USDA Forest Service leases aircraft for $5.7M from Tenax Aerospace LLC under full and open competition

Contract Overview

Contract Amount: $5,718,535 ($5.7M)

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

State: Mississippi Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.7 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 $5.7M. 2. Tenax Aerospace LLC is the contractor. 3. Competition method is full and open. 4. Sector is transportation equipment rental and leasing.

Value Assessment

Rating: good

The contract value of $5.7M for a 3-year lease appears reasonable given the specialized nature of aerial supervision aircraft. Benchmarking against similar specialized aircraft leases would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to fair market pricing. This method maximizes opportunities for qualified vendors.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing for essential services.

Public Impact

Ensures critical aerial supervision capabilities for the Forest Service. Supports wildfire management and other aerial surveillance operations. Provides specialized aircraft essential for national resource protection.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand for specialized aircraft impacting future costs.
Dependence on a single contractor for a critical service.

Positive Signals

Awarded through full and open competition.
Clear contract duration and defined scope of work.

Sector Analysis

The contract falls within the Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing sector. Spending in this sector is driven by operational needs for specialized transportation assets.

Small Business Impact

The data indicates that the award was not made to a small business. Further analysis would be needed to determine if small businesses had an opportunity to compete or if set-aside goals were met.

Oversight & Accountability

The contract is a delivery order under a larger framework, suggesting potential for ongoing oversight. The Forest Service's procurement processes should ensure accountability for performance and cost.

Related Government Programs

Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

No small business participation noted.
Potential for sole-source dependency in future.
Specialized asset with limited market alternatives.
Contract duration extends beyond one fiscal year.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.7 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 $5.7 million.

What is the period of performance?

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

What is the typical cost range for similar aerial supervision aircraft leases?

The typical cost range for similar aerial supervision aircraft leases can vary significantly based on aircraft type, mission duration, and required equipment. Specialized aircraft like those used for aerial supervision often command higher lease rates due to their unique capabilities and operational demands. Benchmarking against industry standards and recent government contracts is crucial for assessing value.

What are the risks associated with relying on a single contractor for critical aerial supervision aircraft?

Relying on a single contractor for critical aerial supervision aircraft presents several risks, including potential service disruptions if the contractor faces operational issues, limited leverage for price negotiations in future renewals, and a lack of competitive pressure to maintain service quality. Contingency planning and exploring alternative providers are important mitigation strategies.

How effectively does this lease support the Forest Service's mission objectives?

This lease directly supports the Forest Service's mission by providing essential aerial supervision capabilities, crucial for wildfire detection, monitoring, and management, as well as other resource protection activities. The availability of specialized aircraft ensures the agency can effectively carry out its mandate to protect national forests and grasslands.

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: $9,764,067

Exercised Options: $5,739,027

Current Obligation: $5,718,535

Actual Outlays: $3,483,659

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline