USDA Forest Service leases aircraft for $5.6M from Tenax Aerospace LLC
Contract Overview
Contract Amount: $5,642,552 ($5.6M)
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: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT
Place of Performance
Location: RIDGELAND, MADISON County, MISSISSIPPI, 39157
Plain-Language Summary
Department of Agriculture obligated $5.6 million to TENAX AEROSPACE LLC for work described as: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT Key points: 1. Lease agreement for aerial supervision aircraft valued at $5.64M. 2. Tenax Aerospace LLC is the sole contractor for this specific lease. 3. The contract duration is 3 years, ending December 31, 2026. 4. This falls under the Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing sector.
Value Assessment
Rating: good
The contract value of $5.64M for a 3-year aircraft lease appears reasonable given the specialized nature of aerial supervision. Benchmarking against similar government contracts for aviation services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: Taxpayer funds are being used for essential aerial supervision services, with competition aiming to ensure value for money.
Public Impact
Supports critical wildfire detection and monitoring operations. Ensures operational readiness for the Forest Service's aerial surveillance needs. Provides specialized aviation assets for environmental monitoring and resource management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases upon contract renewal.
- Dependence on a single vendor for this specific lease.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and delivery terms.
Sector Analysis
This contract falls within the transportation equipment rental and leasing sector, specifically for aviation services. Government spending in this area is often driven by operational needs for surveillance, transport, and specialized missions.
Small Business Impact
The data does not indicate whether small businesses were involved in the bidding process or as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract is managed by the Department of Agriculture's Forest Service. Standard government oversight mechanisms for lease agreements and service delivery would apply.
Related Government Programs
- Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing
- Department of Agriculture Contracting
- Forest Service Programs
Risk Flags
- Contract duration is fixed, requiring re-competition or extension.
- Potential for sole-source extension if competition proves difficult.
- Reliance on specialized aviation services.
- Market fluctuations in aviation fuel and maintenance costs.
Tags
commercial-air-rail-and-water-transporta, department-of-agriculture, ms, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $5.6 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 $5.6 million.
What is the period of performance?
Start: 2024-01-01. End: 2026-12-31.
What is the specific operational requirement driving the need for this aerial supervision module lease?
The lease supports the Forest Service's critical mission of aerial supervision, which includes wildfire detection, monitoring, and potentially other environmental surveillance tasks. This ensures they have the necessary specialized aircraft to fulfill their mandate effectively and safely.
Are there any performance metrics or service level agreements tied to this lease agreement?
The provided data does not detail specific performance metrics or service level agreements. However, typical government contracts for aviation services include requirements for aircraft availability, maintenance, pilot qualifications, and operational readiness to ensure mission success.
What is the potential impact of aircraft downtime or maintenance issues on Forest Service operations?
Significant aircraft downtime could severely impact the Forest Service's ability to conduct timely wildfire detection and monitoring, potentially leading to delayed response and increased damage. Robust maintenance schedules and contingency plans are crucial to mitigate this risk.
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: $9,689,879
Exercised Options: $5,664,839
Current Obligation: $5,642,552
Actual Outlays: $3,021,458
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 1202SA23T9450
IDV Type: IDC
Timeline
Start Date: 2024-01-01
Current End Date: 2026-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-03-30
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