Forest Service awards $6M helicopter transport contract to Helicopter Express LLC, highlighting air cargo needs

Contract Overview

Contract Amount: $5,999,887 ($6.0M)

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: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 25

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYPE II EXCLUSIVE USE FOR GRANTS PASS, OR

Place of Performance

Location: GRANTS PASS, JOSEPHINE County, OREGON, 97526

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.0 million to HELICOPTER EXPRESS LLC for work described as: TYPE II EXCLUSIVE USE FOR GRANTS PASS, OR Key points: 1. Contract value appears reasonable given the specialized nature of aerial freight. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include reliance on a single provider for critical services. 4. Contract duration of over two years indicates a sustained need for these services. 5. This contract supports essential aerial logistics within the Forest Service's operational domain. 6. Firm fixed-price structure provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of approximately $6 million for nonscheduled chartered freight air transportation over a period of roughly 33 months appears to be within a reasonable range for specialized aerial logistics. Benchmarking against similar contracts for exclusive use of aircraft for fire suppression or remote cargo delivery would provide a more precise value-for-money assessment. However, given the firm fixed-price nature and the duration, the pricing structure offers predictability.

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 25 bids suggests a robust level of interest and a competitive marketplace for these services. This broad competition is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Agriculture's Forest Service, which relies on this service for critical operations. Services delivered include nonscheduled chartered freight air transportation, likely supporting remote area access, equipment delivery, and potentially emergency response. The geographic impact is focused on Oregon (OR), where the Forest Service operates. Workforce implications may include pilots, ground crew, and logistics personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruption if the sole awardee faces operational issues.
Dependence on a single contractor for critical air transport needs.
Limited flexibility to switch providers during the contract period if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a healthy market.
Firm fixed-price contract provides cost certainty and limits government financial risk.
Contract duration of over two years suggests a stable, ongoing need for the service.

Sector Analysis

The nonscheduled chartered freight air transportation sector is vital for industries requiring flexible and often urgent delivery of goods to locations not served by regular air cargo routes. This contract fits within the broader aviation services market, specifically catering to government needs for logistical support in remote or specialized environments. Comparable spending benchmarks would involve analyzing other government contracts for similar aerial logistics, particularly those supporting land management agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is not immediately apparent from this award alone. Further analysis would be needed to determine if any small businesses are involved as subcontractors or if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Forest Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of services as specified. Transparency is generally maintained through contract databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Federal Aviation Administration (FAA) Oversight
Department of the Interior Aerial Firefighting Contracts
US Forest Service Logistics and Operations

Risk Flags

Reliance on a single awardee for critical services.
Potential for cost overruns if contractor's estimates are inaccurate.
Ensuring consistent service quality and safety standards throughout the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.0 million to HELICOPTER EXPRESS LLC. TYPE II EXCLUSIVE USE FOR GRANTS PASS, OR

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 $6.0 million.

What is the period of performance?

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

What is the historical spending pattern for nonscheduled chartered freight air transportation by the Forest Service in Oregon?

Analyzing historical spending for nonscheduled chartered freight air transportation by the Forest Service in Oregon requires accessing historical contract databases. While this specific award is for approximately $6 million over its term, past spending could reveal trends in demand, pricing fluctuations, and the typical number of bidders. For instance, if previous contracts in this category were significantly smaller or awarded to different providers, it might indicate a shift in operational needs or market dynamics. Conversely, consistent spending with similar providers could suggest a stable requirement. Without access to historical data, it's difficult to provide precise figures, but such an analysis would contextualize the current award within the agency's long-term logistical planning and budget allocation for aerial support in the region.

How does the number of bidders (25) compare to similar Forest Service aerial transport contracts?

A total of 25 bids for this nonscheduled chartered freight air transportation contract suggests a healthy level of competition. To assess this properly, it would be beneficial to compare this number to the average number of bids received for similar Forest Service contracts, particularly those involving aerial logistics or specialized transport services. If 25 bids is significantly higher than the average, it indicates strong market interest and potentially favorable terms or opportunities. If it's lower than average, it might suggest specific market conditions, high barriers to entry, or less attractive contract terms. This comparison helps determine if the government received a broad range of options and competitive pricing due to the high number of interested parties.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or service level agreements (SLAs) for this contract. Typically, firm fixed-price contracts for air transportation would include clauses related to on-time performance, aircraft availability, safety standards, and response times for charter requests. The Forest Service would likely have defined requirements for the type of cargo, weight limits, flight hours, and operational readiness. Adherence to these metrics would be monitored by the contracting officer's representative (COR). Failure to meet agreed-upon SLAs could result in penalties or contract termination, ensuring the government receives the expected level of service and value for its investment.

What is Helicopter Express LLC's track record with federal contracts, particularly for aerial freight?

Assessing Helicopter Express LLC's track record with federal contracts, especially for aerial freight, requires reviewing their past performance history in federal procurement databases like the Federal Procurement Data System (FPDS). This would reveal details on previous awards, contract values, agencies served, and any performance evaluations or disputes. A history of successful contract completion, positive performance reviews, and compliance with federal regulations would indicate reliability and capability. Conversely, any past issues, such as contract terminations, performance deficiencies, or legal challenges, would raise concerns about their suitability for this new award. Without specific historical data, it's presumed the Forest Service conducted due diligence during the procurement process.

Are there any potential risks associated with the firm fixed-price (FFP) contract type for this service?

The firm fixed-price (FFP) contract type for this aerial freight service generally offers cost certainty to the government, as the price is set regardless of the contractor's actual costs. However, potential risks exist. If the contractor underestimates costs or encounters unforeseen operational challenges (e.g., fuel price spikes, increased maintenance), they may incur losses, potentially impacting their financial stability and ability to perform. This could lead to pressure to cut corners on service quality or safety. Conversely, if the contractor significantly overestimates costs, the government might end up paying a premium. The Forest Service mitigates this by ensuring a competitive bidding process and robust contract oversight to verify that the fixed price reflects fair market value.

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: 25

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: $5,999,887

Exercised Options: $5,999,887

Current Obligation: $5,999,887

Actual Outlays: $3,348,392

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9267

IDV Type: IDC

Timeline