Forest Service awards $5.2M contract for air transport services in Utah, highlighting regional operational needs

Contract Overview

Contract Amount: $5,237,514 ($5.2M)

Contractor: AIR Resources Helicopters, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-03-25

End Date: 2026-12-31

Contract Duration: 646 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AIR RESOURCES - T1 EU FOR MORGAN, UT #4

Place of Performance

Location: MORGAN, MORGAN County, UTAH, 84050

State: Utah Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.2 million to AIR RESOURCES HELICOPTERS, INC. for work described as: AIR RESOURCES - T1 EU FOR MORGAN, UT #4 Key points: 1. Contract value appears reasonable given the specialized nature of aerial logistics. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration and delivery order structure indicate ongoing operational requirements. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Geographic focus on Utah points to specific regional resource management activities. 6. Specialized air transport is critical for remote area access and operations.

Value Assessment

Rating: good

The contract value of approximately $5.2 million for air transport services over a period of roughly two years appears to be within a reasonable range for specialized aerial logistics. Benchmarking against similar contracts for nonscheduled chartered freight air transportation, especially those involving remote or challenging terrain operations, would provide a more precise value assessment. However, the fixed-price nature of the contract suggests that the agency has negotiated a set rate, which can be advantageous if the contractor can efficiently manage costs.

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. The data shows 28 bids were received, suggesting a robust competitive environment for this type of service. A high number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie to win the award.

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 transport services.

Public Impact

The contract directly benefits the Department of Agriculture's Forest Service by providing essential air transport for operational needs. Services delivered include nonscheduled chartered freight air transportation, crucial for accessing remote areas for firefighting, resource management, or other land management activities. The geographic impact is concentrated in Utah (ST: UT, SN: UTAH), supporting federal land management within the state. Workforce implications include support for pilots, ground crews, and logistical personnel involved in air charter operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

Full and open competition with 28 bids suggests a competitive market and potential for good value.
Fixed-price contract type provides cost certainty for the government.
The contract duration aligns with anticipated ongoing operational needs for air transport.

Sector Analysis

The air transportation sector, particularly nonscheduled chartered freight, is vital for supporting various government operations, including those of the Forest Service. This contract fits within the broader category of logistics and support services, enabling critical functions in areas where traditional ground transportation is impractical or impossible. Comparable spending in this sector often involves specialized aircraft and highly trained personnel, reflecting the inherent costs and risks associated with aerial operations.

Small Business Impact

The data does not indicate if this contract included small business set-asides or if the prime contractor is a small business. Further analysis would be needed to determine the extent of small business participation, either as prime contractors or subcontractors, and its impact on the small business ecosystem within the aviation services industry.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Wildfire Suppression Support
Aerial Firefighting Services
Remote Area Logistics
National Forest Management Support
Department of Agriculture Aviation Contracts

Risk Flags

Potential for performance issues in remote or challenging operational environments.
Dependence on specialized aircraft and skilled personnel.
Fluctuations in fuel costs could impact contractor profitability and potentially lead to cost increase requests if not adequately managed under fixed-price terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.2 million to AIR RESOURCES HELICOPTERS, INC.. AIR RESOURCES - T1 EU FOR MORGAN, UT #4

Who is the contractor on this award?

The obligated recipient is AIR RESOURCES HELICOPTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2025-03-25. End: 2026-12-31.

What is the historical spending pattern for similar air transport services by the Forest Service in Utah?

Analyzing historical spending for similar air transport services by the Forest Service in Utah would provide crucial context for evaluating the current $5.2 million award. This involves examining past contract values, durations, and the specific types of services rendered (e.g., cargo, personnel transport, specialized missions). A trend of increasing or decreasing costs over time, or significant fluctuations in contract awards, could indicate market shifts, changes in operational tempo, or evolving agency needs. For instance, if past contracts for similar services were consistently lower in value, it might prompt a closer look at the current pricing. Conversely, if operational demands have increased, a higher award might be justified. Understanding the historical competitive landscape, including the number of bidders on previous contracts, is also important for assessing whether the current level of competition is typical or an outlier.

How does the per-unit cost of this contract compare to industry benchmarks for nonscheduled chartered freight air transportation?

Determining the precise per-unit cost for this contract is challenging without more granular data on the specific services rendered (e.g., cost per flight hour, cost per ton-mile). However, a general comparison to industry benchmarks for nonscheduled chartered freight air transportation can be made. These benchmarks are influenced by factors such as aircraft type, payload capacity, flight distance, operational complexity (e.g., remote landing zones), and prevailing market rates. Given that this contract involves specialized aerial logistics for the Forest Service, likely in potentially remote or challenging terrains, the per-unit costs might be higher than standard cargo flights. Benchmarking would involve researching industry reports, consulting aviation cost databases, or comparing with publicly available data from similar government contracts to ascertain if the negotiated rates are competitive and reflect fair market value for the specialized services provided.

What are the specific risks associated with the contractor, Air Resources Helicopters, Inc., based on their past performance?

Assessing the specific risks associated with Air Resources Helicopters, Inc. requires a review of their past performance record. This would involve examining data on previous government contracts, including any instances of contract terminations, performance disputes, quality control issues, or delivery delays. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable. A history of strong performance, timely delivery, and adherence to contract requirements would indicate low risk. Conversely, a pattern of performance deficiencies, unresolved issues, or significant cost overruns on prior contracts could signal higher risk for this current award. Without access to specific past performance data for Air Resources Helicopters, Inc., a definitive risk assessment is not possible, but the presence of 28 bids suggests the agency had confidence in the pool of potential performers.

How effective is this type of air transport service in supporting the Forest Service's mission in remote areas of Utah?

Air transport services, particularly nonscheduled chartered freight, are generally highly effective in supporting the Forest Service's mission in remote areas like those in Utah. These services provide essential access for personnel, equipment, and supplies to locations that are inaccessible or difficult to reach by ground transportation. This is critical for activities such as wildfire suppression, forest health monitoring, trail maintenance, search and rescue operations, and scientific research. The ability to rapidly deploy resources via air can significantly enhance response times and operational efficiency, thereby contributing directly to the protection and management of natural resources. The effectiveness is measured by the timely and reliable delivery of necessary support, enabling on-the-ground crews to perform their duties safely and efficiently, ultimately contributing to the overall success of the Forest Service's land management objectives.

What is the total federal spending on nonscheduled chartered freight air transportation over the last five fiscal years?

To determine the total federal spending on nonscheduled chartered freight air transportation over the last five fiscal years, one would need to query federal procurement databases (like FPDS or USASpending.gov) using the relevant Product Service Code (PSC) and filtering by fiscal year. The PSC '481212' (Nonscheduled Chartered Freight Air Transportation) is a key identifier. Aggregating the award amounts for all contracts awarded under this PSC across all federal agencies for FY2020 through FY2024 would provide the total spending figure. This analysis would reveal the overall market size and trend for these services, helping to contextualize the $5.2 million award to Air Resources Helicopters, Inc. within the broader federal procurement landscape for 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: 619 N 2360 W, SALT LAKE CITY, UT, 84116

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

Financial Breakdown

Contract Ceiling: $5,237,514

Exercised Options: $5,237,514

Current Obligation: $5,237,514

Actual Outlays: $3,390,762

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9201

IDV Type: IDC

Timeline