Forest Service awards $1.2M contract for air transportation services in Texas

Contract Overview

Contract Amount: $1,222,865 ($1.2M)

Contractor: Brainerd Helicopters, Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2028-12-31

Contract Duration: 1,826 days

Daily Burn Rate: $670/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 LUFKIN AIRPORT TX N234BH

Place of Performance

Location: LUFKIN, ANGELINA County, TEXAS, 75901

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.2 million to BRAINERD HELICOPTERS, INC for work described as: HSS MATOC TYPE 3 LUFKIN AIRPORT TX N234BH Key points: 1. Contract awarded to Brainerd Helicopters, Inc. for nonscheduled chartered passenger air transportation. 2. The contract has a duration of 1826 days, spanning from January 1, 2024, to December 31, 2028. 3. The contract type is Firm Fixed Price, indicating predictable costs for the government. 4. This award represents a small portion of the Forest Service's overall spending on aviation services. 5. The North American Industry Classification System (NAICS) code 481211 suggests a focus on specialized air charter services. 6. The contract was awarded through full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract value of $1.22 million over five years for specialized air transportation services appears reasonable given the duration and nature of the service. Benchmarking against similar contracts for nonscheduled chartered passenger air transportation is difficult without more specific details on flight hours, routes, and aircraft types. However, the firm fixed-price structure provides cost certainty. The number of bids received (44) suggests a healthy level of interest, which typically leads to more competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The record shows 44 bids were received, which is a strong indicator of robust competition. A high number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors compete to win the award.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the price of the air transportation services and ensured the government received competitive value for its investment.

Public Impact

This contract directly benefits the U.S. Forest Service by providing essential air transportation for its operations in Texas. The services delivered include nonscheduled chartered passenger air transportation, likely for personnel, equipment, or emergency response. The geographic impact is focused on Texas, supporting federal land management and related activities within the state. Workforce implications may include employment opportunities for pilots, maintenance crews, and support staff within the aviation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased operational costs if demand for services exceeds initial projections.
Reliance on a single contractor could lead to service disruptions if the contractor faces unforeseen issues.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market and potentially favorable pricing.
Long-term contract (5 years) allows for stable planning and resource allocation for the Forest Service.

Sector Analysis

The aviation services sector is critical for various government functions, including land management, emergency response, and transportation. The NAICS code 481211 specifically covers nonscheduled chartered passenger air transportation. Spending in this sector can vary significantly based on agency needs, geographic scope, and the type of aircraft required. Comparable spending benchmarks would depend on the specific mission requirements and operational tempo.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The fact that 44 bids were received suggests that both large and small businesses had the opportunity to compete. Further analysis would be needed to determine the extent of small business participation as prime contractors or subcontractors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature simplifies financial oversight. Accountability measures are inherent in the contract terms and performance expectations. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration (FAA) regulations
Department of Agriculture Aviation Management
Forest Service Firefighting and Aviation Management

Risk Flags

Potential for fuel price volatility impacting long-term costs.
Reliance on contractor's fleet availability and maintenance schedules.
Need for clear performance metrics to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.2 million to BRAINERD HELICOPTERS, INC. HSS MATOC TYPE 3 LUFKIN AIRPORT TX N234BH

Who is the contractor on this award?

The obligated recipient is BRAINERD HELICOPTERS, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $1.2 million.

What is the period of performance?

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

What is the specific nature of the 'nonscheduled chartered passenger air transportation' required by the Forest Service in Texas under this contract?

The contract specifies 'Nonscheduled Chartered Passenger Air Transportation' (NAICS code 481211). This typically refers to air charter services that are not operated on a fixed schedule. For the Forest Service, this could encompass a range of activities such as transporting personnel to remote work sites, conducting aerial surveys of forest conditions, supporting fire management operations (e.g., transporting crews or equipment), or providing logistical support for land management activities across Texas. The 'passenger' aspect indicates a primary focus on moving people, though such charters often include provisions for light cargo as well. The exact utilization will depend on the Forest Service's operational needs throughout the contract period.

How does the awarded price of $1.22 million compare to market rates for similar air charter services in Texas?

Directly comparing the $1.22 million award to market rates for similar services is challenging without detailed specifications of the service provided (e.g., aircraft type, flight hours, specific routes, operational tempo). However, the fact that 44 bids were received suggests a competitive market. A firm fixed-price contract awarded under full and open competition generally indicates that the government secured a price that reflects market conditions, as contractors would price competitively to win the bid. To perform a precise benchmark, one would need to gather quotes for comparable charter services in Texas based on similar operational parameters and then compare those to the pro-rata cost of this contract ($1.22M / 5 years = ~$244,000 per year).

What are the potential risks associated with a five-year contract for air transportation services?

Potential risks for a five-year air transportation contract include: 1. **Fuel Price Volatility:** Although the contract is firm fixed-price, significant and sustained increases in fuel costs could impact the contractor's profitability, potentially leading to future pricing adjustments or reduced service quality if not adequately managed. 2. **Aircraft Availability and Maintenance:** Ensuring the availability of suitable aircraft throughout the contract period, especially given maintenance schedules and potential unforeseen mechanical issues, poses a risk. 3. **Regulatory Changes:** Evolving FAA regulations or environmental standards could necessitate costly upgrades or operational changes for the contractor. 4. **Demand Fluctuations:** Unforeseen increases in the Forest Service's demand for air transport could strain the contractor's capacity, while decreased demand might lead to underutilization. 5. **Contractor Performance:** The risk of the contractor failing to meet performance standards or experiencing financial instability over the long term.

What is the historical spending pattern of the Forest Service on nonscheduled chartered passenger air transportation in Texas?

Historical spending data for the Forest Service on nonscheduled chartered passenger air transportation specifically in Texas is not readily available in the provided snippet. However, the Forest Service, as part of the Department of Agriculture, relies heavily on aviation for land management, fire suppression, and other operational needs across vast territories. Spending patterns are typically influenced by factors such as wildfire seasons, specific land management projects, and budget allocations. Analyzing past FPDS data for the Forest Service and its regional offices in Texas under NAICS code 481211 would be necessary to establish historical spending trends and identify any significant variations or patterns over time.

How does the number of bidders (44) impact the value for money for the taxpayer in this specific contract?

A high number of bidders, such as the 44 received for this contract, generally enhances value for money for taxpayers. Robust competition incentivizes contractors to offer their most competitive pricing and terms to secure the award. It reduces the risk of the government overpaying due to a lack of alternatives. Furthermore, a broad base of bidders suggests a healthy and accessible market for these services, indicating that the government has a good selection of potential providers. This competitive pressure helps ensure that the final price reflects the true cost of providing the service plus a reasonable profit margin, rather than one inflated by limited market options.

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: 8850 AIRPORT BLVD, LEESBURG, FL, 34788

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

Financial Breakdown

Contract Ceiling: $1,222,865

Exercised Options: $1,222,865

Current Obligation: $1,222,865

Actual Outlays: $823,257

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9312

IDV Type: IDC

Timeline