USDA awards $18.6M for exclusive use of Neptune's airtanker fleet for wildfire suppression

Contract Overview

Contract Amount: $18,644,544 ($18.6M)

Contractor: Neptune Aviation Services, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-05-17

End Date: 2025-12-31

Contract Duration: 593 days

Daily Burn Rate: $31.4K/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 $18.6 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 provides dedicated aerial firefighting resources, crucial for rapid wildfire response. 2. Exclusive use model ensures availability, potentially at a premium compared to on-call services. 3. Performance is tied to operational readiness and effectiveness in suppressing fires. 4. Sector positioning is within critical national defense and natural resource management. 5. Risk indicators include operational delays, weather impacts, and contractor performance.

Value Assessment

Rating: good

The contract's value is assessed based on the critical nature of exclusive use for aerial firefighting. While the total award is $18.6 million, the daily rate for the airtanker is not explicitly detailed, making direct cost comparison difficult without further breakdown. However, exclusive use contracts typically command higher prices due to guaranteed availability, which is essential for effective wildfire suppression. Benchmarking against similar exclusive use contracts for large airtankers would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. The specific reasons for exclusion are not detailed, but this approach can sometimes limit the pool of potential bidders. The presence of 5 bidders suggests some level of competition, but the exclusion criteria warrant further investigation to ensure a fair and competitive process.

Taxpayer Impact: The limited competition may result in a higher price for taxpayers compared to a fully open competition with a larger number of bidders. Understanding the rationale behind source exclusion is key to assessing if this impacted the final price.

Public Impact

Benefits federal agencies like the Forest Service in combating wildfires. Delivers critical aerial firefighting services to protect lives, property, and natural resources. Geographic impact is national, focusing on areas prone to wildfires. Workforce implications include support for pilots, ground crews, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to exclusive use model.
Limited competition may not yield the lowest possible price.
Dependence on a single contractor for critical assets.

Positive Signals

Ensures dedicated resources for wildfire suppression.
Contractor has a track record in aerial firefighting.
Fixed-price contract provides cost certainty.

Sector Analysis

The aerial firefighting sector is a specialized niche within the broader aviation industry, critical for national security and environmental management. This contract for exclusive use of a large airtanker fits within the government's strategy to secure essential assets for wildfire suppression. Spending in this area fluctuates based on fire seasons and agency needs, but securing dedicated resources is a common approach. Comparable spending benchmarks would involve analyzing other exclusive use contracts for similar aircraft types and durations.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The primary contractor, Neptune Aviation Services, Inc., is a significant player in the aerial firefighting market. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but typically, large prime contracts may involve some level of subcontracting for support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures are tied to the performance requirements outlined in the task order, including aircraft availability, maintenance, and operational readiness. Transparency is generally facilitated through contract award databases, though specific operational details may be sensitive.

Related Government Programs

Wildfire Suppression Services
Aviation Support Services
National Interagency Fire Center Contracts
Department of the Interior Wildfire Contracts

Risk Flags

Limited competition may impact price.
Exclusive use model could be more expensive than alternatives.
Dependence on contractor performance for critical asset availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $18.6 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 $18.6 million.

What is the period of performance?

Start: 2024-05-17. End: 2025-12-31.

What is Neptune Aviation Services, Inc.'s track record with federal firefighting contracts?

Neptune Aviation Services, Inc. has a significant history of providing aerial firefighting services to federal agencies, particularly the U.S. Forest Service. They operate a fleet of large airtankers, including the P-3 Orion and BAe-146 models, which are crucial for large-scale wildfire suppression. Their experience typically involves responding to national fire events, demonstrating operational capability and reliability. Past contracts have often been for exclusive use or call-when-needed services, similar to this task order. Performance reviews and past performance evaluations from previous federal contracts would offer deeper insights into their reliability, safety record, and effectiveness in meeting mission requirements.

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

Exclusive use contracts, like this $18.6 million award to Neptune Aviation Services, Inc., generally come at a premium compared to on-demand or shared airtanker services. This premium is paid to guarantee the availability of the asset when needed, which is critical for rapid wildfire response. On-demand services might appear cheaper on a per-flight-hour basis but lack guaranteed availability, potentially leading to delays during peak demand. Shared contracts distribute costs but also share availability. The value proposition of an exclusive use contract hinges on the high probability of needing the asset and the severe consequences of its unavailability during critical wildfire events. A detailed cost-benefit analysis would compare the total cost of exclusive use against the potential damages from unmitigated fires that could have been fought with a readily available airtanker.

What are the primary risks associated with this exclusive use airtanker contract?

The primary risks associated with this exclusive use airtanker contract include operational risks such as mechanical failures, pilot availability, and adverse weather conditions that could ground the aircraft, impacting firefighting efforts. There's also a financial risk if the contract is awarded at a price point that exceeds the market value for similar services, especially if the fire season is less severe than anticipated. Contractor performance risk is another factor; while Neptune Aviation Services has experience, any lapse in their operational readiness or safety protocols could have severe consequences. Furthermore, the government's reliance on a single asset for exclusive use creates a dependency risk. Mitigation strategies would involve robust performance monitoring, contingency planning, and strong contract management.

What is the expected effectiveness of this airtanker in suppressing wildfires?

The effectiveness of this airtanker, a large asset like a P-3 Orion or BAe-146, in suppressing wildfires is significant. These aircraft can deliver large volumes of retardant or water over extended periods, creating containment lines and slowing fire progression. Their effectiveness is maximized when deployed early in a fire's lifecycle and in coordination with ground crews. The exclusive use nature of this contract ensures that the airtanker is available for immediate dispatch, which is crucial for initial attack and preventing small fires from becoming large, uncontrollable incidents. Factors influencing effectiveness include pilot skill, retardant accuracy, weather conditions, and the specific topography and fuel types of the fire area.

How does this contract fit into the broader context of federal wildfire management spending?

This contract for $18.6 million represents a component of the federal government's substantial investment in wildfire management. Agencies like the Forest Service and the Department of the Interior allocate billions annually towards prevention, suppression, and post-fire recovery. Securing dedicated assets like exclusive use airtankers is a strategic part of the suppression budget, ensuring critical resources are on standby. This spending is often reactive to fire seasons but also includes proactive investments in fleet modernization and readiness. Comparing this award to overall agency budgets for aviation assets and total wildfire suppression expenditures provides context on its relative scale and importance within the federal wildfire management strategy.

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: $44,473,489

Exercised Options: $18,644,544

Current Obligation: $18,644,544

Actual Outlays: $18,287,854

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