Forest Service awards $31M for critical wildfire helicopter services, highlighting a need for specialized aerial firefighting assets

Contract Overview

Contract Amount: $31,049,433 ($31.0M)

Contractor: Brainerd 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: $21.3K/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: IGF::CT::IGF CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING.

Place of Performance

Location: LEESBURG, LAKE County, FLORIDA, 34788

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $31.0 million to BRAINERD HELICOPTERS, INC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING. Key points: 1. The contract addresses a critical need for large fire support helicopters, essential for effective wildland firefighting operations. 2. Awarded through full and open competition, this contract suggests a competitive market for these specialized services. 3. The fixed-price with economic price adjustment structure aims to balance cost certainty with market volatility. 4. The duration of the contract (1460 days) indicates a long-term commitment to securing these vital resources. 5. The geographic focus on Florida (FL) points to regional needs for aerial firefighting support. 6. The contract value of $31M over approximately four years represents a significant investment in national fire preparedness.

Value Assessment

Rating: good

Benchmarking this contract's value requires specific data on comparable large fire support helicopter services. However, the $31M award over four years suggests an average annual cost of approximately $7.76M. This figure should be compared against industry rates for similar aircraft and operational support, considering factors like crew, maintenance, and specialized equipment. The fixed-price with economic price adjustment (FPEPA) contract type can offer some cost control while allowing for adjustments due to fuel price fluctuations, which is common in aviation contracts.

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,' indicating that while the competition was broad, specific sources may have been excluded initially, possibly due to unique capabilities or prior performance. The number of bidders (18) suggests a healthy level of interest and competition for these specialized services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition indicates that taxpayer funds were likely used efficiently, as multiple companies vied to provide these essential services at the best possible price.

Public Impact

Wildland firefighters and emergency response teams benefit from enhanced aerial support capabilities. The contract ensures the availability of critical air assets for suppressing large-scale wildfires. The services primarily impact regions prone to wildland fires, with a specific focus on Florida. The contract supports specialized aviation jobs, including pilots, mechanics, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if economic price adjustments are not carefully managed.
Dependence on a single contractor for critical, large-scale helicopter support could pose a risk if performance issues arise.
The exclusion of sources, even if justified, warrants scrutiny to ensure full market potential was explored.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract duration suggests a stable, long-term commitment to essential services.
The fixed-price element provides a baseline cost control mechanism.
A significant number of bidders (18) points to market availability and interest.

Sector Analysis

This contract falls within the Air Transportation Services sector, specifically focusing on specialized aerial support for firefighting. The market for large, specialized helicopters equipped for wildland firefighting is niche, requiring significant capital investment and operational expertise. Comparable spending benchmarks would involve analyzing other federal and state contracts for similar aerial firefighting assets, considering factors like aircraft type, mission requirements, and operational duration. The Forest Service, as a primary user of such assets, represents a key customer in this specialized market.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Brainerd Helicopters, Inc., may engage small businesses for support services, though this is not explicitly detailed in the provided data. The absence of a small business set-aside suggests the requirement was likely beyond the scope or capacity typically addressed by small business set-aside programs.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Department of Agriculture's Forest Service contracting officers and potentially the agency's Office of Inspector General (OIG). The contract type (Fixed Price with Economic Price Adjustment) necessitates monitoring of performance against requirements and careful review of any price adjustment claims. Transparency is generally maintained through contract databases like FPDS-NG, which record award details. The specific performance metrics and reporting requirements would be detailed within the contract's statement of work.

Related Government Programs

Wildland Fire Management
Aerial Firefighting Services
Emergency Air Support
National Interagency Fire Center (NIFC) Operations
Department of the Interior Firefighting Contracts

Risk Flags

Potential for cost escalation due to economic price adjustments.
Dependence on contractor performance for critical national security/public safety function.
Need to verify justification for any source exclusion in 'Full and Open Competition After Exclusion of Sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $31.0 million to BRAINERD HELICOPTERS, INC. IGF::CT::IGF CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING.

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 $31.0 million.

What is the period of performance?

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

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

Assessing the track record of Brainerd Helicopters, Inc. requires a review of their past federal contract performance. While this specific contract award of $31M is significant, understanding their history with the Forest Service and other agencies is crucial. Key indicators would include past performance evaluations, any history of contract disputes or terminations, and their experience with similar large-scale, long-duration aerial support operations. A review of contract databases and agency performance records would reveal if they have consistently met or exceeded expectations, managed costs effectively, and demonstrated reliability in critical situations like wildland firefighting. Without specific historical data on Brainerd Helicopters, Inc.'s performance beyond this single award, it's difficult to definitively assess their overall reliability and capability.

How does the $31M contract value compare to historical spending on similar large fire support helicopter services by the Forest Service?

To compare the $31M contract value, historical spending data for similar large fire support helicopter services by the Forest Service is needed. This would involve analyzing past contracts for aircraft of comparable size and capability, duration, and operational scope. For instance, were previous contracts for similar services in the same geographic regions or nationally valued higher or lower? Understanding the trend in spending over time, adjusted for inflation and changes in operational needs or market conditions, would provide context. If this $31M award represents a significant increase or decrease compared to historical averages, it could indicate shifts in market pricing, increased demand, or changes in procurement strategies. A detailed analysis would require accessing historical contract databases and filtering for relevant service categories and agencies.

What are the specific risks associated with relying on a single contractor for critical large fire support helicopter services, as indicated by this contract?

Relying on a single contractor for critical large fire support helicopter services, as potentially indicated by the 'exclusion of sources' clause, introduces several risks. Foremost is the risk of performance failure; if the contractor experiences operational issues, equipment malfunctions, or financial instability, the availability of essential firefighting assets could be jeopardized, directly impacting wildfire suppression efforts. There's also a risk of reduced competition driving up future costs if the market is constrained. Furthermore, a sole-source or limited-source situation can reduce the government's leverage in negotiating terms and pricing. While this contract was awarded under 'Full and Open Competition After Exclusion of Sources,' the exclusion itself warrants understanding to ensure no viable alternatives were overlooked. The government mitigates these risks through stringent performance monitoring, contract clauses for remedies, and potentially maintaining relationships with other capable providers for future procurements.

How effective are large fire support helicopters in wildland firefighting compared to other aerial assets or ground-based methods?

Large fire support helicopters are highly effective in wildland firefighting, offering unique advantages over other assets. Their ability to hover allows for precise water or retardant drops directly onto hotspots, which is crucial for containment and structure protection. They can also rapidly deploy firefighting crews and equipment to remote or inaccessible areas, significantly improving response times and operational reach. Compared to fixed-wing aircraft, helicopters offer greater maneuverability in complex terrain and lower altitudes. While ground crews are essential for mop-up and line construction, helicopters provide critical initial attack capabilities, rapid reinforcement, and intelligence gathering (aerial reconnaissance). Their effectiveness is maximized when integrated into a coordinated strategy with other aerial and ground resources, providing flexibility and speed that is often unmatched.

What is the typical operational tempo and cost structure for large fire support helicopter services during peak wildland fire seasons?

The operational tempo for large fire support helicopters during peak wildland fire seasons is extremely high, often involving daily, multi-hour flights. Helicopters can be tasked with water/retardant drops, crew transport, equipment sling-loading, and aerial reconnaissance. The cost structure is complex, typically including fixed costs (aircraft acquisition/lease, maintenance, insurance, hangarage) and variable costs (fuel, flight crew salaries, consumables, landing fees). Hourly rates can range significantly based on aircraft type, crew size, equipment, and mission complexity, often from several thousand to tens of thousands of dollars per hour. The 'economic price adjustment' clause in this contract acknowledges the volatility of fuel costs, a major variable expense. The total cost is driven by flight hours, mission duration, and the specialized support required, making efficient resource allocation critical.

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: 8850 AIRPORT BLVD, LEESBURG, FL, 34788

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $31,049,433

Exercised Options: $31,049,433

Current Obligation: $31,049,433

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline