Forest Service awards $7.9M contract for large airtanker services to Aero-Flite, Inc

Contract Overview

Contract Amount: $7,953,820 ($8.0M)

Contractor: Aero-Flite, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-03-11

End Date: 2025-12-31

Contract Duration: 295 days

Daily Burn Rate: $27.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EU, NEXT GEN 2.0 LARGE AIRTANKER - AERO FLITE INC. ITEM #5

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $8.0 million to AERO-FLITE, INC. for work described as: EU, NEXT GEN 2.0 LARGE AIRTANKER - AERO FLITE INC. ITEM #5 Key points: 1. Contract provides critical aerial firefighting capabilities for the upcoming season. 2. Aero-Flite, Inc. is a known provider of airtanker services. 3. The contract is a delivery order under a larger indefinite-delivery contract. 4. Fixed-price contract type aims to control costs. 5. Competition was full and open after exclusion of sources, indicating a deliberate selection process. 6. Service period aligns with typical wildfire seasons.

Value Assessment

Rating: good

The contract value of $7.9 million for airtanker services appears reasonable given the specialized nature of aerial firefighting. Benchmarking against similar contracts for large airtankers is challenging without more specific performance metrics and service areas. However, the firm fixed-price structure suggests that the government has negotiated a set cost for the service, which aids in budget predictability. The price per day or per flight hour would be a more granular metric for value assessment, but this data is not provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, possibly due to pre-qualification requirements or previous performance. The number of bidders (6) suggests a moderate level of competition. The exclusion of certain sources might limit the full potential for price discovery compared to a purely unrestricted full and open competition.

Taxpayer Impact: The moderate competition level, while not fully unrestricted, likely still provided a competitive environment that benefited taxpayers by driving a reasonable price. However, further analysis of the exclusion criteria could reveal if taxpayer savings were potentially forgone.

Public Impact

Provides essential aerial support for wildfire suppression efforts, protecting lives, property, and natural resources. Benefits communities and ecosystems at risk from wildfires, particularly in the Western United States. Supports the U.S. Forest Service's mission to manage and protect national forests and grasslands. Ensures availability of specialized aviation assets during critical fire periods. Indirectly supports the aviation and firefighting industries through service provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion criteria.
Dependence on a single contractor for a critical service during a defined period.
Geographic limitations of the airtanker's operational base could impact response times in distant areas.

Positive Signals

Firm fixed-price contract provides cost certainty.
Aero-Flite, Inc. has experience in providing airtanker services.
Contract duration aligns with the wildfire season, ensuring availability when needed.
Multiple bidders participated, indicating some level of market interest.

Sector Analysis

The aerial firefighting sector is a specialized niche within the broader aviation industry. It requires significant capital investment in aircraft, maintenance, and trained personnel. Government contracts are a primary source of revenue for airtanker operators, often awarded through competitive bidding processes to ensure readiness and cost-effectiveness. Spending in this sector fluctuates based on wildfire activity and seasonal needs, with agencies like the Forest Service being major clients.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature and high cost of large airtankers, it is unlikely that small businesses would be primary bidders for such a contract. Subcontracting opportunities for small businesses might exist in areas such as maintenance, ground support, or logistics, but this is not explicitly detailed in the provided data.

Oversight & Accountability

The contract is a delivery order under an existing indefinite-delivery contract, suggesting that initial oversight and vetting of the contract vehicle have already occurred. The firm fixed-price nature provides a degree of cost control. Oversight would typically involve monitoring flight hours, adherence to safety protocols, and timely service delivery. The Forest Service's contracting officers and program managers are responsible for ensuring performance and compliance. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Wildland Fire Management
Aviation Support Services
Emergency Response Contracts
Department of Agriculture Contracts
Forest Service Aviation Operations

Risk Flags

Potential for limited competition due to source exclusion.
Dependence on specialized, high-cost aviation assets.
Performance subject to weather and operational conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $8.0 million to AERO-FLITE, INC.. EU, NEXT GEN 2.0 LARGE AIRTANKER - AERO FLITE INC. ITEM #5

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 $8.0 million.

What is the period of performance?

Start: 2025-03-11. End: 2025-12-31.

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

Aero-Flite, Inc. has a history of providing large airtanker services to federal agencies, including the U.S. Forest Service. Their experience typically involves operating and maintaining specialized aircraft equipped for aerial firefighting. Past performance reviews and contract histories would provide a more detailed understanding of their reliability, safety record, and adherence to contractual obligations. Examining prior delivery orders and their execution would offer insights into their capabilities and consistency in meeting performance requirements during critical wildfire seasons. Their presence in this market suggests a recognized capacity to meet the demanding operational standards required for aerial firefighting.

How does the awarded amount of $7.9 million compare to similar large airtanker contracts awarded by the Forest Service or other agencies?

Direct comparison of the $7.9 million award is difficult without knowing the exact duration, specific aircraft type (e.g., MAFFS, VLAT), and service level agreements (e.g., availability, response time guarantees). However, contracts for large airtankers can range from several million to tens of millions of dollars annually, depending on the scope of services. For instance, contracts for Type 1 airtankers (the largest category) often involve daily availability rates and flight hour rates that, when aggregated over a fire season, can reach significant figures. The Forest Service typically procures these services through competitive processes to secure the best value. This $7.9 million award for a period ending December 31, 2025, suggests it covers a substantial portion of a fire season or a specific operational need.

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

Key risks include operational failures (aircraft mechanical issues, accidents), weather-related disruptions impacting service availability, and potential cost overruns if the fixed-price contract doesn't adequately account for unforeseen operational demands. Mitigation strategies involve stringent maintenance schedules and safety protocols mandated by the contract, performance clauses that allow for remedies if service levels aren't met, and the contractor's own operational expertise. The firm fixed-price structure inherently mitigates cost overrun risks for the government, provided the scope is well-defined. The limited competition aspect could be a risk if it leads to suboptimal pricing, though the 'after exclusion of sources' clause suggests a deliberate selection process.

What is the expected effectiveness of these airtanker services in supporting wildfire suppression efforts?

Large airtankers are a critical component of wildfire suppression, capable of delivering significant volumes of retardant or water over large areas. Their effectiveness lies in their ability to slow the spread of fires, create containment lines, and provide support for ground crews. The effectiveness of this specific contract depends on the strategic deployment of the airtanker, coordination with incident command, and the type of fires encountered. While airtankers are not a standalone solution, they are highly effective when used as part of an integrated strategy, particularly in the initial attack phase or for reinforcing containment efforts on large, fast-moving fires. The contract's duration aligns with peak fire season, maximizing its potential impact.

How has federal spending on large airtanker services trended over the past five years?

Federal spending on large airtanker services has generally remained substantial, reflecting the ongoing need for aerial firefighting capabilities. While specific figures fluctuate annually based on wildfire severity and budget appropriations, agencies like the Forest Service consistently allocate significant funds to secure these assets. Trends may show shifts towards longer-term contracts, increased emphasis on specific aircraft types (e.g., Very Large Air Tankers - VLATs), and evolving procurement strategies to ensure fleet readiness and cost-efficiency. Budgetary pressures and the increasing frequency and intensity of wildfires due to climate change likely influence sustained or potentially increasing spending in this category.

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: 6

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: $8,982,880

Exercised Options: $8,982,880

Current Obligation: $7,953,820

Actual Outlays: $7,715,897

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA22T9105

IDV Type: IDC

Timeline