Forest Service awards $11.2M contract for exclusive helicopter transport to Gallatin Gateway, MT

Contract Overview

Contract Amount: $11,201,349 ($11.2M)

Contractor: Helicopter Express LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-04-01

End Date: 2025-12-31

Contract Duration: 639 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 25

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TYPE II EXCLUSIVE USE FOR GALLATIN GATEWAY, MT

Place of Performance

Location: GALLATIN GATEWAY, GALLATIN County, MONTANA, 59730

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $11.2 million to HELICOPTER EXPRESS LLC for work described as: TYPE II EXCLUSIVE USE FOR GALLATIN GATEWAY, MT Key points: 1. Contract awarded to Helicopter Express LLC for exclusive use of services. 2. Full and open competition was utilized for this award. 3. The contract duration is 639 days. 4. The contract is for nonscheduled chartered freight air transportation.

Value Assessment

Rating: fair

The awarded amount is $11,201,348.93. Benchmarking against similar nonscheduled chartered freight air transportation contracts is difficult without more specific service details. However, the duration and scope suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: Taxpayers are impacted through the funding of this significant contract for essential services, with the expectation that competition led to a reasonable price.

Public Impact

Ensures critical transportation services for the Forest Service in Montana. Supports operations in remote or difficult-to-access areas. Potential economic impact on the local Gallatin Gateway area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusive use may limit future flexibility or cost savings.
Reliance on a single provider for critical services.

Positive Signals

Awarded through full and open competition.
Supports essential Forest Service operations.

Sector Analysis

This contract falls under air transportation services, a critical component for agencies like the Forest Service that operate in vast and often remote areas. Spending benchmarks for such specialized services can vary widely based on equipment, duration, and operational requirements.

Small Business Impact

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

Oversight & Accountability

The Forest Service is responsible for overseeing this contract to ensure timely delivery of services and adherence to the terms and conditions. Accountability rests on performance metrics and reporting requirements.

Related Government Programs

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

Risk Flags

Exclusive use may lead to higher costs than a shared or on-demand model.
Potential for contractor to underperform if pricing was too aggressive.
Dependence on a single provider for critical services.
Limited transparency on specific operational requirements driving the need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $11.2 million to HELICOPTER EXPRESS LLC. TYPE II EXCLUSIVE USE FOR GALLATIN GATEWAY, MT

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 $11.2 million.

What is the period of performance?

Start: 2024-04-01. End: 2025-12-31.

What specific operational needs necessitate the exclusive use of helicopter services for the entire contract duration?

The exclusive use clause suggests a critical and continuous need for helicopter services that cannot be met through shared or on-demand arrangements. This could be due to the nature of the operations, such as fire suppression, remote site access, or specialized cargo transport, where guaranteed availability and specific aircraft configurations are paramount for mission success and safety.

How does the firm fixed price structure mitigate risks associated with fluctuating fuel costs or operational demands?

A firm fixed price contract shifts the risk of cost overruns to the contractor. While it provides budget certainty for the government, it may lead to higher initial pricing to account for contractor risk. The contractor must absorb unexpected increases in fuel or operational costs, potentially impacting their profit margin or service quality if not adequately factored in.

What performance metrics are in place to ensure the effectiveness and efficiency of the nonscheduled chartered freight air transportation?

Effectiveness is likely measured by on-time performance, successful delivery of cargo/personnel, adherence to flight safety regulations, and meeting specific mission requirements outlined in the contract. Efficiency could be assessed through fuel consumption relative to mission objectives and minimizing downtime. The Forest Service would monitor these metrics to ensure value for taxpayer money.

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: $11,201,349

Exercised Options: $11,201,349

Current Obligation: $11,201,349

Actual Outlays: $6,944,530

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9267

IDV Type: IDC

Timeline