Forest Service awards $27.7M for airtanker services, with 5 bids received

Contract Overview

Contract Amount: $27,729,868 ($27.7M)

Contractor: 10 Tanker AIR Carrier, LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-05-17

End Date: 2025-12-31

Contract Duration: 593 days

Daily Burn Rate: $46.8K/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: 10 TANKER - AIRTANKER MATOC EXCLUSIVE USE TASK ORDER

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $27.7 million to 10 TANKER AIR CARRIER, LLC for work described as: 10 TANKER - AIRTANKER MATOC EXCLUSIVE USE TASK ORDER Key points: 1. Value for money appears reasonable given the critical nature of aerial firefighting. 2. Competition dynamics indicate a healthy level of interest from qualified providers. 3. Risk indicators are moderate, primarily related to operational performance and weather dependency. 4. Performance context is crucial, as timely and effective aerial support is vital for wildfire suppression. 5. Sector positioning places this contract within the essential services category for natural resource management.

Value Assessment

Rating: good

The contract value of $27.7 million for exclusive use of an airtanker over approximately 1.5 years appears competitive. While direct comparisons are difficult due to the specialized nature of aerial firefighting and exclusive use agreements, the Forest Service typically procures such services through competitive processes. The fixed-price nature of the contract provides cost certainty. Benchmarking against similar exclusive use contracts for large airtankers would offer a more precise value assessment, but the number of bids suggests market interest.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a broad solicitation. The receipt of 5 bids suggests a robust competitive environment for this specialized service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The process aimed to ensure that the most capable and cost-effective provider was selected from a pool of qualified offerors.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the price compared to a sole-source or limited competition scenario. Ensuring multiple qualified vendors can bid helps prevent price gouging and promotes efficiency.

Public Impact

The primary beneficiaries are federal and state agencies responsible for wildfire suppression, enabling more effective containment of wildfires. Services delivered include critical aerial support for firefighting operations, such as dropping retardant or water. Geographic impact is significant, covering areas prone to wildfires, particularly in Idaho where this task order is based. Workforce implications include support for the aviation industry and specialized pilots and ground crews involved in aerial firefighting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Dependency on weather conditions can impact operational effectiveness and availability.
Potential for mechanical issues with aircraft could lead to service disruptions.
The 'exclusive use' nature means the aircraft is dedicated, which might be less flexible if needs change rapidly.

Positive Signals

The contract is with an established provider with experience in aerial firefighting.
The use of a fixed-price contract provides cost predictability.
The competitive award process suggests a focus on securing reliable service at a fair price.

Sector Analysis

The aerial firefighting sector is a critical component of national defense against wildfires, involving specialized aircraft and highly trained personnel. The market is characterized by a limited number of qualified operators capable of providing exclusive-use large airtankers. Spending in this sector is often driven by seasonal demand and the severity of wildfire seasons, making it subject to variability. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of exclusive-use contracts and the high operational costs associated with these specialized assets.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it is awarded to '10 TANKER AIR CARRIER, LLC'. The nature of large exclusive-use airtanker services typically requires significant capital investment and operational capacity, which may limit the direct participation of small businesses as prime contractors. However, opportunities for small businesses may exist indirectly through subcontracting, depending on the prime contractor's sourcing strategies for maintenance, support services, or other ancillary needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Forest Service's contracting officers and program managers responsible for aviation and wildfire suppression. Accountability measures are embedded in the contract's performance standards, delivery schedules, and payment terms. Transparency is generally maintained through contract award databases and public reporting, although specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Wildfire Suppression Services
Aviation Support Contracts
Department of Agriculture Contracts
Forest Service Aviation Management

Risk Flags

Operational dependency on weather
Potential for aircraft mechanical issues
Need for specialized pilot and maintenance crews

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $27.7 million to 10 TANKER AIR CARRIER, LLC. 10 TANKER - AIRTANKER MATOC EXCLUSIVE USE TASK ORDER

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 $27.7 million.

What is the period of performance?

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

What is the historical spending by the Forest Service on airtanker services, and how does this award compare?

The Forest Service's spending on aviation, including airtankers, fluctuates annually based on wildfire activity and budget allocations. In recent years, federal agencies have increased investment in aerial firefighting capabilities due to more severe wildfire seasons. For example, the Forest Service has historically awarded multi-year contracts for exclusive-use airtankers. This $27.7 million award for a single task order represents a significant investment for the period of performance (approximately 1.5 years). While specific historical dollar amounts for comparable single airtanker task orders are not readily available in the provided data, the Forest Service's overall aviation budget often runs into hundreds of millions of dollars annually to cover various aircraft types and services. This award is consistent with the scale of investment required for dedicated, large airtanker assets during high-risk periods.

What are the key performance metrics and potential risks associated with this airtanker contract?

Key performance metrics for this contract likely include aircraft availability, response time to dispatch orders, successful delivery of retardant or water to target areas, and adherence to safety protocols. The primary risks involve operational disruptions due to mechanical failures, adverse weather conditions preventing flight operations, and the potential for pilot availability issues. Additionally, the effectiveness of the retardant drops themselves can be influenced by wind, terrain, and fire behavior, which are external factors. The Forest Service manages these risks through contract clauses requiring maintenance, pilot qualifications, and operational readiness, as well as through contingency planning and the use of multiple aircraft types.

How does the 'full and open competition after exclusion of sources' method impact pricing and contractor selection?

The 'full and open competition after exclusion of sources' method is a specific type of competitive procurement. It means that the agency initially considered excluding certain sources (perhaps due to specific technical requirements or past performance issues with some vendors) but ultimately opened the competition to all responsible sources that could meet the requirements. In this case, receiving 5 bids suggests that despite any initial exclusions, a sufficient number of qualified vendors were able to participate. This method aims to balance the need for specialized capabilities with the benefits of broad competition, potentially leading to competitive pricing while ensuring the government procures from capable providers. The 5 bids indicate a healthy level of market interest, which generally supports favorable price discovery for the government.

What is the typical duration and cost structure for exclusive-use airtanker contracts?

Exclusive-use airtanker contracts, like this one, are typically awarded for a set period, often ranging from one to several years, to ensure consistent availability of critical assets. The cost structure usually involves a base fee for making the aircraft available (the 'exclusive use' component) and then potentially flight-hour rates or per-mission rates for actual operational use. This contract is a Firm Fixed Price (FFP) delivery order, suggesting a consolidated price for the service over its term. The duration here is approximately 593 days (from May 2024 to December 2025). The total award amount of $27.7 million reflects the commitment for this dedicated asset over that period, covering availability, operational costs, maintenance, and profit.

What is the significance of the 'Nonscheduled Chartered Freight Air Transportation' (NAICS code 481212) classification for this contract?

The NAICS code 481212, 'Nonscheduled Chartered Freight Air Transportation,' signifies that the primary service procured is the chartering of aircraft for transporting goods (in this case, fire retardant or water) on a non-regularly scheduled basis. This classification is appropriate for aerial firefighting because the flights are demand-driven, responding to specific wildfire incidents rather than operating on a fixed timetable. It covers the provision of aircraft and crew for specialized, on-demand air transport missions. This code helps categorize the contract within federal procurement databases and informs industry about the type of services being sought, attracting companies that specialize in charter air services for unique or emergency-related purposes.

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: $67,224,306

Exercised Options: $29,679,118

Current Obligation: $27,729,868

Actual Outlays: $24,082,996

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