USDA Forest Service Awards $13.3M Contract for Air Transportation Services to Capitol Helicopters, Inc

Contract Overview

Contract Amount: $13,367,314 ($13.4M)

Contractor: Capitol 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: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 35

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TYPE II HSS MATOC EU FOR MORGAN, UT #3

Place of Performance

Location: MORGAN, MORGAN County, UTAH, 84050

State: Utah Government Spending

Plain-Language Summary

Department of Agriculture obligated $13.4 million to CAPITOL HELICOPTERS, INC. for work described as: TYPE II HSS MATOC EU FOR MORGAN, UT #3 Key points: 1. The contract is for nonscheduled chartered freight air transportation, indicating a need for flexible and specialized aerial logistics. 2. Awarded to Capitol Helicopters, Inc., the contract value is $13.3 million over a 3-year period. 3. The service area is Utah, suggesting a focus on regional operational needs. 4. The contract type is Firm Fixed Price, which provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of $13.3 million for a 3-year period appears reasonable for specialized air transportation services. Benchmarking against similar MATOC (Multiple Award Task Order Contract) awards for aerial logistics would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

Supports critical Forest Service operations, likely including wildfire suppression, resource management, or remote area access. Ensures continued availability of specialized air transport for federal agencies in the Utah region. Provides economic activity for Capitol Helicopters, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if fuel costs or operational demands increase significantly.
Dependence on a single contractor for critical air services in a specific region.

Positive Signals

Firm Fixed Price contract provides budget predictability.
Awarded through full and open competition, indicating a competitive bidding process.
Long-term contract (3 years) ensures service continuity.

Sector Analysis

The contract falls under nonscheduled chartered freight air transportation, a niche within the broader transportation sector. Spending in this area is often project-specific and driven by operational requirements, such as those of the Forest Service.

Small Business Impact

While the award is to Capitol Helicopters, Inc., the data does not specify if this is a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Forest Service. Oversight would involve monitoring performance, adherence to delivery schedules, and compliance with contract terms to ensure value for money.

Related Government Programs

Nonscheduled Chartered Freight Air Transportation
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Contract duration may not align with long-term strategic needs.
Potential for increased costs due to fuel price volatility.
Geographic concentration of service delivery.
Dependence on contractor's operational capacity and safety record.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $13.4 million to CAPITOL HELICOPTERS, INC.. TYPE II HSS MATOC EU FOR MORGAN, UT #3

Who is the contractor on this award?

The obligated recipient is CAPITOL HELICOPTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

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

What specific types of freight or missions are covered under this air transportation contract?

The contract specifies nonscheduled chartered freight air transportation. This typically includes the movement of goods, equipment, or personnel to locations not served by regular commercial flights. For the Forest Service, this could range from transporting firefighting equipment and supplies to remote areas, to moving personnel for land management surveys or infrastructure maintenance.

What are the potential risks associated with relying on a single contractor for air transportation in a specific region?

Relying on a single contractor presents risks such as service disruptions due to unforeseen events (e.g., mechanical issues, pilot availability), limited flexibility if needs change rapidly, and potential for reduced bargaining power in future contract negotiations. The government may also face challenges if the contractor's performance degrades or if they face financial instability.

How does the firm fixed price structure ensure effectiveness and value for the Forest Service?

The Firm Fixed Price (FFP) structure ensures effectiveness by shifting the risk of cost overruns to the contractor. This incentivizes the contractor to manage costs efficiently and deliver services within the agreed-upon price. For the Forest Service, it provides budget certainty and protects against unexpected price increases, thereby maximizing the value of taxpayer dollars spent.

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: 35

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5957 FREEPORT BLVD, SACRAMENTO, CA, 95822

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

Financial Breakdown

Contract Ceiling: $13,367,314

Exercised Options: $13,367,314

Current Obligation: $13,367,314

Actual Outlays: $6,091,935

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9256

IDV Type: IDC

Timeline