USDA Forest Service awards $11.17M contract for firefighting helicopters, highlighting fixed-price with economic adjustment

Contract Overview

Contract Amount: $11,172,206 ($11.2M)

Contractor: Columbia Helicopters, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2005-07-01

End Date: 2008-04-30

Contract Duration: 1,034 days

Daily Burn Rate: $10.8K/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 FOR WILD LAND FIRES

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97208

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $11.2 million to COLUMBIA HELICOPTERS, INC. for work described as: CWN TYPE L HELICOPTER FOR WILD LAND FIRES Key points: 1. Contract awarded to Columbia Helicopters, Inc. for specialized aerial firefighting services. 2. Fixed-price contract with economic price adjustment introduces potential cost volatility. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is over 3 years, indicating a significant operational need.

Value Assessment

Rating: fair

The contract's fixed-price with economic price adjustment (FPEPA) structure can lead to costs exceeding initial estimates, especially with fluctuating fuel prices. Benchmarking against similar aerial firefighting contracts is difficult without detailed performance metrics and specific service levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the FPEPA clause may obscure the true final cost discovery during the bidding process.

Taxpayer Impact: Taxpayer funds are utilized for critical wildfire suppression. The FPEPA clause introduces risk of cost overruns, potentially increasing the overall taxpayer burden beyond initial projections.

Public Impact

Ensures critical aerial support for wildfire suppression efforts across the nation. Supports the Forest Service's mission to protect natural resources and communities. The economic price adjustment clause could lead to higher costs for taxpayers if fuel prices or other economic factors rise significantly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment introduces cost uncertainty.
Contract duration is substantial, increasing exposure to market fluctuations.
No small business participation noted.

Positive Signals

Full and open competition utilized.
Addresses a critical national need for wildfire suppression.
Contract awarded to a known provider in the industry.

Sector Analysis

This contract falls under the 'Nonscheduled Chartered Freight Air Transportation' category, specifically for aerial firefighting. Spending in this sector is highly seasonal and dependent on environmental conditions, with significant federal investment required during peak fire seasons.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). This suggests that the specialized nature of the services or the contract size may have limited small business participation.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Forest Service. Oversight would typically involve contract performance monitoring, adherence to safety regulations, and financial accountability to ensure effective use of taxpayer funds for wildfire suppression.

Related Government Programs

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

Risk Flags

Economic Price Adjustment Clause
Lack of Small Business Participation
Potential for Cost Overruns
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $11.2 million to COLUMBIA HELICOPTERS, INC.. CWN TYPE L HELICOPTER FOR WILD LAND FIRES

Who is the contractor on this award?

The obligated recipient is COLUMBIA HELICOPTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

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

What is the typical cost range for similar CWN TYPE L HELICOPTER services for wildland fires, and how does this contract's price compare?

Benchmarking this contract's price is challenging without specific performance details and comparable contract data. However, the $11.17 million award for a 3-year contract suggests a significant investment. Similar contracts for specialized aerial firefighting can range widely based on helicopter type, duration, services provided (e.g., water drops, personnel transport), and geographic location. A detailed analysis would require comparing unit costs (e.g., per flight hour, per mission) against industry standards and other government contracts for comparable services.

What are the primary risks associated with the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' contract type for aerial firefighting?

The primary risk of a Fixed Price with Economic Price Adjustment (FPEPA) contract for aerial firefighting is cost escalation. While the base price is fixed, the economic price adjustment allows for increases based on predefined economic factors, most notably fuel costs. This can lead to higher-than-anticipated expenditures for the government if these factors rise significantly during the contract period, potentially impacting the overall budget for wildfire suppression.

How effective is 'FULL AND OPEN COMPETITION' in ensuring the best value for aerial firefighting services, considering the specialized nature of the equipment?

Full and open competition is generally effective in driving down prices and ensuring a broad range of qualified vendors can bid. For specialized services like aerial firefighting, it allows agencies to solicit bids from all capable companies, potentially leading to innovation and better pricing. However, the effectiveness is contingent on the market's competitiveness and the clarity of the solicitation's requirements. If only a few companies possess the necessary specialized helicopters and certifications, the competition might be limited in practice, even if the solicitation is open.

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

Address: 14452 ARNDT RD NE, AURORA, OR, 05

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,172,206

Exercised Options: $11,172,206

Current Obligation: $11,172,206

Timeline