Interior Department awards $10M+ for aerial firefighting, with Western Pilot Service Inc. securing a fixed-price contract

Contract Overview

Contract Amount: $10,014,357 ($10.0M)

Contractor: Western Pilot Service Inc

Awarding Agency: Department of the Interior

Start Date: 2024-04-30

End Date: 2026-04-30

Contract Duration: 730 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: SINGLE ENGINE AIR TANKER (SEAT) EXCLUSIVE FLIGHT SERVICES - SAFFORD AND SILVER CITY ARIZONA

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85007

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $10.0 million to WESTERN PILOT SERVICE INC for work described as: SINGLE ENGINE AIR TANKER (SEAT) EXCLUSIVE FLIGHT SERVICES - SAFFORD AND SILVER CITY ARIZONA Key points: 1. Contract value exceeds $10 million, indicating significant investment in aerial firefighting capabilities. 2. The contract is a delivery order under a larger contract, suggesting a phased approach to service acquisition. 3. Fixed-price with economic price adjustment indicates potential for cost fluctuations based on market conditions. 4. The contract duration of two years provides a stable period for service provision. 5. Awarded to Western Pilot Service Inc., highlighting a specific provider for critical wildfire suppression. 6. The service area covers Arizona, a state prone to significant wildfire activity.

Value Assessment

Rating: good

The contract value of over $10 million for two years of exclusive flight services appears reasonable for specialized aerial firefighting. Benchmarking against similar contracts for Single Engine Air Tankers (SEAT) would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment structure allows for some cost flexibility, which can be beneficial in volatile operational environments, but also introduces potential for cost increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific circumstances led to the exclusion of certain potential bidders. The exact reasons for this exclusion are not detailed, but it suggests a potentially narrower field of competition than a truly full and open process. Further investigation into the exclusion criteria would be necessary to fully understand the competitive landscape.

Taxpayer Impact: A limited competition may result in less aggressive pricing for taxpayers compared to a fully open process with numerous bidders vying for the contract.

Public Impact

Provides critical aerial firefighting support to protect communities and natural resources in Arizona. Enhances the Department of the Interior's capacity to respond to wildfires. Supports the operational readiness of firefighting agencies in the Safford and Silver City regions. Contributes to the safety of firefighters on the ground by providing air support. Helps mitigate economic losses associated with wildfire damage to property and infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause.
Limited competition may not yield the most cost-effective solution for taxpayers.
Dependence on a single provider for exclusive flight services in a critical region.

Positive Signals

Secures essential aerial firefighting resources for a high-risk area.
Provides a stable two-year service period for consistent support.
Awarded to a known entity, potentially indicating established operational capabilities.

Sector Analysis

The aerial firefighting sector is a critical component of national defense against wildfires, particularly in regions like Arizona. This contract for Single Engine Air Tankers (SEAT) falls within the broader aerospace and defense services market. Spending in this area is often driven by seasonal needs and the increasing severity of wildfire seasons. Comparable spending benchmarks would typically involve analyzing the cost per flight hour or per mission for similar SEAT contracts across different federal agencies.

Small Business Impact

The data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is likely minimal unless Western Pilot Service Inc. utilizes small businesses in its supply chain or subcontracting efforts, which is not explicitly stated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting and program management offices. Accountability measures are inherent in the fixed-price structure, which incentivizes the contractor to perform within agreed-upon terms. Transparency is facilitated through contract award databases, though specific performance metrics and detailed operational oversight might not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Wildfire Suppression Services
Aerial Firefighting Contracts
Department of the Interior Aviation Management
Forestry Support Services

Risk Flags

Limited competition may impact price discovery.
Economic price adjustment introduces cost uncertainty.
Dependence on a single provider for exclusive services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10.0 million to WESTERN PILOT SERVICE INC. SINGLE ENGINE AIR TANKER (SEAT) EXCLUSIVE FLIGHT SERVICES - SAFFORD AND SILVER CITY ARIZONA

Who is the contractor on this award?

The obligated recipient is WESTERN PILOT SERVICE INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2024-04-30. End: 2026-04-30.

What is the historical performance record of Western Pilot Service Inc. with federal contracts, particularly in aerial firefighting?

A review of federal contract databases would be necessary to ascertain Western Pilot Service Inc.'s historical performance. This would involve examining past awards, contract durations, any reported issues such as performance deficiencies, contract modifications, or disputes. Understanding their track record with similar aerial firefighting services, especially SEAT operations, would provide insight into their reliability and capability to fulfill the current contract's requirements. A history of successful contract completion and positive performance reviews would increase confidence in their ability to deliver effective services.

How does the awarded price compare to market rates for similar SEAT exclusive flight services?

To benchmark the value, one would need to compare the contract's total value and implied hourly or daily rates against publicly available data for similar Single Engine Air Tanker (SEAT) exclusive flight services. This comparison should account for factors such as contract duration, geographic location (which can influence operational costs), and the specific capabilities of the aircraft. If data from other federal agencies or state contracts for comparable services is available, it can provide a robust benchmark. A higher-than-average cost per operational hour or per mission could indicate potential overpricing or unique service requirements justifying the cost.

What are the specific risks associated with relying on a single provider for exclusive flight services in this region?

The primary risk of relying on a single provider for exclusive flight services is the potential for service disruption. If Western Pilot Service Inc. experiences mechanical issues with their aircraft, pilot shortages, or other operational challenges, there may be no immediate alternative provider available, leaving the region vulnerable during critical wildfire periods. This exclusivity also reduces the government's leverage in price negotiations over time. Furthermore, dependence on one contractor can create a bottleneck if demand for services surges unexpectedly, potentially leading to delays in response or increased costs if emergency measures are required.

What are the key performance indicators (KPIs) used to measure the effectiveness of these aerial firefighting services?

Key performance indicators for aerial firefighting services typically include response time to incidents, sortie completion rates, accuracy of retardant drops, aircraft availability and readiness, and adherence to safety protocols. For this specific contract, the Department of the Interior likely has established metrics to evaluate Western Pilot Service Inc.'s performance. These might involve tracking the number of missions flown, the duration of flights, the volume of retardant deployed, and the successful containment or suppression of fires attributed to the air support. Regular performance reviews and operational reports would be used to assess compliance with these KPIs.

What has been the historical spending trend for SEAT exclusive flight services by the Department of the Interior in Arizona?

Analyzing historical spending data for SEAT exclusive flight services by the Department of the Interior, specifically in Arizona, would reveal trends in demand and investment. This would involve examining contract awards over several fiscal years to identify fluctuations in contract values, durations, and the number of providers utilized. Understanding these patterns can help assess whether the current $10 million+ award represents an increase, decrease, or stable level of spending compared to previous years. Such analysis can also highlight any shifts in contracting strategies or the perceived criticality of these services in the region.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Support Activities for Forestry › Support Activities for Forestry

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 2803 N 7TH AVE STE 14, PHOENIX, AZ, 85007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,486,687

Exercised Options: $10,014,357

Current Obligation: $10,014,357

Actual Outlays: $10,014,357

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0424D0068

IDV Type: IDC

Timeline