Interior Department awards $1.5M contract for Alaskan helicopter services to TEMSCO Helicopters Inc

Contract Overview

Contract Amount: $1,519,111 ($1.5M)

Contractor: Temsco Helicopters Inc

Awarding Agency: Department of the Interior

Start Date: 2025-05-06

End Date: 2025-10-15

Contract Duration: 162 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: AK EU HELO FIRE T2 TANANA

Place of Performance

Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $1.5 million to TEMSCO HELICOPTERS INC for work described as: AK EU HELO FIRE T2 TANANA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration is approximately 5.4 months, indicating a short-term operational need. 3. Fixed Price with Economic Price Adjustment indicates potential for cost fluctuations based on market conditions. 4. The North American Industry Classification System (NAICS) code 481211 points to specialized air transportation services. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a pre-competed agreement. 6. The awardee, TEMSCO Helicopters Inc., is based in Alaska, suggesting local expertise for regional operations.

Value Assessment

Rating: good

The contract value of $1.5 million for approximately 5.4 months of helicopter services appears reasonable given the specialized nature of the work in a remote location like Alaska. Benchmarking against similar contracts for nonscheduled chartered passenger air transportation in remote or challenging environments would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment structure allows for some flexibility in managing operational costs, which can be beneficial for services in areas with volatile fuel prices or other economic factors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates a robust competitive process. While the specific number of bidders is not provided, this method generally aims to maximize competition. The exclusion of sources clause might suggest specific technical or logistical requirements that narrowed the pool of eligible bidders, but the 'full and open' aspect implies a broad solicitation.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging multiple qualified vendors to submit bids.

Public Impact

This contract directly supports the Department of the Interior's operational needs in Alaska. It provides essential nonscheduled chartered passenger air transportation services. The services are critical for accessing remote areas within Alaska for various departmental missions. The contract likely supports federal land management, resource assessment, or emergency response activities in the state. It may indirectly support the local Alaskan economy through TEMSCO Helicopters' operations and employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to the 'Economic Price Adjustment' clause, which could impact the final expenditure beyond the initial $1.5M.
The short duration of the contract (approx. 5.4 months) may necessitate a new competitive process soon, leading to potential administrative overhead.
Limited information on the specific performance metrics and service level agreements makes it difficult to fully assess operational effectiveness.
The 'exclusion of sources' aspect, while part of a full and open competition, warrants understanding the specific criteria that may have limited the bidder pool.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contractor, TEMSCO Helicopters Inc., is based in Alaska, suggesting familiarity with the operational environment and potential for rapid response.
The contract is a delivery order, which can streamline the acquisition process for recurring needs.
The fixed-price nature of the contract, even with an adjustment clause, provides a baseline cost control mechanism.

Sector Analysis

The aviation services sector, particularly nonscheduled chartered passenger air transportation (NAICS 481211), is crucial for supporting operations in geographically challenging regions like Alaska. This contract fits within the broader federal spending on transportation and logistics to enable agency missions in remote areas. Comparable spending benchmarks would typically involve analyzing other contracts for similar helicopter services provided to federal agencies in Alaska or other remote, high-cost operational environments.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting requirements for small businesses. Given the specialized nature of helicopter services and the potential need for significant operational capacity, it is possible that larger, established firms like TEMSCO Helicopters Inc. are more likely to win such contracts. Further analysis would be needed to determine if small business participation was encouraged or mandated through subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and program managers. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and delivery schedules. Transparency is facilitated by the public nature of contract awards, though detailed operational oversight specifics are usually internal. The Inspector General's office for the Department of the Interior would have jurisdiction for investigating any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of the Interior Aviation Management
Federal Aviation Administration (FAA) Regulations
Alaska Native Corporation Contracts
Remote Operations Support Contracts

Risk Flags

Potential for cost overruns due to Economic Price Adjustment clause.
Limited transparency on specific performance metrics and evaluation criteria.
Need to verify contractor's past performance and safety record in similar operational contexts.
Understanding the specific rationale behind 'exclusion of sources' is important for full competition assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $1.5 million to TEMSCO HELICOPTERS INC. AK EU HELO FIRE T2 TANANA

Who is the contractor on this award?

The obligated recipient is TEMSCO HELICOPTERS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.5 million.

What is the period of performance?

Start: 2025-05-06. End: 2025-10-15.

What specific operational requirements led to the 'exclusion of sources' clause within this full and open competition?

The 'exclusion of sources' clause within a 'full and open competition' framework suggests that while the solicitation was broadly advertised, certain specific criteria were established that only a subset of potential offerors could meet. For nonscheduled chartered passenger air transportation in Alaska, these criteria could relate to specific aircraft certifications (e.g., for operating in extreme weather, carrying specialized equipment), demonstrated experience in particular remote regions or with specific mission types (e.g., search and rescue, geological surveys), required safety records, or the availability of specialized support infrastructure in Alaska. Understanding these precise requirements is crucial to assessing whether the competition was truly as broad as 'full and open' implies or if it was effectively narrowed by stringent, albeit justifiable, prerequisites.

How does the $1.5 million award value compare to similar helicopter service contracts in Alaska?

Benchmarking the $1.5 million award value requires comparing it against contracts for similar nonscheduled chartered passenger air transportation services in Alaska. Key comparison factors include the type of helicopter(s) used, the duration of service, the specific operational areas within Alaska, the types of missions performed (e.g., passenger transport, cargo, specialized surveys), and the inclusion of services like maintenance, fuel, and pilot support. Without access to a database of comparable contracts, it's challenging to provide a precise benchmark. However, given Alaska's vastness, challenging terrain, and high operational costs (fuel, logistics, specialized personnel), $1.5 million for approximately 5.4 months of service could be considered within a reasonable range, especially if it involves demanding missions or remote access.

What are the potential risks associated with the 'Economic Price Adjustment' (EPA) clause in this contract?

The 'Economic Price Adjustment' (EPA) clause introduces a risk of cost escalation beyond the initially awarded $1.5 million. This clause typically allows for adjustments to the contract price based on fluctuations in specific economic factors, most commonly fuel costs, but potentially also labor rates or material prices. The primary risk for the government is that these adjustments could lead to a higher total expenditure than initially budgeted, especially if market conditions drive up the specified economic indicators significantly during the contract period. The contractor benefits from protection against unforeseen cost increases, while the government assumes the risk of paying more. The magnitude of this risk depends on the specific indices used for adjustment and the volatility of those indices.

What is TEMSCO Helicopters Inc.'s track record with federal contracts, particularly with the Department of the Interior?

TEMSCO Helicopters Inc. has a history of contracting with federal agencies, including the Department of the Interior, for aviation services in Alaska. Their track record typically involves providing helicopter support for various missions such as resource management, scientific research, infrastructure support, and emergency services. Analyzing their past performance ratings, any past performance issues or disputes, and the volume and type of previous federal contracts would provide insight into their reliability and capability. A review of federal procurement data (e.g., FPDS) would reveal the extent of their federal engagement and success rates. Generally, companies that consistently win contracts in challenging environments like Alaska demonstrate a capacity to meet stringent federal requirements.

How does this contract align with the Department of the Interior's broader strategic goals for its Alaskan operations?

This contract directly supports the Department of the Interior's strategic goals by providing essential transportation capabilities for managing federal lands and resources in Alaska. The DOI oversees vast areas encompassing national parks, wildlife refuges, and other public lands, requiring robust logistical support for scientific research, land management activities, visitor services, and law enforcement. Nonscheduled helicopter services are often indispensable for accessing remote field sites, conducting aerial surveys, transporting personnel and equipment, and responding to emergencies in a state where ground transportation is often impractical or impossible. Therefore, this contract is a critical enabler for the DOI's mission effectiveness in Alaska.

What are the potential implications for workforce and local employment in Alaska due to this contract?

This contract is likely to have positive implications for the local workforce and economy in Alaska. TEMSCO Helicopters Inc., being an Alaskan-based company, will likely utilize its existing local workforce, including pilots, mechanics, and support staff. The contract may also necessitate the hiring of additional personnel or the utilization of local services for logistics, fuel, and maintenance, further stimulating local employment. The demand for specialized aviation services in remote regions often supports a skilled labor pool, contributing to the economic stability of communities reliant on such industries. The duration and scope of the contract will influence the extent of this impact.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT 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: 5411 N TONGASS HWY, KETCHIKAN, AK, 99901

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

Financial Breakdown

Contract Ceiling: $1,519,111

Exercised Options: $1,519,111

Current Obligation: $1,519,111

Actual Outlays: $936,392

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0423D0072

IDV Type: IDC

Timeline