Forest Service awards $10.8M contract for air transportation, highlighting potential value in specialized charter services

Contract Overview

Contract Amount: $10,749,573 ($10.7M)

Contractor: Helicopter Express LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2028-12-31

Contract Duration: 1,826 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 44

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HSS MATOC TYPE 3 OCALA FL N52HX

Place of Performance

Location: OCALA, MARION County, FLORIDA, 34470

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.7 million to HELICOPTER EXPRESS LLC for work described as: HSS MATOC TYPE 3 OCALA FL N52HX Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for nonscheduled chartered passenger air transportation, indicating a need for flexible aerial logistics. 3. The duration of the contract (5 years) suggests a long-term requirement for these services. 4. The firm-fixed-price contract type helps manage cost certainty for the government. 5. The award to Helicopter Express LLC indicates a specific capability was sought and identified. 6. The geographic focus on Florida may point to regional operational needs.

Value Assessment

Rating: good

The total award amount of approximately $10.8 million over five years suggests a significant investment in air transportation. Benchmarking this against similar MATOC (Multiple Award Task Order Contract) awards for specialized air charter services is challenging without more specific data on flight hours, routes, and passenger capacity. However, the firm-fixed-price structure provides a degree of cost control. The number of delivery orders (44) indicates active utilization of the contract, which could imply good value if services are consistently needed and efficiently delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that there were 44 delivery orders issued under this contract suggests it was actively utilized after the initial award. The level of competition at the initial award stage is not detailed, but the 'full and open' designation implies a robust process that should have driven competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality compared to sole-source or limited competition contracts.

Public Impact

The primary beneficiaries are likely the US Forest Service personnel and potentially other government agencies requiring aerial transport for operations within Florida. Services delivered include nonscheduled chartered passenger air transportation, crucial for accessing remote areas or for time-sensitive missions. The geographic impact is concentrated in Florida, supporting federal land management and operational needs within the state. Workforce implications may include support for pilots, ground crew, and logistical personnel associated with air charter operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand on specialized air services impacting availability for other users.
Dependence on a single contractor for critical air transportation needs could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type provides cost certainty.
Long contract duration suggests a stable, ongoing need being met.
Multiple delivery orders indicate active and potentially efficient use of the contract.

Sector Analysis

This contract falls within the broader air transportation services sector, specifically focusing on nonscheduled chartered passenger transport. The market for such services is often characterized by specialized aircraft, highly trained personnel, and stringent regulatory compliance. The Forest Service's need for these services likely relates to supporting its land management, firefighting, or other operational activities in remote or difficult-to-access areas. Comparable spending benchmarks would depend on the specific type of aircraft, flight hours, and operational tempo required.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Helicopter Express LLC, is likely not a small business for this award. There is no explicit information on subcontracting plans or requirements within the provided data, so the direct impact on the small business ecosystem is unclear. However, larger prime contracts often have subcontracting goals, which could potentially benefit small businesses if implemented.

Oversight & Accountability

The contract is managed under the Department of Agriculture's Forest Service. Oversight mechanisms would typically involve contract officers, contracting specialists, and program managers responsible for ensuring performance, adherence to terms, and proper invoicing. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Aircraft Operations
Federal Air Charter Services
Nonscheduled Air Transportation Contracts

Risk Flags

Potential for performance issues with a single long-term provider.
Dependence on specialized air services may limit flexibility.
Geographic concentration could indicate regional vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.7 million to HELICOPTER EXPRESS LLC. HSS MATOC TYPE 3 OCALA FL N52HX

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 $10.7 million.

What is the period of performance?

Start: 2024-01-01. End: 2028-12-31.

What is the track record of Helicopter Express LLC with federal contracts, particularly with the Forest Service or Department of Agriculture?

A review of federal procurement data would be necessary to fully assess Helicopter Express LLC's track record. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract modifications. Understanding their experience with similar types of air transportation services, especially for government agencies with unique operational requirements like the Forest Service, is crucial. A history of successful, on-time, and within-budget performance on comparable federal contracts would indicate a lower performance risk for this current award. Conversely, any past issues could raise concerns about reliability and adherence to contract terms.

How does the pricing structure (firm-fixed-price) compare to other similar air charter contracts awarded by the Forest Service or other agencies?

The firm-fixed-price (FFP) structure is generally favored for services where the scope of work is well-defined, as it shifts most of the risk to the contractor and provides cost certainty to the government. To compare its value, one would need to analyze the per-flight-hour rates, daily rates, or other pricing metrics against similar FFP contracts for comparable aircraft types and operational areas. Factors such as the number of aircraft, crew availability, maintenance responsibilities, and included services (e.g., fuel, insurance) would need to be standardized for a meaningful comparison. If Helicopter Express LLC's rates are competitive with or lower than benchmarks for similar services, it suggests good value for money.

What are the specific risks associated with relying on a single contractor for nonscheduled chartered passenger air transportation over a five-year period?

The primary risks associated with relying on a single contractor for critical services like nonscheduled air transportation over an extended period include potential performance degradation, price escalation (if contract terms allow), and reduced flexibility. If the contractor experiences financial difficulties, operational issues, or a decline in service quality, the government may have limited immediate alternatives, especially if the contract has exclusivity clauses or if transitioning to a new provider would be time-consuming and costly. Furthermore, a lack of ongoing competition during the contract's life might disincentivize the contractor from maintaining peak performance or offering innovative cost-saving measures. Mitigating these risks often involves robust contract management, clear performance metrics, and contingency planning.

What is the historical spending pattern for nonscheduled chartered passenger air transportation by the Forest Service, and how does this award fit within that trend?

Analyzing historical spending data for this specific service category by the Forest Service is key to contextualizing this $10.8 million award. If the Forest Service has consistently spent similar amounts or more on such services annually or over multi-year periods, this award might represent a continuation of established operational needs. Conversely, a significant increase or decrease in spending could signal a shift in strategy, operational tempo, or contracting approach. Understanding the trend helps assess whether this award is an anomaly or part of a predictable pattern, and whether the current award amount is proportionate to past investments in aerial logistics.

Are there any specific performance metrics or Key Performance Indicators (KPIs) defined in the contract that will be used to measure the contractor's success?

While the provided data does not detail specific performance metrics, federal contracts, especially for services like air transportation, typically include KPIs to ensure quality and reliability. These might include on-time performance rates, aircraft availability percentages, safety compliance records, adherence to flight plans, and passenger satisfaction. The effectiveness of oversight relies heavily on the clarity and measurability of these KPIs. Regular performance reviews against these metrics allow the Forest Service to hold Helicopter Express LLC accountable, identify areas for improvement, and make informed decisions regarding contract continuation or modification. The absence of such details in summary data necessitates a deeper dive into the contract document itself.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger 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

Offers Received: 44

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: $10,749,573

Exercised Options: $10,749,573

Current Obligation: $10,749,573

Actual Outlays: $5,754,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9316

IDV Type: IDC

Timeline