Agriculture's Forest Service leases aircraft for $7.6M to support aerial supervision, with full and open competition

Contract Overview

Contract Amount: $7,625,279 ($7.6M)

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: $7.0K/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 $7.6 million to TENAX AEROSPACE LLC for work described as: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT Key points: 1. Leasing aircraft for aerial supervision represents a strategic approach to wildfire management and resource monitoring. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price structure aims to provide cost certainty for the government. 4. The duration of the contract is three years, aligning with seasonal operational needs. 5. The use of a dry lease (aircraft only, no crew or maintenance) allows flexibility in operational staffing. 6. The contract's value is moderate within the context of large federal aviation procurements.

Value Assessment

Rating: good

The contract value of $7.6 million over three years for aircraft leasing appears reasonable, especially given it was awarded under full and open competition. Benchmarking against similar aerial support contracts for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price nature helps control costs, but the absence of specific performance metrics makes a direct value comparison challenging without further detail on utilization and operational success.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The Forest Service likely sought proposals that met specific aircraft and performance requirements, with the lowest priced, technically acceptable offer or best value being selected.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, ensuring government funds are used efficiently.

Public Impact

The primary beneficiaries are the US Forest Service and other agencies involved in wildfire management and natural resource monitoring. The contract delivers essential aerial surveillance capabilities for detecting and monitoring wildfires, as well as supporting other land management activities. The geographic impact is national, supporting operations across various regions managed by the Forest Service. Workforce implications include the potential for pilots and support staff employed by the contractor, Tenax Aerospace LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the full value and effectiveness of the leased aircraft.
The dry lease arrangement requires the Forest Service to manage crewing and maintenance, adding potential indirect costs and complexities.
Dependence on a single contractor for a critical service like aerial supervision carries inherent operational risks.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Firm-fixed-price contract provides cost predictability for the duration of the agreement.
The contractor, Tenax Aerospace LLC, is likely experienced in providing aviation services to government entities.

Sector Analysis

The aviation services sector is critical for government operations, particularly for agencies like the Forest Service that require aerial support for surveillance, firefighting, and resource management. This contract falls under the broader category of transportation equipment rental and leasing. The market for specialized government aviation contracts can be competitive, with established players offering a range of services from dry leases to fully managed aircraft operations. Spending in this area is often driven by seasonal needs, such as wildfire seasons, and the need for reliable, deployable assets.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor, Tenax Aerospace LLC, may be a large business, there is no explicit information on subcontracting plans to small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for specialized services related to this lease.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the USDA Forest Service. The firm-fixed-price nature simplifies some aspects of financial oversight, focusing on delivery and adherence to lease terms. Transparency is facilitated by the contract being awarded under full and open competition, with data typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Wildfire Suppression Support
Aerial Surveillance Contracts
Federal Aviation Services
Natural Resource Management Aircraft Leases
Department of Agriculture Aviation Procurement

Risk Flags

Potential for increased indirect costs due to dry lease management responsibilities.
Risk of operational disruption if contractor fails to meet availability requirements.
Need for robust internal management of leased assets to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.6 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 $7.6 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 fulfilling federal aviation contracts?

Tenax Aerospace LLC has a history of providing aviation services, including aircraft leasing and operations, to various government agencies. While specific details on past performance for similar aerial supervision modules are not provided in this data snippet, their presence as a contractor suggests they possess the necessary certifications, experience, and operational capacity. A deeper dive into their contract history, including past performance reviews and any reported issues on federal contracts, would offer a more comprehensive understanding of their reliability and capability in meeting government requirements. Examining their portfolio of past awards and client agencies can indicate their specialization and success in the federal aviation market.

How does the cost of this aircraft lease compare to similar federal contracts for aerial supervision?

Without specific details on the aircraft type, capabilities, and lease terms (e.g., hours included, maintenance responsibilities), a direct cost comparison is challenging. However, the total contract value of $7.6 million over three years ($2.53 million annually) for a dry lease needs to be benchmarked against market rates for similar federal aviation support. Factors influencing cost include aircraft model, age, performance specifications, and the duration of the lease. The fact that it was awarded under full and open competition suggests that the pricing was deemed competitive at the time of award. Further analysis would involve comparing this contract's per-diem or per-hour rates against other federal contracts for similar aerial platforms used for surveillance or firefighting support.

What are the primary risks associated with this dry lease contract for the Forest Service?

The primary risks for the Forest Service in this dry lease contract revolve around operational execution and cost management. Since it's a dry lease, the agency is responsible for providing pilots, maintenance, insurance, and potentially hangarage, which introduces complexities and potential cost overruns if not managed efficiently. There's also the risk of aircraft unavailability due to maintenance issues or contractor-related problems, which could impact critical wildfire surveillance or response missions. Furthermore, the firm-fixed-price nature, while good for budget certainty, means the Forest Service bears the risk if operational needs exceed the contracted terms or if unforeseen maintenance challenges arise. Ensuring adequate staffing and maintenance expertise within the agency is crucial to mitigate these risks.

How effective is the Forest Service in utilizing leased aircraft for its aerial supervision missions?

The effectiveness of leased aircraft for the Forest Service's aerial supervision missions depends heavily on the specific operational context, the suitability of the leased platforms, and the agency's internal management of these assets. While aircraft leasing offers flexibility and access to specialized equipment without the long-term capital investment of purchasing, the success hinges on proper planning, integration into existing workflows, and skilled personnel to operate and maintain them. Data on mission completion rates, response times, and the quality of surveillance data gathered would be necessary to quantitatively assess effectiveness. The Forest Service's long history of using aviation assets suggests established procedures, but the effectiveness of any specific contract, like this one, requires ongoing performance monitoring.

What are the historical spending patterns for aerial supervision aircraft leases by the Department of Agriculture?

Historical spending patterns for aerial supervision aircraft leases by the Department of Agriculture, particularly the Forest Service, likely show significant fluctuations tied to wildfire seasons and budget allocations. Agencies often rely on a mix of owned aircraft, interagency agreements, and leased assets to meet their aerial needs. Leasing is often employed for surge capacity or when specific aircraft types are required temporarily. Analyzing past contract awards for similar services would reveal trends in contract values, durations, and the prevalence of different contracting methods (e.g., full and open vs. other sources). Understanding these patterns helps contextualize the current $7.6 million award and assess whether spending is consistent with historical needs and resource availability.

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: 1202SA23R9101

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: $13,173,099

Exercised Options: $7,625,279

Current Obligation: $7,625,279

Actual Outlays: $4,242,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline