Forest Service Spends $78.8M on Exclusive Helicopter Use for Wildland Firefighting

Contract Overview

Contract Amount: $78,802,256 ($78.8M)

Contractor: Helicopter Transport Services, LLC

Awarding Agency: Department of Agriculture

Start Date: 2008-06-16

End Date: 2012-04-30

Contract Duration: 1,414 days

Daily Burn Rate: $55.7K/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: CORVALLIS, BENTON County, OREGON, 97333

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $78.8 million to HELICOPTER TRANSPORT SERVICES, LLC for work described as: EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES Key points: 1. High cost for exclusive use of a critical asset. 2. Limited competition noted, potentially impacting price discovery. 3. Significant taxpayer investment in specialized aerial firefighting. 4. Sector relies heavily on such assets during peak seasons.

Value Assessment

Rating: questionable

The contract value of $78.8M over its period is substantial. Benchmarking against similar exclusive-use helicopter contracts for firefighting is difficult without more data, but the price appears high for a single asset, even a specialized one.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This approach may have restricted the pool of potential bidders and influenced the final pricing.

Taxpayer Impact: Taxpayers bear the cost of this exclusive-use contract, which may not represent the most cost-effective solution compared to broader, more competitive procurement methods for aerial firefighting resources.

Public Impact

Ensures dedicated aerial support for critical wildland fire suppression efforts. High cost may limit funding for other firefighting resources or prevention programs. Availability of specialized aircraft is crucial for effective response and public safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost for exclusive use
Limited competition
Fixed Price with Economic Price Adjustment

Positive Signals

Dedicated asset for critical service
Long-term contract provides stability

Sector Analysis

The wildland firefighting sector relies on specialized aviation assets. Spending benchmarks for exclusive-use helicopters are not readily available, but this contract represents a significant investment in a single, high-demand resource.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). The specialized nature of exclusive-use helicopters likely favors larger, established aviation providers.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Forest Service. Oversight would focus on performance, maintenance, and adherence to terms, especially given the fixed-price with economic adjustment structure.

Related Government Programs

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

Risk Flags

High contract value
Limited competition
Economic price adjustment clause
Exclusive use of asset
Potential for underutilization

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $78.8 million to HELICOPTER TRANSPORT SERVICES, LLC. EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES

Who is the contractor on this award?

The obligated recipient is HELICOPTER TRANSPORT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $78.8 million.

What is the period of performance?

Start: 2008-06-16. End: 2012-04-30.

Could alternative procurement strategies have yielded better value for exclusive-use helicopter services?

Exploring options like longer-term, multi-award indefinite-delivery/indefinite-quantity (IDIQ) contracts or regional shared-asset models might have fostered more competition and potentially lower prices. Analyzing the specific reasons for excluding sources is crucial to understanding if the limited competition was justified or a missed opportunity for cost savings.

What are the risks associated with a fixed-price contract with economic price adjustment for specialized aviation?

This contract type exposes the government to potential cost increases due to fluctuating economic factors like fuel prices or labor costs. While it provides some stability for the contractor, it shifts some financial risk to the government, potentially increasing the overall expenditure beyond initial projections.

How effective is exclusive use of a helicopter compared to on-demand or shared services for wildland firefighting?

Exclusive use guarantees immediate availability, which is critical during high-risk fire seasons. However, it comes at a premium cost. Effectiveness must be weighed against the utilization rate; if the helicopter is frequently idle, on-demand or shared services might offer better value, provided response times remain acceptable.

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: 2711 CENTERVILLE RD STE 400, WILMINGTON, DE, 00

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

Financial Breakdown

Contract Ceiling: $78,802,256

Exercised Options: $78,802,256

Current Obligation: $78,802,256

Timeline