Forest Service awards $3.1M contract for aerial firefighting services to Ponderosa Aviation Inc

Contract Overview

Contract Amount: $3,108,561 ($3.1M)

Contractor: Ponderosa Aviation Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-03-26

End Date: 2026-12-31

Contract Duration: 1,010 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE PILOT AND AIRCRAFT SERVICES FOR ATGS MISSION, FIRE

Place of Performance

Location: SAFFORD, GRAHAM County, ARIZONA, 85546

State: Arizona Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.1 million to PONDEROSA AVIATION INC for work described as: PROVIDE PILOT AND AIRCRAFT SERVICES FOR ATGS MISSION, FIRE Key points: 1. Contract awarded for essential aerial firefighting services, crucial for wildfire suppression. 2. Ponderosa Aviation Inc. selected for pilot and aircraft services, indicating specialized capabilities. 3. The contract duration extends over two years, suggesting a need for sustained support. 4. Awarded under full and open competition, implying a robust selection process. 5. The fixed-price contract type helps manage cost certainty for the government. 6. Services are geographically focused on Arizona, aligning with regional wildfire risks.

Value Assessment

Rating: good

The contract value of $3.1 million for two years of aerial firefighting services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for ATGS (Aerial Target Ground Support) missions and pilot services is challenging without more specific data on aircraft type, flight hours, and mission complexity. However, the award to a single contractor suggests a competitive process that likely yielded a fair price. The fixed-price structure provides cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple vendors were likely solicited and evaluated. The presence of 10 bids suggests a healthy level of competition for these specialized aerial services. This competitive environment generally leads to better price discovery and ensures the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging providers to offer their best pricing.

Public Impact

The primary beneficiaries are the US Forest Service and the public, through enhanced wildfire suppression capabilities. Services delivered include providing pilots and aircraft essential for ATGS missions, supporting firefighting efforts. The geographic impact is focused on Arizona, a state prone to significant wildfire activity. This contract supports specialized aviation jobs within the firefighting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise, though mitigated by fixed-price.
Dependence on a single contractor for critical aerial support in a specific region.

Positive Signals

Awarded through full and open competition, indicating a fair and broad solicitation.
Fixed-price contract type provides cost certainty.
Contract duration aligns with seasonal wildfire needs.

Sector Analysis

The aerial firefighting sector is a critical component of national defense against wildfires, requiring specialized aircraft and skilled pilots. This contract fits within the broader aviation services industry, specifically focusing on niche government support. Spending in this area can fluctuate based on wildfire seasons and agency budgets. Comparable spending benchmarks are difficult to establish without detailed mission parameters, but contracts for similar services can range from hundreds of thousands to millions of dollars annually.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information provided regarding subcontracting plans with small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for Ponderosa Aviation Inc.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Forest Service is responsible for contract administration and performance monitoring. Transparency is facilitated through contract award databases. Inspector General oversight would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Wildfire Management Programs
Aviation Support Services
Emergency Response Contracts
Department of Agriculture Procurement

Risk Flags

Potential for operational disruptions due to weather or mechanical issues.
Dependence on contractor performance for critical mission support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.1 million to PONDEROSA AVIATION INC. PROVIDE PILOT AND AIRCRAFT SERVICES FOR ATGS MISSION, FIRE

Who is the contractor on this award?

The obligated recipient is PONDEROSA AVIATION INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2024-03-26. End: 2026-12-31.

What is the track record of Ponderosa Aviation Inc. in performing similar aerial support contracts for federal agencies?

Ponderosa Aviation Inc. has a history of providing aviation services. While specific details on past federal contracts are not provided in this data snippet, their selection for this significant Forest Service contract suggests they possess the necessary certifications, experience, and operational capacity. A deeper dive into their contract history with agencies like the Forest Service, BLM, or other relevant entities would reveal their performance trends, safety records, and client satisfaction levels. Examining past performance evaluations and any documented disputes or commendations would offer a more comprehensive view of their reliability and expertise in aerial support operations.

How does the awarded price compare to market rates for similar aerial firefighting services?

Directly comparing the $3.1 million contract value to precise market rates is challenging without detailed specifications of the aircraft, pilot hours, and mission scope. However, the fact that the contract was awarded under full and open competition with 10 bids suggests that the pricing was competitive. Market rates in aerial firefighting can vary significantly based on aircraft type (e.g., helicopters vs. fixed-wing), payload capacity, operational duration, and geographic location. Generally, fixed-price contracts aim to align with or slightly below market rates to ensure value for money. Further analysis would involve benchmarking against publicly available data for similar aircraft and service types in the Arizona region.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include operational failures (e.g., aircraft malfunction, pilot error), weather-related delays impacting firefighting effectiveness, and potential cost overruns if the fixed-price contract doesn't fully account for unforeseen operational demands. Mitigation strategies likely involve stringent maintenance protocols for aircraft, rigorous pilot training and certification, clear performance standards in the contract, and contingency planning for weather disruptions. The Forest Service's oversight and Ponderosa Aviation's own safety and operational management systems are crucial for mitigating these risks. The fixed-price nature also mitigates financial risk for the government, shifting some cost uncertainty to the contractor.

How effective is this contract likely to be in supporting the Forest Service's wildfire suppression mission in Arizona?

This contract is likely to be highly effective in supporting the Forest Service's mission, given its specific focus on providing pilot and aircraft services for ATGS missions in Arizona. ATGS plays a vital role in coordinating aerial firefighting efforts, providing real-time intelligence, and directing resources. By securing these services through a competitive process for a defined period, the Forest Service ensures critical operational capacity is available during high-risk wildfire seasons. The effectiveness will ultimately depend on the reliability of the aircraft and pilots, the quality of the intelligence provided, and the seamless integration of these services into the broader incident command structure.

What are the historical spending patterns for similar aerial support services by the Forest Service in Arizona?

Historical spending data for similar aerial support services by the Forest Service in Arizona would provide valuable context. Without access to that specific historical data, it's difficult to ascertain trends. However, wildfire seasons in Arizona can be severe, often necessitating significant investment in aerial resources. Spending patterns are typically influenced by the severity of fire seasons, budget allocations, and the specific types of aerial support required (e.g., water drops, reconnaissance, personnel transport). A review of past Forest Service procurement records for Arizona would reveal the frequency, duration, and cost of similar contracts over the years, highlighting any increases or decreases in demand and associated spending.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4500 E AVIATION WAY, SAFFORD, AZ, 85546

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

Financial Breakdown

Contract Ceiling: $5,534,961

Exercised Options: $3,108,561

Current Obligation: $3,108,561

Actual Outlays: $1,965,561

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9424

IDV Type: IDC

Timeline