USDA Forest Service awards $25.7M for exclusive airtanker use to Neptune Aviation Services

Contract Overview

Contract Amount: $25,748,785 ($25.7M)

Contractor: Neptune Aviation Services, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-05-17

End Date: 2026-12-31

Contract Duration: 958 days

Daily Burn Rate: $26.9K/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: NEPTUNE - 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 $25.7 million to NEPTUNE AVIATION SERVICES, INC. for work described as: NEPTUNE - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER 160 DAY MAP Key points: 1. The contract is for exclusive use of an airtanker for 160 days, a critical resource for firefighting. 2. Neptune Aviation Services is the sole provider under this specific task order, raising questions about competition. 3. The firm fixed price contract aims to control costs, but the duration and exclusivity warrant scrutiny. 4. This spending falls under the 'Transportation' sector, specifically air charter services for critical government operations.

Value Assessment

Rating: fair

The contract's price of $25.7M for 160 days of exclusive use appears high, averaging over $160,000 per day. Benchmarking against similar exclusive-use airtanker contracts is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may restrict price discovery and potentially lead to higher costs compared to broader competition.

Taxpayer Impact: Taxpayers are funding a significant amount for exclusive use of a critical asset, with potential for cost savings if competition were broader.

Public Impact

Ensures critical aerial firefighting capacity is available during peak season. Potential for increased costs due to limited competition for this specialized service. Supports national efforts in wildfire suppression and land management. Dependence on a single provider for this task order could impact operational flexibility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition for exclusive-use airtanker services.
High daily cost for exclusive use.
Potential for sole-source reliance in future task orders.

Positive Signals

Secures essential firefighting resources.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the air transportation sector, specifically for specialized charter services. Spending on firefighting assets like airtankers is crucial for public safety and land management, with costs often dictated by operational readiness and exclusivity requirements.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Forest Service manages significant assets for wildfire suppression. Oversight is crucial to ensure fair pricing, effective resource deployment, and compliance with competition regulations, especially for exclusive-use contracts.

Related Government Programs

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

Risk Flags

Limited competition.
High daily cost.
Potential for price creep in future renewals.
Dependence on a single provider for this task order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.7 million to NEPTUNE AVIATION SERVICES, INC.. NEPTUNE - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER 160 DAY MAP

Who is the contractor on this award?

The obligated recipient is NEPTUNE AVIATION SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

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

What is the historical cost trend for similar exclusive-use airtanker contracts awarded by the Forest Service?

Historical data on similar exclusive-use airtanker contracts is essential for a robust value assessment. Analyzing past awards, including duration, daily rates, and provider competition, can reveal cost trends and identify potential price escalations or efficiencies. Without this context, it's difficult to definitively state if the current $25.7M award represents good value or an overpayment.

What specific factors justified the exclusion of other potential sources in this 'full and open competition after exclusion' scenario?

The justification for excluding other sources is critical for understanding the limited competition. Factors could include unique aircraft specifications, required operational readiness, specific geographic basing, or demonstrated past performance. A thorough review of the justification document is needed to assess if these exclusions were reasonable and truly necessary, or if they unduly restricted competition and potentially inflated the price.

How effectively will this exclusive-use airtanker contribute to the Forest Service's overall wildfire suppression capabilities and cost-effectiveness?

The effectiveness of this exclusive-use airtanker hinges on its deployment strategy and the actual wildfire activity during the contract period. While exclusive use guarantees availability, its cost-effectiveness depends on whether the demand justifies the daily rate. Analyzing response times, mission success rates, and comparing its operational impact against alternative resources will determine its overall contribution to suppression efforts and taxpayer value.

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: 4301 CORPORATE WAY, MISSOULA, MT, 59808

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $44,317,865

Exercised Options: $27,549,115

Current Obligation: $25,748,785

Actual Outlays: $18,101,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9104

IDV Type: IDC

Timeline