Forest Service awards $827K+ contract for air transportation services to Helicopter Express LLC

Contract Overview

Contract Amount: $827,099 ($827.1K)

Contractor: Helicopter Express LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-01-01

End Date: 2028-12-31

Contract Duration: 1,460 days

Daily Burn Rate: $567/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HSS MATOC TYPE 3 HUNTSVILLE, TX N38HX

Place of Performance

Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29801

State: South Carolina Government Spending

Plain-Language Summary

Department of Agriculture obligated $827,098.71 to HELICOPTER EXPRESS LLC for work described as: HSS MATOC TYPE 3 HUNTSVILLE, TX N38HX 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 aviation needs. 3. A firm-fixed-price contract type helps manage cost certainty for the government. 4. The contract duration of 1460 days (4 years) suggests a long-term operational requirement. 5. The awardee, Helicopter Express LLC, is based in Huntsville, TX, potentially impacting local economic benefits. 6. The North American Industry Classification System (NAICS) code 481211 points to a specific segment of the air transportation industry.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparisons to similar, recent awards for nonscheduled chartered passenger air transportation. The total award amount of $827,098.71 over four years averages to approximately $206,772 per year. This figure needs to be assessed against the specific operational requirements, flight hours, and passenger capacity to determine true value for money. Without access to the specific details of the service level agreement and operational tempo, a definitive value assessment is difficult.

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 a bid. The presence of 17 bids suggests a healthy level of interest and competition for this requirement. A robust competitive environment generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The high number of bidders in this full and open competition is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential air transportation services.

Public Impact

The primary beneficiaries are likely the US Forest Service personnel and potentially other government entities requiring air transport for operational purposes, such as firefighting support, remote site access, or personnel movement. The services delivered include nonscheduled chartered passenger air transportation, crucial for accessing areas not served by regular commercial flights or for specific mission requirements. The geographic impact is primarily focused on areas served by the Forest Service, with the contractor operating out of Huntsville, TX. Workforce implications may include employment opportunities for pilots, maintenance crews, and support staff within Helicopter Express LLC and potentially related aviation support industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased operational costs if fuel prices or maintenance expenses rise significantly during the contract term.
Dependence on a single contractor for critical air transportation could pose risks if the contractor faces operational disruptions.
Ensuring consistent service quality and adherence to safety regulations throughout the four-year contract period requires diligent oversight.

Positive Signals

The firm-fixed-price contract type provides cost predictability for the Forest Service.
Awarding to a contractor with a stated base in Texas may offer logistical advantages or support regional economic activity.
The competitive nature of the award suggests the chosen contractor offered a compelling value proposition.

Sector Analysis

The air transportation sector, particularly nonscheduled chartered passenger services, supports a wide range of government operations. This contract falls within the broader aviation services industry, which is characterized by specialized equipment, stringent safety regulations, and variable demand based on mission needs. Comparable spending benchmarks are difficult to establish without specific details on flight hours, aircraft type, and operational scope, but the total award suggests a significant, ongoing requirement for aerial support within the Forest Service's mission.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the US Forest Service contracting officer and contract specialists. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost justifications may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

US Forest Service Aviation Management
Department of Agriculture Aircraft Operations
Federal Aviation Administration (FAA) Oversight
Wildland Firefighting Support Contracts
Government Air Charter Services

Risk Flags

Potential for cost overruns if fuel prices increase significantly.
Risk of service disruption due to contractor operational issues.
Need for diligent oversight to ensure consistent service quality and safety compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $827,098.71 to HELICOPTER EXPRESS LLC. HSS MATOC TYPE 3 HUNTSVILLE, TX N38HX

Who is the contractor on this award?

The obligated recipient is HELICOPTER EXPRESS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $827,098.71.

What is the period of performance?

Start: 2025-01-01. End: 2028-12-31.

What is the historical spending pattern of the Forest Service on nonscheduled chartered passenger air transportation?

Analyzing historical spending patterns for nonscheduled chartered passenger air transportation by the Forest Service requires access to detailed procurement data over multiple fiscal years. Typically, such spending fluctuates based on seasonal needs (e.g., wildfire season), specific project requirements, and budget allocations. A review of past contracts would reveal trends in award values, contractor types, and the geographic distribution of services. For instance, spending might increase significantly during periods of high fire activity or for large-scale land management projects requiring remote access. Understanding these patterns helps in forecasting future needs and identifying potential cost-saving opportunities through better planning or by consolidating requirements.

How does the per-hour cost of this contract compare to industry benchmarks for similar air charter services?

Determining the per-hour cost benchmark for this contract requires breaking down the total award value by the estimated or actual flight hours. The total award is $827,098.71 over a maximum of 1460 days. Without knowing the total flight hours anticipated or contracted, a precise per-hour rate cannot be calculated. However, if we assume a typical operational tempo, the average annual cost is approximately $206,772. Industry benchmarks for chartered passenger air transportation vary widely based on aircraft type (e.g., helicopter vs. fixed-wing), passenger capacity, range, and specific service inclusions (e.g., crew, fuel, maintenance). General aviation charter rates can range from $1,500 to $10,000+ per flight hour. A detailed comparison would necessitate obtaining the specific flight hour commitments within the contract.

What is Helicopter Express LLC's track record with government contracts, particularly with the Forest Service or Department of Agriculture?

Assessing Helicopter Express LLC's track record involves reviewing their past performance on federal contracts, accessible through databases like SAM.gov or FPDS. A positive track record would include successful completion of previous contracts, favorable past performance reviews, and minimal contract disputes or terminations. Specifically examining their history with the Forest Service and the broader Department of Agriculture is crucial. This includes looking at the types of services previously provided, the value and duration of those contracts, and any documented performance issues or commendations. A history of reliable service and compliance with contract terms would indicate a lower risk for this current award.

What are the specific risks associated with relying on a single contractor for critical air transportation services over a four-year period?

Relying on a single contractor for critical air transportation over four years presents several risks. Firstly, there's the risk of contractor default or failure, which could stem from financial instability, operational issues, or loss of key personnel/certifications, leaving the Forest Service without essential transport. Secondly, a lack of ongoing competition during the contract term might reduce the incentive for the contractor to maintain peak efficiency or offer cost reductions, potentially leading to suboptimal value. Thirdly, unforeseen changes in operational requirements or emergencies might strain the contractor's capacity or necessitate contract modifications, which could lead to price increases or delays. Finally, dependence on one provider can limit flexibility in adapting to new technologies or evolving mission needs.

How does the Forest Service ensure the safety and compliance of chartered aircraft and crews used under this contract?

The Forest Service ensures the safety and compliance of chartered aircraft and crews through a multi-faceted approach. Primarily, all aviation operations are subject to Federal Aviation Administration (FAA) regulations, which govern aircraft airworthiness, pilot certification, and operational standards. The Forest Service itself maintains its own stringent aviation safety program, often exceeding minimum FAA requirements, especially for high-risk operations like wildland firefighting. This includes requirements for contractor qualifications, aircraft inspections, pilot experience verification, and adherence to specific operational procedures outlined in the contract. Regular performance monitoring, audits, and incident investigations are conducted to ensure ongoing compliance and safety.

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: 2025 FLIGHTWAY DR, ATLANTA, GA, 30341

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

Financial Breakdown

Contract Ceiling: $827,099

Exercised Options: $827,099

Current Obligation: $827,099

Actual Outlays: $365,656

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9316

IDV Type: IDC

Timeline