Agriculture's $118M Helicopter Services Contract Awarded to Helicopter Transport Services, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $118,413,736 ($118.4M)

Contractor: Helicopter Transport Services, LLC

Awarding Agency: Department of Agriculture

Start Date: 2016-04-10

End Date: 2019-04-30

Contract Duration: 1,115 days

Daily Burn Rate: $106.2K/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: WILMINGTON, NEW CASTLE County, DELAWARE, 19808

State: Delaware Government Spending

Plain-Language Summary

Department of Agriculture obligated $118.4 million to HELICOPTER TRANSPORT SERVICES, LLC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTER SERVICES Key points: 1. The contract value of $118.4 million for helicopter services highlights significant investment in critical functions. 2. Competition was conducted under a 'full and open competition after exclusion of sources' model, suggesting a specific but competitive procurement process. 3. The firm-fixed-price contract type aims to control costs for the Forest Service. 4. The sector involves specialized aviation services crucial for land management and emergency response.

Value Assessment

Rating: good

The contract's value of $118.4 million appears substantial for specialized helicopter services. Benchmarking against similar large-scale aerial support contracts would be necessary for a precise pricing assessment, but the firm-fixed-price structure suggests an effort to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized 'full and open competition after exclusion of sources,' indicating that while the competition was broad, certain sources were initially excluded. This method aims to ensure fair pricing through competition while potentially streamlining the process for specific needs.

Taxpayer Impact: The firm-fixed-price contract aims to provide cost certainty for taxpayers, with competition intended to drive a reasonable price for essential helicopter services.

Public Impact

Ensures critical fire support and other aerial services for the Forest Service. Supports land management activities across potentially vast and remote areas. Provides essential transportation and logistical capabilities for government operations. The contract duration of over three years suggests ongoing operational needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if scope changes significantly.
Dependence on a single awardee for critical services.
Limited visibility into specific operational performance metrics.

Positive Signals

Firm-fixed-price contract type for cost control.
Full and open competition mechanism used.
Awarded to a single, established provider for specialized services.

Sector Analysis

This contract falls within the specialized aviation services sector, crucial for government agencies like the Forest Service. Spending benchmarks for similar large-scale aerial support contracts can vary widely based on aircraft type, mission complexity, and geographic region.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). The specialized nature of helicopter services may limit small business participation, though subcontracting opportunities could exist.

Oversight & Accountability

The contract's oversight would primarily fall under the Department of Agriculture's Forest Service. Accountability is managed through contract terms, performance monitoring, and the firm-fixed-price structure to ensure service delivery and cost adherence.

Related Government Programs

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

Risk Flags

Potential for sole-source reliance if follow-on contracts are structured similarly.
Lack of explicit small business participation noted.
Limited transparency on specific performance metrics.
Risk associated with specialized equipment and personnel availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $118.4 million to HELICOPTER TRANSPORT SERVICES, LLC. IGF::CT::IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTER SERVICES

Who is the contractor on this award?

The obligated recipient is HELICOPTER TRANSPORT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $118.4 million.

What is the period of performance?

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

What specific performance metrics are tracked to ensure the effectiveness and value of these helicopter services for critical functions like fire support?

Performance metrics likely include response times, aircraft availability, flight hours logged, adherence to safety protocols, and successful completion of mission objectives (e.g., water drops, personnel transport). The Forest Service would establish specific KPIs within the contract to measure the contractor's effectiveness in providing critical support, ensuring value for taxpayer dollars.

How does the 'exclusion of sources' in the competition method impact the potential for cost savings and innovation compared to a purely open bid?

Excluding certain sources might streamline the evaluation process but could limit the pool of potential bidders, potentially reducing competitive pressure on price and innovation. If exclusions were based on specific capabilities or past performance, it could ensure a higher quality of service, but a broader competition might yield better cost savings.

What is the long-term strategy for ensuring continued access to essential helicopter services beyond this contract's expiration, and are there plans to foster greater small business involvement in fut

The Forest Service likely plans future procurements based on evolving needs and market conditions. Strategies may include market research to identify new providers or technologies, and potentially breaking down future contracts into smaller lots to encourage small business participation, depending on service requirements.

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: 2711 CENTERVILLE RD STE 400, WILMINGTON, DE, 19808

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

Financial Breakdown

Contract Ceiling: $122,138,579

Exercised Options: $121,500,312

Current Obligation: $118,413,736

Actual Outlays: $6,207,168

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline