Forest Service awards $11.8M contract for air transportation services in Colorado

Contract Overview

Contract Amount: $11,822,060 ($11.8M)

Contractor: Precision, LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HSS MATOC TYPE II FOR EU DURANGO, CO

Place of Performance

Location: DURANGO, LA PLATA County, COLORADO, 81301

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $11.8 million to PRECISION, LLC for work described as: HSS MATOC TYPE II FOR EU DURANGO, CO Key points: 1. Contract awarded to Precision, LLC for aerial logistics support. 2. Services are critical for remote area access and resource management. 3. The contract duration is three years, indicating a medium-term need. 4. Fixed-price contract type suggests predictable cost outcomes. 5. Full and open competition was utilized for this award. 6. The contract is a delivery order under a larger MATOC vehicle.

Value Assessment

Rating: good

The contract value of $11.8 million over three years appears reasonable for specialized air transportation services, especially considering the geographic scope and operational demands. Benchmarking against similar contracts for aerial firefighting or remote logistics support would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks 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 7 bidders suggests a healthy level of interest and competition within the market for these services. This broad competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The use of full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

Benefits federal agencies, particularly the Forest Service, by providing essential air transport for operations. Supports critical services such as resource management, emergency response, and logistical support in remote areas. Geographic impact is focused on Colorado, enabling operations within the state. Workforce implications include employment for pilots, mechanics, and support staff within the aviation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if the primary contractor faces operational issues.
Reliance on a single delivery order for a significant portion of aerial support needs.

Positive Signals

Awarded through a competitive process, suggesting a qualified and cost-effective provider was selected.
Firm fixed-price contract provides cost certainty.
Long-term contract (3 years) allows for consistent service delivery.

Sector Analysis

The contract falls within the transportation sector, specifically nonscheduled chartered air transportation. This market segment serves various government and commercial needs for flexible, on-demand air travel and cargo delivery. The Forest Service's reliance on such services highlights the importance of specialized aviation in supporting land management and emergency response operations across vast and often inaccessible terrains.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. Further analysis of the MATOC vehicle and the specific delivery order terms would be needed to determine the extent of small business participation or potential subcontracting opportunities.

Oversight & Accountability

Oversight is likely managed by the Forest Service contracting officers and program managers responsible for aerial operations. As a delivery order under a larger MATOC, the underlying vehicle may have its own oversight mechanisms. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Air Operations
Federal Aviation Administration (FAA) Oversight
Wildland Firefighting Support Contracts

Risk Flags

Potential for weather-related delays impacting service delivery.
Reliance on a single contractor for critical aerial support.
Safety risks inherent in aviation operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $11.8 million to PRECISION, LLC. HSS MATOC TYPE II FOR EU DURANGO, CO

Who is the contractor on this award?

The obligated recipient is PRECISION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

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

What is the track record of Precision, LLC in performing similar federal contracts?

A review of federal procurement data indicates that Precision, LLC has a history of performing contracts related to aviation services. While specific details on past performance for aerial transportation under similar conditions to this Forest Service contract would require deeper investigation into contract performance reports and past awards, their selection through a competitive process suggests they met the qualifications. Analyzing their performance on previous government contracts, particularly those involving charter services or specialized flight operations, would provide further insight into their reliability and capability. It is important to assess if they have a history of meeting delivery schedules, maintaining safety standards, and adhering to budget constraints on prior engagements.

How does the awarded price compare to market rates for similar air transportation services?

Benchmarking the $11.8 million contract value against market rates for nonscheduled chartered freight air transportation requires detailed analysis of specific service requirements, aircraft types, flight hours, and operational areas. Given the contract is for the Forest Service in Colorado, factors like operating in mountainous terrain, potential for emergency response missions, and the three-year duration influence pricing. Without specific details on the types of aircraft, payload capacities, and flight hours anticipated, a precise comparison is difficult. However, the utilization of full and open competition with seven bidders suggests that the market provided a competitive landscape, likely driving the price towards market norms. Further analysis would involve comparing the estimated cost per flight hour or per ton-mile against industry data for similar services.

What are the primary risks associated with this contract and how are they mitigated?

Key risks for this contract include operational disruptions due to weather, mechanical issues with aircraft, or pilot availability, which could impact the Forest Service's ability to conduct essential operations. Safety is a paramount risk in aviation; however, this is mitigated by the contractor's adherence to FAA regulations and potentially specific Forest Service safety protocols. The firm fixed-price nature of the contract shifts some financial risk to the contractor, incentivizing them to manage costs effectively. The three-year duration provides continuity but also ties the agency to a single provider for an extended period, potentially limiting flexibility if needs change significantly. Mitigation strategies likely involve robust contract oversight, performance monitoring, and contingency planning by the Forest Service.

How effective is this contract in supporting the Forest Service's mission in Colorado?

This contract is likely highly effective in supporting the Forest Service's mission in Colorado by providing essential aerial transportation capabilities. These services are crucial for accessing remote areas for fire management, ecological surveys, infrastructure maintenance, and emergency response, particularly in a state with significant wilderness and challenging terrain. The ability to rapidly deploy personnel and equipment via air is vital for timely intervention and resource management. The three-year term suggests a sustained need, indicating the contract directly addresses ongoing operational requirements. Its effectiveness hinges on the reliability and responsiveness of Precision, LLC in meeting the Forest Service's diverse logistical demands throughout the contract period.

What are the historical spending patterns for similar air transportation services by the Forest Service?

Historical spending patterns for similar air transportation services by the Forest Service would reveal trends in contract values, durations, and types of services procured. Analyzing past awards for aerial logistics, firefighting support, or general charter services in regions like Colorado would provide context for the current $11.8 million award. This could indicate whether spending has increased, decreased, or remained stable over time, and whether the Forest Service is increasingly relying on competitive bidding or specific types of aviation providers. Understanding these patterns helps in assessing the current contract's alignment with historical budget allocations and procurement strategies for essential aviation support.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 SE THREE MILE LN, MCMINNVILLE, OR, 97128

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,822,060

Exercised Options: $11,822,060

Current Obligation: $11,822,060

Actual Outlays: $5,554,611

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9285

IDV Type: IDC

Timeline