Forest Service awards $29.3M for exclusive use airtanker services, raising value-for-money questions

Contract Overview

Contract Amount: $29,261,111 ($29.3M)

Contractor: Coulson Aviation (USA), Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-05-17

End Date: 2026-12-31

Contract Duration: 958 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COULSON - AIRTANKER MATCO EXCLUSIVE USE TASK ORDER - 160 DAY MAP

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $29.3 million to COULSON AVIATION (USA), INC. for work described as: COULSON - AIRTANKER MATCO EXCLUSIVE USE TASK ORDER - 160 DAY MAP Key points: 1. The contract's duration and exclusive use nature warrant scrutiny for cost-effectiveness compared to on-demand services. 2. Limited competition, despite being 'full and open after exclusion of sources,' may have impacted pricing. 3. The firm fixed-price structure shifts risk to the contractor but could lead to higher initial costs. 4. Performance context is crucial; the need for dedicated airtanker capacity during specific periods influences value assessment. 5. This contract falls within the broader 'Aviation Support and Services' category for the Forest Service. 6. The contractor's track record and past performance on similar contracts are key indicators of reliability and value.

Value Assessment

Rating: fair

The $29.3 million awarded for 958 days of exclusive airtanker use presents a significant investment. Benchmarking this against similar exclusive-use contracts for aerial firefighting is essential. While firm fixed-price contracts offer budget certainty, they can sometimes be less cost-effective than on-demand or call-when-needed contracts if utilization is lower than anticipated. The value proposition hinges on the certainty of availability during critical fire seasons, which is a key factor in aerial firefighting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific justification for limiting the initial pool of bidders. While competition was not entirely excluded, this designation suggests that not all potential offerors were considered from the outset. The number of bidders (5) is moderate, but the 'exclusion of sources' clause warrants further investigation into why certain sources were excluded and if this limited the competitive landscape, potentially affecting price discovery.

Taxpayer Impact: The limited competition, even with an initial 'full and open' phase, means taxpayers may not have benefited from the lowest possible price achievable through broader market engagement. The justification for excluding sources needs to be robust to ensure fair market access and optimal taxpayer value.

Public Impact

The primary beneficiaries are the US Forest Service and other federal/state agencies requiring aerial firefighting capabilities. Services delivered include dedicated airtanker support for wildfire suppression and potentially other aerial support missions. The geographic impact is national, focusing on areas prone to wildfires, particularly during fire season. Workforce implications include support for pilots, ground crews, and aviation support personnel associated with the airtanker operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment if the exclusive-use airtanker is not fully utilized throughout the contract period.
The 'exclusion of sources' clause could indicate a lack of broad market competition, potentially inflating costs.
Dependence on a single contractor for critical firefighting assets may pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
Exclusive use ensures immediate availability of a critical asset during high-risk periods.
The contract duration (958 days) suggests a long-term need for this capability.

Sector Analysis

This contract operates within the broader aviation services sector, specifically focusing on specialized aerial firefighting. The market for large airtankers is relatively concentrated, with a limited number of operators capable of providing exclusive-use services. Comparable spending benchmarks would involve analyzing other exclusive-use contracts for similar aircraft types and durations awarded by federal agencies like the Forest Service or Department of the Interior.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and high value of exclusive-use airtanker contracts, it is unlikely that small businesses would be primary awardees without significant subcontracting. The impact on the small business ecosystem would likely be indirect, potentially through subcontracting opportunities if the prime contractor utilizes smaller firms for support services.

Oversight & Accountability

Oversight is likely managed by the Forest Service contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, including reporting requirements and service level agreements. Transparency is generally facilitated through contract databases like FPDS, though specific operational details may be sensitive. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Wildland Fire Management
Aviation Support Services
Aircraft Charter and Rental
Emergency Response Services

Risk Flags

Limited Competition Justification
Potential for Underutilization
Contractor Performance Risk
High Contract Value

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $29.3 million to COULSON AVIATION (USA), INC.. COULSON - AIRTANKER MATCO EXCLUSIVE USE TASK ORDER - 160 DAY MAP

Who is the contractor on this award?

The obligated recipient is COULSON AVIATION (USA), INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2024-05-17. End: 2026-12-31.

What is Coulson Aviation's track record with the Forest Service and other federal agencies for airtanker services?

Coulson Aviation (USA), Inc. has a history of providing aerial firefighting services, including large airtankers, to federal agencies like the Forest Service and the Department of the Interior. Their track record includes participation in numerous fire seasons and operations across various regions. Performance can be assessed through contract award histories, past performance evaluations (if publicly available), and any reported incidents or commendations. Analyzing their history with similar exclusive-use contracts would provide insight into their reliability, operational efficiency, and adherence to safety standards. Past performance data, often captured in federal procurement databases, is a key factor in assessing contractor capability and suitability for critical services like aerial firefighting.

How does the daily cost of this exclusive-use contract compare to on-demand airtanker services?

Comparing the daily cost of this exclusive-use contract to on-demand services requires careful calculation. The total award of $29.3 million over 958 days yields an approximate daily rate. However, exclusive-use contracts guarantee availability and often include costs for maintenance, crew, and operational readiness, regardless of flight hours. On-demand services typically charge per flight hour or per mission, which can be more cost-effective if utilization is low. The value of exclusive use lies in guaranteed availability during critical periods, which is difficult to quantify solely on a daily rate. A comprehensive analysis would need to estimate potential flight hours versus the guaranteed availability cost to determine true value-for-money.

What specific risks are associated with an exclusive-use airtanker contract of this duration?

The primary risks associated with an exclusive-use airtanker contract of this duration include potential underutilization, leading to inefficient spending of taxpayer funds if the aircraft is not consistently needed. There's also the risk of contractor performance issues; if Coulson Aviation fails to meet contractual obligations regarding maintenance, availability, or operational standards, it could severely impact firefighting efforts. Furthermore, dependence on a single provider for a critical asset can create vulnerabilities. Technological advancements or changes in firefighting strategy could also render the contracted asset less optimal over the contract's lifespan. Finally, the 'exclusion of sources' in the competition process introduces a risk that the government did not secure the most competitive pricing available.

What is the historical spending trend for similar airtanker services by the Forest Service?

Historical spending trends for similar airtanker services by the Forest Service indicate a significant and often increasing reliance on contracted aviation assets for wildfire management. The agency frequently utilizes both exclusive-use and call-when-needed contracts for various types of aircraft, including large airtankers. Spending in this category can fluctuate annually based on fire activity severity and budget appropriations. Over the past decade, there has been a recognized need to modernize and expand the nation's aerial firefighting fleet, often leading to substantial investments in long-term contracts for large airtankers. Analyzing multi-year spending data would reveal patterns in contract types, award values, and the overall budget allocated to aviation support for firefighting.

How does the 'Full and Open Competition After Exclusion of Sources' clause impact the perceived fairness and competitiveness of the award?

The 'Full and Open Competition After Exclusion of Sources' clause introduces a layer of complexity regarding fairness and competitiveness. While it signifies an initial intent for broad competition, the subsequent exclusion of specific sources suggests a deliberate narrowing of the field based on predefined criteria. This can be justified if only a few entities possess the required specialized capabilities or certifications. However, it raises questions about whether the exclusion was overly restrictive or based on criteria that unduly favored certain bidders. The fairness hinges on the transparency and validity of the justification for exclusion. Competitiveness is potentially reduced compared to true full and open competition, which could impact price and innovation, although the presence of five bidders suggests some level of market engagement.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FS-AT23-EU-01

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1200 NW NAITO PKWY STE 200, PORTLAND, OR, 97209

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $52,426,561

Exercised Options: $30,473,711

Current Obligation: $29,261,111

Actual Outlays: $19,172,139

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9103

IDV Type: IDC

Timeline