Forest Service awards $2.79M for ATGS pilot services to Ponderosa Aviation Inc

Contract Overview

Contract Amount: $2,788,738 ($2.8M)

Contractor: Ponderosa Aviation Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-05-13

End Date: 2026-12-31

Contract Duration: 962 days

Daily Burn Rate: $2.9K/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: ATGS SERVICES - MCCALL, ID 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 $2.8 million to PONDEROSA AVIATION INC for work described as: ATGS SERVICES - MCCALL, ID PROVIDE PILOT AND AIRCRAFT SERVICES FOR ATGS MISSION, FIRE Key points: 1. Contract awarded for critical ATGS pilot and aircraft services. 2. Ponderosa Aviation Inc. is the sole awardee. 3. Contract duration is 962 days. 4. Firm Fixed Price contract type. 5. Spending is within the typical range for this service category.

Value Assessment

Rating: good

The contract value of $2.79M over approximately 2.6 years appears reasonable for specialized aviation services. Benchmarking against similar contracts for pilot and aircraft support in remote or demanding environments would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery compared to broader solicitations, but could be justified if specific capabilities were required.

Taxpayer Impact: Taxpayer funds are being used for essential wildfire support services, with the price determined through a competitive process, albeit a limited one.

Public Impact

Ensures critical aerial support for ATGS missions, likely related to firefighting or land management. Supports operational readiness for the Forest Service in Arizona. The contract value contributes to the aviation services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best possible price.
Potential for price creep if scope changes.

Positive Signals

Supports essential government function (fire management).
Fixed price contract provides cost certainty.
Long-term award provides stability for service provision.

Sector Analysis

This contract falls within the aviation services sector, specifically supporting government operations. Spending benchmarks for similar specialized aerial support contracts vary widely based on aircraft type, mission complexity, and duration.

Small Business Impact

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

Oversight & Accountability

The award was made by the Department of Agriculture's Forest Service. Oversight would involve monitoring contract performance, adherence to terms, and financial accountability throughout the contract period.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Potential for scope creep impacting final cost.
Dependence on a single provider for critical services.
Lack of transparency regarding small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.8 million to PONDEROSA AVIATION INC. ATGS SERVICES - MCCALL, ID 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 $2.8 million.

What is the period of performance?

Start: 2024-05-13. End: 2026-12-31.

What specific ATGS missions does this contract support, and what is the expected impact of these services on wildfire suppression or land management effectiveness?

The contract supports Aerial Tracking and Guidance Systems (ATGS) missions, which are crucial for real-time situational awareness during wildfires and other land management operations. Effective pilot and aircraft services ensure timely data collection, target identification, and support for ground crews, directly impacting the efficiency and safety of suppression efforts and resource management.

Given the limited competition, what steps were taken to ensure the price paid is fair and reasonable, and what are the potential risks associated with this procurement approach?

While the specific steps are not detailed, a 'limited competition' often involves market research to identify qualified sources and price analysis based on historical data or industry benchmarks. Risks include potentially higher prices than a full and open competition and a reduced incentive for the contractor to offer the lowest possible price.

How does the cost of these specialized aviation services compare to industry standards for similar contracts, and what is the long-term value proposition for the Forest Service?

Benchmarking the $2.79M cost against similar contracts for specialized aerial support is essential. The value proposition lies in ensuring critical operational capabilities for fire management and land stewardship. A long-term perspective should consider the cost of service interruption or the inability to perform these missions effectively without such dedicated contracts.

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: $4,783,858

Exercised Options: $2,788,738

Current Obligation: $2,788,738

Actual Outlays: $1,848,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9424

IDV Type: IDC

Timeline