Agriculture Forest Service awards $6.5M contract for exclusive salmon habitat air transport

Contract Overview

Contract Amount: $6,539,396 ($6.5M)

Contractor: Helicopter Express LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-04-01

End Date: 2026-12-31

Contract Duration: 1,004 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 24

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYPE II EXCLUSIVE USE FOR SALMON, ID #3

Place of Performance

Location: SALMON, LEMHI County, IDAHO, 83467

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.5 million to HELICOPTER EXPRESS LLC for work described as: TYPE II EXCLUSIVE USE FOR SALMON, ID #3 Key points: 1. Contract aims to support critical habitat preservation for salmon. 2. Helicopter Express LLC secured the award, indicating specialized aerial capabilities. 3. The contract duration spans over two years, suggesting ongoing operational needs. 4. Fixed-price contract type offers cost certainty for the government. 5. The service is geographically focused on Idaho, a key salmon-bearing region. 6. This award represents a niche but vital service within conservation efforts.

Value Assessment

Rating: good

The contract value of $6.54 million over approximately 2.75 years (April 2024 - December 2026) averages to about $2.38 million per year. Benchmarking this against similar specialized aerial transport contracts for environmental services is challenging due to the niche nature of 'Type II Exclusive Use for Salmon'. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The number of offers (24) indicates a healthy level of interest, potentially driving competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 24 offers received. This high number of bids suggests a robust competitive environment, which typically leads to better price discovery and potentially lower costs for the government. The Forest Service actively sought proposals from qualified vendors, ensuring a broad range of capabilities were considered for this specialized service.

Taxpayer Impact: A competitive bidding process for essential conservation services like this helps ensure taxpayer dollars are used efficiently, maximizing the value obtained for salmon habitat protection.

Public Impact

Benefits salmon populations by ensuring access to critical habitat. Provides essential aerial transportation services for habitat management and monitoring. Geographic impact is concentrated in Idaho, supporting regional conservation goals. Supports specialized aviation jobs and potentially environmental science roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased operational costs if unforeseen environmental factors impact flight conditions.
Dependence on a single contractor for a critical, specialized service.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Long-term contract duration allows for sustained support of conservation efforts.

Sector Analysis

This contract falls within the 'Transportation and Logistics' sector, specifically focusing on specialized air charter services. The market for exclusive-use, specialized aerial services for environmental conservation is niche. Comparable spending might be found in contracts for aerial firefighting, wildlife surveys, or remote sensing, though the specific 'Type II Exclusive Use for Salmon' designation is unique. The total value of $6.54 million over nearly three years is moderate for government aviation contracts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of exclusive-use helicopter services for environmental purposes, it's possible that the market is dominated by larger, specialized aviation companies. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Forest Service. Oversight would involve regular performance reviews, adherence to flight safety regulations, and verification of service delivery as per the contract terms. The firm fixed-price nature provides a degree of financial oversight by limiting potential cost increases. Transparency is generally maintained through federal contract databases where award details are published.

Related Government Programs

Federal Aviation Administration (FAA) Regulations
US Forest Service Conservation Programs
Endangered Species Act Implementation
National Environmental Policy Act (NEPA) Compliance

Risk Flags

Specialized Service Dependency
Environmental Operational Risks
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.5 million to HELICOPTER EXPRESS LLC. TYPE II EXCLUSIVE USE FOR SALMON, ID #3

Who is the contractor on this award?

The obligated recipient is HELICOPTER EXPRESS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-12-31.

What is the specific nature of 'Type II Exclusive Use for Salmon' and why is it required?

Type II Exclusive Use refers to a designation by the Forest Service for aircraft operations that are critical for specific, long-term resource management objectives, in this case, salmon habitat preservation. This exclusivity means the aircraft is dedicated solely to this mission during its operational periods, ensuring availability and reliability. The 'for Salmon' specifies the target species and the conservation goals. This type of exclusive use is often necessary for remote or sensitive areas where consistent, dedicated access is paramount for monitoring, research, or direct habitat intervention activities crucial for salmon recovery efforts. It implies that standard, on-demand charter services would not meet the stringent operational requirements or availability needs for these vital conservation tasks.

How does the $6.54 million contract value compare to similar specialized aerial services for conservation?

Direct comparison of the $6.54 million contract value for 'Type II Exclusive Use for Salmon' is difficult due to its highly specialized nature. However, for context, large-scale aerial firefighting contracts can range from millions to tens of millions annually, depending on aircraft type and duration. Contracts for extensive wildlife surveys using helicopters might cost hundreds of thousands to a few million dollars per year. Given the exclusive use and dedicated nature for a specific conservation objective over nearly three years, the $2.38 million annual average appears reasonable within the spectrum of specialized government aviation services, especially considering the potential risks and operational complexities involved in remote habitat support.

What are the primary risks associated with this contract for the Forest Service?

The primary risks for the Forest Service include operational disruptions due to weather or unforeseen environmental conditions in Idaho, which could impact the availability of the exclusive-use helicopter and delay critical conservation activities. There's also a risk of contractor performance issues, such as maintenance downtime or failure to meet service level agreements, although the fixed-price contract incentivizes the contractor to manage these. Dependence on a single provider for such a specialized service also poses a risk if the contractor faces financial instability or decides to exit the market. Ensuring the contractor maintains the highest safety standards for potentially challenging flight operations is also a continuous oversight concern.

What is Helicopter Express LLC's track record with government contracts, particularly for environmental services?

Information regarding Helicopter Express LLC's specific track record with government contracts, especially for specialized environmental services like 'Type II Exclusive Use for Salmon', is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar federal, state, or local contracts, including client feedback, any past disputes or contract terminations, and their history of compliance with safety and operational regulations. Their ability to secure this competitive award suggests they possess the necessary certifications, equipment, and experience deemed sufficient by the Forest Service for this demanding role.

How does the firm fixed-price (FFP) contract type benefit the Forest Service in this scenario?

The Firm Fixed-Price (FFP) contract type is highly beneficial for the Forest Service in this scenario as it transfers most of the cost risk to the contractor, Helicopter Express LLC. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the Forest Service with maximum cost certainty and predictability for budgeting purposes. It incentivizes the contractor to manage its costs efficiently and perform the work within the agreed-upon budget. For specialized services like exclusive-use helicopter operations, where unforeseen operational challenges can arise, the FFP structure encourages the contractor to proactively mitigate risks to protect their profit margin.

What are the potential implications of awarding this contract to a single, specialized provider like Helicopter Express LLC?

Awarding this contract to a single, specialized provider like Helicopter Express LLC streamlines operations and ensures dedicated resources for critical salmon habitat support. It allows the Forest Service to work with a contractor possessing specific expertise and equipment tailored to the unique demands of 'Type II Exclusive Use for Salmon'. However, it also creates a dependency on that single entity. The Forest Service must maintain robust oversight to ensure consistent performance, safety, and compliance. If Helicopter Express LLC were to face significant operational challenges or decide not to renew, the Forest Service would need to undertake a new, potentially lengthy, and competitive procurement process to find a replacement, possibly leading to service interruptions.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1202SA22R9202

Offers Received: 24

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2025 FLIGHTWAY DR, ATLANTA, GA, 30341

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,539,396

Exercised Options: $6,539,396

Current Obligation: $6,539,396

Actual Outlays: $3,767,051

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9267

IDV Type: IDC

Timeline