Forest Service awards $7M+ contract for exclusive aerial firefighting services in Nevada City, CA

Contract Overview

Contract Amount: $7,017,073 ($7.0M)

Contractor: Idaho Helicopters Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYPE II EXCLUSIVE USE FOR NEVADA CITY, CA

Place of Performance

Location: NEVADA CITY, NEVADA County, CALIFORNIA, 95959

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.0 million to IDAHO HELICOPTERS INC for work described as: TYPE II EXCLUSIVE USE FOR NEVADA CITY, CA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price structure aims to control costs for the government. 3. The contract duration of 1095 days (3 years) indicates a need for sustained services. 4. The specific geographic focus on Nevada City, CA, highlights localized operational requirements. 5. The award to Idaho Helicopters Inc. warrants a review of their past performance and capacity. 6. The North American Industry Classification System (NAICS) code 481212 points to specialized air charter services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The firm-fixed-price nature provides cost certainty, but the total value of over $7 million for three years of exclusive use for a specific geographic area needs to be assessed against the operational needs and potential risks of wildfire suppression in that region. Without data on the number of flight hours or specific missions, a direct per-unit cost comparison is not feasible.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 22 bids suggests a robust competitive environment for this specialized service. A high number of bidders generally supports price discovery and can lead to more favorable pricing for the government, although the exclusivity of the service might limit the pool of truly capable competitors.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the price through market forces and encouraged multiple companies to vie for the opportunity.

Public Impact

Residents and businesses in Nevada City, California, benefit from enhanced aerial firefighting capabilities. The contract ensures the availability of specialized air transportation for critical wildfire suppression efforts. The geographic impact is concentrated on the Nevada City area, addressing specific regional risks. The contract supports the operational readiness of the Forest Service in wildfire management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited flexibility if operational needs change significantly beyond the scope of the exclusive use agreement.
Reliance on a single contractor for exclusive use in a specific area could pose a risk if the contractor faces operational issues.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract provides cost certainty for the government.
Long-term duration (3 years) ensures consistent service availability for a critical need.

Sector Analysis

This contract falls within the Air Transportation industry, specifically focusing on non-scheduled chartered freight air transportation, which in this context is adapted for specialized aerial firefighting. The market for aerial firefighting services is highly specialized, often requiring unique aircraft, certifications, and operational expertise. Spending in this sector is heavily influenced by seasonal demands, environmental conditions, and government budget allocations for emergency response and land management.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Analysis of small business participation would require further investigation into the contract's terms and the bidding process.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm-fixed-price structure provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases, though specific performance monitoring details are typically internal to the agency. The Forest Service's Office of Inspector General would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Wildfire Suppression Services
Aerial Support Contracts
Emergency Response Aviation
Forest Management Operations

Risk Flags

Potential for underutilization of exclusive-use assets
Contractor operational capability and reliability
Geographic limitation of exclusive service

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.0 million to IDAHO HELICOPTERS INC. TYPE II EXCLUSIVE USE FOR NEVADA CITY, CA

Who is the contractor on this award?

The obligated recipient is IDAHO HELICOPTERS INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What is the track record of Idaho Helicopters Inc. with federal contracts, particularly for aerial firefighting?

A review of Idaho Helicopters Inc.'s federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any documented issues or disputes on previous contracts, and their experience with similar types of aerial firefighting operations. Understanding their history with the Forest Service or other agencies involved in land management and emergency response is crucial for evaluating their reliability and capability to fulfill this exclusive use contract effectively. Data from contract databases like SAM.gov or FPDS can provide insights into their award history and payment performance.

How does the awarded price compare to market rates for similar exclusive-use aerial firefighting contracts?

Determining the market rate for exclusive-use aerial firefighting services requires comparing this contract's terms and pricing against similar awards. Factors such as aircraft type, capacity, operational hours, required response times, and geographic location significantly influence pricing. Without access to a broader dataset of comparable contracts, it is difficult to definitively benchmark this $7 million+ contract. However, the fact that it was awarded under full and open competition with 22 bids suggests that the price was likely competitive within the market for such specialized, geographically exclusive services.

What are the primary risks associated with this exclusive-use contract for Nevada City, CA?

The primary risks associated with this exclusive-use contract include potential overpayment if the contracted services are not fully utilized due to lower-than-expected wildfire activity, and operational risks if Idaho Helicopters Inc. experiences equipment failure or staffing shortages, potentially leaving the area without its dedicated aerial support. There's also a risk of vendor lock-in, where the exclusivity might limit the agency's ability to pivot to alternative solutions if circumstances change. Furthermore, the specific geographic limitation means that if a wildfire occurs outside the designated Nevada City area, this contract's resources may not be immediately available.

How effective is this type of exclusive-use contract in ensuring timely wildfire response compared to on-demand services?

Exclusive-use contracts, like this one for Nevada City, are designed to guarantee the immediate availability of specific aerial firefighting assets for a defined area and period. This contrasts with on-demand contracts, where resources are called upon as needed. For areas with high wildfire risk, exclusive use can significantly improve response times by eliminating the need to compete for resources during peak demand periods. This proactive approach ensures that critical assets are pre-positioned and ready, potentially leading to faster containment and reduced overall damage, though at a higher guaranteed cost.

What has been the historical spending trend for aerial firefighting services by the Forest Service in California?

Analyzing the historical spending trends for aerial firefighting services by the Forest Service in California would reveal patterns related to budget allocations, wildfire frequency, and the types of contracts utilized. This specific contract's value of over $7 million for three years should be viewed within the context of overall agency spending on aviation assets and emergency response. Factors such as climate change, drought conditions, and forest management practices influence both the need for and the cost of these services over time. A trend analysis would help determine if this award represents an increase, decrease, or stable level of investment in aerial firefighting capabilities for the region.

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: 22

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2471 W COMMERCE AVE, BOISE, ID, 83705

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

Financial Breakdown

Contract Ceiling: $7,017,073

Exercised Options: $7,017,073

Current Obligation: $7,017,073

Actual Outlays: $4,417,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9274

IDV Type: IDC

Timeline