USDA Forest Service Awards $20.3M Contract for Air Transportation in New Mexico
Contract Overview
Contract Amount: $20,263,718 ($20.3M)
Contractor: Rotak LLC
Awarding Agency: Department of Agriculture
Start Date: 2025-03-25
End Date: 2026-12-31
Contract Duration: 646 days
Daily Burn Rate: $31.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 28
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: ROTAK - T1 EU FOR SILVER CITY, NM
Place of Performance
Location: SILVER CITY, GRANT County, NEW MEXICO, 88061
Plain-Language Summary
Department of Agriculture obligated $20.3 million to ROTAK LLC for work described as: ROTAK - T1 EU FOR SILVER CITY, NM Key points: 1. Contract awarded to ROTAK LLC for air transportation services. 2. Significant portion of spending allocated to a single vendor. 3. Potential for cost savings through competitive bidding. 4. Sector focus on air transportation for federal agencies.
Value Assessment
Rating: fair
The contract value of $20.3M for air transportation services appears substantial. Benchmarking against similar contracts for nonscheduled chartered freight air transportation is necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the award is a delivery order, which may indicate pre-negotiated terms or a specific vendor selection within a larger framework.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently, potentially leading to better pricing than sole-source awards.
Public Impact
Ensures critical air transportation services for the Forest Service in New Mexico. Supports federal land management and operational needs. Potential impact on local economies through service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Concentration of spending with one vendor.
- Potential for price creep in subsequent delivery orders.
- Dependence on a single provider for essential services.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and delivery period.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the air transportation sector, specifically for nonscheduled chartered freight. Federal agencies frequently utilize such services for logistics, resource management, and emergency response, with spending varying based on agency needs and geographic scope.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight will be crucial to ensure ROTAK LLC meets all contractual obligations and performance standards. The Department of Agriculture's Forest Service is responsible for monitoring this delivery order to ensure value for money and adherence to terms.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Agriculture Contracting
- Forest Service Programs
Risk Flags
- Vendor concentration risk.
- Potential for cost overruns if not managed closely.
- Dependence on a single provider.
- Geographic concentration of services.
Tags
nonscheduled-chartered-freight-air-trans, department-of-agriculture, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $20.3 million to ROTAK LLC. ROTAK - T1 EU FOR SILVER CITY, NM
Who is the contractor on this award?
The obligated recipient is ROTAK LLC.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Forest Service).
What is the total obligated amount?
The obligated amount is $20.3 million.
What is the period of performance?
Start: 2025-03-25. End: 2026-12-31.
What is the historical cost performance of ROTAK LLC on similar federal contracts?
Analyzing ROTAK LLC's past performance on comparable federal contracts is essential to gauge their reliability and cost-effectiveness. This includes reviewing past contract values, delivery timeliness, and any documented performance issues or commendations. Understanding their track record provides insight into potential risks and benefits associated with this new award.
How does the awarded price compare to market rates for similar air charter services in New Mexico?
A thorough market analysis comparing the awarded price to prevailing rates for similar nonscheduled chartered freight air transportation services in New Mexico is critical. This involves examining rates from other providers, considering factors like aircraft type, capacity, and flight duration. Such a comparison will help determine if the $20.3M award represents a fair and reasonable price for the services rendered.
What are the specific operational requirements and performance metrics tied to this delivery order?
Understanding the precise operational requirements and performance metrics is key to assessing the effectiveness of this contract. This includes details on the types of cargo, delivery schedules, service areas within New Mexico, and any specific performance standards or key performance indicators (KPIs) that ROTAK LLC must meet. Clear metrics allow for objective evaluation of service delivery 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: 5014 CAPTAIN HILL CT, ANCHORAGE, AK, 99502
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,263,718
Exercised Options: $20,263,718
Current Obligation: $20,263,718
Actual Outlays: $8,409,408
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 1202SA25T9231
IDV Type: IDC
Timeline
Start Date: 2025-03-25
Current End Date: 2026-12-31
Potential End Date: 2029-12-31 00:00:00
Last Modified: 2026-04-10
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