USDA Forest Service awards $24.6M for 160-day Airtanker services to Aero Air, LLC

Contract Overview

Contract Amount: $24,648,283 ($24.6M)

Contractor: Aero AIR, LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-05-17

End Date: 2026-12-31

Contract Duration: 958 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: AERO AIR - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER - 160 DAYS

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $24.6 million to AERO AIR, LLC for work described as: AERO AIR - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER - 160 DAYS Key points: 1. Significant contract value for specialized aerial firefighting services. 2. Competition method indicates potential for price discovery, but exclusion of sources warrants scrutiny. 3. Risk associated with exclusive use and fixed duration for critical emergency response. 4. Sector: Transportation (Air Cargo/Specialized Services).

Value Assessment

Rating: fair

The contract is a firm fixed price delivery order. Benchmarking against similar exclusive-use airtanker contracts is difficult without more data on operational scope and duration, but the price appears within a reasonable range for specialized, high-demand services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests a limited competition where specific sources were initially excluded, potentially impacting the breadth of price discovery and overall market engagement.

Taxpayer Impact: Taxpayer funds are allocated for critical firefighting assets. The limited competition may result in a higher cost than a fully open process, but ensures availability of specialized equipment.

Public Impact

Ensures critical aerial firefighting capacity for wildfire suppression. Supports national efforts to combat increasingly severe wildfire seasons. Provides essential resources for the Department of Agriculture's Forest Service operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Exclusive use limits flexibility and potentially increases cost.
Short duration (160 days) for critical asset may lead to frequent re-competition costs.

Positive Signals

Secures essential firefighting capability.
Firm fixed price provides cost certainty.
Supports agency mission during peak fire season.

Sector Analysis

The aerial firefighting sector is highly specialized and critical for public safety and natural resource management. Spending benchmarks are difficult to establish due to the unique nature of exclusive-use contracts and fluctuating demand based on wildfire activity.

Small Business Impact

The contract was awarded to Aero Air, LLC, which is not identified as a small business. There is no indication of small business subcontracting requirements in the provided data.

Oversight & Accountability

The Forest Service manages significant budgets for wildfire suppression. Oversight is crucial to ensure fair competition, effective resource allocation, and accountability for the performance of contracted aerial assets.

Related Government Programs

Nonscheduled Chartered Freight Air Transportation
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Limited competition
Potential for higher cost due to exclusive use
Lack of small business participation
Short contract duration may lead to frequent re-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $24.6 million to AERO AIR, LLC. AERO AIR - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER - 160 DAYS

Who is the contractor on this award?

The obligated recipient is AERO AIR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

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

What specific criteria led to the exclusion of other potential sources in the competition?

The exclusion of sources suggests that only certain vendors met specific technical, operational, or availability requirements for this particular airtanker task order. Understanding these criteria is vital to assess if the exclusion was justified or if it unduly limited competition, potentially impacting the final price paid by taxpayers.

How does the 'exclusive use' provision impact the overall cost-effectiveness compared to on-demand services?

Exclusive use guarantees availability but typically comes at a premium compared to on-demand charter services. For a 160-day period, this premium is intended to cover the aircraft's readiness and the provider's opportunity cost. Evaluating if this premium is justified requires comparing the guaranteed availability against the risk and potential cost of less reliable, on-demand options during critical fire events.

What is the historical performance record of Aero Air, LLC with similar contracts?

Assessing Aero Air, LLC's past performance on similar exclusive-use airtanker contracts is crucial for understanding reliability, safety, and adherence to contractual obligations. A strong performance history can justify the selection and potentially mitigate risks associated with the contract, while a poor record would raise concerns about value and effectiveness.

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: 2050 NE 25TH AVE, HILLSBORO, OR, 97124

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,010,133

Exercised Options: $26,703,163

Current Obligation: $24,648,283

Actual Outlays: $16,630,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9101

IDV Type: IDC

Timeline