Forest Service awards $13.1M contract for air transport services in Idaho

Contract Overview

Contract Amount: $13,170,633 ($13.2M)

Contractor: Billings Flying Service LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-05-06

End Date: 2026-12-31

Contract Duration: 604 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BILLINGS - T1 EU FOR GRANGEVILLE, ID #3

Place of Performance

Location: GRANGEVILLE, IDAHO County, IDAHO, 83530

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $13.2 million to BILLINGS FLYING SERVICE LLC for work described as: BILLINGS - T1 EU FOR GRANGEVILLE, ID #3 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract type aims to control costs for the government. 3. Contract duration of approximately 2 years provides a stable service period. 4. Services are for nonscheduled chartered freight air transportation. 5. Contractor is Billings Flying Service LLC, based in Idaho. 6. Potential for future contract modifications or extensions exists within the delivery order structure.

Value Assessment

Rating: good

The contract value of $13.1 million over roughly two years for air freight services appears reasonable given the scope. Benchmarking against similar contracts for nonscheduled chartered freight air transportation is challenging without more specific service details (e.g., aircraft type, payload, flight hours). However, the firm fixed-price structure provides cost certainty. The number of bids received (28) suggests a healthy level of interest, which typically correlates with competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The solicitation attracted 28 bids, demonstrating a robust competitive environment. This high level of competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified providers.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It suggests that the government secured the best possible value through a transparent and inclusive bidding process.

Public Impact

The primary beneficiaries are the US Forest Service, which will receive essential air freight services. Services will support operations within Grangeville, Idaho, and surrounding areas. The contract ensures the timely delivery of goods and materials critical for Forest Service activities, potentially including firefighting support or remote area resupply. The contract supports the aviation services sector, indirectly benefiting the workforce employed by the winning contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise, despite the fixed-price nature.
Dependence on a single contractor for critical air transport services could pose a risk if performance issues emerge.
Geographic limitations of service delivery could impact response times in emergencies outside the primary operational area.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm fixed-price contract type provides cost predictability for the agency.
Contract duration of over 600 days offers stability for service provision.
Contractor is based in the state where services are primarily delivered, potentially improving local knowledge and response.
High number of bids received suggests strong market interest and availability of qualified providers.

Sector Analysis

The contract falls within the broader aviation services sector, specifically focusing on nonscheduled chartered freight. This segment of the industry supports various government and commercial needs for transporting goods to locations not served by regular air cargo routes. The market for such services is driven by demand for flexibility and access to remote areas. Comparable spending benchmarks would depend on the specific types of aircraft, cargo capacity, and operational tempo required.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to Billings Flying Service LLC, depending on the contractor's subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award being made under full and open competition, with the details likely available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Air Operations
Wildland Firefighting Support Services
Remote Area Logistics Support

Risk Flags

Potential for weather-related delays impacting service delivery.
Dependence on contractor's fleet maintenance and operational readiness.
Need for robust oversight to ensure compliance with flight safety and service requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $13.2 million to BILLINGS FLYING SERVICE LLC. BILLINGS - T1 EU FOR GRANGEVILLE, ID #3

Who is the contractor on this award?

The obligated recipient is BILLINGS FLYING SERVICE LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2025-05-06. End: 2026-12-31.

What is the historical spending pattern for nonscheduled chartered freight air transportation by the Forest Service in Idaho?

Analyzing historical spending for nonscheduled chartered freight air transportation by the Forest Service in Idaho requires access to detailed procurement data over several fiscal years. While this specific contract is valued at $13.1 million, understanding the broader trend involves looking at the total annual expenditure for similar services in the region. Factors such as the number of contracts awarded, average contract values, and the duration of these contracts would provide context. For instance, if spending has been consistently high, it suggests a sustained need for these services, potentially driven by factors like the size of the national forests in Idaho, the frequency of remote operations, or specific program requirements like wildfire suppression support. Conversely, a significant increase or decrease in spending could indicate shifts in agency priorities, operational changes, or market dynamics affecting service availability and cost.

How does the per-unit cost of this contract compare to similar air freight services provided to other federal agencies?

Directly comparing the per-unit cost of this $13.1 million contract for nonscheduled chartered freight air transportation is difficult without specific metrics like cost per flight hour, cost per ton-mile, or cost per passenger-mile. The contract's firm fixed-price nature sets the overall cost, but the underlying unit economics are not publicly detailed. To benchmark effectively, one would need to identify contracts with similar aircraft types, operational ranges, and service requirements across agencies like the Bureau of Land Management or the Department of Defense. If comparable data were available, we could assess if Billings Flying Service LLC's pricing is competitive. A higher per-unit cost might be justified by unique operational demands, remote locations, or specialized equipment, while a lower cost could indicate efficient operations or favorable market conditions. The 28 bids received suggest the market found the opportunity attractive, potentially indicating competitive pricing.

What is the track record of Billings Flying Service LLC in performing similar government contracts?

Assessing the track record of Billings Flying Service LLC requires reviewing their past performance on federal contracts, particularly those involving nonscheduled chartered freight air transportation. Information on contract history, including performance evaluations, any past disputes, or contract terminations, would be crucial. Agencies often maintain performance assessment reporting tools (e.g., Contractor Performance Assessment Reporting System - CPARS) that provide insights into a contractor's reliability, quality of service, and adherence to contract terms. A history of successful contract completions and positive performance reviews would indicate a lower risk associated with this current award. Conversely, any documented issues could raise concerns about the contractor's ability to meet the requirements of this new $13.1 million contract, potentially impacting the Forest Service's operational continuity and budget.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this $13.1 million Forest Service contract include potential operational disruptions due to weather or aircraft maintenance, contractor performance issues, and cost overruns if the fixed-price contract doesn't fully account for unforeseen circumstances. Mitigation strategies likely involve the Forest Service's contract oversight, including monitoring flight schedules, performance metrics, and adherence to safety regulations. The firm fixed-price structure itself is a risk mitigation tool, capping the government's financial exposure. Furthermore, the requirement for full and open competition with 28 bidders suggests a robust market, reducing reliance on a single provider and potentially ensuring backup options. The contract duration also allows for performance monitoring and corrective action if needed before the end date.

How does the geographic focus on Grangeville, ID, influence the contract's value and operational scope?

The specific geographic focus on Grangeville, ID, for this $13.1 million air transport contract significantly shapes its value and operational scope. Grangeville is located in a region with extensive national forest lands, often characterized by rugged terrain and limited ground transportation infrastructure. This necessitates reliable air services for accessing remote areas, supporting activities like fire management, resource monitoring, and logistical support for field personnel. The contract's value reflects the demand for these specialized services in such an environment. The operational scope likely includes flights to and from various remote airstrips or drop zones within the Idaho Panhandle National Forests and surrounding areas. The contractor's base in Idaho may offer advantages in understanding local conditions and response times, but also highlights the importance of robust contingency planning for potential weather disruptions common in mountainous regions.

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: 3655 AJ WAY, BILLINGS, MT, 59106

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

Financial Breakdown

Contract Ceiling: $13,170,633

Exercised Options: $13,170,633

Current Obligation: $13,170,633

Actual Outlays: $7,282,484

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9203

IDV Type: IDC

Timeline