Agriculture awards $5.4M for air transport, with Idaho Helicopters Inc. securing the deal

Contract Overview

Contract Amount: $5,419,675 ($5.4M)

Contractor: Idaho Helicopters Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2025-12-31

Contract Duration: 730 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 32

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYPE II EXCLUSIVE USE FOR GRANGEVILLE, ID #1

Place of Performance

Location: GRANGEVILLE, IDAHO County, IDAHO, 83530

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.4 million to IDAHO HELICOPTERS INC for work described as: TYPE II EXCLUSIVE USE FOR GRANGEVILLE, ID #1 Key points: 1. Value for money appears reasonable given the specialized nature of exclusive-use air transport. 2. Competition dynamics indicate a full and open process, suggesting fair market pricing. 3. Risk indicators are low, with a firm fixed-price contract and a single award. 4. Performance context is tied to specific exclusive-use needs in Grangeville, ID. 5. Sector positioning is within air transportation services for federal agencies.

Value Assessment

Rating: good

The contract value of $5.4 million over two years for exclusive-use air transport appears to be within a reasonable range for specialized services. Benchmarking against similar exclusive-use contracts is challenging due to the niche nature of the requirement. However, the firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 32 bids suggests a robust competitive environment, which typically leads to more favorable pricing for the government. The agency's decision to use full and open competition is a positive sign for price discovery.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential air transport services.

Public Impact

The primary beneficiary is the Department of Agriculture's Forest Service, ensuring operational needs are met. Services delivered include nonscheduled chartered freight air transportation, specifically for exclusive use in Grangeville, ID. The geographic impact is concentrated in Grangeville, Idaho, supporting local federal operations. Workforce implications are indirect, supporting the operational capacity of federal land management agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if contract terms are not strictly managed.
Dependence on a single contractor for critical exclusive-use services.

Positive Signals

Firm fixed-price contract limits cost overruns.
Full and open competition suggests a competitive market for these services.
Clear definition of exclusive-use requirements.

Sector Analysis

The air transportation sector, specifically nonscheduled chartered freight, is a critical component of federal logistics and operational support. This contract fits within the broader category of government services procurement, where agencies rely on specialized providers for unique operational needs. Comparable spending benchmarks are difficult to establish due to the 'exclusive use' designation, which implies dedicated resources and potentially higher costs than general charter services.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. Analysis of subcontracting opportunities for small businesses would require further investigation into the prime contractor's practices and the nature of the services provided. Without explicit set-asides, the direct impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms and performance expectations. Transparency is facilitated by the contract award data being publicly available, though detailed performance metrics may not be readily accessible.

Related Government Programs

Federal Aviation Administration (FAA) regulations
Department of Agriculture operational support contracts
Forest Service aviation management
Air charter services procurement

Risk Flags

Potential for single-source dependency if follow-on contracts are not competed.
Ensuring consistent maintenance and operational readiness of aircraft.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.4 million to IDAHO HELICOPTERS INC. TYPE II EXCLUSIVE USE FOR GRANGEVILLE, ID #1

Who is the contractor on this award?

The obligated recipient is IDAHO HELICOPTERS INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2024-01-01. End: 2025-12-31.

What is the track record of Idaho Helicopters Inc. with federal contracts, particularly with the Department of Agriculture?

A review of Idaho Helicopters Inc.'s federal contract history reveals a pattern of awards primarily from the Department of Agriculture, specifically the Forest Service. These contracts often involve aviation services, including helicopter support for firefighting, transportation, and other land management operations. While specific performance details for past contracts are not detailed here, the repeated awards suggest a satisfactory performance history and established relationship with the agency. Further analysis would involve examining past performance evaluations and any documented issues or commendations related to their service delivery.

How does the awarded price compare to similar exclusive-use air transport contracts?

Directly comparing the awarded price of $5.4 million for two years of exclusive-use air transport to similar contracts is challenging due to the highly specialized and often localized nature of 'exclusive use' requirements. These contracts typically involve dedicated aircraft and crew, ensuring availability for specific missions, which commands a premium over general charter services. Without access to a database of comparable exclusive-use contracts with identical operational parameters (e.g., aircraft type, mission profile, geographic area, duration), a precise benchmark is difficult. However, the firm fixed-price structure and the competitive bidding process suggest the price was deemed fair and reasonable by the contracting officers based on the available market information at the time of award.

What are the primary risks associated with this type of exclusive-use air transport contract?

The primary risks associated with this exclusive-use air transport contract include potential over-reliance on a single vendor for critical operations, which could lead to service disruptions if the contractor faces operational issues (e.g., mechanical failures, pilot availability). Another risk is the potential for price escalation in future contract renewals, especially if the market for specialized aviation services tightens or if the initial contract's pricing was based on assumptions that prove inaccurate over time. Ensuring the contractor maintains the required safety standards and operational readiness throughout the contract period is also a continuous risk to manage. The firm fixed-price nature mitigates financial risk for the government regarding cost overruns within the defined scope.

How effective is the Forest Service in leveraging air transport for its mission objectives?

The Forest Service extensively leverages air transport, including helicopters and fixed-wing aircraft, as a critical tool for fulfilling its diverse mission objectives. This includes wildfire suppression, aerial reconnaissance, personnel and equipment transport to remote areas, wildlife monitoring, and aerial application of treatments (e.g., for pest control or reforestation). The use of exclusive-use contracts, like the one awarded to Idaho Helicopters Inc., signifies a strategic decision to ensure dedicated resources are available for specific, high-priority operational needs in particular geographic areas. The effectiveness is measured by the agency's ability to respond rapidly to emergencies, manage vast landscapes efficiently, and conduct operations that would be impossible or significantly more challenging without aviation support.

What has been the historical spending trend for nonscheduled chartered freight air transportation by the Department of Agriculture?

Historical spending by the Department of Agriculture (USDA) on nonscheduled chartered freight air transportation has likely fluctuated based on operational demands, particularly those related to wildfire seasons and land management activities. While specific aggregate data for this category is not provided, the Forest Service, a major component of the USDA, is a significant user of aviation services. Spending patterns are influenced by factors such as the severity of fire seasons, the extent of prescribed burns, and the need for rapid deployment of resources to remote locations. The agency aims to balance the need for readily available air assets with cost-efficiency, often utilizing competitive bidding processes to secure these services.

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: 1202SA22R202

Offers Received: 32

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2471 W COMMERCE AVE, BOISE, ID, 83705

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

Financial Breakdown

Contract Ceiling: $5,419,675

Exercised Options: $5,419,675

Current Obligation: $5,419,675

Actual Outlays: $3,410,365

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9274

IDV Type: IDC

Timeline