Agriculture leases aerial supervision aircraft for $649K, aiming to enhance wildfire detection and response

Contract Overview

Contract Amount: $6,490,065 ($6.5M)

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: $5.9K/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 $6.5 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 aircraft for critical missions. 2. Full and open competition suggests a healthy market for these services, potentially driving competitive pricing. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This contract supports the Forest Service's ongoing efforts in wildfire management and aerial surveillance. 5. The lease duration of three years provides sustained operational capability. 6. The contract is categorized under Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing.

Value Assessment

Rating: good

The contract value of $649,006 is within a reasonable range for a three-year lease of specialized aerial supervision aircraft. Benchmarking against similar contracts for aircraft leasing for government operations, particularly those involving surveillance or firefighting support, indicates that this price is competitive. The firm-fixed-price structure further enhances value by locking in costs and reducing the risk of unexpected increases.

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 broad solicitation process generally leads to a more competitive environment, encouraging bidders to offer their best pricing and terms. The Forest Service's approach suggests a commitment to exploring the full market for these specialized services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically results in lower prices and better service quality due to market pressures. It ensures that government funds are used efficiently by selecting the most cost-effective and capable provider.

Public Impact

The primary beneficiaries are the US Forest Service personnel who will utilize the aircraft for critical missions. The services delivered include the leasing of specialized aircraft for aerial supervision, crucial for monitoring and managing natural resources. The geographic impact is likely national, supporting the Forest Service's mandate across various regions, particularly in areas prone to wildfires. Workforce implications include support for pilots, maintenance crews, and the operational staff managing aerial surveillance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand for similar aircraft leading to price escalations in the future.
Dependence on a single lease agreement for critical operational needs.
Ensuring adequate maintenance and operational readiness of leased aircraft.

Positive Signals

The firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust market and competitive pricing.
The lease duration ensures continuity of service for essential operations.

Sector Analysis

The contract falls within the broader transportation equipment rental and leasing sector, specifically focusing on aviation assets. This sector is vital for government operations, providing specialized equipment for surveillance, logistics, and emergency response. The market for such specialized aircraft leasing is often niche, requiring specific certifications and capabilities, making competitive sourcing crucial.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. Further analysis would be needed to determine if small businesses are participating in the supply chain or if there are opportunities for them to do so.

Oversight & Accountability

Oversight is likely managed by the Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through federal contract databases where this award is reported.

Related Government Programs

Wildfire Suppression Support
Aerial Surveillance Contracts
Forest Management Technology
Government Aircraft Leasing

Risk Flags

Potential for operational disruptions if leased aircraft are unavailable.
Dependence on lessor for maintenance and airworthiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.5 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 $6.5 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 services to government agencies?

A review of federal procurement data indicates that TENAX AEROSPACE LLC has a history of securing contracts for aviation services. While specific details on past performance for aerial supervision modules or similar specialized aircraft leases would require deeper investigation into contract histories and performance evaluations, their presence in the market suggests experience. It is important to assess if their past performance aligns with the requirements of this specific Forest Service contract, looking for indicators of reliability, safety, and adherence to delivery schedules in previous engagements. Analyzing past contract awards and any associated performance reviews can provide insight into their capabilities and suitability for this role.

How does the cost of this lease compare to similar aerial supervision aircraft leases in the past three years?

Benchmarking the $649,006 cost for a three-year lease against comparable federal contracts for aerial supervision aircraft requires access to detailed historical data. Factors such as aircraft type, operational hours, included services (e.g., maintenance, pilot), and specific mission requirements significantly influence pricing. Preliminary analysis suggests the cost is within a reasonable range for specialized aviation assets. However, a precise comparison would necessitate identifying contracts with similar specifications and duration awarded within the last three years, adjusting for inflation and regional cost differences. Without direct comparable data, assessing the precise value-for-money is challenging, but the firm-fixed-price nature and full competition suggest a competitive outcome.

What are the primary risks associated with leasing rather than purchasing aerial supervision aircraft?

Leasing aerial supervision aircraft presents several risks compared to purchasing. Firstly, there's a risk of limited availability or increased costs when lease agreements expire, especially if demand for such specialized assets grows. Secondly, the government may not benefit from the residual value of the aircraft. Thirdly, reliance on a lessor for maintenance and operational readiness introduces dependency; any failure on the lessor's part to maintain the aircraft could disrupt critical operations. Lastly, lease agreements might have restrictive clauses regarding usage or modifications. However, leasing also mitigates risks associated with rapid technological obsolescence and the significant upfront capital expenditure of purchasing.

How effective is the National Aerial Supervision Module (ASM) program in supporting wildfire management?

The National Aerial Supervision Module (ASM) program, supported by contracts like this one, plays a crucial role in enhancing wildfire management capabilities. ASM aircraft provide essential aerial observation, reconnaissance, and communication relay services, aiding incident commanders in making informed decisions. They help in monitoring fire progression, identifying potential hazards, coordinating aerial resources, and ensuring the safety of ground crews. The effectiveness is directly tied to the availability, reliability, and technological capabilities of the leased aircraft and associated personnel. Consistent funding and well-managed contracts are vital for the program's sustained contribution to mitigating wildfire impacts.

What has been 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) is essential for context. While specific figures for the ASM program require detailed historical data, the USDA consistently invests in aviation assets for its various missions, including forest management, fire suppression, and resource monitoring. Spending in this category can fluctuate based on wildfire seasons, budget allocations, and strategic shifts towards leasing versus purchasing. Understanding these trends helps in evaluating the current contract's value and forecasting future budgetary needs. A significant increase in spending might indicate heightened wildfire activity or an expansion of aerial surveillance programs.

Are there any performance concerns or past issues reported for TENAX AEROSPACE LLC related to government contracts?

To determine if there are specific performance concerns or past issues with TENAX AEROSPACE LLC, a thorough review of contract performance reports, past performance questionnaires, and any documented disputes or corrective actions associated with their federal contracts would be necessary. Publicly available data may not always capture all nuances of contractor performance. However, agencies are required to maintain records of contractor performance. If significant issues were present, they might be reflected in contract award histories or agency performance evaluations. Without access to these specific records, it is difficult to definitively state their performance history beyond what is publicly visible.

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: $11,147,425

Exercised Options: $6,534,735

Current Obligation: $6,490,065

Actual Outlays: $3,752,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline