USDA Forest Service Leases Aircraft for $5.58M, Awarded to Tenax Aerospace LLC

Contract Overview

Contract Amount: $5,578,106 ($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: $5.1K/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 $5.6 million to TENAX AEROSPACE LLC for work described as: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT Key points: 1. The contract is for aircraft leasing, a critical service for aerial supervision. 2. Tenax Aerospace LLC is the sole awardee, raising questions about competition. 3. The firm fixed-price contract type helps control costs. 4. The spending is categorized under Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing.

Value Assessment

Rating: fair

The contract value of $5.58M over three years appears reasonable for specialized aircraft leasing. Benchmarking against similar government or commercial leases would provide a clearer picture of value.

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. However, the specific awardee is Tenax Aerospace LLC, and further details on the bidding process are needed to confirm price discovery effectiveness.

Taxpayer Impact: Taxpayer funds are being used for essential aerial supervision services, with the cost determined through a competitive process.

Public Impact

Supports critical wildfire monitoring and suppression efforts. Ensures operational readiness for aerial surveillance missions. Facilitates timely data collection for environmental management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for price escalation in future contract renewals.

Positive Signals

Firm fixed-price contract limits cost overruns.
Awarded under full and open competition.

Sector Analysis

This spending falls within the transportation equipment rental and leasing sector, specifically for aviation services. Benchmarks for similar aerial leasing contracts are scarce but typically depend on aircraft type, duration, and operational requirements.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as Tenax Aerospace LLC is the prime contractor. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight of this contract would involve monitoring aircraft performance, adherence to lease terms, and ensuring the services meet the Forest Service's operational needs. Accountability rests with the contracting officer and the agency's program managers.

Related Government Programs

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

Risk Flags

Limited information on aircraft type and capabilities.
Lack of specific performance metrics for effectiveness evaluation.
Potential for sole-source extensions if competition is not re-established.
Dependence on a single contractor for critical aerial support.

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 type of aircraft being leased and its operational capabilities?

The provided data does not specify the exact aircraft type. Understanding the capabilities, such as payload, range, and sensor equipment, is crucial for assessing its suitability for aerial supervision and determining if the lease cost aligns with industry standards for such specialized assets.

How does the per-hour or per-flight-hour cost compare to market rates for similar leased aircraft?

Without specific aircraft details and operational hours, a direct per-hour cost comparison is difficult. However, the total contract value of $5.58M over three years suggests a significant operational tempo. Benchmarking against commercial rates for comparable aircraft, considering factors like maintenance and crew, would reveal potential cost efficiencies or overages.

What performance metrics are in place to ensure the effectiveness of the aerial supervision services?

The provided data lacks specific performance metrics. Effective oversight requires clearly defined deliverables, such as flight hours, coverage areas, data quality standards, and response times. Without these, it's challenging to quantitatively assess the effectiveness of the leased aircraft and services in meeting the Forest Service's mission objectives.

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: $9,603,146

Exercised Options: $5,578,106

Current Obligation: $5,578,106

Actual Outlays: $3,167,023

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline