Interior's $38M Fire Protection Contract Awarded to Oregon Department of Forestry Raises Value Questions

Contract Overview

Contract Amount: $38,015,706 ($38.0M)

Contractor: Oregon Department of Forestry

Awarding Agency: Department of the Interior

Start Date: 2013-06-27

End Date: 2018-06-30

Contract Duration: 1,829 days

Daily Burn Rate: $20.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF FIRE PROTECTION CONTRACT

Place of Performance

Location: SALEM, MARION County, OREGON, 97310

State: Oregon Government Spending

Plain-Language Summary

Department of the Interior obligated $38.0 million to OREGON DEPARTMENT OF FORESTRY for work described as: IGF::CT::IGF FIRE PROTECTION CONTRACT Key points: 1. The contract's value proposition is unclear due to a lack of competitive bidding. 2. Sole-source award limits price discovery and potentially inflates costs. 3. Long duration and firm fixed-price structure may not adapt to changing needs. 4. Performance context is limited without comparison to similar services. 5. Sector positioning is within forestry support, a critical but specialized area. 6. Risk indicators include potential for cost overruns and lack of market-tested pricing.

Value Assessment

Rating: questionable

The $38 million contract awarded to the Oregon Department of Forestry lacks a clear benchmark for value. As a sole-source award, there's no direct comparison to market rates or competitive bids to assess if the price is fair. The firm fixed-price structure over a 5-year period, while providing cost certainty, may not reflect actual service needs or market fluctuations, potentially leading to overpayment if costs decrease or under-delivery if needs escalate. Without more data on the specific services rendered and their efficiency, assessing the true value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The Oregon Department of Forestry was the only entity considered for this award. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from various qualified contractors. Consequently, there is no data on the number of potential bidders or the range of pricing that might have emerged from a competitive environment. This lack of competition limits the government's ability to secure the best possible price and service.

Taxpayer Impact: The absence of competition means taxpayers did not benefit from the potential cost savings and innovation that a competitive bidding process could have generated. The government may have paid a premium due to the lack of alternative offers.

Public Impact

The primary beneficiary is the Oregon Department of Forestry, which receives significant funding for its services. The contract supports critical forestry protection activities, likely including wildfire prevention, suppression, and related resource management. Geographic impact is concentrated in Oregon, where the Department of Forestry operates. Workforce implications include continued employment and resource allocation for the Oregon Department of Forestry's personnel involved in these activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for efficiency.
Sole-source awards can limit opportunities for other qualified providers, including small businesses.
The long contract duration may not be agile enough to adapt to evolving needs or technological advancements.
Firm fixed-price contracts can be disadvantageous if the scope of work changes significantly or if actual costs are lower than anticipated.

Positive Signals

Awarding to a state agency may indicate a trusted, established relationship for critical services.
The contract supports essential public services related to forestry and fire protection.
A firm fixed-price contract provides budget certainty for the agency.

Sector Analysis

This contract falls within the broader 'Forestry and Natural Resources Management' sector, which is a subset of government services. This sector often involves specialized expertise and equipment, particularly for fire suppression. Benchmarking spending in this specific niche can be challenging due to the unique nature of state-level forestry operations and their integration with federal needs. However, federal spending on wildfire management and related services is substantial, reflecting the increasing risks associated with climate change and land use.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no information provided regarding subcontracting plans or opportunities for small businesses. The sole-source nature of the award further limits the potential for small business participation, as the contract was directly awarded to a state agency without a competitive process that might include small business considerations.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. As a sole-source award to a state agency, oversight might be managed through intergovernmental agreements and specific reporting requirements outlined in the contract. Transparency is limited due to the lack of competitive bidding documentation. Inspector General jurisdiction would typically apply to federal contracts, but the specifics of oversight for this intergovernmental agreement would depend on the terms established between the Department of the Interior and the Oregon Department of Forestry.

Related Government Programs

Federal Wildland Fire Management Programs
Forestry and Conservation Services
Emergency Management and Response Contracts
State and Local Government Support Agreements

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated costs due to lack of competition.
Long contract duration may reduce flexibility.
Firm fixed-price structure may not align with variable service needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $38.0 million to OREGON DEPARTMENT OF FORESTRY. IGF::CT::IGF FIRE PROTECTION CONTRACT

Who is the contractor on this award?

The obligated recipient is OREGON DEPARTMENT OF FORESTRY.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $38.0 million.

What is the period of performance?

Start: 2013-06-27. End: 2018-06-30.

What specific services are covered under this $38 million fire protection contract?

The provided data indicates the contract is for 'IGF FIRE PROTECTION CONTRACT' under 'Support Activities for Forestry.' While specific details are not enumerated, this typically encompasses a range of services crucial for managing and suppressing wildfires. These services can include aerial firefighting support (e.g., water or retardant drops), ground crew deployment for fire containment, pre-positioning of resources in high-risk areas, fire detection and monitoring, and potentially post-fire rehabilitation efforts. The contract's duration of 1829 days (approximately 5 years) suggests a sustained operational support role rather than a short-term emergency response. The firm fixed-price nature implies a defined scope of services for a set cost, though the exact deliverables would be detailed in the contract's statement of work.

How does the $38 million contract value compare to similar federal fire protection contracts?

Direct comparison of the $38 million contract value to similar federal fire protection contracts is challenging without knowing the specific scope, duration, and geographic coverage. Federal spending on wildfire management is substantial, with various contracts awarded for aerial support, ground crews, equipment, and technology. Contracts can range from millions to hundreds of millions of dollars depending on the scale of operations. However, the fact that this is a sole-source award to a state agency, rather than a competitive bid among private sector providers or other federal entities, makes a direct 'apples-to-apples' value comparison difficult. Typically, competitive processes yield data points that allow for benchmarking against market rates and other awarded contracts.

What are the primary risks associated with a sole-source, firm fixed-price contract of this magnitude and duration?

A sole-source, firm fixed-price contract of this magnitude ($38 million over 5 years) carries several inherent risks. Firstly, the lack of competition means the government may not be achieving the best possible price, as there was no market pressure to drive down costs. Secondly, a firm fixed-price structure, while offering budget certainty, can lead to inefficiencies if the contractor becomes complacent or if the actual costs of service delivery are significantly lower than anticipated. Conversely, if unforeseen circumstances drastically increase costs, the contractor might seek modifications or face financial strain, potentially impacting service delivery. The long duration also poses a risk of the contract becoming misaligned with evolving needs, technologies, or threat landscapes in wildfire management without opportunities for re-evaluation through competition.

What is the track record of the Oregon Department of Forestry in providing fire protection services?

The Oregon Department of Forestry (ODF) is a well-established state agency with a long history and recognized expertise in wildfire management and forest protection. They are responsible for coordinating wildfire suppression efforts across much of Oregon, operating a fleet of aircraft, managing ground crews, and implementing prevention strategies. Their experience includes responding to numerous wildfires annually, often in challenging conditions. Awarding this contract to ODF suggests a reliance on their existing capabilities and established operational framework. While specific performance metrics under this particular federal contract are not detailed, ODF's general reputation and role within Oregon's emergency response system indicate a significant level of experience and competence in the field of fire protection.

How does this contract fit into the broader context of federal wildfire management spending?

This $38 million contract represents a component of the broader federal investment in wildfire management, which is a critical and growing area of expenditure for agencies like the Department of the Interior and the Forest Service (part of the USDA). Federal spending on wildfire suppression and prevention has increased significantly over the past decades due to factors like climate change, increased development in wildland-urban interfaces, and historical land management practices. Contracts like this, even when awarded sole-source to a state partner, contribute to the overall capacity needed to address wildfire threats across the nation. It highlights a strategy of leveraging state resources and expertise to supplement federal capabilities, particularly in regions where state agencies have a strong operational presence and established infrastructure.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Support Activities for Forestry › Support Activities for Forestry

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: L13PS00145

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Oregon, State of (UEI: 043008317)

Address: 2600 STATE STREET, SALEM, OR, 97310

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,015,706

Exercised Options: $38,015,706

Current Obligation: $38,015,706

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline