USDA Forest Service awards $15.6M for exclusive helicopter use to Brainerd Helicopters, Inc
Contract Overview
Contract Amount: $15,635,205 ($15.6M)
Contractor: Brainerd 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: $9.7K/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: Transportation
Official Description: ECLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES
Place of Performance
Location: LEESBURG, LAKE County, FLORIDA, 34788
State: Florida Government Spending
Plain-Language Summary
Department of Agriculture obligated $15.6 million to BRAINERD HELICOPTERS, INC for work described as: ECLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES Key points: 1. High cost for exclusive use of a single vendor. 2. Limited competition due to 'exclusion of sources' clause. 3. Potential for price escalation with economic price adjustment. 4. Sector: Transportation (Air Charter).
Value Assessment
Rating: questionable
The contract's fixed price with economic price adjustment suggests potential for cost increases over its duration. Benchmarking is difficult without specific performance metrics or comparable exclusive-use contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a non-standard procurement. This likely limited the pool of potential bidders, potentially impacting price discovery and overall value.
Taxpayer Impact: Taxpayers may have paid a premium due to the restricted competition and exclusive-use nature of the contract.
Public Impact
Exclusive use of critical firefighting assets can ensure availability but at a higher cost. The contract duration and potential for price adjustments warrant scrutiny. Lack of broad competition raises questions about cost-effectiveness for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusive use limits vendor options.
- Economic price adjustment clause.
- Limited competition after source exclusion.
Positive Signals
- Ensures dedicated resource for critical service.
Sector Analysis
This contract falls under air charter services, a niche within the broader transportation sector. Spending benchmarks for exclusive-use, long-term air charter contracts are highly variable and depend on asset type and service level.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. The nature of exclusive-use, high-value contracts often favors larger, specialized firms.
Oversight & Accountability
The 'exclusion of sources' clause suggests a specific justification was required and should be documented. Oversight would focus on ensuring the necessity of this exclusivity and monitoring the economic price adjustment.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Agriculture Contracting
- Forest Service Programs
Risk Flags
- High contract value for exclusive use.
- Limited competition methodology.
- Economic price adjustment clause.
- Long contract duration (over 4 years).
- Potential for price escalation.
Tags
nonscheduled-chartered-freight-air-trans, department-of-agriculture, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $15.6 million to BRAINERD HELICOPTERS, INC. ECLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES
Who is the contractor on this award?
The obligated recipient is BRAINERD HELICOPTERS, INC.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Forest Service).
What is the total obligated amount?
The obligated amount is $15.6 million.
What is the period of performance?
Start: 2008-06-06. End: 2012-10-27.
Was the exclusive use of this specific helicopter truly necessary for effective wildland fire services, or could a broader competition for on-demand services have yielded better value?
The necessity of exclusive use is a key question. While it guarantees availability, it significantly restricts competition and likely increases costs. A thorough analysis would compare the guaranteed availability cost against the potential cost of a competitive, on-demand charter system, considering response times and overall resource utilization.
What specific factors justified excluding other potential sources for this critical air transportation service?
Justification for excluding other sources typically involves unique capabilities, specialized equipment, or urgent needs that only a specific vendor can meet. For this contract, the justification would need to demonstrate why Brainerd Helicopters, Inc. was the sole viable option, potentially related to specific aircraft modifications, existing operational integration, or geographic positioning critical for fire response.
How did the economic price adjustment clause impact the final cost to taxpayers compared to a fixed-price contract?
The economic price adjustment (EPA) clause allows for price changes based on specified economic factors, such as fuel costs or labor rates. This can protect the contractor from unforeseen cost increases but exposes the government to potential price hikes. The actual impact depends on the specific EPA formula and the fluctuation of the indexed costs over the contract's duration.
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: 8850 AIRPORT BLVD, LEESBURG, FL, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $15,635,205
Exercised Options: $15,635,205
Current Obligation: $15,635,205
Timeline
Start Date: 2008-06-06
Current End Date: 2012-10-27
Potential End Date: 2012-10-27 00:00:00
Last Modified: 2012-12-03
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