Forest Service awarded $81M for airtanker services, with Aero-Flite Inc. as the sole contractor

Contract Overview

Contract Amount: $81,007,955 ($81.0M)

Contractor: Aero-Flite, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2015-09-30

End Date: 2019-12-31

Contract Duration: 1,553 days

Daily Burn Rate: $52.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTION, NEXT GENERATION 2.0 AIRTANKER SERVICES

Place of Performance

Location: SPOKANE, SPOKANE County, WASHINGTON, 99219

State: Washington Government Spending

Plain-Language Summary

Department of Agriculture obligated $81.0 million to AERO-FLITE, INC. for work described as: IGF::CT::IGF CRITICAL FUNCTION, NEXT GENERATION 2.0 AIRTANKER SERVICES Key points: 1. The contract's value of $81 million over its period of performance suggests a significant investment in aerial firefighting capabilities. 2. Aero-Flite, Inc. secured this contract, indicating a potentially concentrated market for critical airtanker services. 3. The contract type, Firm Fixed Price, aims to provide cost certainty for the government. 4. The duration of the contract, approximately 4.25 years, allows for sustained service delivery. 5. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a specific procurement approach that may warrant further investigation into its rationale and impact on competition. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific performance metrics and comparable contract data for aerial firefighting services. The $81 million award over roughly four years averages to approximately $19 million annually. This figure needs to be assessed against the operational costs, fleet size, and service availability provided by Aero-Flite, Inc. to determine if it represents good value for money. The firm fixed price structure provides predictability but could lead to overpayment if costs are lower than anticipated or underperformance if costs exceed projections without adequate recourse.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method suggests that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or prior performance issues. The fact that only one contractor, Aero-Flite, Inc., was awarded the contract implies limited competition at the final award stage. This could be due to highly specialized requirements, the limited number of qualified providers in the market, or the specific structure of the solicitation.

Taxpayer Impact: Limited competition can potentially lead to higher prices for taxpayers as it reduces the pressure on contractors to offer their most competitive rates. It also raises questions about whether the government secured the best possible value given the restricted pool of bidders.

Public Impact

The primary beneficiaries are the U.S. Forest Service and potentially other federal and state agencies relying on aerial firefighting support during wildfire seasons. The services delivered include the provision of airtanker aircraft for the suppression of wildfires, crucial for protecting lives, property, and natural resources. The geographic impact is national, focusing on areas prone to wildfires, particularly in the Western United States, though deployment can be nationwide. Workforce implications include support for pilots, ground crews, and maintenance personnel associated with the airtanker fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation requires scrutiny to ensure fairness and prevent undue market restriction.
Limited competition at the award stage may indicate potential barriers to entry for other qualified providers.
The reliance on a single contractor for critical airtanker services could pose a risk if the contractor faces operational issues or financial instability.

Positive Signals

The firm fixed price contract provides budget certainty for the Forest Service.
Aero-Flite, Inc. has been awarded a significant contract, suggesting they meet the stringent requirements for aerial firefighting.
The contract duration allows for consistent service delivery over several years.

Sector Analysis

The aerial firefighting sector is a specialized niche within the broader aviation and defense industries. It involves high-risk, high-stakes operations requiring specialized aircraft, highly trained personnel, and stringent safety protocols. The market is often characterized by a limited number of experienced providers capable of meeting the demanding requirements of government contracts. Spending in this sector is heavily influenced by environmental factors, such as wildfire seasons, and government appropriations for emergency response and land management.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. The nature of specialized aerial firefighting services often requires significant capital investment and operational capacity that may favor larger, established companies. There is no explicit information provided regarding subcontracting plans to small businesses, which could be an area for further inquiry to understand the broader economic impact.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Forest Service's contracting officers and program managers. The Inspector General's office for the Department of Agriculture would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases, but detailed operational performance data may be less publicly accessible.

Related Government Programs

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

Risk Flags

Limited competition may impact price.
Reliance on a single provider for critical services.
Potential for undisclosed performance issues due to 'exclusion of sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $81.0 million to AERO-FLITE, INC.. IGF::CT::IGF CRITICAL FUNCTION, NEXT GENERATION 2.0 AIRTANKER SERVICES

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 $81.0 million.

What is the period of performance?

Start: 2015-09-30. End: 2019-12-31.

What specific criteria led to the exclusion of certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement?

The specific criteria leading to the exclusion of sources in a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement are typically detailed within the solicitation documents and the contract award justification. Common reasons for excluding sources can include failure to meet minimum technical requirements, inability to demonstrate required safety certifications, lack of necessary operational capacity (e.g., fleet size, maintenance infrastructure), financial instability, or past performance issues. In the context of airtanker services, stringent safety records, specific aircraft capabilities (e.g., retardant delivery systems, payload capacity), and pilot experience are critical. The Forest Service would have outlined these exclusion criteria to ensure only qualified and capable vendors could participate, thereby aiming to secure reliable and safe firefighting assets.

How does the annual cost of this contract compare to historical spending on similar airtanker services by the Forest Service?

To compare the annual cost of this $81 million contract (averaging approximately $19 million per year) to historical spending, one would need access to historical Forest Service budget data and contract awards for airtanker services. This would involve identifying previous contracts for similar aircraft types (e.g., large airtankers), their duration, and their total value. Factors such as inflation, changes in operational requirements, technological advancements in firefighting aircraft, and market dynamics (e.g., number of competing providers) would need to be considered for a fair comparison. Without specific historical data, it's difficult to definitively state whether this contract represents an increase or decrease in spending relative to past investments in aerial firefighting capacity.

What are the key performance indicators (KPIs) used to evaluate Aero-Flite, Inc.'s performance under this contract?

Key Performance Indicators (KPIs) for an airtanker services contract typically focus on operational readiness, safety, and effectiveness. These could include metrics such as aircraft availability rates (percentage of time aircraft are ready for deployment), response times to dispatch orders, successful delivery of retardant or water to target areas, flight hours logged, adherence to safety protocols (e.g., incident-free operations), and compliance with maintenance schedules. The contract likely specifies these KPIs, and performance against them would determine contractor success and potentially influence future contract awards. Failure to meet critical KPIs could result in penalties or contract termination.

What is the typical fleet size and operational capacity provided by Aero-Flite, Inc. under this contract?

The contract data does not explicitly state the fleet size or specific operational capacity provided by Aero-Flite, Inc. However, given the contract value of $81 million over approximately 4.25 years, it suggests a substantial commitment. Large airtankers, often the focus of such contracts, typically have capacities ranging from 1,000 to over 3,000 gallons of retardant or water. The number of aircraft deployed would depend on the specific requirements outlined in the solicitation, potentially including a mix of large and medium airtankers, and their geographic distribution to ensure rapid response across different regions. Further details would be found in the contract's statement of work.

Are there any known risks associated with Aero-Flite, Inc. as a contractor for critical government services?

Assessing risks associated with Aero-Flite, Inc. requires reviewing their past performance records, safety history, and financial stability. While the award of this significant contract suggests they meet the Forest Service's requirements, potential risks in aerial firefighting can include safety incidents (accidents, near misses), aircraft mechanical failures leading to downtime, challenges in maintaining adequate staffing (pilots, mechanics), and potential financial difficulties that could impact operational continuity. A thorough risk assessment would involve examining any documented safety violations, past contract disputes, or negative performance reviews from previous government contracts. The 'exclusion of sources' in the procurement process might also hint at prior concerns with certain entities.

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: AG024BS159003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8520 W ELECTRIC AVENUE, SPOKANE, WA, 99219

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

Financial Breakdown

Contract Ceiling: $81,007,955

Exercised Options: $81,007,955

Current Obligation: $81,007,955

Actual Outlays: $26,150,042

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline