USDA Forest Service awards $15.1M for helicopter services to Swanson Group Aviation

Contract Overview

Contract Amount: $15,091,378 ($15.1M)

Contractor: Swanson Group Aviation, LLC

Awarding Agency: Department of Agriculture

Start Date: 2005-07-01

End Date: 2008-04-30

Contract Duration: 1,034 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 81

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CWN TYPE L HELICOPTER SERVICES

Place of Performance

Location: GRANTS PASS, JOSEPHINE County, OREGON, 97526

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $15.1 million to SWANSON GROUP AVIATION, LLC for work described as: CWN TYPE L HELICOPTER SERVICES Key points: 1. Contract awarded for nonscheduled chartered freight air transportation. 2. Swanson Group Aviation, LLC is the sole awardee. 3. The contract spans nearly three years. 4. Fixed Price with Economic Price Adjustment contract type. 5. The base value is $14.6M with a potential ceiling of $15.1M.

Value Assessment

Rating: good

The contract's base value of $14.6M and potential value of $15.1M appear reasonable for specialized aviation services over a 3-year period. Benchmarking against similar large-scale aerial support contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential aerial services.

Public Impact

Supports critical wildfire suppression and other aerial support missions. Ensures availability of specialized aircraft for remote operations. Provides essential services for national forest management and safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost increases.
Contract duration may not align with long-term strategic needs.

Positive Signals

Awarded under full and open competition.
Clear statement of work for essential services.
Experienced contractor likely provides reliable service.

Sector Analysis

This contract falls under the 'Other' sector, specifically specialized aviation services. Spending on aerial support for agencies like the Forest Service is crucial for operational effectiveness, particularly during peak seasons.

Small Business Impact

The data does not indicate if small businesses were involved in the subcontracting or bidding process. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Forest Service, indicating agency oversight. The fixed-price nature with EPA suggests some level of financial risk management.

Related Government Programs

Nonscheduled Chartered Freight Air Transportation
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Potential for cost overruns due to EPA.
Dependence on a single contractor for critical services.
Limited visibility into small business participation.
Contract duration might require future re-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $15.1 million to SWANSON GROUP AVIATION, LLC. CWN TYPE L HELICOPTER SERVICES

Who is the contractor on this award?

The obligated recipient is SWANSON GROUP AVIATION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2005-07-01. End: 2008-04-30.

What is the typical cost per flight hour for similar helicopter services in this region?

Benchmarking the per-unit cost against similar contracts for nonscheduled chartered freight air transportation, particularly for heavy-lift helicopters used in firefighting or remote access, is crucial. Without specific data on flight hours, operational complexity, and regional market rates, a precise per-unit cost comparison is difficult. However, the total contract value suggests a significant operational tempo and specialized capability.

What are the specific risks associated with the economic price adjustment (EPA) clause in this contract?

The primary risk of an EPA clause is potential cost escalation for the government if fuel prices, labor costs, or other specified economic factors rise significantly during the contract period. This can lead to the final cost exceeding initial projections, impacting budget certainty. Careful monitoring and clear triggers for adjustment are essential to mitigate this risk.

How effectively does this contract support the Forest Service's mission during critical periods like wildfire season?

This contract is vital for ensuring the Forest Service has the necessary aerial resources for critical missions, including wildfire suppression, search and rescue, and logistical support in remote areas. The award to a single provider under full and open competition suggests a focus on securing reliable and capable services. Its effectiveness hinges on the contractor's performance and the alignment of aircraft availability with demand.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFP 49-05-08

Offers Received: 81

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

Evaluated Preference: NONE

Contractor Details

Parent Company: Swanson Group, Inc. (UEI: 009023474)

Address: 2794 FOOTHILL BLVD, GRANTS PASS, OR, 02

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $15,091,378

Exercised Options: $15,091,378

Current Obligation: $15,091,378

Timeline