Agriculture's $24.18M helicopter transport contract awarded to Helicopter Transport Services, LLC for wildfire support

Contract Overview

Contract Amount: $24,175,688 ($24.2M)

Contractor: Helicopter Transport Services, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-03-25

End Date: 2026-12-31

Contract Duration: 646 days

Daily Burn Rate: $37.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HTS - T1 EU FOR BROOMFIELD, CO

Place of Performance

Location: BROOMFIELD, BROOMFIELD County, COLORADO, 80020

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $24.2 million to HELICOPTER TRANSPORT SERVICES, LLC for work described as: HTS - T1 EU FOR BROOMFIELD, CO Key points: 1. Contract value appears reasonable given the specialized nature of aerial firefighting and transport. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of over 1.5 years indicates a sustained need for these services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The contract supports critical wildfire suppression efforts in Colorado. 6. The award is for delivery orders, implying flexibility in service deployment.

Value Assessment

Rating: good

The contract value of $24.18 million for helicopter transport services over approximately 21 months appears to be within a reasonable range for specialized aerial support, particularly for firefighting operations. Benchmarking against similar contracts for aerial firefighting and transport services would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when requirements are well-defined, as it caps costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 28 bids suggests a robust competitive environment. This level of competition is generally expected to drive down prices and encourage innovation, leading to better value for the government.

Taxpayer Impact: A competitive bidding process with numerous bidders typically results in more favorable pricing for taxpayers, as contractors vie to win the contract by offering competitive rates.

Public Impact

The primary beneficiaries are the US Forest Service and the public through enhanced wildfire suppression capabilities. Services delivered include critical aerial transport for firefighting personnel, equipment, and supplies. The geographic impact is focused on Colorado, supporting wildfire management in the state. Workforce implications include support for pilots, ground crews, and aviation maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand and costs if wildfire seasons become more severe and prolonged.
Reliance on a single primary contractor for critical services could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition with 28 bidders, indicating a healthy market.
Firm fixed-price contract type provides cost certainty for the government.
Contract duration supports sustained operational needs for wildfire management.

Sector Analysis

The aerial firefighting and transport sector is highly specialized, requiring significant investment in aircraft, technology, and trained personnel. This contract fits within the broader context of government efforts to manage natural resources and respond to emergencies. Spending in this sector is often driven by seasonal demands, environmental conditions, and agency mandates for public safety and land management.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Forest Service. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract databases, though specific operational details may be sensitive.

Related Government Programs

Wildfire Suppression Support Contracts
Aerial Firefighting Services
US Forest Service Aviation Management
Department of Agriculture Emergency Response

Risk Flags

Potential for performance issues given the critical nature of wildfire support.
Reliance on specialized aviation assets and personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $24.2 million to HELICOPTER TRANSPORT SERVICES, LLC. HTS - T1 EU FOR BROOMFIELD, CO

Who is the contractor on this award?

The obligated recipient is HELICOPTER TRANSPORT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2025-03-25. End: 2026-12-31.

What is the historical spending pattern for helicopter transport services by the Forest Service in Colorado?

Analyzing historical spending for similar helicopter transport services by the Forest Service in Colorado would provide crucial context for evaluating the current $24.18 million contract. This involves examining contract awards over the past 5-10 years, noting the number of contracts, their values, durations, and the contractors involved. Trends in spending, such as increases or decreases, could indicate shifts in operational needs, resource allocation, or market pricing. For instance, a significant increase in spending might correlate with more severe wildfire seasons or expanded agency missions. Conversely, stable or decreasing spending could suggest efficient resource management or a plateau in demand. Understanding these historical patterns helps determine if the current contract represents a typical investment, an escalation, or a reduction in federal expenditure for these vital services.

How does the number of bidders (28) compare to similar full and open competition contracts for aerial firefighting services?

The fact that 28 bids were received for this helicopter transport contract under full and open competition is a strong positive signal regarding market interest and the competitiveness of the bidding process. To assess this further, we would compare this number to the average number of bids received for comparable aerial firefighting and transport contracts awarded by agencies like the Forest Service or other land management agencies. If 28 bids is significantly higher than the average, it suggests a healthy, competitive market for these services, which generally benefits the government through better pricing and service options. If it's on par or lower than average, it might indicate a more specialized niche or a market with fewer qualified providers. A high number of bidders typically enhances price discovery and reduces the risk of contractor collusion or price gouging, ultimately serving taxpayer interests.

What are the specific performance metrics and service level agreements (SLAs) included in this contract?

The specific performance metrics and service level agreements (SLAs) are critical for ensuring the effectiveness and value of this $24.18 million helicopter transport contract. While not detailed in the provided summary data, typical metrics for such contracts would likely include response times for deployment, aircraft availability rates, flight hour utilization targets, safety compliance records, and maintenance schedules. SLAs would define the expected standards for these metrics, with potential penalties for non-compliance and incentives for exceeding expectations. The firm fixed-price nature of the contract implies that the contractor bears the financial risk of meeting these performance standards. Robust SLAs and diligent oversight by the Forest Service are essential to ensure that the government receives the full value of the services paid for, particularly in high-stakes operations like wildfire suppression where timely and reliable aerial support is paramount.

What is the track record of Helicopter Transport Services, LLC in fulfilling government contracts, particularly for aerial firefighting?

Evaluating the track record of Helicopter Transport Services, LLC is crucial for assessing the risk associated with this $24.18 million contract. This involves reviewing their past performance on federal, state, and local government contracts, specifically those involving aerial firefighting, transport, or similar aviation services. Key aspects to examine include their history of on-time delivery, safety records, compliance with contract terms, and any past performance issues, disputes, or terminations. A contractor with a proven history of successful contract completion and high performance standards is generally a lower risk. Conversely, a history of performance problems could indicate potential future issues, necessitating closer monitoring and potentially more stringent oversight by the Forest Service. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable here.

How does the estimated cost per flight hour or per operational day compare to industry benchmarks for similar helicopter services?

Benchmarking the cost per flight hour or per operational day against industry standards is a key method for assessing the value for money of this $24.18 million contract. This comparison would involve researching average rates charged by other aviation service providers for similar types of helicopters (e.g., heavy-lift, medium-lift) and similar mission profiles (e.g., firefighting support, cargo transport, personnel movement) in comparable geographic regions. Factors influencing these benchmarks include aircraft type, age, equipment, crew costs, maintenance, insurance, and fuel. If the rates within this contract are significantly higher than market averages, it could indicate potential overpricing or unique service requirements justifying the cost. Conversely, rates below the benchmark might suggest favorable negotiation or potential risks to service quality if not carefully monitored. This analysis helps determine if taxpayers are receiving a fair price for the services rendered.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 WILSON POINT RD, BALTIMORE, MD, 21220

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

Financial Breakdown

Contract Ceiling: $24,175,688

Exercised Options: $24,175,688

Current Obligation: $24,175,688

Actual Outlays: $7,497,147

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9217

IDV Type: IDC

Timeline