USDA Forest Service Acquires Kodiak 100 Aircraft for $4.7M, Replacing Aging N166Z

Contract Overview

Contract Amount: $4,701,485 ($4.7M)

Contractor: Kodiak Aircraft Company, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: AIRCRAFT PURCHASE--REPLACEMENT OF N166Z - MISSIONIZATION - ONE (1) KODIAK 100 - 1202SA25T9000

Place of Performance

Location: SANDPOINT, BONNER County, IDAHO, 83864

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.7 million to KODIAK AIRCRAFT COMPANY, INC. for work described as: AIRCRAFT PURCHASE--REPLACEMENT OF N166Z - MISSIONIZATION - ONE (1) KODIAK 100 - 1202SA25T9000 Key points: 1. Spending focuses on replacing an aging aircraft with a new Kodiak 100. 2. Sole source procurement raises questions about price discovery and potential overpayment. 3. The $4.7M cost for a single aircraft warrants scrutiny against market rates. 4. IT and Defense sectors are not directly involved; this is in the Transportation/Logistics sector.

Value Assessment

Rating: questionable

The $4.7 million price for a single Kodiak 100 aircraft appears high, especially without competitive bidding. Benchmarking against similar aircraft purchases or direct quotes from other manufacturers is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This procurement was not competed, indicating a sole-source award. This limits price discovery and may lead to a higher cost for taxpayers as there was no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition for this $4.7 million purchase means taxpayers may have paid more than necessary for the aircraft.

Public Impact

Replacement of critical aerial assets ensures continued operational capacity for the Forest Service. The specific aircraft model chosen will impact operational efficiency and mission capabilities. Taxpayer funds are being used for essential government equipment acquisition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
High unit cost
Lack of competition

Positive Signals

Essential asset replacement
Firm fixed price contract

Sector Analysis

This purchase falls within the transportation and logistics sector, specifically focusing on aviation assets for government operations. Benchmarks for similar specialized aircraft purchases by government agencies would be relevant for comparison.

Small Business Impact

The data does not indicate whether small businesses were involved in this sole-source procurement, either as the prime contractor or subcontractors.

Oversight & Accountability

The lack of competition raises concerns about oversight. Robust justification for the sole-source award and a thorough review of the pricing are crucial for accountability.

Related Government Programs

Aircraft Manufacturing
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Insufficient justification for sole-source
High unit cost for a single aircraft

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.7 million to KODIAK AIRCRAFT COMPANY, INC.. AIRCRAFT PURCHASE--REPLACEMENT OF N166Z - MISSIONIZATION - ONE (1) KODIAK 100 - 1202SA25T9000

Who is the contractor on this award?

The obligated recipient is KODIAK AIRCRAFT COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without competitive bidding, the agency must independently verify that the price is fair and reasonable, often through market research, cost analysis, or comparison to similar historical contracts. The absence of competition inherently reduces transparency and increases the risk of overpayment.

How does the $4.7 million cost for this single Kodiak 100 aircraft compare to market rates for similar aircraft, and what is the potential risk of overpayment?

The $4.7 million price point for a single Kodiak 100 aircraft requires careful benchmarking against publicly available pricing, quotes from other vendors, and historical government purchases of similar aircraft. If this price significantly exceeds market rates, the risk of overpayment is substantial, directly impacting taxpayer value. A detailed cost analysis is essential to mitigate this risk.

What is the expected operational effectiveness and lifespan of the new Kodiak 100 compared to the N166Z it is replacing, and does this justify the expenditure?

The effectiveness and lifespan of the new Kodiak 100 are critical to justifying the $4.7 million expenditure. Agencies must demonstrate that the new aircraft offers improved performance, reliability, safety, and a longer service life, thereby enhancing mission capabilities and potentially reducing long-term operational costs. A clear comparison outlining these benefits is necessary to validate the investment.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1200 TURBINE, SANDPOINT, ID, 83864

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

Financial Breakdown

Contract Ceiling: $4,701,485

Exercised Options: $4,701,485

Current Obligation: $4,701,485

Actual Outlays: $3,761,188

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9000

IDV Type: IDC

Timeline