Forest Service awards $6.1M contract to HELI-1 CORP for air transportation services in Oregon

Contract Overview

Contract Amount: $6,121,189 ($6.1M)

Contractor: Heli-1 Corp

Awarding Agency: Department of Agriculture

Start Date: 2025-05-06

End Date: 2026-12-31

Contract Duration: 604 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HELI-1 CORP. - T1 EU FOR GRANTS PASS, OR

Place of Performance

Location: GRANTS PASS, JOSEPHINE County, OREGON, 97526

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.1 million to HELI-1 CORP for work described as: HELI-1 CORP. - T1 EU FOR GRANTS PASS, OR Key points: 1. The contract value represents a significant investment in aerial logistics for the Forest Service. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. The fixed-price contract type may offer cost certainty but could limit flexibility. 4. Performance duration extends over a year, indicating a need for sustained operational support. 5. The service category is critical for remote area access and resource management. 6. Geographic focus on Oregon highlights regional operational requirements.

Value Assessment

Rating: good

The contract value of $6.1M for approximately two years of service appears reasonable given the specialized nature of nonscheduled chartered freight air transportation. Benchmarking against similar contracts for aerial logistics in remote or forested regions would provide a more precise value assessment. The firm fixed-price structure suggests an expectation of predictable costs from the contractor, which is generally favorable for the government.

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. With 28 bids received, this suggests a robust level of interest and a competitive marketplace for these specialized air transportation services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential air services.

Public Impact

The primary beneficiaries are the US Forest Service, which will receive critical air transportation for its operations. Services delivered include nonscheduled chartered freight air transportation, essential for accessing remote areas and supporting firefighting or resource management efforts. The geographic impact is concentrated in Oregon, supporting federal land management activities within the state. Workforce implications may include support for pilots, ground crews, and logistics personnel involved in the air operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise in remote terrain.
Dependence on a single contractor for critical logistical support could pose a risk if performance issues emerge.

Positive Signals

Awarded under full and open competition, indicating a healthy market and competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
Longer contract duration suggests a stable and reliable service provider is expected.

Sector Analysis

Nonscheduled chartered freight air transportation is a niche but vital sector supporting various government functions, particularly in sectors like defense, emergency response, and land management. The market size for such specialized services is difficult to quantify precisely but is driven by the unique logistical needs of agencies operating in remote or challenging environments. This contract fits within the broader transportation and logistics sector, providing essential aerial lift capabilities.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The presence of 28 bids suggests that both large and small businesses may have participated, but without specific set-aside provisions, the direct impact on the small business ecosystem is not explicitly defined by this award.

Oversight & Accountability

Oversight will likely be managed by the contracting officer's representative (COR) within the Forest Service, ensuring compliance with contract terms and performance standards. Accountability measures are embedded in the firm fixed-price structure, with payments contingent on satisfactory delivery of services. Transparency is facilitated by the contract award notice, though detailed performance reports are typically internal.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Air Operations
Federal Aviation Administration (FAA) Oversight
Wildland Firefighting Support Contracts

Risk Flags

Potential for weather-related delays impacting service delivery.
Risk of mechanical failures or operational incidents.
Dependence on contractor's ability to maintain qualified personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.1 million to HELI-1 CORP. HELI-1 CORP. - T1 EU FOR GRANTS PASS, OR

Who is the contractor on this award?

The obligated recipient is HELI-1 CORP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $6.1 million.

What is the period of performance?

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

What is HELI-1 CORP's track record with federal contracts, particularly for air transportation?

Information on HELI-1 CORP's specific track record with federal contracts, especially for nonscheduled chartered freight air transportation, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like FPDS-NG or SAM.gov to examine past performance, contract types, values, and any reported issues or awards. Understanding their history with similar agencies or types of operations would provide insight into their reliability and experience in fulfilling government requirements.

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

Direct comparison of the awarded price ($6.1M over approximately 20 months) to precise market rates for similar air charter services is challenging without specific details on aircraft type, capacity, flight hours, and operational complexity. However, the fact that 28 bids were received under full and open competition suggests that the pricing is likely competitive within the market. Further analysis would involve benchmarking against industry rate sheets for comparable aircraft and services, adjusted for factors like operational duration and geographic location.

What are the primary risks associated with this type of air transportation contract?

Key risks include operational hazards inherent in aviation, especially in remote or challenging terrains typical for Forest Service operations (e.g., weather delays, mechanical issues, safety incidents). There's also a risk of cost escalation if the firm fixed-price contract doesn't adequately account for unforeseen operational demands or fuel price volatility. Dependence on a single contractor for critical services can also be a risk if performance falters or if the contractor faces financial instability.

How effective is nonscheduled chartered freight air transportation for Forest Service operations?

Nonscheduled chartered freight air transportation is highly effective and often indispensable for Forest Service operations, particularly in remote areas where ground access is limited or time-consuming. It facilitates rapid deployment of personnel and equipment for firefighting, timber management, search and rescue, and infrastructure support. The flexibility of charter services allows the agency to scale operations based on immediate needs, making it a critical component of resource management and emergency response capabilities.

What are historical spending patterns for similar air transportation services by the Forest Service?

Historical spending patterns for similar air transportation services by the Forest Service would typically show consistent investment in aviation support, especially during fire seasons. Analyzing past contracts for aerial firefighting, cargo transport, and personnel movement would reveal trends in contract values, durations, and types of services procured. This specific contract's value of $6.1M should be viewed in the context of these historical expenditures to assess whether it represents an increase, decrease, or stable level of investment in aerial logistics.

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: 485 S ROCK BLVD STE F3, RENO, NV, 89502

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,121,189

Exercised Options: $6,121,189

Current Obligation: $6,121,189

Actual Outlays: $3,353,740

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9215

IDV Type: IDC

Timeline