USDA Forest Service leases aircraft for $5.5M to support aerial supervision, with a 3-year term

Contract Overview

Contract Amount: $5,528,626 ($5.5M)

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: $5.0K/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 $5.5 million to TENAX AEROSPACE LLC for work described as: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT Key points: 1. The contract leverages a firm-fixed-price structure, aiming for cost certainty. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The lease duration of three years provides a stable operational window. 4. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The specific North American Industry Classification System (NAICS) code 532411 points to equipment rental and leasing. 6. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned.

Value Assessment

Rating: good

The contract value of $5.5 million over three years for aerial supervision aircraft lease appears reasonable given the specialized nature of the equipment and services. Benchmarking against similar aerial firefighting or surveillance contracts would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps manage cost risks for the government. Without specific details on aircraft capabilities and operational hours, a definitive value assessment is challenging, but the price seems within a plausible range for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the method of competition suggests an effort to maximize market participation and identify the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of providers to compete, potentially driving down costs and improving the quality of services received.

Public Impact

The primary beneficiaries are the USDA Forest Service, which gains access to essential aerial supervision capabilities. The services delivered include aerial monitoring and supervision, crucial for wildfire detection and management. The geographic impact is likely focused on areas managed by the Forest Service, particularly in Mississippi where the contract is managed. The contract supports the aviation sector by providing business to Tenax Aerospace LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if market rates for specialized aircraft rise significantly during the lease term.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise.
Limited transparency on the specific performance metrics and evaluation criteria used in the competition.

Positive Signals

Firm-fixed-price contract provides cost predictability for the government.
Full and open competition suggests a robust selection process aimed at achieving best value.
The three-year duration offers stability for planning and operations.

Sector Analysis

The contract falls within the broader transportation equipment rental and leasing sector, specifically focusing on specialized aviation assets. This sector is critical for government operations requiring aerial capabilities, such as surveillance, firefighting, and resource management. The market for such services is often niche, involving companies with specific certifications and aircraft types. Spending benchmarks for similar aerial lease contracts vary widely based on aircraft type, duration, and mission requirements.

Small Business Impact

This contract was not set aside for small businesses, nor is there an indication of specific small business subcontracting goals. This suggests that the primary award went to a larger entity, and opportunities for small businesses would likely be through direct subcontracting if Tenax Aerospace LLC chooses to engage them, which is not explicitly mandated by the contract details provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the USDA Forest Service. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services. Transparency is generally maintained through contract databases, though specific performance reviews and operational details may not be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Wildfire Management Aircraft Leases
Aerial Surveillance Contracts
Forestry and Land Management Support Services
Aviation Support Services

Risk Flags

Potential for performance issues if aircraft availability is impacted by maintenance or unforeseen events.
Cost predictability relies on the accuracy of the firm-fixed-price estimation against actual operational demands.
Dependence on a single contractor for a critical service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.5 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 $5.5 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 government contracts?

Information regarding Tenax Aerospace LLC's specific track record with government contracts, particularly for aerial supervision modules or similar 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 contractor performance systems would be the primary sources for this information. Understanding their experience with similar missions, aircraft types, and contract structures is crucial for evaluating reliability and capability.

How does the awarded price compare to market rates for similar aircraft leases?

The provided data does not include specific details about the aircraft's capabilities (e.g., type, age, equipment) or the required operational hours, making a direct market rate comparison difficult. The total contract value is $5.5 million over 1095 days (3 years). To benchmark, one would need to identify comparable aircraft leases for aerial supervision or similar missions from other government agencies or commercial providers. Factors such as aircraft model, payload capacity, sensor equipment, and operational tempo significantly influence pricing. Without these specifics, assessing whether $5.5 million represents excellent, fair, or questionable value is speculative.

What are the primary risks associated with this aerial supervision module lease?

Key risks include potential operational disruptions due to aircraft maintenance or unforeseen technical issues, which could impact the Forest Service's ability to conduct vital aerial supervision. Another risk is the potential for cost escalation if the firm-fixed-price contract does not adequately account for all operational variables or if market conditions change unfavorably for the contractor, potentially leading to performance issues. Dependence on a single provider for a critical service also presents a risk if the contractor faces financial instability or fails to meet performance standards. Ensuring robust oversight and contingency planning is essential.

How effective is aerial supervision for wildfire management and what is the impact of this contract?

Aerial supervision is a critical component of wildfire management, enabling early detection of ignitions, monitoring of fire progression, assessment of resource needs, and strategic planning for suppression efforts. Aircraft equipped for surveillance provide a broad view of terrain and fire behavior that is often impossible from the ground. This contract directly supports the USDA Forest Service's mission by providing dedicated aerial resources, thereby enhancing their capacity for effective wildfire prevention, detection, and management, ultimately contributing to the protection of natural resources and public safety.

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

Analyzing historical spending patterns for aerial supervision aircraft leases by the USDA Forest Service would require access to historical contract data. This would involve identifying similar contracts over previous fiscal years, noting the number of awards, contract values, durations, and the types of aircraft leased. Such an analysis could reveal trends in spending, identify key contractors, and highlight any significant fluctuations in demand or pricing. Without this historical data, it's difficult to contextualize the current $5.5 million contract within the agency's broader procurement history for these services.

Are there specific performance metrics tied to this contract, and how are they measured?

The provided contract abstract does not specify the detailed performance metrics or how they are measured. Typically, such contracts would include requirements related to aircraft availability, operational readiness, response times, flight hours, and potentially data collection or reporting standards for the aerial supervision conducted. The effectiveness of oversight and the contractor's adherence to these metrics would be crucial for ensuring the government receives the intended value and service quality. Further review of the contract's statement of work (SOW) and performance clauses would be necessary to ascertain these details.

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: $9,553,666

Exercised Options: $5,528,626

Current Obligation: $5,528,626

Actual Outlays: $3,036,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline