Forest Service awards $7.5M contract for exclusive helicopter transport services in Lancaster, CA

Contract Overview

Contract Amount: $7,496,943 ($7.5M)

Contractor: Helicopter Express LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-04-01

End Date: 2026-12-31

Contract Duration: 1,004 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYPE II EXCLUSIVE USE FOR LANCASTER, CA #1 NVG

Place of Performance

Location: LANCASTER, LOS ANGELES County, CALIFORNIA, 93534

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.5 million to HELICOPTER EXPRESS LLC for work described as: TYPE II EXCLUSIVE USE FOR LANCASTER, CA #1 NVG Key points: 1. Contract awarded to Helicopter Express LLC for exclusive use of aircraft. 2. Service period spans over two years, indicating a need for sustained operations. 3. The contract type is Firm Fixed Price, providing cost certainty for the government. 4. Competition was full and open, suggesting a potentially competitive bidding process. 5. The service is categorized under Nonscheduled Chartered Freight Air Transportation. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

The contract value of $7.5 million over approximately 3 years appears reasonable for exclusive air transport services, especially for specialized needs like wildfire support or remote area access. Benchmarking against similar exclusive-use aircraft contracts is difficult without more specific operational details (e.g., aircraft type, hours, mission profile). However, the fixed-price nature helps control costs. The awarded amount is slightly above the provided benchmark of $7.47 million, which warrants a closer look at the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of only one bid (no: 1) is a notable point. While full and open competition is generally preferred, a single bid could suggest limited market availability for this specific type of exclusive-use service, potential barriers to entry for other firms, or that the solicitation may not have attracted broader interest. This could impact price discovery.

Taxpayer Impact: A single bid in a full and open competition raises questions about whether taxpayers received the best possible price. While the process was open, the lack of multiple offers might mean less downward pressure on pricing than if several companies had competed.

Public Impact

The primary beneficiaries are likely the US Forest Service, enabling critical operations in the Lancaster, California region. Services delivered include exclusive charter air transportation, crucial for tasks such as firefighting support, resource management, or emergency response. The geographic impact is focused on Lancaster, CA, and surrounding areas requiring aerial support. Workforce implications may include pilots, mechanics, and support staff employed by Helicopter Express LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single bid received despite full and open competition, potentially indicating limited market interest or high barriers to entry.
Exclusive use of aircraft may limit flexibility and potentially increase costs compared to on-demand chartering if usage is intermittent.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Full and open competition was utilized, adhering to procurement regulations.
The contract duration of over two years suggests a stable, long-term need for these services.

Sector Analysis

The contract falls within the air transportation services sector, specifically nonscheduled chartered freight. This sector is vital for government operations, particularly for agencies like the Forest Service that require specialized aerial capabilities for resource management, emergency response, and logistical support in remote or difficult-to-access areas. The market for exclusive-use aircraft can be niche, depending on the specific aircraft type and operational requirements, which may explain the limited number of bidders.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (sb: false). There is no explicit information on subcontracting plans for small businesses. Without further details on subcontracting requirements or goals, the direct impact on the small business ecosystem is unclear, though the prime contractor may engage small businesses for support services.

Oversight & Accountability

Oversight for this contract would typically fall under the US Forest Service contracting officer and program managers. Accountability measures are inherent in the Firm Fixed Price contract terms, requiring delivery of specified services. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Wildfire Suppression Support Contracts
Aerial Firefighting Services
US Forest Service Aviation Management
Charter Air Transportation Services

Risk Flags

Single Bidder
Exclusive Use Requirement
Potential for Limited Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.5 million to HELICOPTER EXPRESS LLC. TYPE II EXCLUSIVE USE FOR LANCASTER, CA #1 NVG

Who is the contractor on this award?

The obligated recipient is HELICOPTER EXPRESS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-12-31.

What specific operational requirements necessitate the exclusive use of an aircraft for this contract?

The need for exclusive use typically arises when an agency requires guaranteed availability of a specific aircraft for critical, time-sensitive operations, such as wildfire suppression, rapid deployment of resources, or continuous monitoring of vast areas. For the Forest Service, this could mean ensuring a dedicated asset is ready at a moment's notice to respond to emerging threats or support ongoing missions without the delays associated with competing for charter services. The exclusive nature ensures the aircraft is configured and positioned as needed, minimizing response times and maximizing operational effectiveness in high-stakes scenarios.

How does the awarded price of $7.5 million compare to market rates for similar exclusive-use helicopter services?

Benchmarking the $7.5 million award against market rates for exclusive-use helicopter services is challenging without knowing the specific type of helicopter, its capabilities, the required flight hours, and the operational tempo. Exclusive-use contracts often command a premium due to the guaranteed availability and dedicated resources. If this contract involves a large, specialized helicopter (e.g., for heavy lift or firefighting) operating for over 1000 hours across two years, the price might be within a reasonable range. However, if it's for a smaller helicopter or lower utilization, the price could be on the higher side. Further analysis would require comparing against publicly available data for similar government or commercial contracts with detailed specifications.

What are the potential risks associated with awarding a contract with only one bid, even under full and open competition?

The primary risk of a single bid under full and open competition is the potential for a lack of price competition, which could lead to the government paying more than necessary. It may also indicate that the market for this specific service is limited, that the solicitation requirements were too restrictive, or that potential bidders perceived a high risk or low reward. This could also signal that the contractor may have less incentive to perform efficiently or offer innovative solutions, as there is no direct competitor vying for the business. Furthermore, it raises questions about the adequacy of the solicitation process and outreach efforts.

What is the track record of Helicopter Express LLC in performing similar government contracts?

Helicopter Express LLC has a history of performing government contracts, particularly with agencies like the Department of Agriculture (Forest Service) and the Department of the Interior. Their contract history often includes services related to aviation support, such as aerial firefighting, transport, and surveillance. Analyzing their past performance, including on-time delivery, quality of service, and any past performance issues or awards, would be crucial for assessing their capability to fulfill this current $7.5 million contract effectively. A review of their contract history in federal procurement databases would provide specific details on their experience and reliability.

How does this contract's value and duration compare to historical Forest Service spending on similar air transportation services?

Historical spending data for the Forest Service on air transportation, particularly for exclusive-use aircraft, would provide context for this $7.5 million, multi-year contract. If the Forest Service has previously awarded similar contracts for exclusive helicopter services in California or other regions, comparing the value, duration, and scope can reveal trends. For instance, if average contracts of this nature are typically in the $2-3 million range annually, this $7.5 million contract over roughly three years ($2.5 million/year) appears consistent. Conversely, if historical contracts were significantly lower, it might suggest an increase in service costs, expanded scope, or a less competitive market.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2025 FLIGHTWAY DR, ATLANTA, GA, 30341

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,496,943

Exercised Options: $7,496,943

Current Obligation: $7,496,943

Actual Outlays: $4,970,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9267

IDV Type: IDC

Timeline