USDA Forest Service Awards $84.4M for Next-Gen Airtankers, Awarded to Aero Air, LLC

Contract Overview

Contract Amount: $84,385,778 ($84.4M)

Contractor: Aero AIR, LLC

Awarding Agency: Department of Agriculture

Start Date: 2013-06-07

End Date: 2023-06-06

Contract Duration: 3,651 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

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 $84.4 million to AERO AIR, LLC for work described as: IGF::CT::IGF CRITICAL FUNCTION- NEXT GENERATION AIRTANKERS Key points: 1. Significant investment in critical firefighting infrastructure. 2. Aero Air, LLC secured the contract, indicating potential market concentration. 3. Long contract duration (10 years) presents long-term value and risk. 4. Firm Fixed Price contract provides cost certainty. 5. Focus on airtanker capacity highlights a key sector for federal spending.

Value Assessment

Rating: good

The $84.4 million contract over 10 years averages $8.44 million annually. This appears reasonable for specialized, high-capacity airtanker services, considering the operational costs and capabilities required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting initial broad competition that was later narrowed. This method can impact price discovery if the exclusion criteria were too restrictive.

Taxpayer Impact: Taxpayers benefit from enhanced wildfire suppression capabilities, potentially reducing overall wildfire damage costs. However, the specific competition method warrants scrutiny for optimal price realization.

Public Impact

Ensures critical aerial firefighting resources are available to combat wildfires. Supports national efforts to protect lives, property, and natural resources. Airtanker availability directly impacts the speed and effectiveness of wildfire response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation.
Long-term contract duration may not adapt to evolving technology or needs.
Dependence on a single provider for critical assets.

Positive Signals

Secures essential firefighting capacity for a decade.
Firm Fixed Price contract offers budget predictability.
Addresses a critical national need for wildfire management.

Sector Analysis

This contract falls within the transportation and logistics sector, specifically focusing on specialized aviation services for emergency response. Spending benchmarks for similar large-scale aerial firefighting contracts are difficult to pinpoint due to unique asset requirements and operational demands.

Small Business Impact

The contract was awarded to Aero Air, LLC, a specific company, and there is no indication of small business participation in the provided data. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The contract's long duration and specific award method suggest a need for ongoing oversight to ensure performance standards are met and that the pricing remains competitive throughout its term. Regular performance reviews are crucial.

Related Government Programs

Nonscheduled Chartered Freight Air Transportation
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Limited competition may have inflated costs.
Long contract duration poses obsolescence risk.
Dependence on a single contractor for critical assets.
Lack of transparency on source exclusion justification.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $84.4 million to AERO AIR, LLC. IGF::CT::IGF CRITICAL FUNCTION- NEXT GENERATION AIRTANKERS

Who is the contractor on this award?

The obligated recipient is AERO AIR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $84.4 million.

What is the period of performance?

Start: 2013-06-07. End: 2023-06-06.

What were the specific reasons for excluding other sources after initial full and open competition, and did this exclusion limit competitive pricing?

The data indicates 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' The specific rationale for excluding sources is not detailed. This method can sometimes lead to less competitive pricing if the exclusion criteria are narrow or if only a few qualified vendors remain. A review of the justification for exclusion is necessary to assess its impact on the final price.

What are the performance metrics and risk mitigation strategies in place for this 10-year airtanker contract?

The provided data does not detail specific performance metrics or risk mitigation strategies. For a long-term contract of this nature, it is crucial that the Forest Service has established clear performance standards, contingency plans for equipment failure or unavailability, and protocols for addressing potential operational risks associated with extended deployment.

How does the annual cost of this contract compare to the operational costs and capabilities of similar airtanker services in the market?

Without specific operational cost data for comparable services, a direct benchmark is challenging. However, the annual average of $8.44 million for a dedicated, next-generation airtanker suggests a significant investment. A thorough market analysis comparing capabilities, availability, and total cost of ownership for similar assets would be needed to fully assess value.

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: 2050 NE 25TH AVE, HILLSBORO, OR, 97124

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

Financial Breakdown

Contract Ceiling: $84,385,778

Exercised Options: $84,385,778

Current Obligation: $84,385,778

Actual Outlays: $26,797,320

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline