USDA Forest Service awards $27.5M for exclusive airtanker use to Neptune Aviation Services

Contract Overview

Contract Amount: $27,557,175 ($27.6M)

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: $28.8K/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: 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 $27.6 million to NEPTUNE AVIATION SERVICES, INC. for work described as: NEPTUNE - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER 160 DAY MAP Key points: 1. Contract awarded to Neptune Aviation Services, Inc. for exclusive use of an airtanker. 2. The contract value is $27.56 million over its period of performance. 3. Competition method was 'Full and Open Competition After Exclusion of Sources', indicating a specific justification for limiting initial bidders. 4. The sector is primarily aviation support for firefighting, a critical but specialized area.

Value Assessment

Rating: fair

The contract's fixed price structure provides cost certainty. However, without a clear benchmark for airtanker daily rates, assessing value for money is challenging. The duration and exclusivity may inflate costs compared to on-demand services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition was 'Full and Open Competition After Exclusion of Sources'. This suggests that while open to all, certain pre-existing conditions or requirements may have limited the pool of eligible bidders, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are used for critical wildfire suppression. The cost-effectiveness of this exclusive use contract versus alternative models needs careful monitoring to ensure optimal resource allocation.

Public Impact

Ensures dedicated aerial firefighting resources are available for wildfire suppression. Supports critical national infrastructure for emergency response. Potential for high costs due to exclusive use and limited initial competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition justification
Exclusivity may reduce flexibility and increase cost
Lack of clear per-unit cost benchmark

Positive Signals

Dedicated resource for critical need
Fixed price contract provides cost certainty

Sector Analysis

This contract falls within the aviation services sector, specifically supporting emergency response and natural resource management. Benchmarks for exclusive-use airtanker contracts are highly specialized and depend on aircraft type, duration, and operational readiness.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. The primary contractor, Neptune Aviation Services, Inc., is not identified as a small business in this context.

Oversight & Accountability

The Forest Service is responsible for managing this contract. Oversight should focus on ensuring the airtanker meets all performance requirements and that the justification for exclusive use remains valid throughout the contract period.

Related Government Programs

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

Risk Flags

Potential for overpayment due to exclusive use
Limited competition may reduce price pressure
Lack of transparent per-unit cost data
Dependence on a single provider for critical resource

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $27.6 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 $27.6 million.

What is the period of performance?

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

What is the cost-effectiveness of securing exclusive use of an airtanker for a fixed period compared to utilizing on-demand services or a larger fleet with shared availability?

Securing exclusive use guarantees availability during critical periods, which can be crucial for wildfire suppression. However, it often comes at a premium compared to on-demand services. The cost-effectiveness hinges on the frequency and severity of wildfire events during the contract period and whether the guaranteed availability justifies the higher fixed cost over potentially lower, variable costs of on-demand options.

How does the 'Full and Open Competition After Exclusion of Sources' process ensure fair pricing and prevent potential price gouging for specialized assets like exclusive-use airtankers?

This procurement method allows for open competition but requires a justification for excluding certain sources or methods initially. While intended to be open, the exclusion criteria can limit the bidder pool. Fair pricing relies on robust cost analysis, market research, and negotiation by the agency to ensure the awarded price reflects a reasonable return for the contractor while meeting the government's needs effectively.

What are the key performance indicators (KPIs) used to measure the effectiveness of this airtanker service, and how are they monitored by the Forest Service?

Effectiveness KPIs likely include aircraft availability rates, response times to dispatch, flight hours logged, successful mission completion rates (e.g., retardant drops), and adherence to safety protocols. The Forest Service would monitor these through flight logs, pilot reports, mission debriefs, and potentially real-time tracking systems to ensure the contractor meets contractual obligations and provides reliable support.

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: $46,126,255

Exercised Options: $29,357,505

Current Obligation: $27,557,175

Actual Outlays: $19,503,743

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