Agriculture's $44.6M aerial supervision contract awarded to Tenax Aerial Fire Support, LLC

Contract Overview

Contract Amount: $44,574,099 ($44.6M)

Contractor: Tenax Aerial Fire Support, LLC

Awarding Agency: Department of Agriculture

Start Date: 2011-12-13

End Date: 2015-06-30

Contract Duration: 1,295 days

Daily Burn Rate: $34.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AERIAL SUPERVISION MODULE (ASM)

Place of Performance

Location: RIDGELAND, MADISON County, MISSISSIPPI, 39157, UNITED STATES OF AMERICA

State: Mississippi Government Spending

Plain-Language Summary

Department of Agriculture obligated $44.6 million to TENAX AERIAL FIRE SUPPORT, LLC for work described as: AERIAL SUPERVISION MODULE (ASM) Key points: 1. Contract value represents a significant investment in aerial fire support capabilities. 2. Awarded via full and open competition, suggesting a robust market for these services. 3. The contract duration of 1295 days indicates a long-term need for aerial supervision. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The specific NAICS code (532411) points to a specialized equipment rental market. 6. The contract's geographic scope is focused on Mississippi, as indicated by the state code.

Value Assessment

Rating: good

The contract's total value of $44.6 million over its period of performance suggests a substantial investment. Benchmarking this against similar aerial supervision contracts is challenging without more specific service details. However, the firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the price was competitive during the bidding process. The award amount relative to the contract duration (approx. $34,420 per day) provides a baseline for comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed openly suggests a healthy market with multiple potential providers for aerial supervision services. The number of bidders is not specified, but open competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of innovative solutions, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the US Forest Service and potentially other agencies relying on aerial supervision for wildfire management and prevention. Services delivered likely include aerial observation, reconnaissance, and potentially communication relay during fire events. The geographic impact is concentrated in Mississippi, supporting firefighting efforts within that state. Workforce implications may include pilots, ground crew, and support staff for the aerial assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all operational complexities.
Dependence on a single contractor for critical aerial supervision services could pose a risk if performance issues arise.
Limited visibility into the specific performance metrics and operational efficiency of the aerial supervision module.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that likely secured a reasonable price.
Firm fixed-price contract type shifts cost risk to the contractor, promoting cost control.
The contract's duration indicates a stable, long-term need being met, suggesting a well-defined requirement.
The specific NAICS code suggests a specialized service, implying the contractor has relevant expertise.

Sector Analysis

The contract falls within the broader transportation equipment rental and leasing sector, specifically focusing on aerial assets for public service. The market for specialized aerial services, particularly for government applications like firefighting and surveillance, is competitive but requires significant capital investment and regulatory compliance. This contract represents a portion of the government's spending on essential operational support for land management and emergency response.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) within the Forest Service, responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is generally facilitated through contract award databases, but detailed operational oversight mechanisms are internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Wildfire Management Programs
Aerial Surveillance Contracts
Forestry and Land Management Support
Emergency Response Equipment Leasing

Risk Flags

Potential for operational disruptions due to weather or mechanical issues.
Dependence on contractor performance for critical aerial support functions.
Need for robust oversight to ensure service quality and safety standards are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $44.6 million to TENAX AERIAL FIRE SUPPORT, LLC. AERIAL SUPERVISION MODULE (ASM)

Who is the contractor on this award?

The obligated recipient is TENAX AERIAL FIRE SUPPORT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $44.6 million.

What is the period of performance?

Start: 2011-12-13. End: 2015-06-30.

What is the track record of Tenax Aerial Fire Support, LLC in fulfilling similar government contracts?

Information regarding Tenax Aerial Fire Support, LLC's specific track record with government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported disputes or awards. Without this, it's difficult to definitively gauge their reliability and past success in delivering similar aerial supervision services. Further research into federal procurement databases and contractor performance systems would be necessary to establish a detailed profile of their performance history.

How does the awarded amount compare to market rates for similar aerial supervision services?

The provided data includes the total contract value ($44.6M) and duration (1295 days), yielding an approximate daily rate of $34,420. However, without specific details on the type of aircraft, equipment, crew size, operational hours, and the exact nature of the 'supervision' (e.g., fire detection, monitoring, tactical support), a direct market rate comparison is difficult. The NAICS code 532411 (Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing) is broad. To benchmark effectively, one would need to compare against contracts for similar aircraft (e.g., fixed-wing, rotorcraft), specialized sensor packages, and operational support levels within the specific geographic region and for similar mission profiles.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the detailed methods for measuring performance under this contract. Typically, for aerial supervision contracts, KPIs might include metrics such as aircraft availability, flight hours completed, response time to incidents, data accuracy, and adherence to safety protocols. Performance measurement would likely involve regular reporting by the contractor, oversight by a Contracting Officer's Representative (COR), and potentially post-mission debriefings or reviews. The firm fixed-price nature suggests that meeting defined service levels is crucial for the contractor to achieve profitability.

What is the historical spending trend for aerial supervision modules by the Department of Agriculture?

The provided data pertains to a single contract awarded in 2011. To analyze historical spending trends for aerial supervision modules by the Department of Agriculture, a broader dataset encompassing multiple years and various contracts would be required. This would involve querying federal procurement databases (like FPDS or USASpending) for similar contracts awarded to different vendors over time, potentially filtering by agency, service type (aerial supervision, fire support, surveillance), and relevant NAICS codes. Such an analysis would reveal patterns in spending levels, contract types, and potentially shifts in technology or service providers over time.

Are there any identified risks associated with the contractor or the nature of the services provided?

Potential risks associated with this contract include operational risks inherent in aviation, such as safety incidents, mechanical failures, or weather-related disruptions impacting service availability. Dependence on a single contractor for a critical function like aerial supervision could also pose a risk if performance degrades or the contractor faces financial instability. Given the 'Aerial Supervision Module' designation, there might be risks related to the effectiveness of the technology or data provided, and ensuring its timely and accurate delivery. The firm fixed-price nature, while beneficial for cost control, could incentivize the contractor to cut corners on maintenance or staffing if not adequately monitored.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AG-024B-S-11-9007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 CRESCENT BLVD, RIDGELAND, MS, 39157

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,574,099

Exercised Options: $44,574,099

Current Obligation: $44,574,099

Contract Characteristics

Cost or Pricing Data: NO

Timeline