USDA Forest Service leases aircraft for $6.5M from Tenax Aerospace LLC under full and open competition

Contract Overview

Contract Amount: $6,567,958 ($6.6M)

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: $6.0K/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 $6.6 million to TENAX AEROSPACE LLC for work described as: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT Key points: 1. Lease agreement for aerial supervision aircraft valued at $6.58 million. 2. Tenax Aerospace LLC is the contractor, with the Forest Service as the agency. 3. The contract was awarded under full and open competition. 4. The lease duration is three years, from January 1, 2024, to December 31, 2026. 5. The spending category is Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing.

Value Assessment

Rating: good

The contract value of $6.58 million for a three-year aircraft lease appears reasonable given the specialized nature of aerial supervision and the competitive bidding process. Benchmarking against similar government contracts for aerial surveillance or specialized aircraft leasing would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, driving competitive pricing and potentially leading to a more favorable outcome for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring fair pricing and access to a wider range of qualified contractors.

Public Impact

Ensures critical aerial supervision capabilities for the Forest Service. Supports wildfire management and other critical environmental monitoring operations. Provides specialized aircraft essential for national resource protection. The lease agreement contributes to the operational readiness of federal land management agencies.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Positive Signals

Full and open competition utilized.
Clear contract duration and delivery dates.
Specific agency and purpose identified.

Sector Analysis

This spending falls under the transportation equipment rental and leasing sector, specifically for commercial air transportation. Government spending in this area is crucial for operational needs that may not be cost-effective to own outright, especially for specialized assets like surveillance aircraft.

Small Business Impact

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

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Forest Service is responsible for monitoring performance and ensuring compliance with the lease terms. The use of a firm fixed-price contract provides cost certainty.

Related Government Programs

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

Risk Flags

Lack of specific aircraft details.
No explicit mention of performance metrics.
Potential for increased costs if operational needs change significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.6 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 $6.6 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 capabilities for aerial supervision?

The specific aircraft type is not detailed in the provided data. However, the contract's purpose as a 'NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT' implies specialized fixed-wing or rotary-wing aircraft equipped for surveillance, monitoring, and potentially data collection over large land areas. These capabilities are crucial for tasks like wildfire detection, forest health assessment, and law enforcement support.

Are there any performance metrics or service level agreements associated with this aircraft lease?

Performance metrics and service level agreements are not explicitly detailed in the provided summary. Typically, such contracts would include requirements for aircraft availability, maintenance standards, operational readiness, and potentially response times for deployment. The Forest Service would monitor these aspects to ensure the contractor meets the agreed-upon service levels throughout the lease period.

What is the potential impact of this lease on the Forest Service's budget for wildfire suppression and management?

This lease represents a significant investment in aerial supervision capabilities, which are integral to wildfire prevention, detection, and management. While a direct budget impact requires detailed financial analysis, securing these assets through a competitive lease agreement aims to provide cost-effective operational support. The availability of reliable aerial supervision can lead to earlier detection and more efficient resource deployment, potentially mitigating larger suppression costs.

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: $11,248,355

Exercised Options: $6,635,665

Current Obligation: $6,567,958

Actual Outlays: $4,100,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline