Forest Service awards $14.4M for exclusive use of Airtanker MATCO, ensuring critical firefighting capacity

Contract Overview

Contract Amount: $14,417,440 ($14.4M)

Contractor: Aero AIR, LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-05-17

End Date: 2028-12-31

Contract Duration: 1,689 days

Daily Burn Rate: $8.5K/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 AIR - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER 120 DAY MAP

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $14.4 million to AERO AIR, LLC for work described as: AERO AIR - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER 120 DAY MAP Key points: 1. The contract provides dedicated aerial firefighting resources, crucial for timely wildfire suppression. 2. Exclusive use ensures availability during peak fire seasons, mitigating risks associated with shared assets. 3. The firm-fixed-price structure offers cost predictability for the agency. 4. A single task order under an existing IDIQ contract suggests a streamlined procurement process. 5. The duration of the contract extends over multiple fire seasons, providing long-term planning stability. 6. The specific nature of the service (exclusive use airtanker) points to a specialized market.

Value Assessment

Rating: good

The awarded amount of $14.4 million for 1689 days of exclusive airtanker use appears reasonable given the critical nature of wildfire suppression and the specialized equipment involved. Benchmarking against similar exclusive-use contracts for firefighting aircraft would provide a more precise value assessment. The firm-fixed-price contract type helps manage cost certainty for the Forest Service, reducing the risk of cost overruns compared to cost-reimbursement contracts.

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 the initial contract vehicle may have been competed broadly, this specific task order involved a limited competition or a specific justification for excluding certain sources. The presence of 5 bidders suggests a competitive process, but the 'exclusion of sources' element warrants further investigation to understand if it limited the overall pool of potential offerors and potentially impacted price discovery.

Taxpayer Impact: The limited competition, despite multiple bidders, may mean taxpayers did not benefit from the absolute lowest price achievable through a fully open and unrestricted bidding process.

Public Impact

The primary beneficiaries are the communities and ecosystems protected by enhanced wildfire suppression capabilities. The service delivered is the exclusive availability of an airtanker for firefighting missions. The geographic impact is focused on areas managed by the Forest Service, particularly within Idaho, where the contract is based. This contract supports specialized aviation jobs related to airtanker operations and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition or exclusion of sources.
Dependence on a single contractor for critical firefighting assets.
Risk of operational disruptions if the contractor faces unforeseen issues.
The specific 'exclusion of sources' needs clarification to ensure fairness and optimal value.

Positive Signals

Ensures dedicated firefighting capacity, a critical public safety need.
Long-term contract provides stability and predictability for resource allocation.
Firm-fixed-price contract offers budget certainty.
Multiple bidders indicate some level of market interest and potential for competitive pricing.

Sector Analysis

The aerial firefighting sector is highly specialized, involving significant capital investment in aircraft and operational expertise. This contract fits within the broader aerospace and defense services market, specifically catering to government needs for emergency response. Comparable spending benchmarks would likely involve other exclusive-use contracts for large airtankers or specialized aerial support, which are often procured through multi-year agreements due to the high cost and lead time for acquiring and maintaining such assets.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature and high cost of exclusive-use airtankers, it is unlikely that small businesses would be primary awardees for the prime contract. Subcontracting opportunities may exist for maintenance, repair, or support services, but the primary focus is on large, specialized aviation providers.

Oversight & Accountability

Oversight is likely managed through the Forest Service's contracting officers and program managers responsible for aviation and wildland fire management. Performance standards and reporting requirements would be detailed in the contract's statement of work. Transparency is generally maintained through contract databases like FPDS, although specific operational details of task orders may be less public. Inspector General jurisdiction would apply to allegations of fraud, waste, or abuse.

Related Government Programs

Wildland Firefighter Training
Aircraft Maintenance and Repair
Aviation Fuel Services
Emergency Response Services
Forest Management and Conservation

Risk Flags

Limited competition justification requires review.
Potential for price escalation in future task orders.
Dependence on specialized aviation assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $14.4 million to AERO AIR, LLC. AERO AIR - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER 120 DAY MAP

Who is the contractor on this award?

The obligated recipient is AERO AIR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2024-05-17. End: 2028-12-31.

What is the historical spending by the Forest Service on exclusive-use airtanker contracts over the past five years?

Analyzing historical spending on exclusive-use airtanker contracts by the Forest Service over the past five years would reveal trends in demand, pricing, and contractor participation. This data could highlight whether the current $14.4 million award for the MATCO Airtanker is consistent with previous investments, or if there has been a significant increase or decrease. Understanding these patterns is crucial for assessing the long-term budgetary implications and the sustainability of current procurement strategies. For instance, if spending has been steadily rising, it might indicate increasing wildfire activity or a tightening market for these specialized assets, potentially justifying higher prices. Conversely, stable or declining spending could suggest effective cost management or a plateau in demand.

How does the per-day cost of this exclusive-use airtanker compare to similar contracts awarded to other providers?

To benchmark the value-for-money of this $14.4 million contract for the MATCO Airtanker, a detailed comparison of its per-day operational cost against similar exclusive-use airtanker contracts awarded by the Forest Service or other federal agencies is essential. This analysis should account for factors such as aircraft type, capacity, age, required performance specifications, and contract duration. If the per-day rate is significantly higher than comparable contracts, it could indicate potential overpricing or unique service requirements justifying the premium. Conversely, a lower rate would suggest favorable pricing. Without specific comparative data, it is difficult to definitively assess whether taxpayers are receiving excellent value, though the critical nature of the service implies a certain cost threshold is acceptable.

What specific risks are associated with relying on a single contractor for exclusive use of an airtanker, and how are these mitigated?

Relying on a single contractor for exclusive use of an airtanker presents several risks, including potential service disruptions due to the contractor's operational issues (e.g., mechanical failures, pilot availability), lack of leverage in price negotiations for future contracts, and the possibility of the contractor prioritizing other clients if the contract terms are not sufficiently stringent. Mitigation strategies typically involve robust performance standards within the contract, clear termination clauses, requirements for backup aircraft or maintenance plans from the contractor, and proactive relationship management by the agency. The Forest Service likely has contingency plans in place, potentially involving agreements with other providers or interagency agreements for shared resources, to address immediate needs should the primary contractor be unable to fulfill its obligations.

What is the track record of AERO AIR, LLC in fulfilling federal contracts, particularly those related to aviation services?

Assessing the track record of AERO AIR, LLC is crucial for understanding the reliability and performance associated with this $14.4 million contract. A review of their past federal contract performance, accessible through databases like the Federal Procurement Data System (FPDS), would reveal their history of on-time delivery, quality of service, and any instances of contract disputes, terminations, or performance issues. Specifically, examining their experience with similar aviation services, especially aerial firefighting, would provide insight into their capabilities and operational expertise. A history of successful contract completions suggests a lower risk profile for this current award, while past performance issues might warrant closer monitoring and contingency planning by the Forest Service.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact the overall cost-effectiveness for taxpayers?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' presents a nuanced impact on cost-effectiveness for taxpayers. While it implies an initial broad competition for an Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle, the subsequent exclusion of specific sources for this task order means the competition was not entirely unrestricted. This could limit the number of potential bidders, potentially reducing competitive pressure and leading to higher prices than if all qualified sources were allowed to compete. However, if the exclusion was based on specific technical requirements or past performance criteria that only a subset of vendors could meet, it might ensure a higher quality of service, which could be argued as a form of value. The key is understanding the justification for the exclusion; if it was arbitrary, it likely diminished cost-effectiveness. If it was technically sound, the value might be preserved or enhanced through specialized capability.

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: 2050 NE 25TH AVE, HILLSBORO, OR, 97124

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,590,736

Exercised Options: $15,601,330

Current Obligation: $14,417,440

Actual Outlays: $14,394,955

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9101

IDV Type: IDC

Timeline