Agriculture's Forest Service leases aircraft for $5.3M, with a 729-day duration, under full and open competition

Contract Overview

Contract Amount: $5,294,430 ($5.3M)

Contractor: Tenax Aerospace LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT - TBD

Place of Performance

Location: RIDGELAND, MADISON County, MISSISSIPPI, 39157

State: Mississippi Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.3 million to TENAX AEROSPACE LLC for work described as: NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT - TBD Key points: 1. The contract value appears reasonable for specialized aircraft leasing services over a two-year period. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The fixed-price contract type shifts performance risk to the contractor, Tenax Aerospace LLC. 4. This lease supports critical aerial supervision and firefighting efforts, aligning with the Forest Service's mission. 5. The contract duration of 729 days provides a stable operational period for the leased assets. 6. The North American Industry Classification System (NAICS) code 532411 indicates a focus on commercial equipment rental.

Value Assessment

Rating: good

The contract value of $5.3 million for a 729-day aircraft lease appears within a reasonable range for specialized aviation services. Benchmarking against similar federal contracts for aerial supervision or firefighting aircraft would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary financial risk for cost overruns, 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. While the number of bidders is not specified, this procurement method generally fosters a competitive environment, which is expected to lead to more favorable pricing and terms for the government compared to limited or sole-source procurements.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings and a wider selection of qualified vendors due to the open competition, ensuring that the Forest Service secures the best possible value for its aerial supervision needs.

Public Impact

The primary beneficiaries are the US Forest Service and the public, through enhanced aerial supervision and potential wildfire suppression capabilities. The contract delivers essential aircraft leasing services crucial for monitoring and managing national forests. The geographic impact is likely nationwide, supporting the Forest Service's operations across various regions. This contract supports the aviation sector and specialized leasing companies, potentially creating or sustaining jobs within that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen maintenance issues impacting aircraft availability.
Dependence on a single contractor for critical aerial supervision assets.
Fluctuations in fuel costs could impact operational efficiency if not adequately addressed in the contract.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a robust selection process.
Contract duration allows for sustained operational support.
Experienced contractor (Tenax Aerospace LLC) likely brings specialized expertise.

Sector Analysis

This contract falls within the broader transportation equipment rental and leasing sector, specifically focusing on aviation assets. The market for specialized aerial support, including firefighting and supervision aircraft, is a niche but critical segment. Comparable spending benchmarks would involve analyzing other federal or state contracts for similar aircraft leases, considering factors like aircraft type, mission duration, and required capabilities. The total federal spending on commercial air transportation equipment rental and leasing (NAICS 532411) is substantial, with this contract representing a small portion of that overall market.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Tenax Aerospace LLC voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through federal contract databases where this award is reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Wildfire Suppression Support Contracts
Aerial Surveillance and Reconnaissance Leases
National Forest Management Programs
Department of Agriculture Aviation Services

Risk Flags

Aircraft Availability Risk
Contractor Performance Risk
Maintenance and Upkeep Responsibility
Operational Disruption Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.3 million to TENAX AEROSPACE LLC. NATIONAL AERIAL SUPERVISION MODULE (ASM) DRY LEASE AIRCRAFT - TBD

Who is the contractor on this award?

The obligated recipient is TENAX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the track record of Tenax Aerospace LLC in fulfilling federal contracts, particularly for aerial supervision or similar aviation services?

Tenax Aerospace LLC has a history of federal contract awards, primarily within aviation services. A review of public contract databases indicates previous awards for aircraft leasing and support, often related to government operations. While specific details on past performance for aerial supervision are not immediately available without deeper analysis, their presence in the federal contracting space suggests experience. Further investigation into past performance evaluations and any reported issues or successes on prior contracts would be necessary for a comprehensive assessment of their track record. This includes examining contract close-out reports and any contractor performance assessment reporting (CPARS) data available.

How does the per-day cost of this aircraft lease compare to similar federal contracts for aerial supervision or firefighting aircraft?

The total contract value is $5,294,430 over 729 days, equating to approximately $7,263 per day. Benchmarking this daily rate requires comparison with contracts for similar aircraft types (e.g., turboprops, light jets) used for comparable missions (aerial supervision, observation, light transport). Factors such as aircraft age, specific equipment (e.g., sensors, cameras), maintenance included, and geographic location of operations significantly influence pricing. Without access to a detailed database of comparable federal contracts with specific aircraft and mission parameters, a precise comparison is difficult. However, the rate appears to be within a plausible range for specialized, government-contracted aviation services, especially considering the potential for firm fixed-price arrangements which often include a premium for risk transfer.

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

Key risks include potential aircraft unavailability due to maintenance or mechanical issues, which could disrupt Forest Service operations. Another risk is the contractor's financial stability or performance issues. Mitigation strategies are embedded in the contract: the firm fixed-price structure incentivizes the contractor to manage costs and ensure performance. Contract clauses likely address availability standards, maintenance responsibilities, and remedies for non-performance. The Forest Service's oversight and monitoring of the contractor's operations are crucial for early detection and resolution of potential problems. Furthermore, the full and open competition process aims to select a capable and reliable vendor.

What is the expected effectiveness of the leased aircraft in supporting the Forest Service's mission, particularly in wildfire management?

The effectiveness hinges on the specific capabilities of the leased aircraft and their integration into the Forest Service's operational framework. Aircraft leased for aerial supervision are critical for monitoring fire behavior, identifying new ignitions, and directing ground resources. If the leased aircraft are equipped for observation, communication relay, or even light water/retardant drops (though not specified here), their effectiveness can be significantly enhanced. The 729-day duration suggests a sustained operational capability, crucial during high-risk fire seasons. The Forest Service's established protocols for utilizing such assets, coupled with trained aircrews and ground support, will ultimately determine the operational effectiveness in supporting their broader mission, including wildfire management and prevention.

How does historical spending on similar aerial supervision aircraft leases by the Forest Service compare to this contract's value?

Analyzing historical spending requires accessing detailed procurement data for the Forest Service's aviation assets. Over the past several years, federal agencies, including the Forest Service, have consistently invested significant funds in aerial resources for firefighting and land management. Spending patterns can fluctuate based on fire seasons, budget allocations, and fleet modernization efforts. Without specific historical data points for similar aircraft leases (e.g., number of contracts, average duration, average annual cost), it's challenging to provide a direct comparison. However, the Forest Service's reliance on leased aircraft for flexibility and specialized capabilities is well-documented, suggesting this $5.3 million contract is part of a larger, ongoing investment in aerial support.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1202SA23R9101

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 400 W PARKWAY PL, RIDGELAND, MS, 39157

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,842,250

Exercised Options: $5,294,430

Current Obligation: $5,294,430

Actual Outlays: $1,745,624

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9450

IDV Type: IDC

Timeline