Agriculture's Forest Service awards $15M for air transport, highlighting potential value and competition

Contract Overview

Contract Amount: $15,052,380 ($15.1M)

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: $13.7K/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 WENATCHEE, WA

Place of Performance

Location: WENATCHEE, CHELAN County, WASHINGTON, 98801

State: Washington Government Spending

Plain-Language Summary

Department of Agriculture obligated $15.1 million to PRECISION, LLC for work described as: TYPE II EXCLUSIVE USE FOR WENATCHEE, WA Key points: 1. The contract value of $15.05M over 3 years suggests a significant need for air transportation services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The firm-fixed-price contract type aims to control costs for the government. 4. The service is specific to Wenatchee, WA, suggesting localized operational requirements.

Value Assessment

Rating: good

The contract value of $15.05M for 1095 days suggests an average annual cost of approximately $5M. This appears reasonable for specialized air charter services, but a direct comparison to similar contracts is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically allows for the widest range of potential bidders and can lead to better price discovery. The use of a delivery order under a larger contract structure suggests a pre-established framework for procurement.

Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently, securing necessary services at a fair market price.

Public Impact

Ensures critical air transport for Forest Service operations in the Wenatchee, WA region. Supports wildfire suppression, resource management, or other aerial support needs. Provides essential logistical capabilities for remote or difficult-to-access areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for price escalation if fuel costs or operational demands increase significantly.
Geographic concentration of service delivery.

Positive Signals

Firm-fixed-price contract helps mitigate cost overruns.
Full and open competition suggests a competitive market.
Long-term contract provides stability for service provision.

Sector Analysis

This contract falls under nonscheduled chartered freight air transportation, a sector crucial for government agencies requiring flexible and on-demand aerial logistics. Spending in this sector can vary widely based on agency needs, such as emergency response or remote area support.

Small Business Impact

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

Oversight & Accountability

The use of a delivery order suggests this contract may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which would have its own oversight mechanisms. The Forest Service's contracting office is responsible for ensuring compliance and performance.

Related Government Programs

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

Risk Flags

Potential for cost creep if not managed tightly.
Dependence on a single provider for exclusive use.
Limited visibility into specific performance metrics.
Geographic concentration may limit broader application or learning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $15.1 million to PRECISION, LLC. TYPE II EXCLUSIVE USE FOR WENATCHEE, WA

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 $15.1 million.

What is the period of performance?

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

What specific operational needs does this Type II exclusive use air transport fulfill for the Forest Service in Wenatchee, WA?

This contract likely supports critical Forest Service missions such as wildfire management, including initial attack, personnel transport, and equipment delivery to remote or inaccessible areas. It may also be used for ecological surveys, search and rescue operations, or other resource management activities requiring specialized aerial capabilities in the region.

How does the $15.05M contract value compare to industry benchmarks for similar air charter services, considering the 'Type II exclusive use' designation?

The 'Type II exclusive use' designation implies a dedicated aircraft for specific periods, which typically commands a higher price than on-demand charters. Benchmarking requires comparing this rate against contracts for similar aircraft types, duration, and operational scope within the Pacific Northwest or similar challenging terrains.

What mechanisms are in place to ensure the effectiveness and efficiency of the air transportation services provided under this contract?

Effectiveness is likely monitored through performance standards outlined in the contract, delivery orders, and regular reporting by Precision, LLC. The Forest Service contracting officer's representative (COR) would oversee day-to-day operations, ensuring adherence to schedules, safety protocols, and mission requirements. Post-performance reviews would assess overall efficiency.

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-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: $15,052,380

Exercised Options: $15,052,380

Current Obligation: $15,052,380

Actual Outlays: $10,915,135

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9285

IDV Type: IDC

Timeline