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

Contract Overview

Contract Amount: $5,648,953 ($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. Leasing aircraft provides flexibility and access to specialized equipment without the burden of ownership. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The duration of the lease is 1095 days, aligning with typical operational needs. 5. The specific National Aerial Supervision Module (ASM) capability is crucial for wildfire management. 6. The contract value of $5.6 million over three years indicates a significant investment in aerial resources.

Value Assessment

Rating: good

The contract value of $5.6 million over three years for aircraft leasing appears reasonable given the specialized nature of aerial supervision modules. Benchmarking against similar leases for specialized aviation assets is necessary for a definitive value assessment. The firm-fixed-price structure provides cost predictability. Without specific per-unit cost data for the ASM module, direct comparison is limited, but the overall contract value seems aligned with the operational requirements for wildfire management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency likely sought the best value through a structured evaluation process, aiming to secure the most advantageous terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and better quality services due to market forces driving efficiency and innovation among bidders.

Public Impact

The primary beneficiaries are the US Forest Service and other agencies involved in wildfire suppression and management. The contract delivers essential aerial supervision capabilities, likely including real-time monitoring and data collection for fire incidents. The geographic impact is likely national, supporting wildfire response across various regions managed by the Forest Service. The contract supports the aviation sector and specialized aerospace service providers, potentially maintaining skilled jobs in these areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand for specialized aircraft leasing impacting availability and cost for other government needs.
Dependence on a single contractor for a critical operational capability could pose a risk if performance issues arise.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Awarding through full and open competition suggests a robust process to ensure fair pricing and quality.
The lease duration aligns with operational needs, providing sustained support for aerial supervision.

Sector Analysis

The contract falls within the broader Transportation Equipment Rental and Leasing sector, specifically focusing on specialized aviation assets. The market for aerial firefighting and supervision aircraft is niche, often dominated by a few key players capable of meeting stringent government requirements. Spending in this area is critical for national resource management, particularly in regions prone to wildfires. Comparable spending benchmarks would involve analyzing other federal or state contracts for similar leased aviation services.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. It is unclear if subcontracting opportunities for small businesses will be available. Further analysis would be needed to determine the extent of small business participation, if any, in fulfilling this requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Forest Service's program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Wildfire Management Programs
Aviation Support Services
Resource Monitoring Contracts
Department of Agriculture Procurement

Risk Flags

Potential for service disruption if leased aircraft becomes unavailable.
Dependence on contractor performance for critical wildfire management operations.

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 capability of the National Aerial Supervision Module (ASM) aircraft being leased?

The National Aerial Supervision Module (ASM) is a specialized system designed for aerial wildfire management. Its primary function is to provide real-time situational awareness to incident commanders on the ground. This typically involves advanced sensor packages, high-resolution cameras, and communication systems that can transmit live video feeds and data. The ASM aircraft are crucial for monitoring fire progression, identifying hotspots, assessing resource needs, and ensuring the safety of firefighting crews. The specific capabilities can vary, but they are generally geared towards providing critical intelligence for effective wildfire suppression and prevention efforts.

How does the $5.6 million contract value compare to historical spending on similar aerial supervision services by the Forest Service?

To accurately compare the $5.6 million contract value to historical spending, one would need to analyze past Forest Service contracts for similar aerial supervision modules or aircraft leases. This would involve identifying contracts with comparable durations, aircraft types, and service levels. Factors such as inflation, technological advancements, and changes in market demand can influence pricing over time. Without access to a comprehensive historical database of Forest Service aviation contracts, a precise benchmark is difficult. However, the value appears substantial, reflecting the specialized nature and critical function of ASM capabilities in wildfire management.

What are the key performance indicators (KPIs) that Tenax Aerospace LLC must meet under this contract?

Key performance indicators (KPIs) for this contract would likely focus on the availability and operational readiness of the leased aircraft and the ASM module. Specific metrics could include aircraft uptime, response times to deployment requests, adherence to flight schedules, and the quality and reliability of data transmission from the ASM system. Performance would also be assessed based on compliance with safety regulations and maintenance standards. The firm-fixed-price nature of the contract implies that failure to meet these KPIs could result in penalties or contract termination, underscoring the importance of robust performance monitoring by the Forest Service.

What is the risk associated with relying on a leased aircraft for a critical function like aerial supervision?

The primary risk associated with relying on leased aircraft for critical functions like aerial supervision is the potential for service disruption. This could stem from the lessor's inability to provide the aircraft as contracted (e.g., due to maintenance issues, accidents, or financial instability), or from the aircraft failing to meet performance specifications. For the Forest Service, a disruption in ASM capabilities during a wildfire season could severely hamper situational awareness, potentially leading to less effective resource allocation, increased fire spread, and greater risk to personnel and property. Mitigation strategies often include robust contract terms, performance bonds, and contingency planning for alternative solutions.

Are there any provisions for technology upgrades or incorporating newer ASM technologies within the current lease term?

The provided contract details do not specify provisions for technology upgrades or the incorporation of newer ASM technologies within the current lease term. Typically, lease agreements for specialized equipment are fixed for the duration of the contract, focusing on the specified capabilities at the time of award. If the Forest Service requires updated technology, it would likely necessitate a new procurement process or a contract modification, subject to availability of funds and justification. The current contract, with an end date of December 31, 2026, suggests a focus on maintaining existing operational capabilities rather than incorporating cutting-edge advancements during this period.

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: $9,722,273

Exercised Options: $5,697,233

Current Obligation: $5,648,953

Actual Outlays: $3,495,117

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline