USDA Forest Service Awards $3.36M Contract for Nonscheduled Chartered Passenger Air Transportation to Ponderosa Aviation Inc
Contract Overview
Contract Amount: $3,361,354 ($3.4M)
Contractor: Ponderosa Aviation Inc
Awarding Agency: Department of Agriculture
Start Date: 2024-04-24
End Date: 2026-12-31
Contract Duration: 981 days
Daily Burn Rate: $3.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: ATGS WENATCHEE
Place of Performance
Location: SAFFORD, GRAHAM County, ARIZONA, 85546
State: Arizona Government Spending
Plain-Language Summary
Department of Agriculture obligated $3.4 million to PONDEROSA AVIATION INC for work described as: ATGS WENATCHEE Key points: 1. Contract value of $3.36 million for air transportation services. 2. Competition was full and open after exclusion of sources. 3. Risk appears moderate given the fixed-price contract type and duration. 4. Sector is primarily transportation and logistics supporting federal operations.
Value Assessment
Rating: good
The contract value of $3.36 million for a duration of 981 days suggests a reasonable price for specialized air charter services. Benchmarking against similar contracts would provide a more precise assessment, but the fixed-price nature offers cost certainty.
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 a competitive bidding process. This method generally promotes price discovery and ensures fair market value is obtained.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary services.
Public Impact
Ensures critical air transportation for USDA Forest Service operations, likely for firefighting or remote access. Supports federal agency missions in remote or challenging terrain. Provides essential services for resource management and emergency response.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation if fuel costs rise significantly, despite fixed-price.
- Dependence on a single vendor for critical transportation needs.
- Geographic limitations of vendor's operational base.
Positive Signals
- Fixed-price contract provides cost predictability.
- Competitive bidding process likely secured a fair market price.
- Long-term contract ensures service continuity.
Sector Analysis
This contract falls within the transportation and logistics sector, specifically air charter services. Federal spending in this area is often driven by operational needs, emergency response, and logistical support for agencies operating in diverse environments.
Small Business Impact
The data does not indicate if small businesses were involved in this specific contract award, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The 'delivery order' type suggests it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which often involves more detailed reporting and oversight.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Agriculture Contracting
- Forest Service Programs
Risk Flags
- Vendor performance over extended duration.
- Potential for cost overruns if fuel prices spike.
- Dependence on a single provider for critical services.
- Geographic limitations impacting response times.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-agriculture, az, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $3.4 million to PONDEROSA AVIATION INC. ATGS WENATCHEE
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 $3.4 million.
What is the period of performance?
Start: 2024-04-24. End: 2026-12-31.
What is the specific operational need this air transportation contract fulfills for the Forest Service?
This contract likely supports critical Forest Service missions such as aerial firefighting, transporting personnel and equipment to remote fire sites, or conducting aerial surveys for forest health and management. The nonscheduled nature suggests flexibility is required for dynamic operational demands.
What are the primary risks associated with this contract's duration and vendor?
The primary risks include potential vendor performance issues over the 981-day period, unforeseen increases in operational costs (like fuel) that could strain the fixed-price agreement, and the impact of any service disruptions. Vendor financial stability and fleet readiness are also key considerations.
How effectively does this contract leverage competition to ensure value for taxpayers?
The contract utilized 'full and open competition after exclusion of sources,' which is a strong indicator of competitive pricing. This method allows multiple qualified vendors to bid, driving down costs and ensuring the government receives fair market value for the essential air transportation services.
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: $5,787,754
Exercised Options: $3,361,354
Current Obligation: $3,361,354
Actual Outlays: $2,218,354
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 1202SA23T9424
IDV Type: IDC
Timeline
Start Date: 2024-04-24
Current End Date: 2026-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-03-31
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