Forest Service awards $94M+ for airtanker services, with Aero-Flite Inc. as the primary contractor

Contract Overview

Contract Amount: $94,119,175 ($94.1M)

Contractor: Aero-Flite, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2013-06-07

End Date: 2023-06-06

Contract Duration: 3,651 days

Daily Burn Rate: $25.8K/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 $94.1 million to AERO-FLITE, INC. for work described as: IGF::CT::IGF CRITICAL FUNCTION- NEXT GENERATION AIRTANKERS Key points: 1. Contract value exceeds $94 million over its 10-year duration. 2. Aero-Flite, Inc. has been awarded the majority of the contract value. 3. The contract type is a firm-fixed-price definitive contract. 4. Competition was conducted under 'full and open competition after exclusion of sources'. 5. The contract duration is exceptionally long, spanning over 10 years. 6. The service involves nonscheduled chartered freight air transportation, likely for critical firefighting missions.

Value Assessment

Rating: fair

The total award value of over $94 million for a 10-year period suggests a significant investment in aerial firefighting capabilities. Benchmarking this against similar long-term contracts for specialized aviation services is crucial. Given the duration, the per-year cost appears reasonable, but the lack of detailed performance metrics makes a definitive value assessment challenging. The firm-fixed-price structure provides cost certainty but may limit flexibility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition was conducted under 'full and open competition after exclusion of sources,' which implies that while the process was open, specific sources may have been excluded based on predefined criteria. The number of bidders is not explicitly stated, but this type of competition can sometimes lead to fewer participants than a completely unrestricted open competition. This could potentially impact price discovery and the overall competitiveness of the bids received.

Taxpayer Impact: Taxpayers benefit from a structured competition that aims for fairness, but the exclusion of certain sources might limit the most competitive pricing achievable.

Public Impact

The primary beneficiaries are federal agencies, specifically the Forest Service, in their efforts to combat wildfires. The service delivered is critical airtanker transportation, essential for aerial firefighting operations. The contract's geographic impact is likely nationwide, supporting wildfire suppression efforts across various regions. This contract supports a specialized segment of the aviation industry and its associated workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) may reduce flexibility to adapt to new technologies or changing operational needs.
The 'exclusion of sources' in the competition could limit the pool of potential bidders and potentially impact cost-effectiveness.
Reliance on a single primary contractor for such a critical service could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The significant investment indicates a commitment to robust wildfire suppression capabilities.
The contract duration suggests a stable, long-term partnership for essential services.

Sector Analysis

This contract falls within the broader aviation services sector, specifically focusing on specialized air charter for government operations. The market for aerial firefighting is a niche but critical segment, often involving significant capital investment in specialized aircraft and operational expertise. Comparable spending benchmarks would involve looking at other long-term contracts for similar heavy-lift or specialized aviation services procured by government agencies.

Small Business Impact

The data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Given the specialized nature of aerial firefighting and the scale of the operation, it is less likely to be heavily reliant on small business participation directly, though component suppliers or maintenance services might involve smaller firms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Forest Service contracting and program management offices. Inspector General audits may occur periodically to ensure compliance and value for money. Transparency is generally maintained through contract award databases, though detailed operational performance data might be less publicly accessible.

Related Government Programs

Wildfire Suppression Services
Aviation Support Contracts
Department of Agriculture Procurement
Emergency Response Services

Risk Flags

Long contract duration
Competition type ('exclusion of sources')
Potential for technological obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $94.1 million to AERO-FLITE, INC.. IGF::CT::IGF CRITICAL FUNCTION- NEXT GENERATION AIRTANKERS

Who is the contractor on this award?

The obligated recipient is AERO-FLITE, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $94.1 million.

What is the period of performance?

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

What is the historical spending pattern for airtanker services by the Forest Service?

Historical spending on airtanker services by the Forest Service has varied significantly year-to-year, influenced by wildfire seasons, budget allocations, and the types of contracts in place. Prior to long-term agreements like this one, the Forest Service often relied on a mix of exclusive use contracts, call-when-needed contracts, and interagency agreements. The trend has been towards securing more predictable and long-term capacity to ensure availability, especially as wildfire seasons become more severe. This $94 million contract represents a substantial, long-term commitment, likely consolidating or expanding upon previous, potentially shorter-term or more fragmented, procurement strategies for critical airtanker resources.

How does the pricing of this contract compare to similar aerial firefighting contracts?

Directly comparing the pricing of this $94 million, 10-year contract without specific line-item details or operational scope is challenging. However, the firm-fixed-price structure over such a long duration suggests an attempt to lock in rates. Historically, aerial firefighting contracts can be expensive due to the high operational costs, specialized aircraft, pilot training, maintenance, and insurance requirements. The 'full and open competition after exclusion of sources' might have influenced the final negotiated price. To assess value, one would need to compare the cost per flight hour, cost per gallon delivered, or cost per operational day against other contemporary contracts for similar aircraft types (e.g., VLATs, large air tankers) and service levels, considering factors like geographic operating areas and required response times.

What are the key performance indicators (KPIs) for this airtanker contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for aerial firefighting contracts would likely include metrics such as aircraft availability (percentage of time ready for deployment), response time to dispatch, mission completion rates, safety incident rates, fuel efficiency, and adherence to operational parameters (e.g., drop accuracy, load capacity). The Forest Service would monitor these KPIs to ensure the contractor is meeting the required standards for effective wildfire suppression. The long duration of the contract implies that these KPIs are critical for ongoing performance evaluation and potential contract renewal or modification.

What is the track record of Aero-Flite, Inc. in providing similar services?

Aero-Flite, Inc. is a known operator in the aviation services sector, with a history of providing services that often include aerial firefighting and specialized air charter. Their track record would typically be assessed by the procuring agency based on past performance evaluations, safety records, operational reliability, and experience with similar government contracts. Agencies usually review a contractor's performance history, including any past issues or commendations, before awarding significant contracts. For a 10-year definitive contract of this magnitude, it is highly probable that Aero-Flite, Inc. demonstrated a strong and relevant performance history to be selected as the primary awardee.

What are the risks associated with a 10-year contract for airtanker services?

A primary risk associated with a 10-year contract for airtanker services is technological obsolescence. Aircraft technology and firefighting techniques evolve, and a long-term commitment might lock the government into using potentially less efficient or outdated platforms. Another risk is market volatility; fuel prices, insurance costs, and labor availability can fluctuate significantly over a decade, potentially impacting the contractor's ability to maintain service at the agreed-upon price or leading to requests for equitable adjustments. Furthermore, a long duration reduces the agency's flexibility to adapt to changing needs, budget constraints, or the emergence of superior alternative solutions during the contract term.

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: 4530 FLIGHTLINE DR, KINGMAN, AZ, 86401

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

Financial Breakdown

Contract Ceiling: $94,119,175

Exercised Options: $94,119,175

Current Obligation: $94,119,175

Actual Outlays: $36,890,393

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline