Forest Service awards $4.85M contract for helicopter operations in Idaho, highlighting air transport needs

Contract Overview

Contract Amount: $4,850,113 ($4.9M)

Contractor: KIT Helicopter Operations LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-05-06

End Date: 2026-12-31

Contract Duration: 604 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: KIT - T1 EU FOR POCATELLO, ID #2

Place of Performance

Location: POCATELLO, BANNOCK County, IDAHO, 83201

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.9 million to KIT HELICOPTER OPERATIONS LLC for work described as: KIT - T1 EU FOR POCATELLO, ID #2 Key points: 1. Contract value appears reasonable given the specialized nature of helicopter operations. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include operational disruptions due to weather or equipment failure. 4. Performance will be measured by timely and safe delivery of services. 5. This contract supports critical aerial support functions for the Forest Service. 6. The duration of the contract allows for sustained operational support.

Value Assessment

Rating: good

The contract value of $4.85 million for a period of approximately two years seems aligned with specialized aviation services. Benchmarking against similar contracts for aerial firefighting or transport in remote areas would provide further context. The firm fixed-price structure offers cost certainty for the government, assuming the scope of work is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of 28 bids suggests a robust competitive environment, which typically leads to more favorable pricing and better service offerings for the government. This level of competition is a positive sign for price discovery.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the Department of Agriculture's Forest Service, which receives essential aerial support. Services delivered include nonscheduled chartered freight air transportation, likely supporting fire suppression, resource management, or logistical needs in remote areas. The geographic impact is focused on Idaho, specifically Pocatello. Workforce implications may include pilots, mechanics, and support staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Dependence on specialized equipment and skilled personnel can lead to service interruptions if not managed effectively.
Geographic remoteness of operations in Idaho may present logistical challenges for maintenance and support.
Weather dependency inherent in aviation operations could impact service delivery timelines.

Positive Signals

The use of full and open competition suggests a market capable of meeting the government's needs.
A firm fixed-price contract provides cost predictability for the agency.
The contract duration allows for consistent support throughout critical operational periods.

Sector Analysis

This contract falls within the air transportation services sector, specifically nonscheduled chartered freight. The market for such services is often driven by government needs for specialized operations in remote or challenging terrains, such as those encountered by the Forest Service for firefighting, logistics, or environmental monitoring. Comparable spending benchmarks would involve analyzing other contracts for similar aerial support services across federal agencies.

Small Business Impact

While the contract was awarded under full and open competition and there is no explicit small business set-aside noted, the high number of bidders (28) could include small businesses. Further analysis would be needed to determine if small businesses participated significantly or if subcontracting opportunities exist for them within this contract.

Oversight & Accountability

Oversight will likely be managed by the Forest Service contracting officer and technical representatives who will monitor performance against contract requirements. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Operational dependency on weather conditions.
Potential for equipment malfunction impacting service delivery.
Need for specialized and certified personnel.
Geographic remoteness may affect response times for maintenance or emergencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.9 million to KIT HELICOPTER OPERATIONS LLC. KIT - T1 EU FOR POCATELLO, ID #2

Who is the contractor on this award?

The obligated recipient is KIT HELICOPTER OPERATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

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

What is the historical spending pattern for helicopter operations by the Forest Service in Idaho?

Analyzing historical spending for similar helicopter operations by the Forest Service in Idaho requires access to detailed procurement data over several fiscal years. Typically, agencies like the Forest Service utilize helicopters for a variety of critical missions including wildland firefighting, search and rescue, aerial surveys, and logistical support in remote areas. Spending can fluctuate based on factors such as fire season severity, agency budget allocations, and the availability of aircraft and qualified personnel. Without specific historical data for this exact service in Idaho, it's difficult to provide precise figures. However, it's common for such specialized aviation contracts to represent a significant portion of an agency's operational budget in regions prone to natural disasters or requiring extensive land management.

How does the awarded price compare to market rates for similar helicopter charter services?

Determining the precise market rate comparison for this $4.85 million contract requires detailed knowledge of the specific helicopter types, operational hours, required equipment (e.g., water buckets, winches), and the geographic service area. However, given that the contract was awarded under full and open competition with 28 bids, it suggests that the pricing is likely competitive. Firm fixed-price contracts generally aim to align with or be below prevailing market rates to ensure value for money. Benchmarking against publicly available rates for similar charter services, adjusted for government-specific requirements and potential volume discounts, would be necessary for a definitive assessment. The Forest Service likely conducted a price analysis during the procurement process to validate the reasonableness of the offered prices.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators (KPIs) for this nonscheduled chartered freight air transportation contract would likely focus on safety, reliability, and mission accomplishment. Specific KPIs could include: adherence to flight schedules, successful completion of assigned missions (e.g., delivery of personnel or cargo, support for firefighting operations), aircraft availability and operational readiness, compliance with all aviation regulations and safety standards, and timely reporting. The contract likely specifies performance standards and metrics, with potential for incentives or penalties based on performance outcomes. The Forest Service will monitor these KPIs to ensure the contractor is meeting the required service levels throughout the contract period.

What is the contractor's track record with similar government contracts?

KIT HELICOPTER OPERATIONS LLC is the contractor for this delivery order. To assess their track record, one would need to examine their past performance on federal contracts, particularly those involving similar services (helicopter operations, nonscheduled freight) and agencies (like the Forest Service or other land management agencies). Databases such as the Federal Awardee Performance and Integrity Information System (FAPIIS) can provide insights into past performance reviews, contract disputes, and any adverse actions. A positive track record with relevant agencies and contract types would indicate a lower risk for this new award. Conversely, any documented performance issues could raise concerns about the contractor's ability to meet the requirements of this new contract.

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

Potential risks include operational disruptions due to weather, mechanical failures, pilot availability, or unforeseen environmental conditions impacting flight operations. Mission scope creep or changes in agency requirements could also pose risks. Mitigation strategies typically involve robust contract management by the Forest Service, including clear performance standards, regular communication with the contractor, and contingency planning. The contractor is responsible for maintaining their aircraft, ensuring pilot qualifications, and adhering to safety protocols. The firm fixed-price nature of the contract incentivizes the contractor to manage costs and risks effectively to maintain profitability.

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: 1280 E 1500 N, TERRETON, ID, 83450

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

Financial Breakdown

Contract Ceiling: $4,850,113

Exercised Options: $4,850,113

Current Obligation: $4,850,113

Actual Outlays: $3,329,923

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9222

IDV Type: IDC

Timeline