Forest Service spent $51.7M on aerial supervision modules, with TENAX AERIAL FIRE SUPPORT, LLC as the sole awardee

Contract Overview

Contract Amount: $51,709,621 ($51.7M)

Contractor: Tenax Aerial Fire Support, LLC

Awarding Agency: Department of Agriculture

Start Date: 2016-10-13

End Date: 2019-12-31

Contract Duration: 1,174 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF AERIAL SUPERVISION MODULE (ASM)

Place of Performance

Location: RIDGELAND, MADISON County, MISSISSIPPI, 39157

State: Mississippi Government Spending

Plain-Language Summary

Department of Agriculture obligated $51.7 million to TENAX AERIAL FIRE SUPPORT, LLC for work described as: IGF::CT::IGF AERIAL SUPERVISION MODULE (ASM) Key points: 1. The contract utilized a firm-fixed-price structure, which can offer cost certainty for the government. 2. Awarded under full and open competition, suggesting a broad market search was conducted. 3. The contract duration of 1174 days indicates a significant, long-term need for these services. 4. The specific product/service code (PSC) is not detailed, making direct comparisons challenging. 5. The contract was awarded to a single entity, TENAX AERIAL FIRE SUPPORT, LLC. 6. The contract's value of over $51 million warrants scrutiny for value for money. 7. The absence of small business set-aside flags suggests larger prime contractors were anticipated or prioritized.

Value Assessment

Rating: fair

Benchmarking the value of this contract is difficult without more specific details on the services provided and comparable market rates for aerial supervision modules. The total award amount of $51.7 million over approximately three years suggests a substantial investment. However, without data on the number of units or hours delivered, a precise per-unit cost comparison is not feasible. The firm-fixed-price nature of the contract provides some cost predictability, but the overall value proposition depends heavily on the effectiveness and efficiency of the services rendered by TENAX AERIAL FIRE SUPPORT, LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that the Forest Service solicited bids from all responsible sources. The number of bidders is not specified in the provided data, which limits the assessment of the competitive landscape. A robust competition typically leads to better pricing and service options for the government. The fact that it resulted in a single award to TENAX AERIAL FIRE SUPPORT, LLC, without further details on the bidding process, leaves questions about the intensity of the competition and its impact on price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, the ultimate benefit depends on the number of responsive bids received and the negotiation process.

Public Impact

The primary beneficiaries are likely the US Forest Service and potentially other agencies involved in wildfire management, receiving critical aerial supervision capabilities. The services delivered are essential for monitoring and managing aerial firefighting operations, enhancing safety and effectiveness. The geographic impact is likely nationwide, supporting forest and wildland fire suppression efforts across various regions. The contract supports a specialized segment of the aviation and defense support industry, potentially involving skilled pilots and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to assess effectiveness.
Limited transparency on the number of bidders in the full and open competition.
Potential for vendor lock-in if specialized equipment or training is required.
The significant dollar amount necessitates close monitoring for cost efficiency.

Positive Signals

Awarded through full and open competition, suggesting a fair market approach.
Firm-fixed-price contract offers budget predictability.
Long contract duration implies a sustained and critical need for the service.
The contractor, TENAX AERIAL FIRE SUPPORT, LLC, was selected, implying they met the government's requirements.

Sector Analysis

This contract falls within the broader sector of aviation services and specialized equipment leasing, often supporting government operations. The market for aerial support, particularly for firefighting and surveillance, is a niche but critical segment. Spending benchmarks for similar aerial supervision or firefighting support contracts would provide context, but such data is not readily available. The Forest Service's reliance on such contracts highlights the significant investment in maintaining aerial capabilities for land management and emergency response.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting plans for small businesses (ss: false). This suggests that the primary award was made to a large business or that small business participation was not a specific requirement or focus of this particular solicitation. Consequently, the direct impact on the small business ecosystem for this specific contract may be limited, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the US Forest Service contracting officers and program managers. The firm-fixed-price nature might simplify some aspects of financial oversight compared to cost-reimbursement contracts. Transparency regarding performance metrics and adherence to contract terms would be crucial. While specific Inspector General (IG) jurisdiction isn't detailed, the Department of Agriculture's Office of Inspector General would likely have oversight authority over significant expenditures within the Forest Service.

Related Government Programs

Wildfire Suppression Support Contracts
Aerial Surveillance Services
Aviation Support Services
Forest Management Technology
Emergency Response Equipment Leasing

Risk Flags

Lack of detailed performance metrics.
Limited information on the number of bidders.
Potential for high cost without clear value benchmarks.
Contractor's specific experience not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $51.7 million to TENAX AERIAL FIRE SUPPORT, LLC. IGF::CT::IGF AERIAL SUPERVISION MODULE (ASM)

Who is the contractor on this award?

The obligated recipient is TENAX AERIAL FIRE SUPPORT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $51.7 million.

What is the period of performance?

Start: 2016-10-13. End: 2019-12-31.

What specific services does the IGF AERIAL SUPERVISION MODULE (ASM) entail, and how do they contribute to the Forest Service's mission?

The IGF AERIAL SUPERVISION MODULE (ASM) likely refers to a system or service providing aerial oversight and support for firefighting operations. This could include real-time monitoring of fire perimeters, coordination of air assets (like water bombers and helicopters), assessment of fire behavior, and communication relay. These services are critical for enhancing the safety and effectiveness of ground and air crews, enabling better strategic decision-making, and optimizing resource allocation during wildfire suppression efforts. The Forest Service's mission includes protecting national forests and grasslands, and aerial supervision plays a vital role in achieving this by providing crucial situational awareness and command support in complex and dangerous environments.

How does the $51.7 million contract value compare to historical spending on similar aerial supervision services by the Forest Service or other agencies?

Comparing the $51.7 million contract value requires access to historical spending data for similar aerial supervision modules or services. Without specific benchmarks, it's challenging to definitively state if this represents an increase or decrease in spending trends. However, the significant dollar amount suggests a substantial and ongoing requirement for these capabilities. Factors influencing historical spending include the intensity of fire seasons, technological advancements in aerial support, and changes in contracting strategies. A detailed analysis would involve examining contract databases for comparable services over multiple fiscal years to identify patterns and justify the current investment level relative to past expenditures and evolving needs.

What is the track record of TENAX AERIAL FIRE SUPPORT, LLC in providing similar services to the government or in the private sector?

Information regarding the specific track record of TENAX AERIAL FIRE SUPPORT, LLC in providing aerial supervision modules or similar services is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous government contracts. Understanding their experience, technical capabilities, and reliability is crucial for evaluating the risk associated with this significant award. Government contract databases and performance rating systems (like CPARS) would typically provide insights into a contractor's past performance and suitability for such critical services.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of the IGF AERIAL SUPERVISION MODULE (ASM)?

Key performance indicators (KPIs) for the IGF AERIAL SUPERVISION MODULE (ASM) are not explicitly provided in the contract data. However, typical KPIs for such services would likely focus on operational effectiveness, safety, and cost efficiency. Examples could include the timeliness and accuracy of information provided to incident commanders, the number of successful air asset coordinations, the reduction in response times due to better situational awareness, adherence to flight safety regulations, and the overall cost per operational hour or mission. Effective oversight would involve tracking these metrics to ensure the Forest Service is receiving optimal value and that the services are contributing positively to wildfire management objectives.

Given the firm-fixed-price nature, what mechanisms are in place to ensure the contractor remains incentivized to provide high-quality services throughout the contract duration?

In a firm-fixed-price (FFP) contract, the contractor bears the primary risk of cost overruns, which inherently incentivizes them to manage costs efficiently. However, to ensure high-quality services, the Forest Service would rely on several mechanisms. These include clearly defined performance standards and deliverables within the contract, regular performance monitoring by contracting officers' representatives (CORs), and potentially performance-based payments tied to achieving specific milestones or quality levels. Contract clauses related to termination for default or convenience also provide leverage. Furthermore, post-performance evaluations and feedback loops can influence future contract awards, creating an incentive for sustained quality delivery.

What is the potential impact of this contract on the broader market for aerial firefighting and support services?

A contract of this magnitude ($51.7 million) awarded to a single entity like TENAX AERIAL FIRE SUPPORT, LLC can have a notable impact on the market for aerial firefighting and support services. It signifies a significant demand for these specialized capabilities and potentially consolidates a portion of the market share with the awardee. This could influence competitive dynamics, potentially encouraging other firms to enhance their offerings or seek similar large-scale contracts. It also highlights the importance of specialized aviation companies in supporting critical government functions, potentially driving innovation and investment within this sector. The long duration suggests a stable, long-term commitment from the government, which can provide financial stability for the contractor and influence their strategic planning.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AG-024B-S-16-9012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 CRESCENT BLVD, RIDGELAND, MS, 39157

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,709,621

Exercised Options: $51,709,621

Current Obligation: $51,709,621

Actual Outlays: $11,137,242

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline