Forest Service awarded $61.8M for exclusive large fire support helicopter services to Siller Helicopters, LLC

Contract Overview

Contract Amount: $61,849,544 ($61.8M)

Contractor: Siller Helicopters, LLC

Awarding Agency: Department of Agriculture

Start Date: 2012-05-01

End Date: 2016-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $42.4K/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: YUBA CITY, SUTTER County, CALIFORNIA, 95991

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $61.8 million to SILLER HELICOPTERS, LLC for work described as: CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING. Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract duration of 1460 days suggests a long-term need for these critical services. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract type may expose the government to price fluctuations. 4. The service is for national exclusive use, highlighting its critical nature for wildland firefighting. 5. The award to a single contractor, Siller Helicopters, LLC, warrants scrutiny for potential performance risks. 6. The contract's value of over $61M over four years requires careful performance monitoring.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The fixed-price with economic price adjustment structure introduces potential for cost increases over the contract's four-year term. While the total award is substantial, its value for money depends heavily on the effective and efficient delivery of critical firefighting services. Comparing this to other large exclusive-use helicopter contracts for similar services would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be open, specific circumstances led to the exclusion of certain potential bidders. The number of bidders is not specified, but the 'exclusion of sources' phrasing implies a potentially narrowed field. This type of competition can sometimes lead to less aggressive pricing compared to truly unrestricted full and open competition.

Taxpayer Impact: Taxpayers may have faced higher costs due to the exclusion of potential bidders, limiting the full benefit of open market competition. The specific reasons for source exclusion would be critical to understanding the impact on price discovery.

Public Impact

This contract directly supports national wildland firefighting efforts, protecting lives, property, and natural resources. The services provided are critical for national exclusive use, ensuring availability during emergencies. Geographic impact is nationwide, as wildland fires can occur across various regions of the United States. The contract supports specialized aviation services, potentially impacting the aviation industry and its workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation due to the Economic Price Adjustment clause.
Reliance on a single contractor for critical national exclusive use services could pose a risk if performance falters.
The 'exclusion of sources' in the competition method warrants further investigation into potential limitations on competitive pricing.
Lack of detailed performance metrics makes it difficult to assess the true value for money delivered.
The long contract duration could lead to contractor complacency or reduced incentive for innovation.

Positive Signals

Awarded through a competitive process, suggesting some level of market vetting.
The contract addresses a critical national need for wildland firefighting support.
The fixed-price element provides some cost certainty, despite the economic price adjustment.

Sector Analysis

This contract falls within the Air Transportation Services sector, specifically focusing on specialized aerial support for emergency response. The market for large, exclusive-use firefighting helicopters is niche, often dominated by a few specialized operators. The Forest Service's spending in this area is crucial for managing the increasing threat of wildland fires, which have seen significant growth in scale and intensity in recent years. Comparable spending benchmarks would likely involve other federal agencies (e.g., Department of the Interior) or state-level contracts for similar aerial firefighting assets.

Small Business Impact

There is no indication that this contract included small business set-asides. The nature of specialized, large-scale helicopter services for exclusive national use typically requires significant capital investment and operational capacity, which may favor larger, established companies. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially exist for support services or specialized components if not handled internally by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Forest Service contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, though detailed operational performance data may not be publicly available. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

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

Risk Flags

Potential for price increases due to Economic Price Adjustment.
Single-source dependency for critical national services.
Limited competition due to 'exclusion of sources'.
Lack of detailed public performance metrics.
High contract value requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $61.8 million to SILLER HELICOPTERS, LLC. CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE LARGE FIRE SUPPORT HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING.

Who is the contractor on this award?

The obligated recipient is SILLER HELICOPTERS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $61.8 million.

What is the period of performance?

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

What is the track record of Siller Helicopters, LLC in providing similar large fire support helicopter services?

Assessing the track record of Siller Helicopters, LLC requires a review of their past performance on similar contracts, including any awards, penalties, or disputes. Information on their fleet size, maintenance capabilities, pilot qualifications, and safety record would be crucial. Publicly available data may include past performance evaluations submitted by government agencies. A thorough review would involve checking contract databases for previous awards, contract close-out reports, and any available news or industry reports concerning the company's operational history and reliability in high-stakes firefighting operations. Without specific performance data from this contract or prior ones, it's difficult to definitively assess their capability and reliability.

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

Direct comparison of pricing for exclusive-use helicopter contracts is complex due to variations in aircraft type, capabilities, operational hours, geographic coverage, and contract terms (e.g., fixed-price vs. cost-plus, economic price adjustments). However, a benchmark could be established by analyzing the average hourly rates or total contract values for similar large helicopters (e.g., Type 1 helicopters) used by other federal agencies (like the Department of the Interior's Bureau of Land Management or National Park Service) or large state fire agencies. The $61.8 million award over approximately four years suggests an average annual cost of roughly $15.5 million. This figure needs to be contextualized against the number of operational hours expected, standby rates, and mobilization costs. A detailed analysis would require access to the specific service level agreements and pricing structures of comparable contracts.

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

Key risks include potential performance failures (e.g., aircraft downtime, pilot availability, mission effectiveness) given the critical nature of wildland firefighting; price escalation due to the Economic Price Adjustment (EPA) clause, which could increase costs beyond initial projections; and dependency on a single contractor for exclusive national use, creating a single point of failure. Mitigation strategies typically involve robust contract oversight, clearly defined performance standards and penalties, regular performance reviews, contingency planning for alternative support, and careful monitoring of the EPA's impact on costs. The 'exclusion of sources' in the competition also presents a risk of suboptimal pricing or limited innovation. The Forest Service would need stringent performance management and potentially pre-negotiated remedies for non-performance.

How effective has this contract been in ensuring adequate aerial support for wildland firefighting?

Assessing the effectiveness requires analyzing key performance indicators (KPIs) that should be part of the contract's oversight. These might include aircraft availability rates, response times to incidents, mission completion rates, safety incident reports, and overall contribution to successful fire suppression efforts. Data on the number and severity of wildland fires managed during the contract period, alongside the role played by Siller Helicopters' assets, would be essential. Without access to these specific performance metrics and operational reports from the Forest Service, a definitive judgment on effectiveness cannot be made. The contract's renewal or lack thereof, and any post-contract reviews, would also provide indirect indicators of its success.

What has been the historical spending trend for similar large fire support helicopter services by the Forest Service?

Analyzing historical spending trends for similar services would involve examining contract data over several fiscal years. This would reveal whether spending on large exclusive-use helicopters has increased, decreased, or remained stable. Factors influencing these trends could include changes in wildfire frequency and intensity, shifts in firefighting strategies, budget allocations for aviation assets, and the competitive landscape for acquiring such services. Understanding past spending patterns helps contextualize the $61.8 million award, indicating whether it represents a typical investment, an increase due to heightened fire activity, or a deviation from historical norms. This analysis would require querying contract databases for relevant keywords and service categories over multiple years.

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: 1250 SMITH RD, YUBA CITY, CA, 95991

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

Financial Breakdown

Contract Ceiling: $61,849,544

Exercised Options: $61,849,544

Current Obligation: $61,849,544

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline