USDA Forest Service awards $21.5M for exclusive air tanker use to 10 Tanker Air Carrier, LLC

Contract Overview

Contract Amount: $21,473,764 ($21.5M)

Contractor: 10 Tanker AIR Carrier, LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-05-17

End Date: 2028-12-31

Contract Duration: 1,689 days

Daily Burn Rate: $12.7K/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: 10 TANKER - 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 $21.5 million to 10 TANKER AIR CARRIER, LLC for work described as: 10 TANKER - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER 120 DAY MAP Key points: 1. Significant investment in aerial firefighting capacity. 2. Exclusive use contract may limit flexibility and competition. 3. Long-term commitment (4+ years) suggests sustained need. 4. Focus on critical wildfire suppression resources.

Value Assessment

Rating: fair

The contract price of $21.5M over approximately 4 years for exclusive use of an air tanker appears high compared to typical charter rates. Benchmarking against similar exclusive-use contracts for large air tankers 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,' indicating a limited competition. This method, while potentially justified for specialized assets, can lead to higher prices than full and open competition.

Taxpayer Impact: Taxpayer funds are committed to securing critical firefighting assets, with potential for overpayment due to limited competition.

Public Impact

Ensures availability of a large air tanker for wildfire suppression. Supports national efforts to combat increasingly severe wildfire seasons. Provides critical infrastructure for protecting lives, property, and natural resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may inflate costs.
Long-term commitment locks in pricing.
Dependence on a single provider for a critical asset.

Positive Signals

Secures essential firefighting capability.
Addresses a critical national need.
Provides predictable resource availability.

Sector Analysis

This contract falls within the aviation services sector, specifically supporting emergency response and natural resource management. Spending on aerial firefighting has increased due to climate change and more frequent, intense wildfires.

Small Business Impact

This contract does not appear to involve small business participation. The nature of specialized aerial firefighting assets often leads to awards to large, established companies.

Oversight & Accountability

The Forest Service manages a large fleet of aircraft for firefighting. Oversight would focus on contract performance, maintenance, pilot qualifications, and adherence to operational safety standards.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to limited competition.
Risk of service disruption if the sole provider faces issues.
Lack of transparency in the 'after exclusion of sources' justification.
High fixed cost may not align with actual usage needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $21.5 million to 10 TANKER AIR CARRIER, LLC. 10 TANKER - AIRTANKER MATCO 2023 EXCLUSIVE USE TASK ORDER 120 DAY MAP

Who is the contractor on this award?

The obligated recipient is 10 TANKER AIR CARRIER, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

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

What is the cost-effectiveness of this exclusive-use contract compared to on-call or shared-use agreements for air tankers?

Exclusive-use contracts guarantee availability but are typically more expensive than on-call or shared-use agreements. The cost-effectiveness hinges on the frequency and intensity of wildfire events requiring this specific asset. If the tanker is frequently deployed, the exclusive use may be justified. However, if underutilized, the fixed cost represents a significant inefficiency compared to more flexible arrangements.

What are the risks associated with relying on a single provider for such a critical asset?

Reliance on a single provider creates significant risk. If the contractor experiences operational issues (mechanical failure, pilot shortages, financial instability), the government loses access to a critical asset during peak demand. This could necessitate emergency, potentially more expensive, procurements or leave critical areas vulnerable. Diversification of providers or maintaining backup options mitigates this risk.

How effectively does this contract contribute to overall wildfire suppression capabilities and resource management?

This contract directly contributes by ensuring the availability of a large air tanker, a key component of aerial firefighting. Its effectiveness is measured by its role in incident response, reducing wildfire spread, and protecting lives and property. The long-term nature suggests a strategic approach to resource allocation, aiming for consistent support during fire seasons.

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

Parent Company: 10 Tanker AIR Carrier LLC

Address: 2503-A CLARK CARR LOOP SE, ALBUQUERQUE, NM, 87106

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

Financial Breakdown

Contract Ceiling: $60,715,924

Exercised Options: $23,250,514

Current Obligation: $21,473,764

Actual Outlays: $21,370,924

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9100

IDV Type: IDC

Timeline