Forest Service awards $10.9M contract for exclusive air transport services in Missoula, MT

Contract Overview

Contract Amount: $10,944,274 ($10.9M)

Contractor: Heli-1 Corp

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2025-12-31

Contract Duration: 730 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 31

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYPE II EXCLUSIVE USE FOR MISSOULA, MT #2

Place of Performance

Location: MISSOULA, MISSOULA County, MONTANA, 59801

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.9 million to HELI-1 CORP for work described as: TYPE II EXCLUSIVE USE FOR MISSOULA, MT #2 Key points: 1. Contract awarded to HELI-1 CORP for exclusive air transport. 2. Services are for a Type II exclusive use requirement in Missoula, Montana. 3. The contract has a firm fixed price structure. 4. Duration of the contract is 730 days. 5. This is a delivery order under a larger contract. 6. The contract was awarded through full and open competition.

Value Assessment

Rating: fair

The contract value of $10.9M over two years for exclusive air transport services appears to be within a reasonable range for specialized aerial operations, especially considering the 'exclusive use' designation which implies dedicated resources. Benchmarking against similar contracts for exclusive aerial firefighting or transport in remote areas would provide a clearer picture of value. The firm fixed price structure offers cost certainty but may limit flexibility if operational needs change significantly. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. Thirty-one offers were received, suggesting a robust level of interest and competition for this service. This broad competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders suggests that the market for these specialized services is active.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the price and ensured that the Forest Service secured the most cost-effective solution available for essential air transport needs.

Public Impact

This contract directly benefits the Forest Service's operational capabilities in the Missoula, Montana area. It ensures the availability of specialized air transport for critical missions, potentially including resource management, emergency response, or logistical support. The geographic impact is focused on Missoula, MT, and surrounding operational areas. The contract supports the aviation sector by providing work for a specialized air carrier and its crew.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if operational requirements expand beyond the initial scope.
Dependence on a single contractor for exclusive use could pose risks if performance issues arise.
Limited transparency into the specific cost components of the firm fixed price.

Positive Signals

Awarded through full and open competition with 31 offers, indicating strong market interest and potential for competitive pricing.
Firm fixed price contract provides budget certainty for the Forest Service.
The contract duration of two years allows for stable planning and execution of services.

Sector Analysis

The contract falls within the broader aviation services sector, specifically focusing on specialized charter and freight transportation. This niche often involves high-performance aircraft and skilled pilots, particularly for government contracts requiring exclusive use in challenging environments. The market for such services is driven by demand from agencies like the Forest Service for wildfire suppression, logistical support in remote areas, and other critical operations. Comparable spending benchmarks would typically be found within federal solicitations for similar exclusive-use aerial services.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of exclusive-use aerial transport, it is possible that larger, specialized aviation companies are the primary participants in such procurements. Further analysis would be needed to determine if small businesses are involved in the supply chain or as potential subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Agriculture's Forest Service. Accountability is established through the firm fixed price contract terms, performance expectations, and delivery schedules. Transparency is facilitated by the contract award data being publicly available, though detailed operational reports may be internal. The Inspector General's office for the Department of Agriculture would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Forest Service Aviation Management
Aerial Firefighting Contracts
Specialized Air Charter Services
Federal Aviation Operations

Risk Flags

Potential for cost overruns if operational scope expands.
Dependence on a single provider for exclusive use.
Risk of underutilization of dedicated resources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.9 million to HELI-1 CORP. TYPE II EXCLUSIVE USE FOR MISSOULA, MT #2

Who is the contractor on this award?

The obligated recipient is HELI-1 CORP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2024-01-01. End: 2025-12-31.

What is the historical spending pattern for exclusive use air transport services by the Forest Service in Montana?

Analyzing historical spending for similar exclusive-use air transport contracts by the Forest Service in Montana requires access to detailed federal procurement databases and specific contract line item data. Generally, such specialized services are procured on an as-needed basis or through multi-year contracts, with costs fluctuating based on demand, aircraft type, operational duration, and market competition. The Forest Service's budget for aviation operations is significant, driven by the need for wildfire suppression, resource management, and logistical support across vast federal lands. Exclusive-use contracts, by their nature, command a premium due to the guaranteed availability of dedicated assets. Without specific historical data points for Missoula or comparable regions, it's difficult to provide precise figures, but annual spending can range from hundreds of thousands to millions of dollars depending on the scope and duration of services required.

How does the number of bidders (31) compare to typical competition levels for similar specialized aviation contracts?

A total of 31 offers for this specialized air transport contract is a strong indicator of robust competition. For niche services like exclusive-use aerial transport, particularly those involving specific aircraft types or operational requirements (e.g., Type II exclusive use), the number of qualified bidders can vary significantly. In some highly specialized markets, fewer than 10 bidders might be considered competitive. Conversely, for broader aviation services, the number could be higher. Receiving 31 offers suggests that the solicitation was well-defined, the market was accessible, and the opportunity was attractive to a significant portion of potential providers. This high number generally bodes well for achieving competitive pricing and selecting a capable vendor.

What are the specific risks associated with a 'Type II Exclusive Use' designation for air transport?

The 'Type II Exclusive Use' designation for air transport implies that the contracted aircraft and crew are dedicated solely to the Forest Service's needs for the duration of the contract, typically for specific missions like wildfire suppression or critical logistical support. The primary risks associated with this exclusivity include higher costs compared to on-demand services, as the government pays for guaranteed availability. There's also a risk of underutilization if operational needs decrease unexpectedly, yet the contractor is still compensated. Furthermore, dependence on a single provider for critical exclusive-use missions can create vulnerabilities if the contractor experiences performance issues, mechanical failures, or financial instability, potentially leading to mission delays or cancellations.

What is the typical performance evaluation process for a contract like this?

Performance evaluation for a contract like this typically involves a multi-faceted approach managed by the Contracting Officer's Representative (COR) or a designated technical monitor. Key performance indicators (KPIs) would be established in the contract, focusing on aspects such as on-time availability of aircraft and crew, adherence to flight schedules, successful completion of mission objectives, aircraft maintenance and airworthiness standards, safety compliance, and responsiveness to task orders. Regular performance reports from the COR to the Contracting Officer are standard, documenting adherence to or deviations from contract requirements. End-of-contract performance assessments, often including contractor performance evaluation reports (CPARs), provide a formal record that influences future contracting decisions.

How does the firm fixed price (FFP) structure impact the contractor's incentive to control costs versus the government's risk?

A Firm Fixed Price (FFP) contract structure places the primary risk of cost overruns on the contractor. The contractor is obligated to perform the specified work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and control costs to maximize profit. For the government, the main benefit is cost certainty; the total price is known upfront, simplifying budgeting. However, the government bears the risk that the contractor may cut corners on quality or service to maintain profitability if costs escalate unexpectedly, although quality is typically monitored through performance standards. In highly specialized or uncertain environments, an FFP contract might lead to higher initial pricing to account for the contractor's risk premium.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1202SA22R9202

Offers Received: 31

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 485 S ROCK BLVD, RENO, NV, 89502

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

Financial Breakdown

Contract Ceiling: $10,944,274

Exercised Options: $10,944,274

Current Obligation: $10,944,274

Actual Outlays: $7,707,998

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9264

IDV Type: IDC

Timeline