Forest Service awards $2.76M contract for air transportation to Hillsboro Aviation, Inc

Contract Overview

Contract Amount: $2,759,841 ($2.8M)

Contractor: Hillsboro Aviation, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2028-12-31

Contract Duration: 1,826 days

Daily Burn Rate: $1.5K/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 ELY MN N350HA

Place of Performance

Location: ELY, SAINT LOUIS County, MINNESOTA, 55731

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.8 million to HILLSBORO AVIATION, INC. for work described as: HSS MATOC TYPE 3 ELY MN N350HA Key points: 1. Contract awarded for nonscheduled chartered passenger air transportation. 2. Hillsboro Aviation, Inc. is the sole awardee. 3. The contract has a duration of 1826 days. 4. The contract is firm fixed price.

Value Assessment

Rating: fair

The contract value is $2.76 million over five years. Benchmarking against similar contracts for air charter services is difficult without more specific details on routes, aircraft types, and service levels. However, the duration and value suggest a moderate level of spending for this type of service.

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. This method generally promotes competitive pricing and ensures the government receives fair value for its money.

Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure the most cost-effective solution for essential air transportation services.

Public Impact

Ensures continued access to critical air transport for Forest Service operations. Supports wildfire suppression, resource management, and personnel transport in Minnesota. Provides essential services for remote area access and emergency response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for price increases if fuel costs fluctuate significantly.
Dependence on a single vendor for critical services.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost certainty.
Long-term contract ensures service continuity.

Sector Analysis

The Forest Service utilizes air transportation extensively for managing vast natural resources, especially in remote areas like Minnesota. This contract falls under general aviation services, which are crucial for operations like firefighting, aerial surveys, and personnel movement. Spending benchmarks for such services can vary widely based on mission requirements and geographic scope.

Small Business Impact

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

Oversight & Accountability

The contract is subject to standard government oversight for delivery orders under a MATOC. Accountability will be managed through performance monitoring by the Forest Service contracting officer's representative to ensure services meet requirements.

Related Government Programs

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

Risk Flags

Potential for price escalation due to fuel costs.
Dependence on a single provider for critical air services.
Limited visibility into specific operational details and performance metrics.
Potential impact of weather on service reliability in Minnesota.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.8 million to HILLSBORO AVIATION, INC.. HSS MATOC TYPE 3 ELY MN N350HA

Who is the contractor on this award?

The obligated recipient is HILLSBORO AVIATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

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

What specific types of aircraft and routes will be utilized under this contract, and how do they align with the Forest Service's operational needs?

The provided data lacks specifics on aircraft types and routes. Understanding these details is crucial for assessing the contract's value and effectiveness. The Forest Service likely uses these services for diverse missions, including wildfire support, resource monitoring, and personnel transport across Minnesota's varied terrain. A detailed operational plan would clarify the necessity and efficiency of the chosen services.

What risk mitigation strategies are in place to address potential service disruptions or cost overruns, given the five-year duration?

While the firm fixed price offers cost certainty, risks like fuel price volatility or unforeseen operational demands exist. The Forest Service should have contingency plans, potentially including clauses for extraordinary circumstances or alternative vendor identification. Regular performance reviews and communication with Hillsboro Aviation are key to proactively managing these risks and ensuring service continuity.

How will the effectiveness of Hillsboro Aviation's services be measured to ensure optimal resource utilization and mission accomplishment?

Effectiveness will likely be measured through key performance indicators (KPIs) related to on-time performance, aircraft availability, safety compliance, and mission completion rates. The Forest Service contracting officer's representative will monitor these metrics. Regular reporting and feedback mechanisms will ensure that the services provided by Hillsboro Aviation consistently meet the agency's demanding operational requirements.

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: Hillsboro Aviation Inc.

Address: 3845 NE 30TH AVE, HILLSBORO, OR, 97124

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

Financial Breakdown

Contract Ceiling: $2,759,841

Exercised Options: $2,759,841

Current Obligation: $2,759,841

Actual Outlays: $1,607,587

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9321

IDV Type: IDC

Timeline