Forest Service awards $25.1M for aerial firefighting, with 5 bids received for exclusive use airtanker services

Contract Overview

Contract Amount: $25,095,079 ($25.1M)

Contractor: Aero AIR, LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-07-06

End Date: 2026-12-31

Contract Duration: 908 days

Daily Burn Rate: $27.6K/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 MATOC 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 $25.1 million to AERO AIR, LLC for work described as: AERO AIR - AIRTANKER MATOC EXCLUSIVE USE TASK ORDER - 120 DAY MAP Key points: 1. Contract provides critical aerial firefighting capacity for the Forest Service. 2. The award was made under full and open competition, indicating a competitive marketplace. 3. Pricing appears reasonable given the specialized nature of exclusive-use airtankers. 4. The contract duration extends through December 2026, ensuring sustained support. 5. This award is part of a larger strategy to manage wildfire risks.

Value Assessment

Rating: good

The contract value of $25.1 million for exclusive-use airtanker services appears reasonable when benchmarked against similar large-scale aerial firefighting contracts. The Forest Service's reliance on these specialized assets for wildfire suppression necessitates significant investment. While specific per-unit cost data is not provided, the competitive bidding process suggests that the pricing achieved reflects market conditions for this high-demand service. The duration of the contract also allows for predictable budgeting and resource allocation.

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 that multiple vendors were solicited and allowed to bid. The receipt of five bids suggests a healthy level of competition for this critical service. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it helps ensure that the Forest Service is obtaining these essential aerial firefighting resources at a fair market price, avoiding potential overspending.

Public Impact

Benefits federal and state agencies in wildfire suppression efforts. Provides critical airtanker services for combating wildfires across various regions. Supports the operational readiness of the Forest Service's firefighting capabilities. Indirectly benefits communities by aiding in the protection of lives and property from wildfires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting wildfire response times.
Dependence on specialized aircraft and pilot availability can create logistical challenges.
Geographic limitations of airtanker bases could affect response to remote fires.

Positive Signals

Exclusive-use contracts ensure dedicated resources are available when needed.
The competitive award process suggests a robust selection of qualified vendors.
Long-term contract provides stability and predictability for wildfire management planning.

Sector Analysis

The aerial firefighting sector is a critical component of national security and public safety, particularly in regions prone to wildfires. This contract falls within the broader transportation and logistics services category, specifically focusing on specialized air charter services. The market for exclusive-use airtankers is relatively niche, dominated by a few key providers capable of meeting stringent operational and safety requirements. Spending in this area is often driven by seasonal demand and the severity of wildfire seasons.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, AERO AIR, LLC, is not explicitly identified as a small business in this context. Therefore, the direct impact on small business set-asides is minimal. However, opportunities for small businesses may exist further down the supply chain through subcontracting, depending on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract is likely managed by the U.S. Forest Service contracting officers and program managers. Performance monitoring, adherence to delivery schedules, and compliance with safety regulations would be key oversight areas. Transparency is generally maintained through contract award databases and public reporting, though specific operational details may be sensitive. Inspector General involvement would typically occur in cases of suspected fraud, waste, or abuse.

Related Government Programs

Wildfire Suppression Support
Aviation Services Contracts
Department of Agriculture Procurement
Forest Service Operations

Risk Flags

Contract Duration
Sole Source Potential (future)
Performance Reliability

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.1 million to AERO AIR, LLC. AERO AIR - AIRTANKER MATOC 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 $25.1 million.

What is the period of performance?

Start: 2024-07-06. End: 2026-12-31.

What is the historical spending trend for aerial firefighting services by the Forest Service over the past five years?

Analyzing historical spending for aerial firefighting services by the Forest Service reveals a fluctuating but generally increasing trend over the past five years. This trend is largely influenced by the severity and frequency of wildfire seasons, which have intensified due to climate change and land management practices. For instance, in years with extensive fire activity, such as 2020 and 2021, spending on aerial resources, including airtankers and helicopters, saw significant spikes. Conversely, years with less severe fire seasons might show a decrease in immediate operational spending, though base contract values often remain stable to ensure readiness. The Forest Service often utilizes multi-year contracts and indefinite-delivery/indefinite-quantity (IDIQ) vehicles to manage this variability, leading to substantial annual outlays that can range from hundreds of millions to over a billion dollars depending on the year's fire conditions and strategic resource allocation.

How does the pricing of this airtanker contract compare to similar exclusive-use contracts awarded by other federal agencies like the Department of the Interior?

Comparing the pricing of this $25.1 million Forest Service contract for exclusive-use airtanker services to similar contracts awarded by other federal agencies, such as the Department of the Interior (DOI), requires careful consideration of contract specifics. Exclusive-use airtankers are highly specialized assets, and their cost is influenced by aircraft type, capacity, duration of the contract, required operational readiness, and geographic deployment. Generally, contracts for large, modern airtankers (like the MAFFS or large VLATs) can range from tens to hundreds of thousands of dollars per day or per month, depending on the terms. The Forest Service's contract, awarded to AERO AIR, LLC, with a duration extending to late 2026, suggests a multi-year commitment. Benchmarking against DOI contracts for similar services would likely show comparable price ranges, as both agencies face similar operational demands and market constraints for these critical resources. Variations might arise from specific performance metrics, maintenance requirements, or the number of aircraft included in the award.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of this airtanker service contract?

The effectiveness of this airtanker service contract is likely evaluated through a set of Key Performance Indicators (KPIs) designed to ensure timely and efficient wildfire suppression. Primary KPIs would include response time, defined as the interval between notification of a wildfire and the airtanker's deployment to the incident. Aircraft availability and mission completion rates are also crucial, measuring the percentage of time the contracted aircraft are operational and successfully execute assigned missions. Factors such as sortie frequency (number of drops per day), retardant delivery accuracy, and adherence to safety protocols are also vital. Furthermore, the contractor's maintenance and readiness status, reported regularly, serves as a proactive indicator of performance. The Forest Service would track these metrics to ensure the contractor meets contractual obligations and provides the necessary support for effective wildfire management.

What is the track record of AERO AIR, LLC in providing aerial firefighting services to federal agencies?

AERO AIR, LLC has a documented history of providing aviation services, including aerial firefighting, to federal agencies. Their involvement in contracts with entities like the Forest Service and potentially other agencies underscores their experience in this specialized field. Past performance evaluations, often a critical component of federal contract awards, would have assessed their reliability, safety record, operational capabilities, and responsiveness. While specific details of past performance are not publicly itemized in this summary, the fact that they were awarded this exclusive-use MATOC task order, especially under full and open competition, suggests a positive or at least acceptable track record. Federal agencies typically conduct thorough due diligence on contractor past performance to mitigate risks associated with critical service delivery, particularly in high-stakes operations like wildfire suppression.

What are the potential risks associated with relying on a single contractor for exclusive-use airtanker services, even if competed?

Even with a competitive bidding process, relying on a single contractor for exclusive-use airtanker services presents several potential risks. Firstly, there's the risk of contractor default or failure to perform, which could leave the Forest Service without critical assets during peak wildfire season. This could stem from financial instability, operational issues, or unforeseen events affecting the contractor's fleet or personnel. Secondly, over time, a contractor might gain significant market leverage, potentially impacting future competition or pricing if the market becomes less diverse. Thirdly, dependence on one provider can limit flexibility in adapting to rapidly changing needs or technological advancements in aerial firefighting. While this contract was competed, the long-term nature of exclusive-use agreements necessitates ongoing vigilance regarding the contractor's sustained capability and market dynamics.

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: $44,308,018

Exercised Options: $28,116,155

Current Obligation: $25,095,079

Actual Outlays: $15,035,605

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