Forest Service awards $6.58M contract for air transportation, with Bighorn Airways Inc. selected

Contract Overview

Contract Amount: $6,576,672 ($6.6M)

Contractor: Bighorn Airways Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAIL #: N991BH LOCATION: REGION 1, MAP 157 (MISSOULA, MT) RESOURCE: PG-A1 MAP DATES: 04.01.2025 - 09.04.2025 EST. FLIGHT TIME: 100 HOURS

Place of Performance

Location: MISSOULA, MISSOULA County, MONTANA, 59801

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.6 million to BIGHORN AIRWAYS INC for work described as: TAIL #: N991BH LOCATION: REGION 1, MAP 157 (MISSOULA, MT) RESOURCE: PG-A1 MAP DATES: 04.01.2025 - 09.04.2025 EST. FLIGHT TIME: 100 HOURS Key points: 1. The contract value of $6.58 million for 100 flight hours represents a significant investment in aerial support. 2. Competition dynamics indicate a full and open process after exclusion of sources, suggesting a deliberate selection. 3. Risk indicators are moderate, given the specialized nature of air charter services and fixed-wing aircraft operations. 4. Performance context involves critical support for regional operations, likely for fire management or resource monitoring. 5. Sector positioning places this within the broader transportation and logistics services for federal agencies.

Value Assessment

Rating: fair

The estimated cost per flight hour is approximately $65,767. Benchmarking this against similar contracts for specialized air charter services is challenging due to unique operational requirements and geographic locations. However, this rate appears to be within a reasonable range for on-demand, specialized aviation support, especially considering the need for specific aircraft types and pilot qualifications.

Cost Per Unit: Approximately $65,767 per flight hour.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was broadly advertised, specific criteria or exclusions were applied, potentially narrowing the field to qualified bidders. The exact number of bidders is not specified, but the 'full and open' designation implies multiple entities had the opportunity to compete.

Taxpayer Impact: This procurement method aims to ensure fair pricing by allowing multiple qualified vendors to submit proposals, which generally benefits taxpayers through competitive rates.

Public Impact

The primary beneficiaries are likely the Forest Service personnel and operations requiring aerial support in Region 1, Montana. Services delivered include nonscheduled chartered passenger air transportation, crucial for accessing remote areas or rapid deployment. Geographic impact is concentrated in Region 1, Montana, supporting federal land management activities. Workforce implications may involve pilots, ground crew, and support staff employed by the contractor, Bighorn Airways Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if flight hours exceed estimates or if unforeseen operational challenges arise.
Dependence on a single contractor for critical air support could pose a risk if performance issues emerge.
Geographic isolation of operations may increase logistical complexities and response times.

Positive Signals

The use of a fixed-price contract provides cost certainty for the government.
Bighorn Airways Inc. is selected, suggesting they met the required qualifications and competitive criteria.
The contract duration allows for sustained support over multiple seasons.

Sector Analysis

This contract falls within the broader aviation services sector, specifically focusing on chartered air transportation for government use. The market for specialized government air charters is often niche, requiring specific aircraft certifications, operational capabilities, and adherence to stringent safety and performance standards. Comparable spending benchmarks are difficult to establish without detailed knowledge of the specific aircraft, mission profiles, and geographic operating areas, but federal agencies frequently contract for such services for logistical and operational support.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is also unclear if Bighorn Airways Inc. is a small business or if subcontracting opportunities for small businesses are mandated. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Forest Service. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases, though detailed operational reports may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Forest Service Aviation Management
Federal Air Transportation Contracts
Nonscheduled Chartered Passenger Air Transportation
Department of Agriculture Procurement

Risk Flags

Potential for limited competition due to specialized requirements
Dependence on contractor performance for critical operations
Geographic challenges impacting service delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.6 million to BIGHORN AIRWAYS INC. TAIL #: N991BH LOCATION: REGION 1, MAP 157 (MISSOULA, MT) RESOURCE: PG-A1 MAP DATES: 04.01.2025 - 09.04.2025 EST. FLIGHT TIME: 100 HOURS

Who is the contractor on this award?

The obligated recipient is BIGHORN AIRWAYS INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the track record of Bighorn Airways Inc. in fulfilling federal contracts, particularly for air transportation services?

A thorough review of Bighorn Airways Inc.'s contract history with federal agencies would be necessary to assess their track record. This would involve examining past performance evaluations, any documented disputes or contract terminations, and the types and scale of services previously provided. For instance, understanding their experience with similar flight hour commitments, operational regions, and passenger transport missions would provide critical insight into their reliability and capability. Without access to specific past performance data, it is difficult to definitively assess their suitability beyond meeting the initial competitive criteria for this award.

How does the awarded price per flight hour compare to market rates for similar nonscheduled chartered passenger air transportation in Region 1, Montana?

Determining the precise market rate for nonscheduled chartered passenger air transportation in Region 1, Montana, requires detailed comparative data that is not publicly available. Factors such as aircraft type, capacity, range, required amenities, and operational complexity significantly influence pricing. The awarded rate of approximately $65,767 per flight hour for Bighorn Airways Inc. should be benchmarked against quotes from other charter operators in the region for comparable services, if such data can be obtained. Additionally, historical data from the Forest Service or other agencies on similar contracts in the same geographic area would provide a valuable comparison point to assess value for money.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential operational disruptions due to weather, mechanical issues, or pilot availability, which could impact the Forest Service's mission-critical activities. Cost escalation beyond the fixed price is less likely but could occur if contract modifications are necessary. Dependence on a single provider for specialized air support also presents a risk. Mitigation strategies likely involve stringent performance clauses in the contract, requirements for backup aircraft or contingency plans from the contractor, and robust oversight by the Forest Service to ensure adherence to schedules and safety standards. Emergency protocols and alternative transportation arrangements would also be considered.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for specialized air charter services?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with the need for specialized capabilities. By excluding sources that do not meet specific technical, safety, or operational requirements, the government ensures that only qualified vendors participate. This can lead to a more focused competition among capable providers, potentially resulting in better value than a completely unrestricted competition where unqualified bids might be submitted. However, the effectiveness in ensuring competitive pricing depends on the number of qualified bidders and the rigor of the evaluation criteria. If the exclusions are too narrow, it could limit competition and potentially lead to higher prices.

What is the historical spending pattern for nonscheduled chartered passenger air transportation by the Forest Service in Region 1, Montana?

Analyzing historical spending patterns for nonscheduled chartered passenger air transportation by the Forest Service in Region 1, Montana, would require access to historical contract databases and financial records. This would involve identifying previous contracts for similar services, their values, durations, and the contractors involved. Understanding trends in spending, such as year-over-year increases or decreases, the frequency of such awards, and the average cost per flight hour over time, would provide context for the current $6.58 million award. Significant deviations from historical norms might warrant further investigation into the underlying reasons, such as increased operational needs or market fluctuations.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 912 W BRUNDAGE LN, SHERIDAN, WY, 82801

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

Financial Breakdown

Contract Ceiling: $9,641,894

Exercised Options: $6,576,672

Current Obligation: $6,576,672

Actual Outlays: $2,727,322

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9100

IDV Type: IDC

Timeline