Agriculture awards $3.15M contract for air transport services to Leading Edge Aviation, Inc

Contract Overview

Contract Amount: $3,151,843 ($3.2M)

Contractor: Leading Edge Aviation, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2027-12-31

Contract Duration: 1,460 days

Daily Burn Rate: $2.2K/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 CHATTANOOGA, MISSOULA N407WF

Place of Performance

Location: MISSOULA, MISSOULA County, MONTANA, 59801

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.2 million to LEADING EDGE AVIATION, INC. for work described as: HSS MATOC TYPE 3 CHATTANOOGA, MISSOULA N407WF 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 specialized aviation needs. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The contract duration is four years, aligning with potential long-term operational requirements. 5. The award value of $3.15 million over four years suggests a moderate annual expenditure for these services.

Value Assessment

Rating: good

The contract value of $3.15 million over four years for nonscheduled chartered passenger air transportation appears reasonable given the specialized nature of the service. Benchmarking against similar contracts for aerial services, especially those involving remote or specialized operations, would provide a more precise value assessment. However, the firm-fixed-price structure offers cost predictability. Without specific per-flight or per-hour data, a detailed unit cost comparison is challenging, but the overall award seems aligned with industry standards for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bids received, but the designation implies a robust competitive environment. This approach is generally expected to yield fair market pricing and encourage innovative solutions from a wide range of potential providers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives the best value for its investment.

Public Impact

The primary beneficiaries are likely the US Forest Service personnel and potentially other Department of Agriculture staff requiring transportation for operational purposes, such as fire suppression, land management, or research in remote areas. The services delivered include nonscheduled chartered passenger air transportation, essential for accessing locations not served by regular commercial flights. The geographic impact is focused on Montana (MT), where the contract is registered, suggesting operations within or originating from this state. Workforce implications are minimal for the contracting agency, as the service is outsourced, but it supports employment within the aviation sector for the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single contractor for critical air transport services could pose a risk if the contractor faces operational issues.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm-fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
Long-term contract duration (4 years) allows for stable planning and execution of operations.

Sector Analysis

The aviation services sector is diverse, encompassing scheduled airlines, cargo carriers, and specialized charter services. This contract falls into the latter category, providing nonscheduled chartered passenger air transportation. The market for such services is often driven by specific needs for flexibility, access to remote locations, or time-sensitive operations, as exemplified by potential uses within the Forest Service. Comparable spending benchmarks would involve analyzing other government contracts for similar charter services, particularly those supporting land management, emergency response, or scientific expeditions.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary award went to Leading Edge Aviation, Inc., which may or may not be a small business. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Leading Edge Aviation, Inc. utilizes small business subcontractors, which is not detailed in this data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver services as specified. Transparency is facilitated by the public availability of contract awards through federal databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

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

Risk Flags

Potential for operational dependency on a single contractor.
Scope definition clarity for 'nonscheduled' services.
Contractor's financial stability and fleet readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.2 million to LEADING EDGE AVIATION, INC.. HSS MATOC TYPE 3 CHATTANOOGA, MISSOULA N407WF

Who is the contractor on this award?

The obligated recipient is LEADING EDGE AVIATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2024-01-01. End: 2027-12-31.

What is the track record of Leading Edge Aviation, Inc. with federal contracts?

Information regarding Leading Edge Aviation, Inc.'s specific track record with federal contracts is not detailed in the provided data snippet. A comprehensive analysis would require querying federal procurement databases (like SAM.gov or FPDS) to identify past awards, performance reviews, and any history of contract disputes or terminations. Understanding their experience with similar types of aviation services, contract values, and agency clients would be crucial for assessing their reliability and capability for this current award. Without this historical data, it's difficult to definitively assess their past performance.

How does the awarded price compare to market rates for similar nonscheduled air charter services?

The provided data does not include specific per-flight, per-hour, or per-mile rates, making a direct unit-cost comparison to market rates challenging. The total award of $3.15 million over four years for nonscheduled chartered passenger air transportation suggests an average annual value of approximately $787,500. To benchmark this against market rates, one would need to research current pricing from other charter aviation providers for comparable aircraft types, flight durations, and operational complexities (e.g., remote area access, specific payload requirements). Industry reports or databases specializing in aviation costs could offer insights, but a definitive comparison requires more granular data on the services to be rendered under this specific contract.

What are the primary risks associated with this contract for the Department of Agriculture?

Key risks for the Department of Agriculture include operational disruptions if Leading Edge Aviation, Inc. experiences fleet issues, pilot shortages, or financial instability, potentially impacting critical Forest Service operations. There's also a risk related to the scope of services; if the contract's definition of 'nonscheduled chartered passenger air transportation' is too narrow, it might not cover unforeseen operational needs, leading to the need for additional, potentially more expensive, contract actions. Furthermore, reliance on a single provider, even if competitively selected, carries inherent risk. Ensuring robust performance monitoring and clear communication channels will be vital to mitigate these risks.

How effective is the firm-fixed-price contract type in managing costs for this specific service?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for services where the scope of work is well-defined and risks of cost escalation are manageable. For nonscheduled chartered passenger air transportation, FFP provides the government with cost certainty, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to perform efficiently. However, if unforeseen operational complexities arise that were not adequately anticipated during the bidding process, the contractor might be less willing to absorb additional costs, potentially leading to disputes or a reluctance to accommodate minor scope adjustments. Overall, FFP is a suitable choice for predictable service delivery.

What is the historical spending trend for similar air transportation services within the Forest Service or USDA?

The provided data snippet does not include historical spending information. To analyze historical trends, one would need to access procurement data for previous fiscal years, filtering for contracts with the Forest Service or broader USDA for 'nonscheduled chartered passenger air transportation' or similar service codes (like NAICS 481211). Examining the number of awards, contract values, and durations over time would reveal whether spending in this category is increasing, decreasing, or remaining stable. This analysis would help contextualize the current $3.15 million award within a broader financial picture of the agency's aviation support.

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

Parent Company: Leading Edge Aviation Inc.

Address: 63048 POWELL BUTTE HWY, BEND, OR, 97701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,151,843

Exercised Options: $3,151,843

Current Obligation: $3,151,843

Actual Outlays: $1,734,191

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9325

IDV Type: IDC

Timeline