Aero-Flite awarded $7.38M for Next Gen 3.0 Airtanker Services, highlighting critical wildfire suppression capabilities

Contract Overview

Contract Amount: $7,381,710 ($7.4M)

Contractor: Aero-Flite, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-01-01

End Date: 2025-12-31

Contract Duration: 364 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEXT GEN 3.0 AIRTANKER SERVICES - AERO FLITE ITEM #2

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.4 million to AERO-FLITE, INC. for work described as: NEXT GEN 3.0 AIRTANKER SERVICES - AERO FLITE ITEM #2 Key points: 1. The contract value of $7.38 million for a single year of service suggests a significant investment in aerial firefighting resources. 2. Aero-Flite, Inc. secured this contract, indicating their established position in the specialized airtanker services market. 3. The 'Full and Open Competition After Exclusion of Sources' indicates a competitive process, though the specific exclusion warrants further review. 4. The firm-fixed-price contract type provides cost certainty for the government, transferring some financial risk to the contractor. 5. This award supports the Forest Service's ongoing efforts in wildfire management and suppression across its operational areas. 6. The duration of 364 days aligns with typical wildfire seasons, ensuring continuous support during high-risk periods.

Value Assessment

Rating: good

The contract value of $7.38 million for one year of airtanker services appears to be within a reasonable range for specialized aerial firefighting assets. Benchmarking against similar contracts for large airtankers, especially those equipped for Next Generation capabilities, would provide a more precise value assessment. The firm-fixed-price structure suggests a negotiated rate that should reflect market conditions and the contractor's operational costs and profit margins. Without direct cost breakdowns or comparisons to other bids, a definitive value-for-money judgment is challenging, but the award suggests a competitive outcome.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be broad, specific sources may have been excluded based on predefined criteria, potentially related to capability, security, or past performance. The number of bidders is not explicitly stated, but the 'limited' competition level suggests fewer than a fully open solicitation, which could impact price discovery. Further details on the exclusion rationale are needed to fully understand the competitive landscape.

Taxpayer Impact: While the competition was not fully open, the process aimed to ensure a qualified provider was selected. The exclusion of certain sources may have limited the potential for the lowest possible price, but it likely ensured a higher standard of service delivery for critical wildfire suppression.

Public Impact

The primary beneficiaries are communities and ecosystems threatened by wildfires, receiving enhanced protection through advanced airtanker capabilities. The service delivered is critical aerial firefighting support, including rapid response and sustained water or retardant drops. The geographic impact is likely nationwide, supporting the Forest Service's mandate across various regions prone to wildfires. This contract supports specialized aviation jobs, including pilots, mechanics, and support staff within Aero-Flite, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition type warrants scrutiny to ensure it did not unduly restrict competition and inflate costs.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the service.
Reliance on a single contractor for this critical service could pose a risk if unforeseen issues arise with Aero-Flite's operations.

Positive Signals

The award to Aero-Flite, Inc. suggests a contractor with proven capabilities in airtanker operations.
The firm-fixed-price contract provides budget certainty for the Forest Service.
The contract duration aligns with seasonal needs, ensuring resource availability during peak wildfire periods.

Sector Analysis

The aerial firefighting sector is a specialized niche within the broader aviation industry, characterized by high operational costs, stringent safety regulations, and critical public service demands. The market includes a limited number of highly capable operators. Spending in this sector is often driven by seasonal needs and emergency response requirements, making it distinct from routine cargo or passenger transport. The U.S. government, particularly agencies like the Forest Service and Department of the Interior, are major clients for these services, often contracting for large, specialized aircraft like Next Generation Airtankers.

Small Business Impact

The provided data indicates that small business participation is not a primary focus for this specific contract, as Aero-Flite, Inc. is the prime contractor and the contract was not set aside for small businesses. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this award, though Aero-Flite may engage small businesses indirectly through its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Forest Service contracting officers and program managers. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules. Transparency is facilitated through contract databases like SAM.gov, where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Wildfire Management Programs
Aerial Firefighting Services
Next Generation Aircraft Procurement
Emergency Response Aviation Contracts
Department of Agriculture Aviation Support

Risk Flags

Limited Competition
Potential for Cost Overruns
Contractor Performance Risk
Dependence on Specialized Assets

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.4 million to AERO-FLITE, INC.. NEXT GEN 3.0 AIRTANKER SERVICES - AERO FLITE ITEM #2

Who is the contractor on this award?

The obligated recipient is AERO-FLITE, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $7.4 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-12-31.

What is Aero-Flite, Inc.'s track record with federal contracts, particularly for airtanker services?

Aero-Flite, Inc. has a history of securing federal contracts related to aviation services, including airtanker operations. Their experience likely includes previous awards from agencies such as the U.S. Forest Service and potentially other entities involved in firefighting and resource management. Analyzing their past performance on similar contracts would reveal their reliability, safety record, and ability to meet demanding operational requirements. Federal procurement data often shows a pattern of awards to established providers like Aero-Flite, indicating a level of trust and demonstrated capability. However, a comprehensive review would involve examining contract close-out reports, any past performance evaluations, and any instances of contract disputes or terminations to fully assess their track record.

How does the $7.38 million contract value compare to similar Next Generation airtanker service contracts awarded in recent years?

The $7.38 million contract value for one year of Next Generation 3.0 Airtanker Services awarded to Aero-Flite, Inc. needs to be benchmarked against comparable contracts to assess its value. Similar contracts for large, modern airtankers, such as the DC-10 or the newer models being introduced, can range significantly based on aircraft type, service duration, operational tempo, and specific capabilities (e.g., retardant mixing systems, advanced navigation). Historically, contracts for large airtankers have often been in the multi-million dollar range annually. Factors like the number of flight hours guaranteed, response time requirements, and geographic coverage also influence pricing. Without specific data on the number of aircraft provided, flight hour commitments, and the exact capabilities of the 'Next Gen 3.0' designation, a precise comparison is difficult. However, this figure appears consistent with the high cost of operating and maintaining such specialized aviation assets for critical public safety missions.

What are the specific risks associated with relying on Aero-Flite, Inc. for critical wildfire suppression services?

Key risks associated with relying on Aero-Flite, Inc. for critical wildfire suppression services include operational disruptions, aircraft availability, and contractor performance. If Aero-Flite experiences mechanical failures, pilot shortages, or other operational challenges, it could lead to reduced firefighting capacity precisely when it is most needed. The concentration of a significant portion of the government's airtanker needs with a limited number of providers, including Aero-Flite, creates a systemic risk. A single incident affecting Aero-Flite's fleet or operations could have a cascading impact on national wildfire response capabilities. Furthermore, the 'Exclusion of Sources' in the procurement process, if not adequately justified, could indicate a potential over-reliance on a specific contractor without exploring all competitive avenues, potentially limiting surge capacity or alternative solutions during extreme fire events.

How effective are Next Generation airtankers like those provided under this contract in suppressing wildfires compared to older models?

Next Generation airtankers represent a significant advancement in aerial firefighting technology and effectiveness compared to older models. These newer aircraft often feature larger capacities for retardant or water, allowing them to deliver more payload per sortie, thus increasing suppression efficiency. They are typically equipped with advanced navigation systems, enhanced safety features, and improved performance characteristics, enabling them to operate more effectively in diverse and challenging terrain and weather conditions. The ability to conduct more precise drops and sustain operations for longer periods contributes to better containment of wildfires. While older models remain valuable, the 'Next Gen' designation implies a commitment to leveraging cutting-edge aviation technology to improve response times, payload delivery, and overall effectiveness in combating increasingly severe wildfire seasons.

What has been the historical spending trend for aerial firefighting services by the U.S. Forest Service over the past five years?

Historical spending trends for aerial firefighting services by the U.S. Forest Service have generally shown an increasing trajectory over the past five years, driven by factors such as climate change, longer and more intense wildfire seasons, and investments in modernizing aerial firefighting fleets. The Forest Service, along with other federal agencies, has been allocating substantial resources to secure a diverse range of aerial assets, including large airtankers, helicopters, and specialized support aircraft. This increase in spending reflects a strategic effort to enhance suppression capabilities and mitigate the escalating risks and costs associated with large-scale wildfires. Specific figures would require detailed analysis of annual agency budgets and contract awards, but the overall trend indicates a growing reliance on and investment in aerial firefighting resources to meet evolving environmental challenges.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8520 W ELECTRIC AVENUE, SPOKANE, WA, 99219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $8,337,390

Exercised Options: $8,337,390

Current Obligation: $7,381,710

Actual Outlays: $7,268,176

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA21T9002

IDV Type: IDC

Timeline