Forest Service awards $46.1M contract for next-gen airtanker services, with 3 bidders competing

Contract Overview

Contract Amount: $46,123,513 ($46.1M)

Contractor: 10 Tanker AIR Carrier, LLC

Awarding Agency: Department of Agriculture

Start Date: 2015-09-30

End Date: 2024-12-31

Contract Duration: 3,380 days

Daily Burn Rate: $13.6K/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: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87106

State: New Mexico Government Spending

Plain-Language Summary

Department of Agriculture obligated $46.1 million to 10 TANKER AIR CARRIER, LLC for work described as: IGF::CT::IGF CRITICAL FUNCTION, NEXT GENERATION 2.0 AIRTANKER SERVICES Key points: 1. Contract aims to modernize critical firefighting airtanker capabilities. 2. Competition level suggests potential for competitive pricing. 3. Long contract duration (through 2024) indicates sustained need. 4. Fixed-price contract type shifts risk to the contractor. 5. Geographic focus on New Mexico for initial operations. 6. Contractor has prior experience in airtanker services.

Value Assessment

Rating: good

The contract value of $46.1M over its period appears reasonable given the critical nature of aerial firefighting and the specialized equipment required. Benchmarking against similar large-scale airtanker contracts is challenging due to the unique 'next-generation' aspect. However, the firm fixed-price structure suggests the government has locked in costs, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating that while competition was sought, specific sources may have been excluded initially. With 3 bidders, the competition level is moderate, suggesting that while multiple companies could bid, the market for such specialized services might be constrained. This level of competition can still drive reasonable pricing.

Taxpayer Impact: A moderate number of bidders generally allows for price discovery, potentially leading to better value for taxpayers compared to a sole-source award. However, understanding the reasons for excluding certain sources is key to fully assessing taxpayer benefit.

Public Impact

Benefits federal and state agencies in wildfire suppression efforts. Delivers critical aerial firefighting capabilities to protect lives and property. Geographic impact primarily focused on areas served by the Forest Service, with initial operations in New Mexico. Supports a specialized aviation workforce and related support industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to specialized nature of 'next-generation' airtankers.
Long-term contract duration could lead to price increases if market conditions change significantly.
Dependence on a single contractor for critical services poses a risk if performance issues arise.

Positive Signals

Firm fixed-price contract protects against cost overruns.
Contractor's experience in airtanker operations suggests a higher likelihood of successful performance.
Modernization of airtanker fleet addresses critical operational needs.

Sector Analysis

The aerial firefighting sector is a niche but critical part of the broader aviation and defense industries. This contract for 'next-generation' airtankers addresses the ongoing need for advanced wildfire suppression capabilities, a market segment that requires significant capital investment and specialized operational expertise. Spending in this area is often driven by environmental factors and the increasing frequency and intensity of wildfires.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized and high-value nature of next-generation airtanker services, it is unlikely that small businesses would be primary awardees without significant subcontracting. The primary contractor, 10 TANKER AIR CARRIER, LLC, is a specialized operator, and the focus is on capability rather than small business participation.

Oversight & Accountability

Oversight will likely be managed by the Forest Service contracting officers and program managers. The contract's long duration and critical function suggest regular performance reviews and adherence to safety and operational standards will be paramount. Transparency is generally maintained through contract award databases, but specific performance metrics and IG oversight details would require deeper investigation.

Related Government Programs

Wildfire Suppression Services
Aviation Support Contracts
Department of Agriculture Contracts
Forest Service Operations

Risk Flags

Limited market for specialized 'next-generation' airtanker services.
Potential for performance issues given the critical nature of the service.
Long contract duration may expose government to unfavorable market shifts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $46.1 million to 10 TANKER AIR CARRIER, LLC. IGF::CT::IGF CRITICAL FUNCTION, NEXT GENERATION 2.0 AIRTANKER SERVICES

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 $46.1 million.

What is the period of performance?

Start: 2015-09-30. End: 2024-12-31.

What is the track record of 10 TANKER AIR CARRIER, LLC with federal contracts, particularly in airtanker services?

10 TANKER AIR CARRIER, LLC has a documented history of providing large airtanker services to various government agencies, including the U.S. Forest Service and CAL FIRE. They are known for operating large, turbine-powered airtankers, such as the DC-10. Their experience includes responding to major wildfires across the United States. Past performance data, if available through federal procurement databases or agency reports, would provide further insight into their reliability, safety record, and ability to meet contractual obligations for critical aerial firefighting missions.

How does the pricing of this contract compare to similar large airtanker contracts awarded by federal agencies?

Directly comparing the pricing of this $46.1M contract to 'similar' contracts is complex due to the 'next-generation' specification and the specific operational scope. However, the cost per operational hour or per gallon of retardant delivered are key metrics. Historically, large airtanker contracts have ranged from tens of thousands to over a hundred thousand dollars per operational hour, depending on aircraft type, capacity, and service level. The firm fixed-price nature of this award suggests that the government has negotiated a set rate, which should be benchmarked against available market data for comparable aircraft and services to assess value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include operational failures (e.g., mechanical issues with the aircraft), safety incidents during firefighting missions, contractor performance deficiencies, and potential cost increases if the fixed-price agreement proves unfavorable over its long duration. Mitigation strategies likely involve stringent performance standards, rigorous safety protocols, regular inspections, and performance monitoring by the Forest Service. The firm fixed-price contract itself mitigates the risk of cost overruns for the government, shifting financial risk to the contractor.

How effective has the Forest Service been in leveraging competition for critical aviation support services like this?

The Forest Service, like many agencies, faces challenges in maximizing competition for highly specialized services such as next-generation airtankers. While this contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with three bidders, the market for such advanced capabilities is inherently limited. The agency's effectiveness can be measured by its ability to attract a sufficient number of qualified bidders, ensure fair pricing through competitive processes, and secure contracts that meet evolving operational needs. Continuous market research and outreach are crucial for fostering competition in niche sectors.

What is the historical spending pattern for aerial firefighting assets by the Forest Service over the last 5-10 years?

Historical spending by the Forest Service on aerial firefighting assets, including airtankers, has generally trended upwards over the last decade, reflecting increased wildfire activity and a greater reliance on aerial suppression. Annual expenditures can fluctuate significantly based on the severity of fire seasons. The agency has invested in modernizing its fleet, moving towards larger and more capable platforms. Specific figures would require analysis of the Forest Service's budget appropriations and contract spending data over the specified period, often found in agency reports or federal procurement databases.

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-15-9003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3201 UNIVERSITY SE STE 102, ALBUQUERQUE, NM, 87106

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

Financial Breakdown

Contract Ceiling: $50,000,000

Exercised Options: $50,000,000

Current Obligation: $46,123,513

Actual Outlays: $24,000,752

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline