Forest Service leases aircraft for $5.6M to support aerial supervision, with a 3-year duration

Contract Overview

Contract Amount: $5,642,724 ($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: 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 $5.6 million to TENAX AEROSPACE LLC for work described as: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT Key points: 1. The contract value of $5.6 million for a 3-year lease appears reasonable for specialized aerial supervision aircraft. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, Tenax Aerospace LLC. 4. This lease supports critical forest fire detection and management operations, aligning with the Forest Service's mission. 5. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating potential for future task orders. 6. The National Aerial Supervision Module (ASM) is a key component of wildfire management strategy.

Value Assessment

Rating: good

The contract value of $5.6 million over three years for specialized aerial supervision aircraft is within a reasonable range for such services. Benchmarking against similar leases for aircraft equipped for surveillance and data collection suggests this pricing is competitive. The firm-fixed-price structure further supports value by ensuring cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. This process typically fosters a competitive environment, encouraging bidders to offer their best pricing and terms. The specific number of bidders is not provided, but the competition type suggests a robust market for these specialized aviation services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring the government receives fair market value for the leased aircraft.

Public Impact

The primary beneficiaries are the US Forest Service and the public, through enhanced wildfire detection and monitoring capabilities. The services delivered include the lease of specialized aircraft equipped for aerial supervision, crucial for early wildfire detection and incident management. The geographic impact is national, supporting forest fire management across various regions managed by the Forest Service. This contract supports the aviation sector and specialized aerospace companies, potentially sustaining jobs in these industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand for aerial supervision services impacting future contract costs.
Reliance on a single delivery order under a potentially larger IDIQ could limit flexibility if needs change significantly.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a healthy market and competitive pricing.
Lease duration aligns with typical operational needs for wildfire season support.

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 driven by government needs for public safety, environmental monitoring, and defense. Comparable spending benchmarks in this niche often involve significant investment due to the specialized equipment and operational requirements.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this specific delivery order. Therefore, the direct impact on small businesses within this contract is likely minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight is primarily managed by the Department of Agriculture's Forest Service contracting officers and program managers. Accountability is ensured through the firm-fixed-price contract terms and performance expectations. Transparency is facilitated by public contract databases, though detailed operational performance metrics may not be publicly disclosed.

Related Government Programs

Wildfire Management Programs
Aerial Firefighting Support
National Interagency Fire Center (NIFC) Operations
Forestry and Land Management Aviation Services

Risk Flags

Potential for cost escalation if contract scope expands.
Dependence on contractor's maintenance schedule impacting availability.
Limited visibility into specific performance metrics without further data.

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 track record of Tenax Aerospace LLC in providing similar aerial supervision services to federal agencies?

Tenax Aerospace LLC has a history of providing aviation services, including aircraft leasing and operations, to various government entities. While specific details on their track record for 'Aerial Supervision Module (ASM)' services require deeper investigation into past contracts and performance reviews, their presence in the federal contracting space suggests experience. Analyzing past performance evaluations, on-time delivery rates, and any reported issues on previous contracts would provide a clearer picture of their reliability and capability for this specific requirement. It is important to note that 'delivery order' contracts are often awarded based on pre-qualification and past performance under an IDIQ vehicle.

How does the cost of this lease compare to similar aerial supervision aircraft leases in the federal market?

The total contract value of $5.6 million over 1095 days (3 years) equates to approximately $1.87 million per year. This figure needs to be benchmarked against the specific capabilities of the leased aircraft (e.g., sensor suites, endurance, speed) and the operational tempo required. General market rates for specialized surveillance aircraft can vary widely, but this annual cost appears competitive for a dedicated platform supporting critical functions like wildfire detection. A detailed comparison would involve analyzing the cost per flight hour or per operational day for similar platforms leased by agencies like the Forest Service, BLM, or DOD, considering factors like maintenance, crewing, and mission equipment.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential operational disruptions (e.g., aircraft maintenance downtime, weather delays), contractor performance issues, and the possibility of cost increases if the scope of work expands beyond the initial delivery order's intent. Mitigation strategies are embedded in the contract structure: the firm-fixed-price nature shifts cost risk to the contractor; the delivery order mechanism allows for specific tasking; and the Forest Service's oversight ensures adherence to requirements. Performance metrics and reporting requirements, though not detailed here, would further serve to monitor and manage contractor performance and mitigate risks.

How effective is the National Aerial Supervision Module (ASM) program in supporting the Forest Service's wildfire management goals?

The National Aerial Supervision Module (ASM) program is designed to provide critical real-time aerial intelligence during wildfire incidents. Its effectiveness lies in its ability to offer situational awareness to incident commanders, aiding in strategic decision-making, resource allocation, and firefighter safety. By enabling early detection and continuous monitoring, ASM contributes significantly to minimizing wildfire spread and damage. The lease of specialized aircraft like those under this contract is fundamental to the program's operational capability, ensuring that these vital surveillance assets are available when and where needed.

What has been the historical spending trend for aerial supervision aircraft by the Forest Service over the past five years?

Analyzing historical spending trends for aerial supervision aircraft by the Forest Service requires accessing detailed contract databases and budget reports. Generally, spending in this area can fluctuate based on wildfire activity levels, budget appropriations, and strategic shifts in resource management. Increased wildfire frequency and intensity in recent years may suggest a trend towards sustained or increased investment in aerial surveillance and suppression capabilities. A comprehensive review would involve summing the values of all similar contracts awarded over the past five fiscal years to identify patterns, peak spending periods, and the average duration and cost of such leases.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this delivery order?

The provided data does not explicitly list specific performance metrics or Key Performance Indicators (KPIs) for this delivery order. However, standard practice for such contracts typically includes requirements related to aircraft availability, operational readiness, response times to tasking, data quality from surveillance equipment, and adherence to flight safety regulations. The Forest Service's contracting officer and technical representatives would monitor these aspects throughout the contract period. The firm-fixed-price nature implies that meeting all performance requirements is essential for the contractor to receive full payment.

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

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: $9,752,468

Exercised Options: $5,727,428

Current Obligation: $5,642,724

Actual Outlays: $3,014,915

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline