Forest Service awards $80.9M contract for large fire support helicopter services to Siller Helicopters, LLC

Contract Overview

Contract Amount: $80,935,046 ($80.9M)

Contractor: Siller Helicopters, LLC

Awarding Agency: Department of Agriculture

Start Date: 2016-04-10

End Date: 2018-04-30

Contract Duration: 750 days

Daily Burn Rate: $107.9K/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 HELICOPTERS SERVICES

Place of Performance

Location: YUBA CITY, SUTTER County, CALIFORNIA, 95991

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $80.9 million to SILLER HELICOPTERS, LLC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTERS SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 750 days indicates a medium-term need for these services. 3. Firm Fixed Price contract type aims to provide cost certainty for the government. 4. The award to a single contractor, Siller Helicopters, LLC, warrants scrutiny for potential future competition. 5. Geographic focus on California for fire support services aligns with high-risk wildfire areas. 6. The contract's value is significant, reflecting the critical nature of aerial firefighting support.

Value Assessment

Rating: fair

The contract value of approximately $80.9 million over its period of performance is substantial. Benchmarking this against similar large fire support helicopter contracts is challenging without more specific service details (e.g., aircraft type, hours, mission profiles). However, the firm fixed-price nature suggests an attempt to control costs. The number of bids received (10) is a positive indicator of market interest, but the ultimate price paid relative to market rates requires further analysis of the specific services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation was broad, specific sources may have been excluded based on pre-qualification criteria. Seventeen offers were received, which is a healthy number and suggests robust competition. The presence of multiple bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The robust competition with 17 offers is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive bids for essential wildfire suppression services.

Public Impact

The primary beneficiaries are the US Forest Service and potentially other federal and state agencies relying on aerial firefighting capabilities. Services delivered include critical support for combating large wildfires, likely involving transport, reconnaissance, and potentially water/retardant delivery. The geographic impact is focused on California, a state prone to severe wildfire activity, ensuring critical resources are available where needed most. Workforce implications include employment for pilots, mechanics, and support staff within Siller Helicopters, LLC and potentially related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced competition in future contract renewals if Siller Helicopters, LLC becomes entrenched.
The specific reasons for excluding certain sources in the 'full and open after exclusion' process are not detailed, which could obscure potential competitive disadvantages.
Lack of detailed performance metrics makes it difficult to assess the true value-for-money beyond the initial price.

Positive Signals

Awarded under full and open competition, indicating a broad initial solicitation.
Received a significant number of offers (17), suggesting strong market interest and a competitive environment.
Firm Fixed Price contract type provides cost certainty for the government.
The contract addresses a critical need for wildfire suppression support in a high-risk region.

Sector Analysis

This contract falls within the aviation services sector, specifically focusing on specialized aerial support for emergency response. The market for aerial firefighting is critical, particularly in regions prone to wildfires like California. Spending in this sector is often driven by seasonal needs and environmental conditions. Comparable spending benchmarks would typically involve analyzing contracts for similar helicopter services, aircraft types, and operational durations across different federal agencies like the Department of the Interior or FEMA.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. Given the specialized nature and scale of large fire support helicopter services, it is possible that prime contracts are awarded to larger, specialized aviation companies. Further investigation would be needed to determine if small businesses are involved as subcontractors or if specific set-aside goals were incorporated into the solicitation.

Oversight & Accountability

Oversight for this contract would typically fall under the US Forest Service contracting officers and program managers. The contract's firm fixed-price nature implies that performance standards and delivery schedules are key accountability measures. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the procurement or performance phases.

Related Government Programs

Wildfire Suppression Services
Aviation Support Contracts
Emergency Response Services
Department of Agriculture Contracts
Forest Service Aviation Management

Risk Flags

Potential for limited future competition
Lack of detailed service scope in award data
Need for performance benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $80.9 million to SILLER HELICOPTERS, LLC. IGF::CT::IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTERS SERVICES

Who is the contractor on this award?

The obligated recipient is SILLER HELICOPTERS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $80.9 million.

What is the period of performance?

Start: 2016-04-10. End: 2018-04-30.

What specific types of helicopters and services were included in this $80.9 million contract?

The provided data indicates the contract is for 'Nonscheduled Chartered Freight Air Transportation' related to 'IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTERS SERVICES'. While the exact types of helicopters (e.g., specific models like Blackhawks, Chinooks, or smaller utility helicopters) and the precise services (e.g., troop transport, cargo delivery, aerial reconnaissance, water/retardant drops, hoist operations) are not detailed, the contract value suggests a significant scope. Typically, large fire support contracts involve a mix of heavy-lift and medium-lift helicopters capable of sustained operations in challenging environments. The 'EU' designation might refer to a specific operational region or type of support, but without further context, it remains ambiguous. The duration of 750 days (approximately two years) implies a need for consistent, reliable aerial support throughout fire seasons or for ongoing preparedness.

How does the number of bidders (17) compare to typical competition levels for similar federal aviation contracts?

Receiving 17 offers for a contract valued at $80.9 million is generally considered a strong indicator of robust competition within the federal contracting space, particularly for specialized services like large fire support aviation. Many federal contracts, especially those requiring specialized equipment, certifications, and operational expertise, may receive fewer than ten offers. A higher number of bidders typically suggests that the market is healthy, the solicitation was well-publicized, and the requirements were clear enough to attract a diverse range of potential providers. This level of competition can exert downward pressure on pricing and increase the likelihood that the government secures the best value available.

What are the potential risks associated with a firm fixed-price contract for dynamic services like wildfire support?

Firm Fixed Price (FFP) contracts aim to provide cost certainty by obligating the contractor to a set price regardless of their actual costs. For dynamic services like wildfire support, this can present risks. If unforeseen operational challenges arise (e.g., extended flight times due to fire spread, difficult terrain requiring more fuel, unexpected maintenance needs in remote locations), the contractor might incur higher costs than anticipated. While the FFP structure protects the government from cost overruns, it could incentivize the contractor to cut corners on safety or performance if margins become too thin, although robust performance standards and oversight are intended to mitigate this. Conversely, if the contractor significantly underestimates costs or overperforms relative to the fixed price, they could realize substantial profits, raising questions about whether the government secured the best possible price.

What is the historical spending pattern for large fire support helicopter services by the Forest Service?

Analyzing historical spending patterns for large fire support helicopter services by the Forest Service requires access to comprehensive contract databases over multiple fiscal years. However, it is generally understood that spending in this area fluctuates significantly based on wildfire activity, drought conditions, and budget allocations. Years with severe wildfire seasons typically see increased demand and spending on aerial firefighting assets. The Forest Service, along with other agencies like the Department of the Interior, consistently invests substantial resources in aviation support for fire management. This $80.9 million contract represents a significant single award, but the overall annual expenditure for such services can range from tens to hundreds of millions of dollars depending on the year's fire conditions and the number and size of contracts awarded.

What does the 'full and open competition after exclusion of sources' designation imply for this contract?

The designation 'full and open competition after exclusion of sources' indicates a nuanced procurement approach. Initially, the solicitation was intended to be open to all responsible sources, aligning with the principles of full and open competition. However, during the process, specific sources were excluded. The reasons for exclusion are not detailed in the provided data but could stem from various factors, such as failure to meet minimum qualifications, non-responsiveness to solicitation requirements, or specific pre-qualification criteria established by the agency. While it still represents a competitive process, the exclusion of sources means that not all potential offerors were considered in the final evaluation, which could potentially limit the breadth of competition compared to a purely unrestricted full and open solicitation.

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: 1250 SMITH RD, YUBA CITY, CA, 95991

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

Financial Breakdown

Contract Ceiling: $92,187,355

Exercised Options: $89,143,713

Current Obligation: $80,935,046

Actual Outlays: $3,576,830

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline