Agriculture leases aerial supervision aircraft for $6.3M, with full and open competition

Contract Overview

Contract Amount: $6,299,503 ($6.3M)

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: $5.8K/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 $6.3 million to TENAX AEROSPACE LLC for work described as: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT Key points: 1. Value for money appears reasonable given the specialized nature of aerial supervision and the firm-fixed-price contract type. 2. Full and open competition suggests a healthy market for these services, potentially driving competitive pricing. 3. The contract duration of three years provides stability for the Forest Service's operational needs. 4. Performance context is critical; the effectiveness of the leased aircraft in supporting aerial supervision missions will determine true value. 5. This contract falls within the broader transportation equipment rental and leasing sector, specifically for specialized aviation assets.

Value Assessment

Rating: good

The contract value of $6.3 million over three years for aerial supervision aircraft leasing seems within a reasonable range for specialized aviation services. Benchmarking against similar contracts for dedicated fire or environmental monitoring aircraft would provide a more precise assessment. The firm-fixed-price structure shifts risk to the contractor, which can be beneficial for the government if the contractor manages costs effectively. However, without specific performance metrics or comparisons to alternative solutions, a definitive value assessment is challenging.

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 likely solicited and allowed to bid. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and terms to secure the award. The number of bidders is not specified, but the designation suggests a robust competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, maximizing the use of government funds.

Public Impact

The primary beneficiaries are the Department of Agriculture's Forest Service, which will utilize the aircraft for critical aerial supervision tasks. The services delivered include the lease of specialized aircraft equipped for aerial supervision, likely for monitoring and managing forest resources. The geographic impact is likely national, supporting the Forest Service's operations across various regions where aerial supervision is required. Workforce implications may include support staff for the aircraft operations and the personnel who utilize the aerial supervision data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all operational contingencies.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise or if the contractor faces financial instability.

Positive Signals

The use of full and open competition suggests a competitive market, which can lead to better pricing and service quality.
The firm-fixed-price contract type provides cost certainty for the government, transferring some financial risk to the contractor.
The contract is for a defined period, allowing for periodic re-evaluation of needs and market conditions.

Sector Analysis

This contract falls within the broader transportation equipment rental and leasing industry, specifically focusing on specialized aviation assets. The market for such services is often niche, requiring specific certifications, maintenance capabilities, and operational expertise. Comparable spending benchmarks would involve looking at other government leases or commercial contracts for similar types of aircraft used for surveillance, monitoring, or specialized operational support.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, the primary focus of this contract is not on direct small business set-asides. However, the prime contractor, TENAX AEROSPACE LLC, may engage small businesses for subcontracting opportunities related to aircraft maintenance, support services, or specialized equipment, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the leased aircraft and associated services as specified. Transparency is generally maintained through contract award databases, though detailed operational performance data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Forest Firefighting Aircraft Leases
Aerial Surveillance Contracts
National Interagency Fire Center (NIFC) Support
Department of Agriculture Aviation Management

Risk Flags

Potential for cost escalation due to operational expenses not fully captured in the dry lease.
Dependence on contractor's maintenance and operational standards for safety and reliability.
Need for robust internal government oversight to manage operational aspects of the dry lease.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.3 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 $6.3 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 government agencies?

Assessing the track record of TENAX AEROSPACE LLC requires a review of their past performance on federal contracts, particularly those involving aircraft leasing for surveillance or operational support. Information from contract performance reports (CPARS), past performance questionnaires, and any publicly available project histories would be crucial. A history of on-time delivery, adherence to specifications, and positive client feedback would indicate reliability. Conversely, a record of performance issues, contract disputes, or significant delays would raise concerns about their capacity to fulfill the current contract effectively. Without specific historical data on TENAX AEROSPACE LLC's performance in this niche, it is difficult to definitively assess their reliability for the NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT contract.

How does the lease cost compare to purchasing or operating similar aircraft internally?

Comparing the lease cost of $6.3 million over three years to the cost of purchasing and operating similar aircraft internally is complex. Purchasing would involve significant upfront capital expenditure, plus ongoing costs for maintenance, fuel, crew, insurance, and hangarage. Leasing offers predictable operational costs and avoids large capital outlays, but may be more expensive over the long term if the aircraft are needed for many years. The 'dry lease' nature of this contract means the government is responsible for fuel, crew, and operational costs, which needs to be factored into the total cost comparison. Benchmarking against industry averages for aircraft ownership versus leasing, considering the specific type and mission profile of the ASM aircraft, would be necessary for a comprehensive value assessment.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) for the NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT contract. However, for a contract of this nature, typical KPIs would likely include aircraft availability (e.g., percentage of time the aircraft is ready for deployment), operational readiness (e.g., adherence to maintenance schedules, airworthiness), response time for deployment, and potentially mission-specific metrics related to the effectiveness of aerial supervision. Performance measurement would be conducted by the Forest Service's contracting officer's representative (COR) or designated technical monitors, who would track adherence to the lease terms, maintenance logs, and operational deployment records. Regular performance reviews would likely be part of the contract oversight.

What is the historical spending trend for aerial supervision aircraft leasing by the Department of Agriculture?

Analyzing historical spending trends for aerial supervision aircraft leasing by the Department of Agriculture (USDA) would provide context for the current $6.3 million contract. This would involve examining past contract awards for similar services, noting the number of contracts, their values, durations, and the types of aircraft leased. A rising trend in spending might indicate increasing demand for aerial supervision, potentially due to heightened wildfire risks or expanded monitoring programs. Conversely, stable or declining spending could suggest consistent needs or shifts towards different technologies or contracting approaches. Understanding this trend helps assess whether the current expenditure is an anomaly or part of a larger pattern, and whether it reflects efficient resource allocation over time.

What are the risks associated with a 'dry lease' for specialized aircraft like those used for aerial supervision?

A 'dry lease' for specialized aircraft, such as those used for aerial supervision, means the lessor provides only the airframe, engines, and airframe-related components. The lessee (in this case, the Department of Agriculture) is responsible for all operating costs, including fuel, pilot salaries, crew, maintenance, insurance, and hangarage. The primary risks for the government under a dry lease include the potential for higher-than-expected operational costs if fuel prices surge or if unforeseen maintenance issues arise that are not adequately covered by the lease terms. Additionally, the government bears the responsibility for ensuring the aircraft are properly maintained and operated safely, requiring robust internal oversight and qualified personnel. This contrasts with a 'wet lease,' where the lessor provides the aircraft with crew, maintenance, and insurance, offering more predictable total costs but often at a higher base lease rate.

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: $10,770,589

Exercised Options: $6,300,979

Current Obligation: $6,299,503

Actual Outlays: $3,834,256

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline