USDA Forest Service leases aircraft for $7.1M from Tenax Aerospace LLC for 3 years
Contract Overview
Contract Amount: $7,130,297 ($7.1M)
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: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE AWARD FEE
Sector: Transportation
Official Description: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT
Place of Performance
Location: RIDGELAND, MADISON County, MISSISSIPPI, 39157
Plain-Language Summary
Department of Agriculture obligated $7.1 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 $7.1M. 2. Tenax Aerospace LLC is the sole provider for this specific lease. 3. Potential risk associated with single-source provider for critical aerial supervision. 4. Spending falls within the Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing sector.
Value Assessment
Rating: fair
The fixed-price award fee structure provides some cost control. However, without a competitive benchmark for this specific type of lease, assessing the overall value is challenging.
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 data indicates this is a delivery order, and the specific competition for this order is not detailed.
Taxpayer Impact: Taxpayer funds are being used for essential aerial supervision, with the cost determined through a competitive process, aiming for efficiency.
Public Impact
Ensures critical aerial supervision capabilities for wildfire management and other forest service operations. Supports the operational needs of the Forest Service in Mississippi. Provides a platform for monitoring and managing vast forest resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition specifics for this delivery order.
- Potential for price creep if award fee structure is not tightly managed.
Positive Signals
- Full and open competition was utilized for the overarching contract.
- Fixed price award fee structure offers some cost predictability.
Sector Analysis
This spending falls under the broader transportation equipment rental and leasing sector. Benchmarks for similar aerial supervision aircraft leases are not readily available, making direct comparison difficult.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses, suggesting larger entities likely participated in the competition.
Oversight & Accountability
The Forest Service is responsible for overseeing this lease to ensure operational requirements are met and funds are used appropriately. Accountability relies on performance metrics and adherence to contract terms.
Related Government Programs
- Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing
- Department of Agriculture Contracting
- Forest Service Programs
Risk Flags
- Single provider for a specific lease delivery order.
- Limited transparency on specific competition for this delivery order.
- Potential for performance-based costs to escalate.
- Lack of readily available benchmarks for similar specialized leases.
Tags
commercial-air-rail-and-water-transporta, department-of-agriculture, ms, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $7.1 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 $7.1 million.
What is the period of performance?
Start: 2024-01-01. End: 2026-12-31.
What is the specific operational need driving the requirement for this particular aircraft lease?
The specific operational need is for aerial supervision, which is crucial for tasks such as wildfire detection and monitoring, resource management, and potentially search and rescue operations within the Forest Service's jurisdiction. This ensures effective oversight of vast forest areas.
What are the key performance indicators (KPIs) used to evaluate Tenax Aerospace LLC's performance under this lease?
Key performance indicators would likely include aircraft availability, operational readiness, adherence to flight schedules, pilot qualifications, maintenance records, and response times to operational requests. The award fee structure suggests performance against these metrics directly impacts the final payment.
How does the fixed-price award fee structure ensure cost-effectiveness and prevent scope creep?
The fixed-price component establishes a baseline cost, while the award fee incentivizes performance beyond minimum requirements. This structure aims to control costs by setting a ceiling and rewarding efficiency, but requires clear definition of performance standards to prevent subjective adjustments or scope creep.
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: FIXED PRICE AWARD FEE (M)
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: $12,272,457
Exercised Options: $7,184,537
Current Obligation: $7,130,297
Actual Outlays: $4,118,104
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 1202SA23T9450
IDV Type: IDC
Timeline
Start Date: 2024-01-01
Current End Date: 2026-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-03-30
More Contracts from Tenax Aerospace LLC
- Lease of a Gulfstream G550 — $29.4M (Department of Justice)
- National Aerial Supervision Module (ASM) DRY Lease Aircraft — $8.0M (Department of Agriculture)
- National Aerial Supervision Module (ASM) DRY Lease Aircraft — $7.8M (Department of Agriculture)
- National Aerial Supervision Module (ASM) DRY Lease Aircraft — $7.6M (Department of Agriculture)
- National Aerial Supervision Module (ASM) DRY Lease Aircraft — $7.5M (Department of Agriculture)
Other Department of Agriculture Contracts
- Usda Enterprise-Scale Fedramp Certified Cloud Hosting Services. Igf::ot::igf — $336.8M (Accenture Federal Services LLC)
- Usda Disc Enterprise Wide Salesforce Software&support Services — $294.8M (Carahsoft Technology Corp)
- Provide Removal of Carcasses AT Premise X Igf::ot::igf Hpai — $292.5M (Clean Harbors Environmental Services Inc)
- Financial Management Modernization Initiative — $291.0M (Accenture LLP)
- Enterprise Application Services — $273.5M (Synergy Business Innovation & Solutions Inc.)