USDA Forest Service Awards $51.6M for Exclusive Helicopter Use in Wildland Firefighting

Contract Overview

Contract Amount: $51,627,340 ($51.6M)

Contractor: Columbia Helicopters, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2008-06-06

End Date: 2012-10-27

Contract Duration: 1,604 days

Daily Burn Rate: $32.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 32

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES

Place of Performance

Location: AURORA, MARION County, OREGON, 97002

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $51.6 million to COLUMBIA HELICOPTERS, INC. for work described as: EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES Key points: 1. Significant investment in specialized aerial firefighting assets. 2. Columbia Helicopters, Inc. secured the contract. 3. Contract duration spans over 4 years, indicating long-term need. 4. Fixed-price contract with economic adjustments suggests potential for cost fluctuations.

Value Assessment

Rating: fair

The award amount of $51.6M over 4 years for exclusive use helicopters is substantial. Benchmarking against similar exclusive-use contracts for specialized aircraft would be necessary to fully assess value, as pricing can vary significantly based on aircraft type, capabilities, and service duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may impact price discovery, potentially leading to higher costs compared to a truly open and unrestricted competition.

Taxpayer Impact: Taxpayer funds are allocated for critical wildfire suppression services. The limited competition aspect warrants scrutiny to ensure the price paid reflects fair market value.

Public Impact

Ensures critical aerial support for combating wildland fires, protecting lives and property. Supports a specialized industry and workforce dedicated to aerial firefighting. Potential for increased costs due to limited competition could impact overall budget efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Economic price adjustment clause introduces cost uncertainty.
Exclusive use limits flexibility and potential for shared resources.

Positive Signals

Secures essential capability for national wildfire response.
Long-term contract provides stability for service provider and agency.
Focus on specialized, high-demand aerial assets.

Sector Analysis

This contract falls within the aviation services sector, specifically focusing on specialized aerial firefighting. Spending benchmarks for exclusive-use helicopters in this niche can be highly variable, depending on the specific aircraft model, its modifications, and the required operational tempo.

Small Business Impact

The data indicates the contract was awarded to Columbia Helicopters, Inc., a large business. There is no explicit indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

The contract's 'limited' competition status suggests a need for robust oversight to ensure fair pricing and performance. The Forest Service must monitor the economic price adjustment clauses and the overall effectiveness of the contracted services.

Related Government Programs

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

Risk Flags

Potential for inflated costs due to limited competition.
Economic price adjustment introduces budget uncertainty.
Lack of transparency regarding the 'exclusion of sources' justification.
Contract awarded to a large business, with no clear small business set-aside.
High dollar value contract requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $51.6 million to COLUMBIA HELICOPTERS, INC.. EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES

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 $51.6 million.

What is the period of performance?

Start: 2008-06-06. End: 2012-10-27.

What is the typical cost per flight hour or operational day for similar exclusive-use helicopters in wildland firefighting to benchmark this contract's value?

Benchmarking requires detailed comparison of aircraft type, age, capabilities (e.g., water/retardant capacity, speed, range), operational tempo, and contract terms (e.g., availability guarantees, maintenance responsibilities). Industry reports or government databases on aviation contracts could provide comparative data, but specific figures for exclusive-use, mission-specific helicopters are often proprietary or require specialized analysis.

How was the 'exclusion of sources' justified to ensure fair pricing despite limiting competition?

Justification for excluding sources typically involves demonstrating that only specific sources possess the unique capabilities, equipment, or certifications required for the specialized service, or that a previous limited competition yielded satisfactory results and extending it is more efficient. The agency must document why a broader competition was not feasible or advantageous, ensuring the chosen method still promotes best value and reasonable pricing.

What are the performance metrics and oversight mechanisms in place to ensure the effectiveness of these helicopters in wildland fire suppression?

Effectiveness is likely measured by availability rates, response times, successful mission completion (e.g., retardant drops), and adherence to safety protocols. Oversight would involve regular performance reviews, flight monitoring, incident reporting, and potentially independent evaluations by aviation safety experts to ensure the contractor meets all contractual obligations and operational requirements.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AG-024B-S-08-9003

Offers Received: 32

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, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $51,627,340

Exercised Options: $51,627,340

Current Obligation: $51,627,340

Timeline