Agriculture's Forest Service awards $26.5M contract for exclusive wildland firefighting helicopter services to HELIMAX AVIATION INC

Contract Overview

Contract Amount: $26,512,499 ($26.5M)

Contractor: Helimax Aviation Inc

Awarding Agency: Department of Agriculture

Start Date: 2014-05-01

End Date: 2018-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE INITIAL ATTACK HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING.

Place of Performance

Location: MCCLELLAN, SACRAMENTO County, CALIFORNIA, 95652

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $26.5 million to HELIMAX AVIATION INC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE INITIAL ATTACK HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING. Key points: 1. This contract focuses on a critical, specialized service: exclusive initial attack helicopter support for wildland firefighting. 2. The sole provider, HELIMAX AVIATION INC, was selected through a full and open competition after excluding other sources. 3. The contract type, Fixed Price with Economic Price Adjustment, introduces some risk of cost escalation. 4. The sector is aviation services, specifically within the critical area of emergency response and natural resource management.

Value Assessment

Rating: fair

The contract's fixed-price nature with economic price adjustment suggests an attempt to control costs, but the exclusive use clause for initial attack may limit price discovery. Benchmarking is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The competition was 'full and open after exclusion of sources,' indicating a competitive process was intended, but the specific exclusion criteria are not detailed. This method aims for fair pricing but the exclusivity might influence final costs.

Taxpayer Impact: Taxpayers are funding essential wildland firefighting services. The contract's value of $26.5M over four years suggests a significant investment in critical infrastructure and safety.

Public Impact

Ensures critical initial attack helicopter support for wildland firefighting, directly impacting public safety and resource protection. Supports a specialized aviation service provider, potentially impacting the broader aerial firefighting industry. The contract's duration and value represent a substantial commitment of federal funds towards emergency response capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusive use clause may limit competition and increase costs.
Economic price adjustment introduces potential for cost overruns.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Addresses a critical national need for wildland firefighting.
Utilizes a competitive bidding process.
Long-term contract provides service stability.

Sector Analysis

This contract falls within the aviation services sector, specifically focusing on specialized aerial support for emergency response. Spending benchmarks for exclusive wildland firefighting helicopter services are highly variable due to unique operational demands and equipment requirements.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this specialized aviation service.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Forest Service, a key agency for wildland fire management. Oversight would focus on service delivery, adherence to safety protocols, and cost management, particularly given the economic price adjustment clause.

Related Government Programs

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

Risk Flags

Potential for increased costs due to economic price adjustment.
Risk of reduced competition and price inflation from source exclusion.
Lack of clear performance benchmarks for 'initial attack' effectiveness.
Exclusive use clause may limit flexibility and increase contractor leverage.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $26.5 million to HELIMAX AVIATION INC. IGF::CT::IGF CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE INITIAL ATTACK HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING.

Who is the contractor on this award?

The obligated recipient is HELIMAX AVIATION INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2014-05-01. End: 2018-04-30.

What specific criteria led to the exclusion of other sources during the 'full and open competition' phase, and how did this impact the final price?

The exclusion of sources during a 'full and open competition' typically implies that certain vendors or capabilities were deemed unsuitable based on predefined requirements, such as specific certifications, equipment, or past performance. This can limit the pool of bidders, potentially affecting price discovery and leading to higher costs if the remaining competition is less robust. Detailed documentation of the exclusion rationale is crucial for assessing fairness and value.

How does the economic price adjustment (EPA) mechanism function, and what are the potential risks to taxpayer funds given the contract's duration?

An EPA allows for adjustments to the contract price based on fluctuations in specific economic factors, such as fuel costs or labor rates. While intended to account for unforeseen market changes, it introduces risk as these adjustments can lead to higher overall costs for taxpayers if the indexed factors increase significantly. The contract's four-year duration amplifies this risk, necessitating careful monitoring of the EPA's triggers and caps.

What performance metrics are in place to ensure the effectiveness and efficiency of HELIMAX AVIATION INC's exclusive initial attack helicopter services?

Effectiveness is typically measured by response times, aircraft availability, mission completion rates, and safety incident reports. For exclusive initial attack services, key metrics would likely include rapid deployment capabilities during fire events and successful suppression of fires in their early stages. The contract's structure and the Forest Service's oversight mechanisms are critical for ensuring these performance standards are met and taxpayer funds are used effectively.

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-13-9006

Offers Received: 17

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Construction Helicopters, Inc. (UEI: 021837109)

Address: 3028 PEACEKEEPER WAY STE B-227, MCCLELLAN, CA, 95652

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

Financial Breakdown

Contract Ceiling: $26,512,499

Exercised Options: $26,512,499

Current Obligation: $26,512,499

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline