Agriculture awards $12.7M for helicopter transport, highlighting potential value concerns

Contract Overview

Contract Amount: $12,729,508 ($12.7M)

Contractor: Helicopter Transport Services, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-05-07

End Date: 2026-12-31

Contract Duration: 603 days

Daily Burn Rate: $21.1K/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 PINE VALLEY, CA

Place of Performance

Location: PINE VALLEY, SAN DIEGO County, CALIFORNIA, 91962

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $12.7 million to HELICOPTER TRANSPORT SERVICES, LLC for work described as: HTS - T1 EU FOR PINE VALLEY, CA Key points: 1. Contract value of $12.7M for helicopter transport services. 2. Competition dynamics indicate a full and open process. 3. Risk indicators are moderate, given the service type and duration. 4. Performance context is tied to the Forest Service's operational needs. 5. Sector positioning is within air transportation services for government agencies.

Value Assessment

Rating: fair

The contract value of $12.7 million for helicopter transport services over approximately two years warrants careful scrutiny. Without specific performance metrics or detailed cost breakdowns, it's challenging to benchmark against similar contracts. However, the firm fixed-price structure suggests an attempt to control costs, but the absence of a clear per-unit cost comparison makes a definitive value assessment difficult. Further analysis of the scope of services and operational tempo would be needed to determine if this represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 28 bids indicates a healthy level of interest and competition for this service. A robust competitive process generally leads to better price discovery and can drive down costs for the government, potentially resulting in more favorable terms for taxpayers.

Taxpayer Impact: The full and open competition with 28 bidders is a positive signal for taxpayers, as it likely resulted in a more competitive pricing environment and a wider selection of qualified providers.

Public Impact

Benefits the Department of Agriculture's Forest Service by providing essential aerial logistics. Services include nonscheduled chartered freight air transportation, crucial for remote operations. Geographic impact is primarily within California, supporting regional Forest Service activities. Workforce implications may include support for pilots, ground crews, and logistical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of services expands beyond initial estimates.
Dependence on a single contractor for critical transport services could pose a risk.
Ensuring consistent service quality and safety standards throughout the contract duration.

Positive Signals

Full and open competition suggests a competitive market and potentially fair pricing.
Firm fixed-price contract provides cost certainty for the government.
Multiple bidders (28) indicate a healthy market and potential for strong performance.

Sector Analysis

The contract falls within the air transportation services sector, specifically nonscheduled chartered freight. This sector is vital for government agencies requiring flexible and often specialized aerial logistics, particularly for operations in remote or difficult-to-access areas like those managed by the Forest Service. The market for such services can be competitive, but specialized capabilities like those required for firefighting or remote resource management can command premium pricing.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the contract was competed full and open, there is no explicit information on whether small businesses were among the 28 bidders or if subcontracting opportunities were mandated. Further investigation into the prime contractor's subcontracting plan would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer's representative (COR) within the Forest Service. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver services within the agreed-upon cost. Transparency is generally maintained through contract databases, though specific performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Logistics Contracts
Nonscheduled Air Charter Services
Wildland Firefighting Support Contracts

Risk Flags

Potential for cost creep if scope is not well-defined.
Dependence on contractor for critical operational support.
Ensuring consistent service quality and safety standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $12.7 million to HELICOPTER TRANSPORT SERVICES, LLC. HTS - T1 EU FOR PINE VALLEY, CA

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 $12.7 million.

What is the period of performance?

Start: 2025-05-07. End: 2026-12-31.

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

Analyzing historical spending for helicopter transport services by the Forest Service in California requires access to detailed procurement data over several fiscal years. Typically, spending in this category can fluctuate based on seasonal needs, such as wildfire suppression, and specific project requirements. Factors like the number of active contracts, contract durations, and the average value per contract would provide a clearer picture. Without specific historical data for this region and service type, it's difficult to establish a precise trend. However, it's reasonable to assume that spending would be higher during peak fire seasons and for large-scale land management projects. Comparing the current $12.7 million award to previous years' expenditures would help determine if this represents an increase, decrease, or stable level of investment in these critical services.

How does the per-unit cost of this contract compare to similar helicopter transport services awarded by other federal agencies?

Benchmarking the per-unit cost for this contract is challenging without specific details on the services rendered per unit (e.g., flight hour, passenger mile, cargo ton-mile). The provided data indicates a total award of $12.7 million for a duration of 603 days, covering nonscheduled chartered freight air transportation. To compare effectively, we would need to identify similar contracts from agencies like the Department of the Interior or the Department of Defense that procure comparable helicopter transport services. Key metrics for comparison would include the cost per flight hour, cost per mile, or cost per ton-mile, adjusted for factors like aircraft type, capacity, operational complexity, and geographic location. Given the firm fixed-price nature, the government has a defined cost, but its value relative to the market requires detailed comparative analysis of service delivery metrics.

What is the track record of Helicopter Transport Services, LLC in fulfilling federal contracts?

Assessing the track record of Helicopter Transport Services, LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, their values, durations, and any reported performance issues or successes. Key indicators include on-time delivery, adherence to specifications, and any instances of contract disputes, terminations, or penalties. A contractor with a history of successful, timely, and compliant contract performance generally presents a lower risk. Conversely, a history of performance issues might raise concerns about the reliability and quality of services provided under this new award. Without specific past performance data for Helicopter Transport Services, LLC, it is difficult to definitively assess their reliability for this $12.7 million contract.

What are the specific risks associated with nonscheduled chartered freight air transportation for the Forest Service?

Nonscheduled chartered freight air transportation for the Forest Service carries several specific risks. Firstly, operational risks include weather dependency, potential for mechanical failures, and the inherent dangers of aviation, especially in remote or challenging terrain. Secondly, logistical risks involve ensuring timely availability of aircraft and crews, particularly during emergencies like wildfires where rapid deployment is critical. Thirdly, cost risks can arise if the scope of services is not precisely defined, leading to potential change orders or cost overruns, although the firm fixed-price contract aims to mitigate this. Finally, safety and regulatory compliance risks are paramount, requiring rigorous adherence to aviation standards and Forest Service operational protocols to prevent accidents and ensure the well-being of personnel and the environment.

How does the duration of this contract (603 days) align with typical Forest Service needs for aerial transport?

The contract duration of 603 days (approximately 20 months) suggests a need for sustained aerial transport services rather than short-term, ad-hoc requirements. This duration aligns well with the operational cycles of the Forest Service, which often involves year-round land management activities, including but not limited to seasonal wildfire suppression efforts. A longer-term contract can provide stability for both the agency and the contractor, potentially leading to better resource planning and cost efficiencies compared to repeatedly awarding short-term contracts. However, it also means the agency is committed to these services for an extended period, necessitating careful monitoring of performance and evolving needs to ensure continued relevance and value.

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: $12,729,508

Exercised Options: $12,729,508

Current Obligation: $12,729,508

Actual Outlays: $4,961,214

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9217

IDV Type: IDC

Timeline