Forest Service awards $4.3M contract for air transportation to Capitol Helicopters, Inc

Contract Overview

Contract Amount: $4,316,289 ($4.3M)

Contractor: Capitol Helicopters, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-02-01

End Date: 2029-12-31

Contract Duration: 1,794 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HSS MATOC TYPE 3 ROLLA, MO #2 N429HR

Place of Performance

Location: ROLLA, PHELPS County, MISSOURI, 65401

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.3 million to CAPITOL HELICOPTERS, INC. for work described as: HSS MATOC TYPE 3 ROLLA, MO #2 N429HR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for nonscheduled chartered passenger air transportation, indicating specialized service needs. 3. A firm-fixed-price contract type helps manage cost certainty for the government. 4. The contract duration of nearly five years suggests a long-term operational requirement. 5. The award is a delivery order under a larger MATOC, implying a pre-competed framework. 6. The contractor, Capitol Helicopters, Inc., has secured this award, indicating their capability and competitiveness.

Value Assessment

Rating: good

The contract value of $4.3 million over approximately five years appears reasonable for specialized air transportation services. Benchmarking against similar contracts for nonscheduled chartered passenger air transportation would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for controlling costs. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost efficiency is challenging, but the competitive award process suggests a degree of price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows 17 offers were received, signifying a robust level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government, as contractors compete to win the award.

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

Public Impact

The primary beneficiaries are likely the US Forest Service personnel and potentially other government entities requiring aerial transport for operations, such as firefighting support, resource management, or remote site access. The services delivered include nonscheduled chartered passenger air transportation, crucial for accessing remote areas or conducting time-sensitive missions. The geographic impact is focused on Missouri, as indicated by the award's location and state code. Workforce implications may include support for pilots, maintenance crews, and administrative staff associated with Capitol Helicopters, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if fuel prices or operational expenses rise significantly over the contract's nearly five-year term, despite the fixed-price nature.
Dependence on a single contractor for critical air transportation services could pose a risk if the contractor faces operational issues or financial instability.
The effectiveness of the air transportation will depend on the contractor's fleet reliability and pilot availability throughout the contract period.

Positive Signals

The award was made under a full and open competition with 17 offers, indicating a competitive environment that likely secured a fair price.
The firm-fixed-price contract type provides cost certainty for the Forest Service, mitigating risks associated with cost overruns.
The contract duration of almost five years suggests a stable, long-term need for these services, allowing for consistent operational support.
The award is a delivery order under a MATOC, implying that the underlying contract vehicle was already competitively vetted.

Sector Analysis

The contract falls within the air transportation services sector, specifically nonscheduled chartered passenger transport. This niche market often involves specialized aircraft and highly trained personnel. The North American Industry Classification System (NAICS) code 481211 confirms this specialization. Spending in this area is driven by agencies requiring flexible, on-demand aerial capabilities for operational needs, often in remote or difficult-to-access locations. Comparable spending benchmarks would typically be found within government solicitations for similar services or through industry reports on charter aviation.

Small Business Impact

The provided data indicates that small business set-aside was not utilized for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Capitol Helicopters, Inc., would need to be assessed independently for its small business status and subcontracting plans if applicable under the terms of the MATOC.

Oversight & Accountability

Oversight for this contract would primarily reside with the US Forest Service contracting officer and contract specialists. As a delivery order under a larger MATOC, oversight may also be influenced by the administration of the parent contract. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Aircraft Operations
Federal Aviation Administration (FAA) Oversight
General Services Administration (GSA) Multiple Award Task Order Contracts (MATOC)

Risk Flags

Potential for cost escalation due to fuel price volatility.
Dependence on contractor's operational reliability.
Ensuring consistent service quality over a long contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.3 million to CAPITOL HELICOPTERS, INC.. HSS MATOC TYPE 3 ROLLA, MO #2 N429HR

Who is the contractor on this award?

The obligated recipient is CAPITOL HELICOPTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2025-02-01. End: 2029-12-31.

What is the track record of Capitol Helicopters, Inc. with federal contracts, particularly for air transportation services?

A review of federal procurement data would be necessary to fully assess Capitol Helicopters, Inc.'s track record. This would involve examining past contract awards, performance evaluations (if available), and any history of contract disputes or terminations. For this specific contract, the award of a delivery order under a MATOC suggests they have passed initial vetting. However, understanding their performance on previous federal engagements, especially those involving similar types of air transportation and geographic areas, would provide a clearer picture of their reliability and capability. Without access to detailed historical contract performance data, it's difficult to definitively state their track record beyond their ability to win this competitive award.

How does the awarded price compare to market rates for similar nonscheduled chartered passenger air transportation services?

Determining the precise value for money requires benchmarking against current market rates for nonscheduled chartered passenger air transportation. Factors such as aircraft type, capacity, flight duration, operational complexity, and geographic location significantly influence pricing. The firm-fixed-price nature of this contract suggests the government sought cost certainty. A comparison would involve analyzing pricing data from other government solicitations for similar services, industry rate sheets, or consulting with aviation industry experts. Given the 17 offers received, it is likely that the price achieved reflects competitive market conditions, but a detailed analysis would be needed to confirm if it represents excellent value.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential operational disruptions (e.g., aircraft maintenance issues, pilot shortages), fluctuations in fuel costs impacting the contractor's profitability (even under fixed price, it can affect future bids or contractor stability), and ensuring consistent service quality over the contract's duration. Mitigation strategies likely involve performance clauses within the contract, requiring the contractor to maintain aircraft readiness and qualified personnel. The Forest Service would also monitor performance and have recourse for non-performance. The competitive nature of the award may also incentivize the contractor to perform well to secure future work. Furthermore, the MATOC structure might allow for tasking alternative contractors if severe issues arise.

How effective is the Forest Service in utilizing air transportation services to meet its mission objectives?

The effectiveness of air transportation services for the Forest Service is critical for missions such as wildfire suppression, aerial surveys, search and rescue, and accessing remote areas for resource management. The use of specialized contracts like this one, awarded competitively, suggests a structured approach to acquiring these capabilities. Effectiveness would be measured by the timeliness and reliability of flights, the ability to support specific operational requirements (e.g., carrying specific equipment or personnel), and the overall contribution to mission success. Performance metrics within the contract and post-mission reviews would provide insights into how well these services are meeting the Forest Service's objectives.

What are the historical spending patterns for nonscheduled chartered passenger air transportation by the Department of Agriculture or Forest Service?

Analyzing historical spending patterns for nonscheduled chartered passenger air transportation by the Department of Agriculture and its Forest Service would reveal trends in demand, average contract values, and the prevalence of different contract types (e.g., full and open vs. sole source). This data can help establish spending baselines, identify periods of high demand (potentially linked to fire seasons or specific projects), and assess whether current spending levels are consistent with past expenditures or indicate a significant shift. Understanding these patterns is crucial for budget forecasting and strategic resource allocation within the agency.

What is the significance of this contract being a delivery order under a MATOC?

This contract being a delivery order under a Multiple Award Task Order Contract (MATOC) signifies that the foundational contract vehicle was already competitively awarded to multiple vendors. This pre-qualification process streamlines the acquisition of specific services by allowing agencies to issue task orders or delivery orders to pre-selected contractors without conducting a full, open competition for each individual need. For taxpayers, this can lead to faster acquisition times and potentially better pricing due to the initial competition for the MATOC itself. It also provides the agency with a pool of pre-vetted vendors, offering flexibility and choice for specific requirements like this air transportation service.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger 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: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5957 FREEPORT BLVD, SACRAMENTO, CA, 95822

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

Financial Breakdown

Contract Ceiling: $4,316,289

Exercised Options: $4,316,289

Current Obligation: $4,316,289

Actual Outlays: $1,619,026

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9310

IDV Type: IDC

Timeline