USDA's $72.6M Next Generation Airtankers contract awarded to 10 Tanker Air Carrier, LLC

Contract Overview

Contract Amount: $72,628,335 ($72.6M)

Contractor: 10 Tanker AIR Carrier, LLC

Awarding Agency: Department of Agriculture

Start Date: 2013-05-30

End Date: 2023-05-29

Contract Duration: 3,651 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTION- NEXT GENERATION AIRTANKERS

Place of Performance

Location: VICTORVILLE, SAN BERNARDINO County, CALIFORNIA, 92394

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $72.6 million to 10 TANKER AIR CARRIER, LLC for work described as: IGF::CT::IGF CRITICAL FUNCTION- NEXT GENERATION AIRTANKERS Key points: 1. Contract value represents significant investment in aerial firefighting capabilities. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Long duration of the contract (10 years) indicates a need for sustained aerial support. 4. Firm Fixed Price contract type provides cost certainty for the government. 5. The contract is a key component of the Forest Service's wildfire suppression efforts. 6. Awardee's sole contract suggests a specialized capability or market concentration.

Value Assessment

Rating: fair

The contract value of $72.6 million over 10 years averages to $7.26 million annually. Benchmarking this against other large aerial firefighting contracts is challenging due to the specialized nature of 'next generation' airtankers. However, the firm fixed price structure provides predictability. The absence of multiple comparable contracts makes a direct value-for-money assessment difficult without further details on the specific capabilities and operational costs of these airtankers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were initially excluded, and then the competition was opened. The number of bidders is not explicitly stated, but the award to a single entity, 10 Tanker Air Carrier, LLC, suggests that either few entities met the stringent requirements for 'next generation' airtankers, or the exclusion process limited the pool significantly. This limited competition could impact price discovery.

Taxpayer Impact: The limited competition may have resulted in higher prices for taxpayers compared to a scenario with broader, unrestricted competition. It suggests that the government may not have received the most competitive pricing available in the market.

Public Impact

The primary beneficiaries are the US Forest Service and other federal agencies involved in wildfire suppression, ensuring critical aerial firefighting resources. The contract delivers essential services for combating large-scale wildfires across the nation, particularly in high-risk areas. Geographic impact is national, with airtankers deployed to critical fire zones as needed. Workforce implications include support for pilots, ground crews, and maintenance personnel associated with operating these specialized aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and lack of market pressure.
The long contract duration could lead to vendor lock-in and reduced flexibility for the agency.
Reliance on a single provider for critical 'next generation' airtanker services poses a risk if the contractor faces operational issues.

Positive Signals

Firm Fixed Price contract provides budget certainty for the Forest Service.
The contract ensures the availability of specialized, advanced aerial firefighting assets.
The 'next generation' aspect suggests an investment in more effective and potentially safer firefighting technology.

Sector Analysis

The aerial firefighting sector is a critical component of national security and environmental management, particularly in regions prone to wildfires. This contract falls within the broader aerospace and transportation services industry. The market for specialized firefighting aircraft is relatively niche, often dominated by a few key players capable of meeting the stringent operational and safety requirements. Comparable spending benchmarks are difficult to establish without more granular data on aircraft types and service levels, but significant government investment in wildfire suppression is a consistent trend.

Small Business Impact

There is no indication of small business set-asides for this contract. The nature of operating 'next generation' airtankers likely requires significant capital investment and specialized expertise, which typically favors larger, established aerospace or aviation companies. Subcontracting opportunities for small businesses may exist in areas like maintenance, logistics, or support services, but the primary contract is unlikely to be directly awarded to small businesses.

Oversight & Accountability

Oversight is primarily conducted by the US Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Wildfire Suppression Support
Aviation Services Contracts
Emergency Response Services
Department of Agriculture Contracts
Forest Service Aviation Management

Risk Flags

Limited competition
Long contract duration
Single awardee for critical service

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $72.6 million to 10 TANKER AIR CARRIER, LLC. IGF::CT::IGF CRITICAL FUNCTION- NEXT GENERATION AIRTANKERS

Who is the contractor on this award?

The obligated recipient is 10 TANKER AIR CARRIER, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $72.6 million.

What is the period of performance?

Start: 2013-05-30. End: 2023-05-29.

What is the specific capability difference between 'next generation' airtankers and traditional airtankers, and how does this justify the contract's value?

Next-generation airtankers typically refer to aircraft equipped with advanced technologies and larger capacities compared to older models. This can include improved retardant delivery systems, enhanced maneuverability, greater speed, and higher payload capacities, allowing them to carry more retardant or water. These advancements enable more effective and efficient wildfire suppression, potentially reducing the overall acreage burned and the duration of fire events. The justification for the contract's value would stem from the increased effectiveness, reduced risk to firefighters on the ground, and potential long-term cost savings associated with faster, more efficient suppression. However, without specific technical specifications and operational data for the 'next generation' airtankers under this contract, a precise quantitative justification remains elusive.

How did the 'exclusion of sources' in the competition process impact the final contract price?

The 'Full and Open Competition After Exclusion of Sources' clause suggests that an initial pool of potential bidders was narrowed down before the main competition phase. This exclusion could be based on specific technical requirements, past performance, or other criteria deemed essential for 'next generation' airtankers. If the exclusion significantly limited the number of qualified bidders, it could reduce competitive pressure, potentially leading to a higher contract price than if a broader range of companies had participated. Conversely, if the excluded sources were demonstrably incapable of meeting the stringent requirements, the remaining competition might still yield a fair price for the specialized service. The exact impact on price is difficult to ascertain without knowing who was excluded and why, and how many bids were ultimately received.

What is the track record of 10 Tanker Air Carrier, LLC in fulfilling similar large-scale aerial firefighting contracts?

10 Tanker Air Carrier, LLC has a notable track record in operating large airtankers, particularly the MD-87 based 'Supertankers.' They have been involved in wildfire suppression efforts for many years, often under contracts with various government agencies and international partners. Their experience includes responding to major wildfires and demonstrating the capabilities of their large-capacity aircraft. Assessing their performance on this specific $72.6 million contract requires examining delivery against contract requirements, incident response effectiveness, safety records, and adherence to schedules over its 10-year duration. Publicly available data and agency performance reviews would provide further insight into their reliability and effectiveness in fulfilling such critical, long-term commitments.

Are there alternative methods or technologies for wildfire suppression that the Forest Service considered or is exploring, which might affect future spending?

The Forest Service and other firefighting agencies continuously explore and evaluate alternative methods and technologies for wildfire suppression. This includes advancements in ground-based suppression, fire behavior modeling, early detection systems (e.g., satellite, drone surveillance), and innovative aerial delivery systems. While large airtankers remain a crucial component, investments are also made in technologies like remotely piloted aircraft systems (RPAS) for reconnaissance and potentially suppression, advanced fire modeling software for better strategic planning, and improved ground equipment. Future spending patterns will likely reflect a diversified approach, integrating these new technologies alongside traditional methods. The effectiveness and cost-efficiency of these alternatives will influence the long-term reliance on and investment in specific aerial assets like the 'next generation' airtankers under this contract.

How does the annual spending under this contract compare to the Forest Service's overall budget for aviation and wildfire suppression?

This contract represents an average annual expenditure of approximately $7.26 million. The Forest Service's overall budget for aviation management and wildfire suppression is significantly larger, often running into hundreds of millions or even billions of dollars annually, depending on the severity of the fire season. Aviation costs, including aircraft acquisition, leasing, maintenance, and personnel, are a substantial part of this budget. While $7.26 million per year is a considerable sum for a single contract, it is likely a component within a much larger portfolio of aerial firefighting assets and services utilized by the Forest Service. Comparing this specific contract's annual cost to the total aviation budget provides context on its relative scale within the agency's broader operational spending.

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-11-9009

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18191 READINESS ST, VICTORVILLE, CA, 92394

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

Financial Breakdown

Contract Ceiling: $72,628,335

Exercised Options: $72,628,335

Current Obligation: $72,628,335

Actual Outlays: $19,065,148

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline