USDA awards $26.7M for exclusive use of airtankers, highlighting critical wildfire suppression capabilities

Contract Overview

Contract Amount: $26,740,334 ($26.7M)

Contractor: Aero-Flite, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-05-17

End Date: 2026-12-31

Contract Duration: 958 days

Daily Burn Rate: $27.9K/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: AERO FLITE - AIRTANKER MATCO 2023 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 $26.7 million to AERO-FLITE, INC. for work described as: AERO FLITE - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER 160 DAY MAP Key points: 1. Contract provides dedicated aerial firefighting resources, crucial for rapid response to wildfires. 2. Exclusive use model ensures availability, potentially at a premium compared to on-demand services. 3. Competition was conducted after excluding sources, raising questions about the breadth of market engagement. 4. The contract duration and value suggest a significant investment in aerial firefighting infrastructure. 5. Performance hinges on the contractor's ability to maintain aircraft and deploy them effectively. 6. This spending supports national efforts to mitigate wildfire damage and protect natural resources.

Value Assessment

Rating: fair

The contract value of $26.7 million for 958 days of exclusive use appears substantial. Benchmarking against similar exclusive-use airtanker contracts is necessary to determine if the pricing reflects fair market value. The 'exclusive use' nature typically commands a higher price than on-demand services due to guaranteed availability, but the specific cost per day or per operational hour needs comparison with industry standards and previous contracts to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were initially excluded. The number of bidders (5) suggests some level of interest, but the exclusion criteria may have limited the overall competitive landscape. This approach can sometimes lead to less aggressive pricing compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the most aggressive pricing possible, as a narrower field of bidders might have been less incentivized to offer the lowest possible cost.

Public Impact

Benefits federal agencies like the Forest Service in managing and suppressing wildfires. Delivers critical aerial firefighting services, including water/retardant drops and reconnaissance. Geographic impact is national, with resources deployable where wildfires occur. Supports a specialized aviation workforce, including pilots, mechanics, and ground support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to exclusive use arrangement.
Limited competition raises concerns about optimal price discovery.
Dependence on a single contractor for critical assets.

Positive Signals

Ensures availability of essential firefighting assets.
Supports national wildfire management strategies.
Provides dedicated resources for rapid response.

Sector Analysis

The aerial firefighting sector is a specialized niche within the broader aviation industry. Contracts for airtankers, particularly those on exclusive-use terms, are critical for government agencies tasked with wildfire suppression. The market is characterized by a limited number of highly specialized operators capable of meeting stringent safety and operational requirements. Spending in this area is often driven by seasonal demand and the severity of wildfire seasons, making consistent benchmarking challenging.

Small Business Impact

This contract does not appear to involve a small business set-aside. Analysis of subcontracting opportunities for small businesses would require further detail on the contractor's utilization plans. Without specific set-aside provisions, the direct impact on the small business ecosystem is likely minimal unless Aero-Flite, Inc. actively engages small businesses for support services.

Oversight & Accountability

Oversight is likely managed by the USDA Forest Service contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, including requirements for aircraft readiness, maintenance, and operational deployment. Transparency is facilitated through contract award databases, though detailed operational performance data may be less publicly accessible.

Related Government Programs

Wildfire Suppression Support
Aviation Services
Emergency Response Contracts
Department of Agriculture Contracts

Risk Flags

Limited competition after exclusion of sources
High contract value for dedicated assets
Dependence on specialized aviation services

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $26.7 million to AERO-FLITE, INC.. AERO FLITE - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER 160 DAY MAP

Who is the contractor on this award?

The obligated recipient is AERO-FLITE, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

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

What is Aero-Flite, Inc.'s track record with government contracts, particularly for aerial firefighting services?

Aero-Flite, Inc. has a history of providing aviation services, including airtanker operations, to government agencies. Their track record typically involves responding to wildfire seasons and fulfilling task orders for aerial support. Reviewing past performance evaluations and contract histories with agencies like the Forest Service and CAL FIRE would provide a clearer picture of their reliability, safety record, and operational effectiveness. Specific details on past contract awards, their values, and any performance issues or commendations would be crucial for a comprehensive assessment of their capabilities and suitability for this significant award.

How does the cost of this exclusive-use contract compare to similar airtanker contracts awarded by federal agencies?

Benchmarking the cost of this $26.7 million contract against similar exclusive-use airtanker contracts requires access to comparable data. Factors such as aircraft type, capacity, duration of the contract, and specific operational requirements (e.g., required readiness levels, maintenance provisions) significantly influence pricing. Generally, exclusive-use contracts are more expensive than on-demand services because they guarantee availability. A detailed comparison would involve calculating cost per day, cost per flight hour, or cost per gallon dropped, and then comparing these metrics against historical awards from agencies like the Forest Service, Bureau of Land Management, or state firefighting agencies to determine if the pricing is competitive within the specialized market.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if operational demands exceed initial projections, contractor performance issues (e.g., aircraft maintenance failures, pilot availability), and the inherent risks of aerial firefighting operations. Mitigation strategies likely involve robust contract terms and conditions, performance monitoring by the Forest Service, defined penalties for non-performance, and requirements for the contractor to maintain high safety and maintenance standards. The 'exclusive use' nature itself mitigates the risk of asset unavailability, which is a primary concern during peak wildfire seasons. However, the financial risk to the government is higher due to the guaranteed payment regardless of operational tempo.

How effective is the 'exclusive use' model for airtankers in meeting federal wildfire suppression needs?

The 'exclusive use' model is generally considered highly effective for ensuring the immediate availability of critical aerial firefighting assets during peak wildfire seasons. By dedicating specific aircraft to the government for a set period, agencies can rely on these resources without competing with other users or facing delays. This model is crucial for rapid initial attack on wildfires, which is vital for containment. While more expensive than on-demand contracts, the guaranteed availability often translates to better control of fires, potentially saving significant costs associated with larger, uncontained incidents and minimizing damage to natural resources and property. The effectiveness is directly tied to the contractor's ability to maintain aircraft readiness and deploy them efficiently.

What is the historical spending trend for aerial firefighting assets by the Department of Agriculture?

Historical spending by the Department of Agriculture (primarily the Forest Service) on aerial firefighting assets, including airtankers, has generally trended upwards over the past few decades, driven by increasing wildfire frequency and severity attributed to climate change and land management practices. Spending fluctuates annually based on the intensity of the wildfire season. The Forest Service utilizes a mix of contract types, including exclusive-use, call-when-needed (CWN), and large airtanker (LAT) contracts. Analyzing multi-year spending data would reveal patterns in contract values, the types of assets procured, and the overall budget allocated to aerial suppression, highlighting the growing reliance on these critical resources.

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: 8520 W ELECTRIC AVE, SPOKANE, WA, 99224

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: $48,237,777

Exercised Options: $28,846,268

Current Obligation: $26,740,334

Actual Outlays: $18,471,271

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9102

IDV Type: IDC

Timeline