USDA Forest Service Awards $4.07M Contract for Nonscheduled Chartered Passenger Air Transportation to Capitol Helicopters

Contract Overview

Contract Amount: $4,070,835 ($4.1M)

Contractor: Capitol Helicopters, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-01-19

End Date: 2028-12-31

Contract Duration: 1,808 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 44

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HSS MATOC TYPE 3 CORNELIA N493NC

Place of Performance

Location: CORNELIA, HABERSHAM County, GEORGIA, 30531

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.1 million to CAPITOL HELICOPTERS, INC. for work described as: HSS MATOC TYPE 3 CORNELIA N493NC Key points: 1. Contract awarded to Capitol Helicopters, Inc. for nonscheduled chartered passenger air transportation. 2. Full and open competition was utilized for this contract. 3. The contract has a duration of 1808 days, ending in December 2028. 4. This award falls under the NAICS code 481211 for air transportation services.

Value Assessment

Rating: fair

The contract value of $4.07M over nearly five years suggests a moderate per-year spend. Benchmarking against similar air charter contracts would be necessary to assess pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market pricing.

Taxpayer Impact: The contract's value is spread over several years, indicating a sustained need for these services. Fair competition should ensure taxpayer funds are used efficiently.

Public Impact

Supports critical Forest Service operations, likely for personnel and equipment transport in remote areas. Ensures operational readiness for wildfire suppression, resource management, and other land management activities. Provides essential air mobility for agency staff across potentially challenging terrain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long, potentially leading to price increases over time.
Lack of specific performance metrics or KPIs in the provided data.
Potential for scope creep given the extended period.

Positive Signals

Full and open competition utilized.
Firm fixed price contract type helps control costs.
Clear end date for the contract.

Sector Analysis

The aviation services sector is crucial for government operations, especially for agencies like the Forest Service that operate in remote or difficult-to-access locations. Spending benchmarks for nonscheduled air charter can vary significantly based on aircraft type, mission, and geographic region.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight would typically involve regular performance reviews by the Forest Service contracting officer's representative to ensure adherence to contract terms and service quality. The long duration necessitates consistent monitoring.

Related Government Programs

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

Risk Flags

Long contract duration.
Potential for unbenchmarked pricing.
Limited visibility into specific performance metrics.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.1 million to CAPITOL HELICOPTERS, INC.. HSS MATOC TYPE 3 CORNELIA N493NC

Who is the contractor on this award?

The obligated recipient is CAPITOL HELICOPTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2024-01-19. End: 2028-12-31.

What is the average cost per flight hour or per mile for this contract, and how does it compare to industry benchmarks for similar services?

Without detailed usage data (flight hours, miles flown, aircraft type), calculating an average cost per unit is not possible from the provided information. A thorough analysis would require access to delivery orders and operational data. Comparing this to industry benchmarks would reveal if the government is receiving competitive pricing for the specific services rendered under this contract.

What are the specific risks associated with a long-term (1808 days) air charter contract, and what mitigation strategies are in place?

Long-term contracts carry risks such as potential price escalation due to market fluctuations, technological obsolescence of aircraft, and contractor performance degradation. Mitigation strategies could include price adjustment clauses tied to specific indices, regular performance reviews, and contingency planning for service disruptions. The Forest Service should have protocols to manage these risks throughout the contract's life.

How effectively does this contract support the Forest Service's mission, particularly in areas like wildfire suppression or resource management?

The effectiveness hinges on the reliability and responsiveness of Capitol Helicopters. If the service consistently provides timely and safe transportation of personnel and equipment to critical operational areas, it directly supports the Forest Service's mission. Performance metrics and user feedback would be key indicators of this effectiveness.

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: 5957 FREEPORT BLVD, SACRAMENTO, CA, 95822

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

Financial Breakdown

Contract Ceiling: $4,070,835

Exercised Options: $4,070,835

Current Obligation: $4,070,835

Actual Outlays: $2,166,013

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9310

IDV Type: IDC

Timeline