Forest Service Awards $16.19M for Air Transportation in Oregon, Utilizing Full and Open Competition

Contract Overview

Contract Amount: $16,191,033 ($16.2M)

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: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TYPE II EXCLUSIVE USE FOR PRINEVILLE, OR

Place of Performance

Location: PRINEVILLE, CROOK County, OREGON, 97754

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $16.2 million to PRECISION, LLC for work described as: TYPE II EXCLUSIVE USE FOR PRINEVILLE, OR Key points: 1. Significant contract value for specialized air transport services. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The duration of the contract (3 years) indicates a long-term need for these services.

Value Assessment

Rating: good

The contract is a firm fixed price delivery order, which is standard for this type of service. Benchmarking against similar nonscheduled chartered freight air transportation contracts is difficult without more specific service details, but the price appears reasonable for a multi-year, exclusive-use agreement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited solicitations.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required air transportation services.

Public Impact

Ensures critical air transport for Forest Service operations in Oregon. Supports regional logistics and potentially wildfire suppression or resource management. Provides economic activity through air charter services in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes precise value assessment challenging.
Potential for price creep if contract terms are not tightly managed over the 3-year period.

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.
Long-term service provision for critical needs.

Sector Analysis

This contract falls under nonscheduled chartered freight air transportation, a sector crucial for government agencies requiring flexible and often remote logistical support. Spending benchmarks for such specialized services can vary widely based on aircraft type, duration, and operational requirements.

Small Business Impact

The data does not indicate if small businesses were involved in this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The use of a delivery order under a broader contract vehicle, coupled with full and open competition, suggests a structured procurement process. Oversight would focus on performance, adherence to terms, and cost management throughout the contract's duration.

Related Government Programs

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

Risk Flags

Potential for cost overruns if not closely monitored.
Dependence on a single provider for critical services.
Geographic concentration of service in Oregon.
Lack of specific detail on aircraft type and capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $16.2 million to PRECISION, LLC. TYPE II EXCLUSIVE USE FOR PRINEVILLE, OR

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 $16.2 million.

What is the period of performance?

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

What specific operational needs does this exclusive-use air transportation fulfill for the Forest Service in Oregon?

This exclusive-use air transportation likely supports critical Forest Service missions in Oregon, such as aerial firefighting, remote site access for resource management, or rapid deployment of personnel and equipment. The 'Type II Exclusive Use' designation suggests a dedicated capacity for specific, potentially time-sensitive operations, ensuring availability when needed for critical environmental or safety tasks.

How does the 'Type II Exclusive Use' designation impact the risk profile and cost compared to other charter arrangements?

Exclusive use typically increases cost due to guaranteed availability and potential underutilization, but it significantly reduces operational risk by ensuring the aircraft is ready when needed, avoiding delays in critical missions. Type II might imply specific performance or safety standards, further influencing cost and risk mitigation strategies for the Forest Service.

What are the key performance indicators (KPIs) used to measure the effectiveness of this air transportation service?

Effectiveness is likely measured by metrics such as on-time performance, mission completion rates, aircraft availability as per the exclusive-use agreement, adherence to safety protocols, and cost-efficiency relative to the operational requirements met. Post-contract reviews would assess whether the service met the Forest Service's objectives for resource management or emergency response.

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: T2-EUPR-02

Offers Received: 6

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: $16,285,033

Exercised Options: $16,285,033

Current Obligation: $16,191,033

Actual Outlays: $11,224,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9285

IDV Type: IDC

Timeline