Forest Service awards $13.3M contract for exclusive helicopter services in La Grande, OR

Contract Overview

Contract Amount: $13,322,349 ($13.3M)

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: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 24

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYPE II EXCLUSIVE USE FOR LA GRANDE, OR #1

Place of Performance

Location: LA GRANDE, UNION County, OREGON, 97850

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $13.3 million to HELICOPTER EXPRESS LLC for work described as: TYPE II EXCLUSIVE USE FOR LA GRANDE, OR #1 Key points: 1. Contract aims to secure essential air transport for specific operational needs. 2. Pricing appears competitive given the specialized nature of the service. 3. Potential risks include reliance on a single provider for critical functions. 4. Performance will be measured against delivery of exclusive-use helicopter services. 5. This contract fits within the broader category of aviation support services for federal agencies.

Value Assessment

Rating: good

The contract's value of $13.3 million for exclusive use of helicopter services over approximately 2.5 years appears reasonable. Benchmarking against similar exclusive-use contracts is challenging due to the specific geographic and operational requirements. However, the firm-fixed-price structure suggests that the government has a clear understanding of costs and has negotiated a price that accounts for the provider's commitment. The total value is consistent with the duration and specialized nature of the service, implying a fair price for guaranteed availability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 24 bids suggests a robust competitive process, which typically leads to better pricing and service offerings for the government. This level of competition is a positive sign for price discovery and ensures that the Forest Service selected the most advantageous offer.

Taxpayer Impact: A competitive bidding process for essential services like exclusive-use helicopter transport helps ensure taxpayer dollars are used efficiently, leading to potentially lower costs and better service quality compared to non-competitive awards.

Public Impact

The primary beneficiaries are the US Forest Service personnel in the La Grande, Oregon area who will receive dedicated air support. The contract delivers critical nonscheduled chartered freight air transportation services. The geographic impact is focused on La Grande, Oregon, and surrounding operational areas. This contract supports specialized aviation jobs within the air transportation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Operational disruptions could occur if the sole provider experiences equipment failure or staffing issues.
Limited flexibility if mission requirements change significantly beyond the scope of the current contract.

Positive Signals

Full and open competition ensures a competitive initial award price.
Firm fixed-price contract provides cost certainty for the government.
Long-term contract (over 2 years) offers stability and predictability for service delivery.
Exclusive use guarantees availability of critical air transport resources when needed.

Sector Analysis

The aviation services sector is a critical component of federal operations, particularly for agencies like the Forest Service that require specialized transport for remote or challenging environments. This contract falls under nonscheduled chartered air transportation, a segment that supports a wide range of government missions from logistics to emergency response. The market for such services can be specialized, with a limited number of providers capable of meeting stringent federal requirements for safety, reliability, and operational capacity. Benchmarking against similar exclusive-use contracts is difficult due to unique geographic and mission needs, but the overall spending on aviation support services by federal agencies is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of exclusive-use helicopter services, it is likely that larger, more established aviation companies with the necessary certifications and fleet size would be the primary bidders. There is no explicit information on subcontracting plans for small businesses, but the nature of the service may limit opportunities for broad small business participation.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Forest Service will monitor performance against the terms of the firm-fixed-price delivery order. Accountability is maintained through contract clauses and performance metrics. Transparency is facilitated by the contract award being publicly available. The Inspector General for the Department of Agriculture may have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Air Operations
Federal Aviation Administration (FAA) Oversight
Wildland Firefighting Support Contracts

Risk Flags

Reliance on a single provider for critical services.
Potential for service disruption due to contractor-specific issues.
Limited flexibility for scope changes without contract modification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $13.3 million to HELICOPTER EXPRESS LLC. TYPE II EXCLUSIVE USE FOR LA GRANDE, OR #1

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 $13.3 million.

What is the period of performance?

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

What is the historical spending pattern for helicopter services in the La Grande, OR region by the Forest Service?

Historical spending data for helicopter services specifically in the La Grande, Oregon region by the Forest Service is not directly available in this dataset. However, the current award of $13.3 million for exclusive use over approximately 2.5 years (from April 2024 to December 2026) provides a benchmark for recent and future anticipated spending. To understand historical patterns, one would need to access historical contract databases and search for similar service types (e.g., nonscheduled chartered air transportation, exclusive-use helicopters) awarded by the Forest Service or other federal agencies operating in that geographic area. Factors such as the number of previous contracts, their values, durations, and the specific services rendered would be crucial for a comprehensive historical analysis. Without this granular historical data, it's difficult to definitively state a spending trend, but this current award indicates a significant investment in dedicated air support for the region.

How does the pricing of this contract compare to similar exclusive-use helicopter contracts awarded by other federal agencies?

Direct comparison of this $13.3 million contract for exclusive-use helicopter services in La Grande, OR, to similar contracts across other federal agencies is challenging without specific details on the scope, duration, aircraft type, and operational tempo of those other contracts. Exclusive-use agreements are highly customized based on geographic location, mission requirements (e.g., firefighting, logistics, surveillance), and the specific capabilities of the helicopter fleet. The firm-fixed-price nature of this contract suggests a negotiated rate for guaranteed availability. To perform a robust comparison, one would need to identify contracts with comparable aircraft (e.g., specific models and capacities), similar operational environments (e.g., remote, mountainous terrain), and equivalent service levels (e.g., 24/7 availability, specific flight hour guarantees). The number of bids (24) suggests competitive pricing was achieved for this specific requirement, but a broader market benchmark would require a more extensive data analysis of comparable federal aviation contracts.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this delivery order?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, typical KPIs for exclusive-use helicopter contracts focus on availability, reliability, safety, and mission completion. For this contract, the Forest Service would likely monitor: 1) Aircraft Availability: Ensuring the helicopter is available for dispatch within a specified response time (e.g., within 2 hours) as per the contract terms. 2) Mission Success Rate: The percentage of tasked missions successfully completed without undue delay or incident. 3) Safety Compliance: Adherence to all FAA regulations, Forest Service safety protocols, and incident-free flight operations. 4) Maintenance and Readiness: Ensuring the aircraft is properly maintained and operational, minimizing downtime. 5) Responsiveness: The contractor's ability to respond to urgent requests and adapt to changing operational needs within the scope of the contract. Performance would be formally assessed throughout the contract period, likely through regular progress reports and performance reviews.

What is the contractor's track record with federal aviation contracts, particularly with the Forest Service or Department of Agriculture?

The contractor, HELICOPTER EXPRESS LLC, has been awarded this $13.3 million contract by the US Forest Service, indicating some level of established capability and trust to handle federal aviation needs. To assess their track record thoroughly, one would need to examine their past performance on federal contracts. This would involve searching federal procurement databases (like SAM.gov or FPDS) for previous awards to HELICOPTER EXPRESS LLC, noting the agencies involved (especially USDA and its sub-agencies like the Forest Service), the types of services provided (e.g., helicopter charter, air transport), contract values, durations, and any available performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS). A history of successful contract completions, positive performance reviews, and compliance with federal regulations would suggest a reliable contractor. Conversely, a record of contract disputes, performance issues, or regulatory violations would raise concerns.

What are the potential risks associated with relying on a single provider for exclusive-use helicopter services in this region?

Relying on a single provider, HELICOPTER EXPRESS LLC, for exclusive-use helicopter services in La Grande, OR, presents several potential risks. Firstly, there's a risk of service disruption due to unforeseen events such as mechanical failures, pilot availability issues (illness, staffing shortages), or natural disasters affecting the contractor's operations. Secondly, the lack of ongoing competition during the contract term could reduce the incentive for the contractor to innovate or offer cost efficiencies beyond the initial award. Thirdly, if the Forest Service's needs evolve significantly, the single-source nature of the contract might limit flexibility in adapting services or pricing without renegotiation, potentially leading to higher costs or delays. Finally, dependence on one provider could create a vulnerability if the contractor faces financial instability or decides to exit the market, necessitating a rapid and potentially costly re-procurement process.

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: 24

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: $13,322,349

Exercised Options: $13,322,349

Current Obligation: $13,322,349

Actual Outlays: $8,864,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9267

IDV Type: IDC

Timeline