Forest Service awards $57.4M contract for exclusive use large fire support helicopters to Columbia Helicopters

Contract Overview

Contract Amount: $57,366,813 ($57.4M)

Contractor: Columbia Helicopters, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2012-05-01

End Date: 2016-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $39.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING.

Place of Performance

Location: AURORA, MARION County, OREGON, 97002

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $57.4 million to COLUMBIA HELICOPTERS, INC. for work described as: CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING. Key points: 1. Contract provides critical national exclusive use services for wildland firefighting helicopters. 2. Awarded via full and open competition after exclusion of sources, indicating a deliberate sourcing strategy. 3. The contract duration of 1460 days (4 years) suggests a need for sustained operational capability. 4. Fixed Price with Economic Price Adjustment (FP-EPA) contract type aims to balance cost stability with market fluctuations. 5. The significant value points to the high cost and specialized nature of large fire support aviation. 6. The 'Nonscheduled Chartered Freight Air Transportation' NAICS code indicates a focus on transport and support services.

Value Assessment

Rating: good

The contract value of $57.4 million over four years averages to approximately $14.35 million annually. Benchmarking this against similar large exclusive-use firefighting helicopter contracts is challenging due to the specialized nature of the service and national exclusive-use requirement. However, the fixed-price with economic price adjustment structure suggests an effort to manage costs while accounting for operational variables. The number of bidders (18) indicates a competitive process that likely contributed to a reasonable price point for these critical services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method implies that while the competition was intended to be broad, certain sources were excluded, possibly due to specific capabilities, certifications, or prior performance requirements essential for national exclusive-use firefighting. The fact that 18 bids were received suggests that despite the exclusion, a robust level of competition was achieved, which is generally positive for price discovery.

Taxpayer Impact: The exclusion of sources, even with a high number of bidders, warrants scrutiny to ensure it did not unduly limit competition or inflate prices for taxpayers. However, the 18 bids indicate that the exclusion did not prevent a competitive market from forming.

Public Impact

Provides essential aerial support for national wildland firefighting efforts, directly benefiting public safety. Ensures the availability of specialized large helicopters for critical missions during fire seasons. Supports the U.S. Forest Service's ability to combat large-scale wildfires across various geographic regions. The contract likely supports a specialized aviation workforce, including pilots, mechanics, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires careful review to ensure the exclusion criteria were justified and did not unnecessarily restrict competition.
The fixed-price with economic price adjustment (FP-EPA) contract type can lead to cost increases if economic factors escalate significantly, impacting the final cost to taxpayers.
The national exclusive-use nature of the contract means these assets are dedicated solely to federal needs, potentially limiting their availability for other critical missions if not managed efficiently.

Positive Signals

The award to a single contractor for national exclusive-use services ensures dedicated resources for critical firefighting missions.
The receipt of 18 bids indicates a healthy level of interest and capability within the market for these specialized services.
The contract duration of four years provides stability and predictability for both the government and the contractor, facilitating long-term planning and investment in specialized assets.

Sector Analysis

The wildland firefighting aviation sector is highly specialized, requiring unique aircraft, certifications, and operational expertise. This contract falls within the broader air transportation services industry, specifically focusing on nonscheduled charter operations for critical public safety missions. The market is characterized by a limited number of highly capable operators due to the significant capital investment and stringent regulatory requirements. Comparable spending benchmarks are difficult to establish precisely due to the 'national exclusive-use' designation, which implies a level of dedicated capacity not typical in standard charter services.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses, likely due to the highly specialized and capital-intensive nature of large exclusive-use firefighting helicopters. Subcontracting opportunities for small businesses may exist within support roles, but the primary service delivery is likely handled by the prime contractor, Columbia Helicopters, which is not a small business.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Forest Service's contracting and program management offices. Accountability measures are embedded within the contract terms, including performance standards, delivery requirements, and payment schedules. Transparency is facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Wildland Fire Management
Aviation Support Services
Emergency Response Contracts
Department of Agriculture Contracts
Forest Service Aviation Program

Risk Flags

Competition Strategy Justification
Economic Price Adjustment Clause Impact
Contractor Performance Monitoring
National Exclusive-Use Asset Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $57.4 million to COLUMBIA HELICOPTERS, INC.. CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING.

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 $57.4 million.

What is the period of performance?

Start: 2012-05-01. End: 2016-04-30.

What is the track record of Columbia Helicopters, Inc. with federal contracts, particularly for firefighting services?

Columbia Helicopters, Inc. has a significant history of federal contracting, particularly with agencies involved in aviation support and resource management. They are known for their specialized heavy-lift and firefighting helicopter capabilities. While specific details on all past contracts require deeper database analysis, their involvement in large-scale aerial operations, including firefighting, suggests a substantial track record. The 'national exclusive-use' nature of this particular contract implies a high level of trust and proven capability required by the Forest Service. Further investigation into their performance history, any past disputes, or contract modifications would provide a more complete picture of their reliability and expertise in this critical domain.

How does the pricing of this contract compare to similar large exclusive-use firefighting helicopter contracts?

Directly comparing the pricing of this $57.4 million contract for exclusive-use large fire support helicopters is challenging due to the unique 'national exclusive-use' designation. This implies that the aircraft are dedicated solely to federal firefighting needs, commanding a premium for guaranteed availability. Standard market rates for charter helicopters do not fully capture this dedicated capacity. The contract type, Fixed Price with Economic Price Adjustment (FP-EPA), also introduces variables. However, the fact that 18 bids were received suggests a competitive environment that likely helped to benchmark the price against what the market could bear for such specialized, dedicated services. A detailed cost-benefit analysis would be needed to fully assess value-for-money.

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

Key risks include operational failures (e.g., aircraft malfunction, pilot error) leading to mission delays or safety incidents, and cost overruns due to economic price adjustments. The specialized nature of the aircraft and missions also presents a risk of limited contractor availability if multiple large-scale incidents occur simultaneously. Mitigation strategies likely include stringent maintenance and safety protocols mandated by the contract, performance monitoring by the Forest Service, and the FP-EPA clause itself, which aims to manage economic volatility. The 'national exclusive-use' aspect, while ensuring availability, also concentrates risk with a single provider for critical national assets.

How effective is the 'Full and Open Competition After Exclusion of Sources' strategy in ensuring both capability and value for taxpayer money?

This procurement strategy aims to balance the need for highly specialized capabilities with competitive pricing. By excluding certain sources, the Forest Service likely targeted contractors possessing specific, essential qualifications for national exclusive-use firefighting helicopters. The subsequent competition among the remaining qualified bidders (18 in this case) should theoretically drive down prices while ensuring the selected contractor meets stringent performance requirements. The effectiveness hinges on the justification for the exclusions; if exclusions were overly broad or arbitrary, they could stifle competition. However, a robust number of bidders suggests the exclusions were likely targeted and appropriate for the specialized nature of the service.

What are the historical spending patterns for large fire support helicopter services by the Forest Service or similar agencies?

Historical spending on large fire support helicopters by the Forest Service and other federal agencies involved in wildland firefighting has generally been substantial, reflecting the high operational costs, specialized equipment, and critical need for these assets. Contracts often span multiple years and can range from tens to hundreds of millions of dollars, depending on the number of aircraft, duration of availability (e.g., exclusive-use vs. call-when-needed), and specific mission requirements. Agencies often utilize a mix of contract types, including fixed-price and time-and-materials, to procure these services. The trend has been towards securing dedicated, exclusive-use assets for critical periods to ensure rapid response capabilities, which typically command higher contract values.

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-11-9001

Offers Received: 18

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 14452 ARNDT RD NE, AURORA, OR, 97002

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

Financial Breakdown

Contract Ceiling: $57,366,813

Exercised Options: $57,366,813

Current Obligation: $57,366,813

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline