Agriculture's $87.8M helicopter contract for fire support awarded to Columbia Helicopters, Inc

Contract Overview

Contract Amount: $87,791,786 ($87.8M)

Contractor: Columbia Helicopters, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2016-04-10

End Date: 2019-04-30

Contract Duration: 1,115 days

Daily Burn Rate: $78.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTER SERVICES

Place of Performance

Location: AURORA, MARION County, OREGON, 97002

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $87.8 million to COLUMBIA HELICOPTERS, INC. for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTER SERVICES Key points: 1. Contract value represents significant investment in aerial firefighting capabilities. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of nearly three years indicates a need for sustained services. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic focus on Oregon highlights regional wildfire management priorities. 6. The award to a single contractor warrants scrutiny of market concentration.

Value Assessment

Rating: fair

The contract's total value of $87.8 million over approximately three years suggests a substantial investment in aerial firefighting. Benchmarking this against similar large-scale helicopter service contracts for emergency response is crucial. Without specific per-hour or per-mission rates, a detailed value-for-money assessment is challenging. However, the fixed-price nature of the contract implies an attempt to manage costs, though the overall price relative to services rendered requires further analysis against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had limitations, the final award was based on a broad competitive process. The number of bidders (17) suggests a healthy level of interest and potential competition for these specialized services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple providers.

Public Impact

Provides critical aerial support for large wildfire suppression efforts, protecting lives and property. Enhances the U.S. Forest Service's capacity to respond to natural disasters. Supports aviation industry jobs and specialized pilot/mechanic roles. Contributes to the environmental and economic stability of affected regions by mitigating wildfire damage. Services are primarily delivered in Oregon, addressing specific regional needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if fixed-price contract terms do not adequately account for unforeseen operational costs.
Dependence on a single contractor for critical firefighting assets could pose a risk if performance issues arise.
Limited transparency on specific performance metrics and outcomes achieved during the contract period.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Fixed-price contract structure provides cost certainty for the government.
Significant investment in essential public safety services demonstrates commitment to wildfire management.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on specialized aviation services for public safety. The market for large-scale aerial firefighting is relatively niche, often dominated by a few experienced operators capable of meeting stringent safety and operational requirements. The $87.8 million value positions this as a significant contract within this specialized segment, reflecting the high costs associated with maintaining and operating heavy-lift helicopters for demanding missions.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions (ss: false, sb: false). While the primary award went to Columbia Helicopters, Inc., there is potential for subcontracting opportunities within the small business ecosystem, particularly for maintenance, repair, or specialized support services. However, the primary focus appears to be on large-scale aviation operations typically handled by established prime contractors.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Forest Service's contracting officer and program managers. The fixed-price nature of the contract provides a degree of financial oversight by setting clear payment terms. Transparency regarding performance would depend on the reporting requirements stipulated in the contract and the Forest Service's internal monitoring processes. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Wildfire Suppression Support
Aviation Services Contracts
Emergency Response Aircraft
Department of Agriculture Procurement
Forest Management Operations

Risk Flags

Contract Duration
Sole Source Potential
Performance Monitoring
Cost Competitiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $87.8 million to COLUMBIA HELICOPTERS, INC.. IGF::CT::IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTER SERVICES

Who is the contractor on this award?

The obligated recipient is COLUMBIA HELICOPTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $87.8 million.

What is the period of performance?

Start: 2016-04-10. End: 2019-04-30.

What is the historical spending pattern for aerial firefighting helicopter services by the U.S. Forest Service?

Historical spending on aerial firefighting helicopter services by the U.S. Forest Service has generally trended upwards, reflecting increased wildfire activity and the growing reliance on aerial assets for suppression. While specific figures fluctuate annually based on fire seasons and budget allocations, multi-million dollar contracts for large helicopter services are common. For instance, prior to this $87.8 million contract, the Forest Service likely awarded similar, albeit potentially smaller or shorter-duration, contracts for essential services. Analyzing spending over the last decade would reveal trends in contract values, types of aircraft utilized, and the geographic distribution of these services, indicating a sustained and significant investment in this capability.

How does the cost per operational hour for this contract compare to industry benchmarks for similar heavy-lift helicopters?

Determining the precise cost per operational hour for this $87.8 million contract is challenging without access to the detailed pricing structure within the fixed-price definitive contract. However, industry benchmarks for heavy-lift helicopters like those likely used for large fire support (e.g., CH-47 variants, Erickson Air-Crane) can range significantly, often from $15,000 to $50,000+ per hour, depending on the aircraft type, mission complexity, maintenance, and included support services. Given the contract's total value and duration (approximately 1115 days, or roughly 3 years), the implied average annual cost is around $29 million. If the contract includes a substantial number of flight hours, the per-hour rate might fall within or potentially exceed the higher end of the benchmark range, necessitating a thorough review of the specific services and aircraft capabilities provided.

What is Columbia Helicopters, Inc.'s track record with federal contracts, particularly for emergency services?

Columbia Helicopters, Inc. has a significant track record with federal agencies, including extensive experience in providing heavy-lift helicopter services for various missions. They are well-known for their capabilities in logging, construction, and, crucially, firefighting and disaster relief operations. Their history includes numerous contracts with entities like the U.S. Forest Service, Bureau of Land Management, and Department of Defense. This specific $87.8 million contract with the Forest Service for large fire support is indicative of their established position in this market. Past performance reviews and contract histories would detail their reliability, safety record, and ability to meet demanding operational requirements, which are critical factors for emergency service providers.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of this helicopter support contract?

Key performance indicators (KPIs) for a contract like this typically focus on operational readiness, mission accomplishment, safety, and cost control. Specific metrics might include aircraft availability rates (percentage of time aircraft are ready for deployment), response times to incident calls, successful completion of assigned missions (e.g., water/retardant drops, personnel transport), adherence to flight safety regulations (e.g., incident-free flight hours), and performance against budget. The contract likely specifies reporting requirements for these KPIs, allowing the Forest Service to monitor Columbia Helicopters' performance and ensure the effective use of taxpayer funds in critical wildfire suppression efforts.

How has the Forest Service's reliance on contracted helicopter services for firefighting evolved over time?

The Forest Service's reliance on contracted helicopter services for firefighting has evolved significantly, moving from a model where government-owned assets were primary to one heavily dependent on private contractors. This shift is driven by the increasing scale and frequency of wildfires, the high cost of acquiring and maintaining specialized government fleets, and the need for surge capacity during peak seasons. Contracts like this $87.8 million award represent a mature stage of this evolution, where long-term agreements with specialized aviation companies provide essential capabilities. This trend allows the agency to access advanced technology and expertise while managing budget fluctuations and operational demands more flexibly.

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-15-9007

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14452 ARNDT RD NE, AURORA, OR, 97002

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

Financial Breakdown

Contract Ceiling: $88,489,357

Exercised Options: $88,231,028

Current Obligation: $87,791,786

Actual Outlays: $1,354,884

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline