Forest Service awards $2.6M contract for air transportation services to Spur Aviation Services, LC

Contract Overview

Contract Amount: $2,649,333 ($2.6M)

Contractor: Spur Aviation Services, LC

Awarding Agency: Department of Agriculture

Start Date: 2024-04-24

End Date: 2025-12-31

Contract Duration: 616 days

Daily Burn Rate: $4.3K/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 MESA AZ

Place of Performance

Location: TWIN FALLS, TWIN FALLS County, IDAHO, 83301

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.6 million to SPUR AVIATION SERVICES, LC for work described as: ATGS MESA AZ 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. Fixed-price contract type helps manage cost certainty for the government. 4. The duration of 616 days suggests a medium-term operational requirement. 5. The award is a delivery order, implying it's part of a larger contract vehicle. 6. The geographic focus appears to be Arizona, based on the data provided.

Value Assessment

Rating: fair

The contract value of $2.65 million for approximately 616 days of service represents a daily rate of roughly $4,300. Benchmarking this against similar nonscheduled chartered air transportation contracts is challenging without more specific service details (e.g., aircraft type, flight hours, passenger capacity, range). However, the fixed-price nature provides some cost control. The award amount appears reasonable for specialized aviation services, but a definitive value-for-money assessment requires deeper comparison to market rates for comparable aircraft and operational profiles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While the 'full and open' aspect indicates broad solicitation, the 'exclusion of sources' clause suggests specific criteria or limitations were applied during the competition, potentially narrowing the field of eligible bidders. The data indicates 10 bids were received, which is a healthy number and suggests a competitive environment. This level of competition is generally favorable for price discovery and achieving market-based pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging providers to offer their best value. The receipt of 10 bids suggests that the government received multiple offers, increasing the likelihood of a fair market price being secured.

Public Impact

The primary beneficiaries are likely the US Forest Service personnel and potentially other government agencies requiring aerial support for operations in Arizona. The services delivered include nonscheduled chartered passenger air transportation, crucial for accessing remote areas or conducting specific missions. The geographic impact is centered around ATGS MESA AZ, indicating support for operations within that region. Workforce implications are indirect, supporting the operational capacity of the Forest Service rather than directly creating new jobs through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational demands exceed initial projections within the fixed-price structure.
Dependence on a single contractor for critical air transportation could pose a risk if performance issues arise.
The 'exclusion of sources' clause warrants further investigation to ensure it did not unduly limit competition.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost certainty for the government.
Multiple bids received (10) suggest a competitive market for these services.

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 on-demand air transport for government operations. The market for government aviation contracts is significant, with agencies frequently utilizing chartered flights for logistical support, personnel transport to remote locations, and specialized missions. Benchmarking requires comparing against other government contracts for similar charter services, considering factors like aircraft type, operational tempo, and geographic coverage.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if the prime contractor is a small business. Therefore, the direct impact on the small business ecosystem is unknown from this information alone. However, the prime contractor, Spur Aviation Services, LC, may engage small businesses as subcontractors, which would be a positive signal for the small business economy. Further investigation into subcontracting plans would be necessary to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically fall under the US Forest Service's contracting officer and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated by the Federal Procurement Data System (FPDS), which publishes contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

US Forest Service Aviation Management
Department of Agriculture Aircraft Operations
Federal Aviation Administration (FAA) Oversight
General Services Administration (GSA) Schedules (if applicable)
Other agency aerial support contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed service specifications makes value assessment difficult.
Contractor's past performance history not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.6 million to SPUR AVIATION SERVICES, LC. ATGS MESA AZ

Who is the contractor on this award?

The obligated recipient is SPUR AVIATION SERVICES, LC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2024-04-24. End: 2025-12-31.

What is the specific type of aircraft and operational capabilities provided under this contract?

The contract specifies 'Nonscheduled Chartered Passenger Air Transportation' but does not detail the specific aircraft types (e.g., helicopter, fixed-wing) or their capabilities (e.g., range, payload, seating capacity). This information is crucial for a precise assessment of value and operational suitability. Without it, comparisons to other contracts are generalized. For instance, if the contract requires specialized aircraft for accessing remote, unimproved landing zones, the cost per hour or per mile would naturally be higher than for standard charter flights using common aircraft types. Understanding these specifics would allow for a more accurate benchmark against industry rates for similar mission profiles and aircraft.

How does the daily rate of approximately $4,300 compare to market rates for similar charter services?

A daily rate of approximately $4,300 for chartered air transportation is difficult to benchmark definitively without knowing the specific aircraft, duration of daily operations, flight hours included, and geographic area. General market rates for charter aircraft can vary widely, from a few thousand dollars per day for smaller planes to tens of thousands for larger or specialized aircraft. For example, a turboprop charter might range from $2,500-$5,000 per day, while a light jet could be $5,000-$8,000 per day, excluding flight hours. Given the fixed-price nature and the likely need for specialized access or operational flexibility by the Forest Service, this rate appears within a plausible range, but a detailed comparison requires granular data on the service specifics and prevailing rates in the ATGS MESA AZ region.

What does the 'exclusion of sources' clause in the competition mean for the government and taxpayers?

The 'exclusion of sources' clause, when used with 'full and open competition,' typically means that while the solicitation was broadly advertised, certain types of potential offerors or specific sources were intentionally excluded based on predefined criteria. This could be due to specific technical requirements, security clearances, past performance, or geographic limitations deemed necessary for the contract's success. For taxpayers, this clause can be a double-edged sword. If the exclusions are well-justified and necessary to meet critical mission needs, they can lead to a more effective and reliable service, potentially avoiding future costs associated with subpar performance. However, if the exclusions are overly restrictive or not adequately justified, they could limit competition unnecessarily, potentially leading to higher prices than might be achieved in a truly unrestricted market.

What is Spur Aviation Services, LC's track record with government contracts, particularly with the Forest Service or Department of Agriculture?

Information regarding Spur Aviation Services, LC's specific track record with government contracts, especially with the Forest Service or Department of Agriculture, is not detailed in the provided data snippet. A comprehensive analysis would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of disputes or issues. A strong track record with relevant agencies and similar services would indicate lower performance risk. Conversely, a history of performance problems could raise concerns about the reliability and value of this current award, despite the competitive process.

Are there any historical spending patterns for similar air transportation services by the Forest Service in Arizona?

The provided data does not include historical spending patterns for similar air transportation services by the Forest Service in Arizona. To assess this, one would need to analyze past contract awards for nonscheduled chartered passenger air transportation within the Forest Service, specifically for the Arizona region or similar operational environments. Examining trends in contract values, durations, number of bidders, and awarded prices over several fiscal years would reveal whether the current $2.65 million award is consistent with historical spending, higher, or lower. Significant deviations could warrant further investigation into the reasons, such as changes in operational needs, market inflation, or contract scope.

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: 203 JOSLIN WAY, TWIN FALLS, ID, 83301

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,348,223

Exercised Options: $2,649,333

Current Obligation: $2,649,333

Actual Outlays: $1,891,532

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9427

IDV Type: IDC

Timeline