performance indicators (KPIs) for this NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT contract are not explicitly detailed in the provided data. However, typical KPIs for such aviation contracts would likely include aircraft availability (e.g., percentage of time the aircraft is ready for deployment), mission completion rates, adherence to flight schedules, maintenance turnaround times, and compliance with safety regulations. Performance is generally measured through regular reporting by the contractor, government inspections, and feedback from operational units utilizing the aircraft. The Forest Service would likely have specific metrics related to the effectiveness of aerial supervision in detecting and monitoring forest fires or other land management issues. Failure to meet these KPIs could result in contractual remedies or penalties.

What is the track record of TENAX AEROSPACE LLC in fulfilling similar government contracts?

Assessing the track record of TENAX AEROSPACE LLC is vital for understanding their capability to fulfill this $7.8 million contract. A review of their past performance on federal contracts, particularly those involving aircraft leasing for surveillance or similar operational support, would provide insight into their reliability, quality of service, and adherence to contractual obligations. This includes examining past contract values, durations, agencies served, and any documented performance issues or commendations. Information from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) can offer valuable data on their history. A strong track record suggests a lower risk for the Forest Service, while a history of performance issues might warrant closer scrutiny and more robust oversight for this current contract.

What are the potential risks associated with a five-year lease for specialized aircraft, and how are they mitigated?

Potential risks associated with a five-year lease for specialized aircraft include technological obsolescence, unexpected increases in maintenance costs, contractor default, and changes in operational requirements. For instance, newer, more efficient aircraft models could emerge during the lease term, making the leased asset less competitive. Unforeseen maintenance issues could drive up operational expenses beyond initial projections. Contractor default, though less likely with established firms, poses a risk of service disruption. Mitigations typically include robust contract language specifying maintenance responsibilities and performance standards, clear termination clauses, and potentially incorporating flexibility for upgrades or substitutions. The firm-fixed-price structure helps mitigate cost escalation risks for the government, while the Forest Service's oversight ensures the contractor meets performance obligations.

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

Solicitation ID: 1202SA22R9102

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: $13,352,372

Exercised Options: $7,804,552

Current Obligation: $7,804,552

Actual Outlays: $4,486,634

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline