Agriculture Forest Service Awards $17.3M for Exclusive Air Freight in Idaho

Contract Overview

Contract Amount: $17,277,177 ($17.3M)

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: $15.8K/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 PRICE VALLEY, ID

Place of Performance

Location: TAMARACK, VALLEY County, IDAHO, 83615

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $17.3 million to PRECISION, LLC for work described as: TYPE II EXCLUSIVE USE FOR PRICE VALLEY, ID Key points: 1. Significant contract value for specialized air transportation services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risk related to the 'exclusive use' nature of the service. 4. The sector is transportation, specifically air freight for resource management.

Value Assessment

Rating: good

The contract value of $17.3M over three years for exclusive air freight appears reasonable given the specialized nature and geographic location. Benchmarking against similar exclusive-use air charter contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential services, with competition aiming to ensure value for money.

Public Impact

Ensures critical air transport for Forest Service operations in Price Valley, ID. Supports wildfire suppression, resource management, and emergency response capabilities. Potential for increased operational efficiency and safety in remote areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusive use may limit flexibility and increase costs if needs change.
Dependence on a single provider for critical services.
Geographic isolation could impact service reliability and response times.

Positive Signals

Full and open competition suggests a fair market approach.
Firm fixed price contract provides cost certainty.
Long-term award (3 years) offers stability for operations.

Sector Analysis

This contract falls within the transportation sector, specifically air charter services. Spending benchmarks for similar exclusive-use air freight contracts in remote or specialized environments are difficult to establish without more granular data, but the value appears aligned with such niche services.

Small Business Impact

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

Oversight & Accountability

The award is a delivery order under a larger contract vehicle. Oversight would focus on performance, adherence to terms, and financial management by the Forest Service contracting officers.

Related Government Programs

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

Risk Flags

Potential for over-reliance on a single provider due to 'exclusive use'.
Geographic isolation may present logistical and response time challenges.
Contract duration of 3 years could lead to price inflexibility if market rates change significantly.
Lack of detail on performance metrics and service level agreements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $17.3 million to PRECISION, LLC. TYPE II EXCLUSIVE USE FOR PRICE VALLEY, ID

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 $17.3 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' air freight in Price Valley, ID?

The 'exclusive use' designation likely stems from the critical and continuous nature of the services required by the Forest Service in this specific location. This could include supporting remote fire suppression efforts, ongoing resource monitoring, or providing essential logistical support to isolated facilities where regular, on-demand charter services might not meet the stringent operational tempo or availability requirements.

How does the 'firm fixed price' structure mitigate risks associated with potential cost overruns in this remote air transport contract?

A firm fixed price contract shifts the risk of cost overruns to the contractor, Precision, LLC. This means the government pays a set price regardless of the contractor's actual costs. For this remote air transport service, it provides budget certainty for the Forest Service, assuming the initial price accurately reflects anticipated operational expenses, including fuel, maintenance, and personnel in potentially challenging conditions.

What are the potential long-term implications of securing exclusive air freight services for Forest Service operations in this region?

Securing exclusive air freight offers guaranteed availability and tailored services, enhancing operational readiness and efficiency for the Forest Service in Price Valley. However, it also creates a dependency on a single provider, potentially limiting future flexibility or negotiation leverage if market conditions or service needs evolve. Long-term, this could impact cost-effectiveness if alternative, more competitive options emerge.

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: $17,277,177

Exercised Options: $17,277,177

Current Obligation: $17,277,177

Actual Outlays: $12,592,448

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9285

IDV Type: IDC

Timeline