Agriculture Department awards $27.6M for exclusive use of aerial firefighting aircraft

Contract Overview

Contract Amount: $27,555,971 ($27.6M)

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: $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: 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 $27.6 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 value represents a significant investment in critical wildfire suppression capabilities. 2. Sole-source task order structure may limit competitive pricing opportunities. 3. Duration of the contract suggests a long-term need for these assets. 4. Performance context is vital given the increasing frequency and severity of wildfires. 5. Sector positioning highlights the government's reliance on specialized aviation services.

Value Assessment

Rating: fair

The contract value of $27.6 million for 958 days of exclusive use appears to be within a reasonable range for specialized aerial firefighting assets, considering the high operational costs and readiness requirements. However, a direct comparison to similar exclusive-use contracts is necessary to fully benchmark value. The firm-fixed-price structure provides cost certainty but may not fully capture potential efficiencies if operational needs fluctuate.

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 excluded. The presence of 5 bidders suggests a degree of competition, but the exclusion of specific sources warrants further investigation into the rationale and its potential impact on price discovery. The limited nature of the competition could lead to higher prices than a truly open market.

Taxpayer Impact: The limited competition may result in taxpayers paying a premium compared to a scenario with broader participation from qualified vendors.

Public Impact

Benefits federal agencies responsible for wildfire management, primarily the Forest Service. Delivers critical aerial firefighting services to combat wildfires across various regions. Geographic impact is national, focusing on areas prone to and affected by wildfires. Workforce implications include support for pilots, ground crews, and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing for taxpayers.
Exclusion of sources requires clear justification to ensure fairness and market access.
High cost of specialized aircraft and operations presents a significant financial commitment.

Positive Signals

Ensures availability of critical firefighting assets during peak seasons.
Firm-fixed-price contract provides budget predictability.
Multiple bidders indicate a market with some level of vendor interest.

Sector Analysis

The aerial firefighting sector is highly specialized, requiring significant capital investment in aircraft, maintenance, and trained personnel. This contract fits within the broader context of government efforts to manage natural resources and respond to emergencies. Comparable spending benchmarks are difficult to establish due to the unique nature of exclusive-use agreements for specialized aircraft, but overall federal spending on wildfire suppression is substantial and growing.

Small Business Impact

This contract does not appear to have a small business set-aside. The nature of specialized aerial firefighting services often requires large, established companies with significant resources and certifications, which may limit opportunities for small businesses to participate directly as prime contractors. Subcontracting opportunities for small businesses may exist in areas like logistics, support services, or component maintenance, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight is likely managed by the Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures would include adherence to the task order's terms, performance standards, and reporting requirements. Transparency is facilitated through contract databases, but detailed operational performance data may be less publicly accessible due to operational sensitivities. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.

Related Government Programs

Wildfire Management Programs
Aviation Support Services
Emergency Response Contracts
Natural Resource Management

Risk Flags

Limited competition may impact price.
Exclusion of sources requires justification.
High cost of specialized assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $27.6 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 $27.6 million.

What is the period of performance?

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

What is the historical spending pattern for Aero-Flite, Inc. with the Department of Agriculture for similar services?

Historical spending data for Aero-Flite, Inc. with the Department of Agriculture for similar aerial firefighting services would provide crucial context for this $27.6 million task order. Analyzing past contracts, including their duration, value, and competitive nature, can reveal trends in pricing, vendor performance, and the agency's reliance on this specific contractor. If previous contracts were also sole-source or limited competition, it might indicate a consistent market structure or a long-standing relationship. Conversely, a shift from competitive bidding to a more restricted process could signal changes in market dynamics or agency strategy. Without specific historical data, it's difficult to definitively assess if this current award represents an increase or decrease in spending, or if the pricing is consistent with prior agreements. Further investigation into the contract database for prior awards to Aero-Flite, Inc. by the Forest Service or other USDA agencies is recommended.

How does the daily operational cost of this exclusive-use aircraft compare to market rates for similar assets?

Determining the precise daily operational cost requires detailed breakdowns of aircraft lease, crew, maintenance, insurance, and operational support, which are not fully provided in the summary data. However, the total award of $27.6 million over 958 days (approximately 2.6 years) suggests a daily rate in the ballpark of $28,758. This figure needs to be benchmarked against market rates for exclusive-use, large airtankers, which can vary significantly based on aircraft type, age, capabilities, and service level agreements. Industry reports and analyses of similar government or commercial contracts are essential for comparison. Factors like guaranteed availability, response times, and required modifications for firefighting missions can justify higher costs compared to standard charter rates. A thorough value-for-money assessment would involve comparing this calculated daily rate against publicly available data or expert estimates for comparable aerial firefighting platforms.

What specific criteria led to the exclusion of certain sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation implies that a broad solicitation was initially considered or conducted, but specific vendors were subsequently excluded based on predefined criteria. These criteria typically relate to meeting stringent technical specifications, possessing necessary certifications (e.g., FAA, safety), demonstrating financial stability, or having a proven track record in high-risk aerial operations. For aerial firefighting, requirements might include specific aircraft models, payload capacities, operational readiness, pilot qualifications, and maintenance protocols. The Forest Service would have published these requirements, and vendors who failed to meet them, or were deemed unable to meet them, would be excluded. The rationale for exclusion must be documented and justifiable to ensure the integrity of the procurement process and prevent arbitrary restrictions on competition.

What is the assessed risk level associated with this contract, considering the operational environment and contractor performance?

The assessed risk level for this contract is likely moderate to high, primarily due to the inherent risks associated with aerial firefighting operations. These risks include safety hazards for pilots and ground crews, potential for aircraft malfunction in demanding conditions, and the critical nature of timely response to wildfires, where delays can lead to significant property and environmental damage. Contractor performance risk is also a factor; while Aero-Flite, Inc. is the awardee, their past performance record, financial health, and operational capacity are crucial. The agency's risk mitigation strategies would involve rigorous pre-award evaluations, clear performance standards in the contract, regular monitoring of operations, and contingency planning. The firm-fixed-price nature of the contract shifts some financial risk to the contractor, but operational and safety risks remain significant.

How does the duration of this contract (958 days) align with typical wildfire seasons and the agency's strategic planning for resource availability?

A contract duration of 958 days, approximately 2.6 years, suggests a strategic approach by the Forest Service to ensure consistent availability of critical aerial firefighting assets over multiple wildfire seasons. Wildfire seasons can vary in intensity and duration annually, influenced by climate, weather patterns, and fuel conditions. Securing exclusive use of an airtanker for such a period provides predictability and guarantees that this specific asset will be ready for deployment when needed, rather than relying solely on spot market availability which can be scarce and expensive during peak demand. This duration likely reflects the agency's long-term resource planning and risk management strategy, aiming to build a reliable fleet capacity to meet anticipated wildfire suppression needs.

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: $48,814,402

Exercised Options: $28,624,499

Current Obligation: $27,555,971

Actual Outlays: $17,692,333

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