Agriculture awards $9M+ contract for exclusive air transport services in Ramona, CA

Contract Overview

Contract Amount: $9,004,870 ($9.0M)

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: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYPE II EXCLUSIVE USE FOR RAMONA, CA

Place of Performance

Location: RAMONA, SAN DIEGO County, CALIFORNIA, 92065

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $9.0 million to PRECISION, LLC for work described as: TYPE II EXCLUSIVE USE FOR RAMONA, CA Key points: 1. Contract awarded to Precision, LLC for exclusive use of air transport in Ramona, CA. 2. The contract duration is 3 years, with a total value exceeding $9 million. 3. This is a firm-fixed-price contract, indicating predictable costs for the government. 4. The service type is Nonscheduled Chartered Freight Air Transportation. 5. The contract was awarded under full and open competition. 6. The agency is the Department of Agriculture, specifically the Forest Service. 7. The contract is a Delivery Order, suggesting it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

The total contract value of over $9 million for three years of exclusive air transport services in a specific geographic area appears substantial. Benchmarking this against similar exclusive-use contracts for specialized air services is difficult without more data on operational scope and frequency. The firm-fixed-price structure provides cost certainty, but the overall value proposition depends heavily on the necessity and utilization of this exclusive service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting multiple vendors had the opportunity to bid. The presence of 3 bidders indicates a degree of market interest. However, the 'exclusive use' nature of the contract might limit the pool of qualified and willing participants, potentially impacting the breadth of competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing. The fact that 3 bids were received suggests that the government likely received a reasonably competitive price, although the exclusivity clause could have influenced the final cost.

Public Impact

The primary beneficiaries are likely the Department of Agriculture's Forest Service operations in Ramona, California, which require specialized air transport. The contract delivers nonscheduled chartered freight air transportation services. The geographic impact is focused on Ramona, California, and surrounding areas served by the Forest Service. The contract supports specialized aviation services, potentially impacting a niche workforce within the air transportation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single provider due to exclusive use clause.
Cost-effectiveness of exclusive use versus on-demand services needs continuous evaluation.
Geographic concentration of services could pose risks if unforeseen events impact the provider or location.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract provides budget certainty.
Clear duration and defined service type offer transparency.

Sector Analysis

The air transportation sector, particularly specialized charter and freight services, is diverse. This contract falls under nonscheduled chartered freight, serving a specific government need. The market for exclusive-use contracts is niche, often driven by unique operational requirements or geographic constraints. Benchmarking requires comparison with similar government or commercial contracts for dedicated air logistics in remote or specialized operational areas.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting goals. The nature of specialized air charter services often requires significant capital investment and specific certifications, which may favor larger, established providers. Further analysis would be needed to determine if any small businesses were involved as subcontractors.

Oversight & Accountability

As a Delivery Order under a potential larger contract vehicle, oversight would likely be managed by the Department of Agriculture's Forest Service contracting officers. Accountability is established through the firm-fixed-price terms and performance expectations. Transparency is provided by the contract award details, but ongoing operational transparency would depend on agency reporting mechanisms.

Related Government Programs

Department of Agriculture Aviation Management
Forest Service Firefighting and Support Operations
Federal Aviation Administration (FAA) Regulations
General Services Administration (GSA) Schedules (potential vehicle)

Risk Flags

Potential for sole-source-like conditions due to exclusivity.
Cost-effectiveness of exclusive use requires ongoing validation.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $9.0 million to PRECISION, LLC. TYPE II EXCLUSIVE USE FOR RAMONA, CA

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 $9.0 million.

What is the period of performance?

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

What is the specific operational need driving the requirement for exclusive use of air transport in Ramona, CA?

The provided data does not specify the exact operational need for exclusive air transport in Ramona, CA. However, such requirements often arise from critical, time-sensitive missions where guaranteed availability and dedicated resources are paramount. This could include specialized environmental monitoring, emergency response logistics, or support for remote research stations where standard commercial services are insufficient or unreliable. The Forest Service's mission often involves extensive land management and emergency response, which can necessitate dedicated aviation assets for rapid deployment and sustained operations in challenging terrains or during peak seasons.

How does the per-hour or per-mile cost of this contract compare to market rates for similar nonscheduled chartered freight air transportation?

Calculating a precise per-hour or per-mile cost is not feasible with the provided data, as it only offers the total contract value ($9,004,869.52) and duration (1095 days/3 years). To benchmark against market rates, one would need to know the estimated flight hours, miles flown, aircraft type, and specific services included. For example, if the contract implies 1,000 flight hours annually, the average annual cost is approximately $3 million. Comparing this to market rates for similar aircraft (e.g., turboprops or light jets) used for freight in California would require accessing industry pricing guides or data from similar government contracts. Without these details, a direct comparison is speculative.

What is Precision, LLC's track record with government contracts, particularly with the Department of Agriculture or for similar air transport services?

Information regarding Precision, LLC's specific track record with the Department of Agriculture or for similar air transport services is not detailed in the provided data. A comprehensive assessment would require reviewing the company's contract history, past performance evaluations (e.g., CPARS reports), and any previous awards for specialized aviation services. Understanding their experience with firm-fixed-price contracts, delivery orders, and exclusive-use agreements would also be crucial. Federal procurement databases and agency records would typically hold this information, allowing for an evaluation of their reliability, past performance, and suitability for this specific requirement.

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

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for air transportation services, KPIs might include on-time performance, aircraft availability, safety compliance rates, response times for unscheduled requests, and fuel efficiency. SLAs would define the expected standards for these metrics, along with remedies or penalties for non-compliance. The contracting officer and the Forest Service's technical monitors would be responsible for defining and enforcing these performance standards to ensure the government receives the required level of service throughout the contract period.

How does the spending on this specific contract compare to the Forest Service's overall aviation budget or historical spending on similar services?

The provided data focuses solely on this individual contract award ($9,004,869.52 over 3 years). To compare this spending to the Forest Service's overall aviation budget or historical patterns, one would need access to broader financial data. This would include annual budget allocations for aviation, total expenditures on air transport services across different regions and mission types (e.g., firefighting, logistics, surveillance), and spending trends over several fiscal years. Such a comparison would help determine if this contract represents a significant portion of the agency's aviation expenditure or if it aligns with historical spending levels for similar dedicated 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: 1202SA22R9202

Offers Received: 3

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: $9,004,870

Exercised Options: $9,004,870

Current Obligation: $9,004,870

Actual Outlays: $6,071,286

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9285

IDV Type: IDC

Timeline