Forest Service awards $20.3M contract for exclusive use large fire support helicopter services

Contract Overview

Contract Amount: $20,268,133 ($20.3M)

Contractor: Helicopter Transport Services, LLC

Awarding Agency: Department of Agriculture

Start Date: 2009-04-02

End Date: 2012-04-30

Contract Duration: 1,124 days

Daily Burn Rate: $18.0K/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: 2009 EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING

Place of Performance

Location: CORVALLIS, BENTON County, OREGON, 97333

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.3 million to HELICOPTER TRANSPORT SERVICES, LLC for work described as: 2009 EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING Key points: 1. Contract awarded to Helicopter Transport Services, LLC for exclusive use of large fire support helicopters. 2. The contract duration spans 1124 days, indicating a significant commitment to ongoing support. 3. Awarded under full and open competition after exclusion of sources, suggesting a deliberate procurement process. 4. The fixed-price with economic price adjustment structure aims to balance cost certainty with market fluctuations. 5. The contract's geographic focus is Oregon, aligning services with regional firefighting needs. 6. This contract represents a substantial investment in critical aerial firefighting capabilities.

Value Assessment

Rating: good

The contract value of $20.3 million over approximately three years for exclusive use of large fire support helicopters appears reasonable given the specialized nature of the services. Benchmarking against similar exclusive-use contracts for firefighting aircraft is challenging due to unique operational requirements and limited market availability. However, the fixed-price with economic price adjustment mechanism suggests an effort to control costs while accounting for potential fuel and operational expense increases. The Forest Service's reliance on such contracts underscores the critical need for dedicated aerial assets during fire seasons.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was broadly open, specific sources may have been excluded based on pre-defined criteria, possibly related to aircraft capability, safety records, or operational experience. The number of bidders is not explicitly stated, but the 'full and open' designation suggests a competitive process was intended to solicit multiple proposals, aiming for the best value. The exclusion of sources warrants further investigation to understand the rationale and its potential impact on the breadth of competition.

Taxpayer Impact: The competitive process, even with source exclusions, aims to secure the best possible pricing for taxpayers by encouraging multiple qualified vendors to bid. Transparency in the exclusion criteria is important to ensure fair competition and prevent undue advantage.

Public Impact

Provides critical aerial support for wildland firefighting operations, directly benefiting public safety and resource protection. Enhances the Forest Service's capacity to combat large-scale wildfires, mitigating damage to ecosystems and communities. The services are geographically focused on Oregon, addressing specific regional firefighting needs. Supports a specialized workforce of pilots, mechanics, and support personnel in the aviation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a 'full and open' competition could limit the pool of potential bidders and potentially impact price competitiveness.
The economic price adjustment clause introduces a degree of uncertainty regarding the final cost, depending on market fluctuations.
Reliance on a single contractor for exclusive use of large fire support helicopters creates a dependency that could be a risk if performance issues arise.

Positive Signals

The contract is awarded to a single entity for exclusive use, ensuring dedicated and readily available resources during critical fire events.
The fixed-price component provides a baseline cost certainty for a significant portion of the contract value.
The duration of the contract (1124 days) suggests a stable, long-term commitment to essential firefighting capabilities.

Sector Analysis

The contract falls within the broader aviation services sector, specifically focusing on specialized aerial support for emergency response. The market for exclusive-use, large firefighting helicopters is niche, characterized by high capital investment, stringent safety regulations, and specialized operational expertise. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of 'exclusive use' agreements, which differ from on-demand charter services. The Forest Service's spending in this area is driven by the increasing severity and frequency of wildfires, necessitating robust aerial firefighting assets.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not detailed in the provided data. Given the specialized nature of large helicopter services, it is less common for these types of prime contracts to be set aside for small businesses. However, the prime contractor may engage small businesses for support services, such as maintenance, ground support, or logistics, though this is not explicitly indicated.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Forest Service contracting officers and program managers. Performance monitoring, adherence to safety protocols, and compliance with contract terms are key oversight functions. Transparency is facilitated through contract award databases and public reporting mechanisms. The Inspector General's office of the Department of Agriculture may conduct audits or investigations into contract performance and financial management if concerns arise.

Related Government Programs

Wildland Firefighting Aircraft Services
Aviation Support Contracts
Emergency Response Services
Department of Agriculture Contracts
Forest Service Aviation Management

Risk Flags

Potential for limited competition due to source exclusion criteria.
Risk of cost escalation due to economic price adjustment clause.
Dependency on a single contractor for critical exclusive-use services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.3 million to HELICOPTER TRANSPORT SERVICES, LLC. 2009 EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING

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 $20.3 million.

What is the period of performance?

Start: 2009-04-02. End: 2012-04-30.

What is the track record of Helicopter Transport Services, LLC in providing similar large fire support helicopter services?

Assessing the track record of Helicopter Transport Services, LLC requires a deeper dive into their past performance on similar contracts. While the award of this $20.3 million contract suggests they met the Forest Service's requirements, specific details on their history with large fire support operations, safety records, on-time performance, and client satisfaction are crucial. Information from sources like the Federal Procurement Data System (FPDS) or past performance questionnaires could provide insights into their reliability and expertise in high-stakes aerial firefighting. A review of any past performance issues, corrective actions, or commendations would offer a more complete picture of their capabilities and suitability for this critical role.

How does the pricing of this contract compare to other exclusive-use large fire support helicopter contracts?

Direct comparison of pricing for exclusive-use large fire support helicopter contracts is challenging due to the niche market and variability in aircraft type, mission requirements, and contract duration. The $20.3 million award over approximately three years translates to roughly $6.77 million per year. This figure needs to be benchmarked against similar contracts awarded by agencies like the Forest Service, Bureau of Land Management, or even state and local fire agencies. Factors such as the specific helicopter model (e.g., Sikorsky S-64 Skycrane, CH-47 Chinook), required modifications, crew size, maintenance schedules, and geographic operational areas significantly influence costs. The 'fixed price with economic price adjustment' structure also adds complexity to direct comparisons, as the final cost can fluctuate.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential performance failures (e.g., aircraft mechanical issues, pilot availability), safety incidents, and cost overruns due to the economic price adjustment clause. Mitigation strategies likely involve stringent performance standards, rigorous maintenance protocols, safety management systems mandated by the contract, and potentially performance bonds. The Forest Service's oversight, including regular inspections and performance reviews, is critical. Furthermore, the 'exclusive use' nature, while ensuring availability, also concentrates risk with a single provider; therefore, contingency planning by the agency might include identifying alternative resources or backup providers, though this is difficult for specialized large assets.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for money?

The effectiveness of 'full and open competition after exclusion of sources' in ensuring value for money is nuanced. While 'full and open' aims for broad participation, the 'exclusion of sources' implies that certain potential bidders were deemed ineligible based on specific criteria. If these criteria are well-defined, objective, and directly related to essential capabilities (e.g., specific aircraft certifications, proven safety records, operational experience in similar environments), then this approach can ensure that only highly qualified vendors compete, potentially leading to better technical solutions and reliable performance. However, if the exclusion criteria are overly restrictive or subjective, they could inadvertently limit competition, potentially leading to higher prices or fewer innovative solutions. The value for money is ultimately realized if the selected contractor provides superior performance at a competitive price within the qualified pool.

What is the historical spending pattern for large fire support helicopter services by the Forest Service?

Analyzing historical spending patterns for large fire support helicopter services by the Forest Service is essential for context. This involves examining annual expenditures on similar contracts over the past 5-10 years. Key trends to look for include fluctuations in spending related to fire seasons severity, changes in contract types (e.g., exclusive use vs. call-when-needed), average contract values, and the number of contracts awarded. Understanding this history helps determine if the current $20.3 million award is consistent with past investments, represents an increase or decrease, and whether spending has escalated due to factors like climate change, increased fire activity, or inflation. Data from FPDS or agency budget reports would be necessary for this analysis.

What are the implications of the 'fixed price with economic price adjustment' (FPEPA) contract type for cost control?

The Fixed Price with Economic Price Adjustment (FPEPA) contract type aims to strike a balance between cost certainty and flexibility. The 'fixed price' component provides a baseline cost for the services, offering predictability for the government. However, the 'economic price adjustment' clause allows for modifications to the price based on specified economic factors, most commonly fuel costs or labor indices. This is particularly relevant for aviation contracts where fuel is a significant expense and subject to market volatility. While FPEPA can protect the contractor from unforeseen economic downturns and ensure service availability by maintaining contractor viability, it also introduces a degree of uncertainty for the government regarding the final contract cost. Effective implementation requires clearly defined adjustment formulas and regular monitoring of the economic indicators to ensure fairness and prevent excessive price increases.

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-09-9007

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, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,268,133

Exercised Options: $20,268,133

Current Obligation: $20,268,133

Timeline