Forest Service awards $17.4M contract for aerial firefighting support in Arizona

Contract Overview

Contract Amount: $17,410,039 ($17.4M)

Contractor: Hillsboro 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: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 33

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYPE II EU FOR SIERRA VISTA, AZ

Place of Performance

Location: SIERRA VISTA, COCHISE County, ARIZONA, 85635

State: Arizona Government Spending

Plain-Language Summary

Department of Agriculture obligated $17.4 million to HILLSBORO AVIATION, INC. for work described as: TYPE II EU FOR SIERRA VISTA, AZ Key points: 1. Contract provides essential aerial firefighting capabilities for wildfire suppression. 2. Utilizes a firm-fixed-price structure, offering cost predictability. 3. Full and open competition suggests a competitive bidding process. 4. Long-term award (3 years) ensures sustained operational support. 5. Focus on Arizona highlights regional wildfire risk and resource allocation. 6. Awarded to Hillsboro Aviation, Inc., a known provider in the sector.

Value Assessment

Rating: good

The contract value of $17.4 million over three years appears reasonable for specialized aerial firefighting services. Benchmarking against similar contracts for Type II EU (Utility Helicopter) services is crucial for a definitive value assessment. The firm-fixed-price structure helps manage cost overruns, but the specific pricing per flight hour or operational day would be needed for a precise value-for-money analysis. The award amount is within the expected range for such critical support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 33 bids were received, suggesting a robust and competitive process. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A high number of bidders in a full and open competition typically translates to better value for taxpayers by driving down costs through market forces.

Public Impact

Provides critical aerial support for wildfire suppression efforts in Arizona, protecting lives, property, and natural resources. Ensures the availability of specialized helicopters for rapid response to emerging fire incidents. Supports the U.S. Forest Service's mission to manage and protect national forests. Contributes to the safety and resilience of communities in wildfire-prone areas of Arizona. Potentially supports local economies through operational activities and contractor employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased operational tempo and demand on aircraft and crew during peak fire seasons.
Dependence on a single contractor for critical aerial support could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the award.
Full and open competition with 33 bids suggests a healthy market and competitive pricing.
Long-term award (3 years) ensures continuity of essential services.
Award to an established provider like Hillsboro Aviation, Inc. may indicate reliability.

Sector Analysis

This contract falls within the broader aviation services sector, specifically focusing on specialized aerial support for government operations. The market for aerial firefighting is critical, particularly in regions prone to wildfires like Arizona. Spending in this area is driven by environmental conditions, agency mandates for land management, and public safety requirements. Comparable spending benchmarks would involve analyzing other contracts for similar helicopter services (Type II EU) awarded by federal agencies for firefighting or land management support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific small business set-aside benefits associated with this particular award. The primary focus appears to be on securing the necessary aerial capabilities through the most competitive means available.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Forest Service contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract award databases like FPDS. Specific performance metrics and reporting requirements would be detailed within the contract's statement of work, subject to agency oversight and potentially Inspector General review if performance issues or fraud are suspected.

Related Government Programs

Wildfire Management Support
Aviation Services Contracts
Department of Agriculture Procurement
Forest Service Operations
Emergency Response Services

Risk Flags

Potential for performance issues during high-demand periods
Dependence on a single provider for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $17.4 million to HILLSBORO AVIATION, INC.. TYPE II EU FOR SIERRA VISTA, AZ

Who is the contractor on this award?

The obligated recipient is HILLSBORO AVIATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

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

What is the historical spending pattern for aerial firefighting support in Arizona by the Forest Service?

Analyzing historical spending for aerial firefighting support in Arizona by the Forest Service requires access to detailed procurement data over multiple fiscal years. Typically, spending fluctuates based on wildfire activity, budget allocations, and the specific types of aircraft and services procured. Contracts for services like Type II EU helicopters are often awarded on multi-year bases, leading to consistent annual expenditures, but significant deviations can occur due to severe fire seasons or changes in operational strategies. For instance, if Arizona experienced an unusually active fire season in a prior year, spending might have been higher, or conversely, a period of lower activity might have led to reduced contract values or fewer awards. A comprehensive review would involve examining contract awards for similar services (e.g., helicopter support, airtankers) to identify trends, average contract values, and the number of awards made annually to understand the baseline and variability of Forest Service aerial firefighting expenditures in the region.

How does the awarded price per unit (if calculable) compare to market rates for similar helicopter services?

Determining the precise price per unit for this contract is challenging without the detailed breakdown of services and associated costs (e.g., hourly rates, daily rates, mission-specific charges). However, the total award of $17.4 million over 1095 days (3 years) suggests an average annual expenditure of approximately $5.8 million. If we assume a certain number of operational hours or days per year, we could derive an approximate cost. For Type II EU helicopters, which are typically medium-lift utility helicopters used for various missions including fire suppression, transport, and reconnaissance, market rates can vary significantly based on aircraft model, equipment, crew, maintenance, and operational tempo. Industry benchmarks often place daily rates for such helicopters in the range of several thousand dollars, with hourly operational costs potentially ranging from $1,500 to $5,000 or more, depending on utilization and specific capabilities. A detailed comparison would require knowing the exact number of flight hours or operational days anticipated under this contract and comparing that to published rates or rates from recently awarded, comparable contracts.

What is Hillsboro Aviation, Inc.'s track record with federal contracts, particularly for aerial firefighting?

Hillsboro Aviation, Inc. has a documented history of receiving federal contracts, including those related to aviation services. A review of federal procurement databases would reveal the extent and nature of their past awards. For aerial firefighting, their experience is critical. Companies in this sector often specialize and build a reputation based on reliability, safety, and operational effectiveness during high-stress situations. Hillsboro Aviation's ability to secure this significant contract suggests they have met the Forest Service's requirements and demonstrated competence. Further analysis would involve examining the performance history of their previous federal contracts, looking for any past issues, commendations, or patterns of successful service delivery, particularly in demanding environments like wildfire suppression.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided summary data but would be explicitly defined within the contract's Statement of Work (SOW). Typically, for aerial firefighting contracts, KPIs would focus on critical aspects such as aircraft availability (e.g., response time to dispatch), operational readiness, safety compliance (e.g., incident-free flight hours), mission completion rates, and adherence to flight hour limitations. SLAs might dictate maximum allowable downtime for maintenance, required crew qualifications, and reporting frequencies. The Forest Service would monitor these KPIs and SLAs to ensure the contractor is meeting performance expectations and providing the necessary support for wildfire suppression efforts. Failure to meet these metrics could result in contractual remedies, including financial penalties or termination.

What is the potential impact of this contract on the overall wildfire preparedness and response capabilities in Arizona?

This $17.4 million contract significantly bolsters Arizona's wildfire preparedness and response capabilities by ensuring dedicated aerial support. Type II EU helicopters are versatile assets crucial for various firefighting phases, including initial attack, crew transport, water/retardant delivery, and logistical support. Having this capability secured for three years provides a predictable and reliable resource for the U.S. Forest Service and potentially other cooperating agencies within Arizona. This contract directly contributes to the state's ability to manage and suppress wildfires more effectively, potentially reducing the scale and impact of fires, protecting lives and property, and preserving natural resources. The long-term nature of the award suggests a strategic commitment to maintaining robust aerial firefighting assets in a region known for its wildfire risk.

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: FS-T2-EUPR-02

Offers Received: 33

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hillsboro Aviation Inc.

Address: 3845 NE 30TH AVE, HILLSBORO, OR, 97124

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

Financial Breakdown

Contract Ceiling: $17,416,044

Exercised Options: $17,416,044

Current Obligation: $17,410,039

Actual Outlays: $11,096,161

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9272

IDV Type: IDC

Timeline