USDA Forest Service Leases Aircraft for $5.6M, TENAX AEROSPACE LLC Awarded Contract

Contract Overview

Contract Amount: $5,631,600 ($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 a National Aerial Supervision Module (ASM) dry lease aircraft. 2. TENAX AEROSPACE LLC is the sole awardee for this lease. 3. The contract duration is 3 years, with a total value of $5,631,600.24. 4. This falls under the Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing sector.

Value Assessment

Rating: fair

The contract value of $5.6M over three years for a specialized aircraft lease appears within a reasonable range for such services. Benchmarking against similar specialized aerial support contracts 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. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: Taxpayer funds are utilized for this lease, supporting critical aerial supervision operations for the Forest Service.

Public Impact

Supports wildfire detection and monitoring efforts. Ensures operational readiness for aerial surveillance. Contributes to the protection of natural resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation in future renewals.
Dependence on a single vendor for critical equipment.

Positive Signals

Awarded through full and open competition.
Clear contract duration and fixed price.

Sector Analysis

This contract falls within the transportation equipment rental and leasing sector, specifically for aviation assets. Spending benchmarks for similar specialized aircraft leases are difficult to ascertain without more granular data, but the value reflects the unique nature of aerial supervision modules.

Small Business Impact

The data does not indicate whether small businesses were involved in the subcontracting or bidding process for this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract is subject to standard government oversight for lease agreements, ensuring compliance with terms and conditions. Accountability rests with the Forest Service for managing the contract and TENAX AEROSPACE LLC for service delivery.

Related Government Programs

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

Risk Flags

Potential for sole-source renewal if competition is not re-initiated.
Dependence on a single vendor for critical aerial support.
Risk of operational disruption due to aircraft maintenance or availability issues.
Cost overruns if unforeseen operational demands arise beyond the fixed price.

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 provided by this ASM dry lease aircraft, and how does it compare to alternative solutions?

The National Aerial Supervision Module (ASM) dry lease aircraft is crucial for monitoring and managing aerial firefighting operations, providing real-time situational awareness to incident commanders. It typically carries advanced communication and surveillance equipment. Alternatives might include leasing different types of aircraft or utilizing ground-based surveillance, but the ASM offers a unique combination of aerial presence and specialized monitoring capabilities vital for complex wildfire incidents.

What are the key performance indicators (KPIs) for this lease, and how will the Forest Service measure the effectiveness of the aircraft's deployment?

Key performance indicators likely include aircraft availability, operational uptime, adherence to flight schedules, and the quality of data transmitted from the ASM systems. The Forest Service will measure effectiveness by assessing the aircraft's contribution to incident management efficiency, its role in de-escalating fire spread through timely information, and its overall safety record during operations. Post-incident reviews will likely incorporate feedback on the ASM's performance.

Given the full and open competition, what was the range of bids received, and how did TENAX AEROSPACE LLC's proposal stand out?

While the specific bid range is not provided, the fact that it was awarded under full and open competition suggests multiple proposals were evaluated. TENAX AEROSPACE LLC likely offered a competitive price, met all technical specifications for the ASM dry lease, and demonstrated a strong track record in aviation services. Their proposal may have also included favorable terms regarding maintenance, support, or delivery timelines, making them the most advantageous offer to the government.

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: $9,682,894

Exercised Options: $5,657,854

Current Obligation: $5,631,600

Actual Outlays: $3,301,188

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline