Forest Service awards $6.5M contract for air transport, highlighting firm fixed price and full and open competition

Contract Overview

Contract Amount: $6,547,453 ($6.5M)

Contractor: Aero AIR, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-01-01

End Date: 2025-12-31

Contract Duration: 364 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: EXCLUSIVE USE: NEXT GENERATION 3.0, LINE ITEM #5

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.5 million to AERO AIR, LLC for work described as: EXCLUSIVE USE: NEXT GENERATION 3.0, LINE ITEM #5 Key points: 1. Contract value of $6.5M for air transportation services. 2. Full and open competition after exclusion of sources indicates a competitive bidding process. 3. Firm fixed price contract type suggests predictable costs for the government. 4. The contract is for nonscheduled chartered freight air transportation.

Value Assessment

Rating: good

The firm fixed price structure provides cost certainty. Benchmarking against similar nonscheduled freight air transport contracts would be necessary to fully assess pricing, but the competitive award method suggests a reasonable price discovery.

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 that multiple vendors were allowed to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing taxpayer value for essential air transportation services.

Public Impact

Ensures critical air transport for Forest Service operations. Supports logistical needs in remote or difficult-to-access areas. Potential for timely delivery of resources and personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if fuel costs rise significantly.
Dependence on a single awardee for a critical service.

Positive Signals

Competitive award process.
Firm fixed price contract.

Sector Analysis

This contract falls within the transportation sector, specifically air freight services. Spending in this area is crucial for agencies like the Forest Service that operate in diverse and often remote geographical locations, requiring specialized logistical support.

Small Business Impact

The data does not indicate if small businesses participated in or were awarded this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract specifies a firm fixed price and was awarded through full and open competition, suggesting established oversight mechanisms for cost control and vendor selection. Monitoring performance against the contract requirements will be key.

Related Government Programs

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

Risk Flags

Potential for fuel price volatility impacting fixed costs.
Dependence on a single contractor for a critical service.
Need for robust performance monitoring to ensure service quality.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.5 million to AERO AIR, LLC. EXCLUSIVE USE: NEXT GENERATION 3.0, LINE ITEM #5

Who is the contractor on this award?

The obligated recipient is AERO AIR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

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

What is the historical cost performance for similar nonscheduled chartered freight air transportation services awarded by the Forest Service or other agencies?

Historical cost data for similar services is crucial for validating the current contract's pricing. Analyzing past awards for nonscheduled chartered freight air transportation, considering factors like route, cargo type, and duration, can establish a benchmark. This comparison helps determine if the $6.5M award represents a fair market price and identifies potential cost efficiencies or overspending.

What are the specific performance metrics and service level agreements (SLAs) included in the contract to ensure effective delivery of air transportation?

Effective delivery relies on clearly defined performance metrics and SLAs. These should encompass aspects like on-time performance, cargo handling procedures, aircraft safety standards, and communication protocols. Robust monitoring of these metrics by the Forest Service is essential to ensure the contractor meets all obligations and taxpayer funds are used efficiently for reliable air transport.

Are there any contingency plans or alternative providers identified in case of contractor default or service disruption?

Contingency planning is vital for critical services like air transportation. The Forest Service should have protocols in place for service disruptions, including identifying potential alternative providers or backup aircraft. This ensures operational continuity and minimizes the impact of unforeseen events on agency missions, safeguarding against significant delays or mission failures.

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: 2050 NE 25TH AVE, HILLSBORO, OR, 97124

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,994,927

Exercised Options: $6,994,927

Current Obligation: $6,547,453

Actual Outlays: $6,219,349

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA21T9001

IDV Type: IDC

Timeline