Forest Service awards $5.6M contract to Minuteman Aviation for Montana air transport

Contract Overview

Contract Amount: $5,648,986 ($5.6M)

Contractor: Minuteman Aviation Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 26

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TYPE II EXCLUSIVE USE FOR LIBBY, MT

Place of Performance

Location: LIBBY, LINCOLN County, MONTANA, 59923

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.6 million to MINUTEMAN AVIATION INC for work described as: TYPE II EXCLUSIVE USE FOR LIBBY, MT Key points: 1. Contract awarded to Minuteman Aviation Inc. for exclusive use air transport. 2. The contract value is $5.6 million over a 3-year period. 3. Full and open competition was utilized for this award. 4. The service is categorized under Nonscheduled Chartered Freight Air Transportation. 5. The contract is a Delivery Order under a larger agreement.

Value Assessment

Rating: fair

The contract value of $5.6 million for 3 years of exclusive air transport services appears reasonable given the specialized nature of the requirement. Benchmarking against similar exclusive-use contracts for remote area support would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. The use of a Delivery Order indicates it's part of a broader framework, potentially allowing for competitive tasking.

Taxpayer Impact: Taxpayer funds are being used for essential services in Montana, with competition aiming to ensure fair pricing.

Public Impact

Ensures critical air transportation services for the Forest Service in Montana. Supports operational needs, potentially including firefighting or resource management. Provides exclusive use of aircraft, guaranteeing availability for specific missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusive use may limit flexibility if needs change.
Reliance on a single provider for critical services.
Potential for cost creep if not closely monitored.

Positive Signals

Full and open competition utilized.
Firm Fixed Price contract type provides cost certainty.
Long-term duration allows for planning and potential economies of scale.

Sector Analysis

This contract falls under transportation services, specifically air charter. Spending in this sector can vary significantly based on agency needs, geographic scope, and the type of cargo or personnel being transported.

Small Business Impact

The data does not indicate if small businesses were involved in this specific delivery order. Further analysis would be needed to determine the extent of small business participation in the parent contract or subcontracting opportunities.

Oversight & Accountability

The Forest Service is responsible for oversight of this contract. The use of a Delivery Order under a larger agreement suggests existing oversight mechanisms are in place.

Related Government Programs

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

Risk Flags

Exclusive use may not be cost-effective if utilization is low.
Potential for contractor to leverage exclusive status for future pricing.
Dependence on a single provider for critical services.
Geographic remoteness of Montana may limit alternative options.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.6 million to MINUTEMAN AVIATION INC. TYPE II EXCLUSIVE USE FOR LIBBY, MT

Who is the contractor on this award?

The obligated recipient is MINUTEMAN AVIATION INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

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

What specific operational needs does this exclusive use air transport fulfill for the Forest Service in Montana?

This exclusive use contract likely supports critical Forest Service operations in Montana, such as aerial firefighting, remote site access for personnel and equipment, wildlife management surveys, or emergency response. The exclusive nature ensures dedicated resources are available when and where needed, which is crucial for time-sensitive missions in challenging terrain.

What are the primary risks associated with a sole-source exclusive use air transport contract?

The primary risks include potential overpayment if market rates fluctuate, reduced flexibility if operational needs change, and a lack of competitive pressure to innovate or improve service. There's also a risk of vendor lock-in, making it difficult to switch providers if performance issues arise or better options become available.

How does the firm fixed price contract type ensure effectiveness and value for taxpayer money?

A firm fixed price contract establishes a set price for the services, transferring most of the risk to the contractor. This encourages the contractor to manage costs efficiently to maintain profitability. For the government, it provides budget certainty and protects against cost overruns, ensuring the agreed-upon services are delivered within the allocated funds.

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: 26

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6337 AVIATION WAY W, MISSOULA, MT, 59808

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

Financial Breakdown

Contract Ceiling: $5,648,986

Exercised Options: $5,648,986

Current Obligation: $5,648,986

Actual Outlays: $3,298,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9279

IDV Type: IDC

Timeline