Forest Service awards $5.4M contract for exclusive air transport services in La Grande, Oregon

Contract Overview

Contract Amount: $5,440,544 ($5.4M)

Contractor: Coastal Helicopters, LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 24

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYPE II EXCLUSIVE USE FOR LA GRANDE, OR

Place of Performance

Location: LA GRANDE, UNION County, OREGON, 97850

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.4 million to COASTAL HELICOPTERS, LLC for work described as: TYPE II EXCLUSIVE USE FOR LA GRANDE, OR Key points: 1. Contract awarded to Coastal Helicopters, LLC for specialized air transport. 2. Service period spans three years, from January 2024 to December 2026. 3. Full and open competition was utilized for this procurement. 4. The contract is a firm-fixed-price delivery order. 5. The service area is specifically La Grande, Oregon. 6. This contract supports essential aerial logistics for the Forest Service.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty for the Forest Service. Benchmarking against similar exclusive-use aerial services is challenging due to the specific nature of the requirement. However, the price appears reasonable given the duration and specialized nature of the service, which likely involves significant operational overhead for the contractor.

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. The Forest Service received 24 bids, suggesting a healthy level of interest and competition for this requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Agriculture's Forest Service, which gains access to critical air transport. Services delivered include exclusive use air transportation for logistical support in a specific region. The geographic impact is concentrated in La Grande, Oregon, and surrounding areas requiring specialized aerial access. Workforce implications are primarily for the contractor, Coastal Helicopters, LLC, who will provide the pilots and aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if demand fluctuates significantly beyond anticipated levels, though the firm-fixed-price mitigates this.
Dependence on a single contractor for exclusive use could pose a risk if unforeseen operational issues arise with Coastal Helicopters, LLC.

Positive Signals

The firm-fixed-price contract provides budget predictability for the Forest Service.
Full and open competition with 24 bids suggests a robust market and competitive pricing.
The contract duration of three years allows for stable service provision.

Sector Analysis

This contract falls within the air transportation services sector, specifically focusing on specialized, exclusive-use charter services. The market for such niche aerial logistics can be limited, but the Forest Service's requirement for dedicated support in a specific region necessitates this type of procurement. Comparable spending benchmarks are difficult to establish without more specific details on aircraft type and mission profiles, but the total value suggests a significant operational commitment.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside provisions. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is not detailed in this award notice, though large prime contractors often utilize small business subcontractors.

Oversight & Accountability

The contract is a firm-fixed-price delivery order, which inherently provides a degree of cost control. Oversight would typically be managed by the contracting officer and the Forest Service's program managers responsible for ensuring service delivery meets requirements. Transparency is facilitated by the public nature of federal contract awards, allowing for general scrutiny.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Aircraft Operations
Federal Air Transportation Contracts
Wildland Firefighting Support Services (potential overlap)

Risk Flags

Potential for operational disruption due to single-contractor reliance.
Need for clear performance metrics to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.4 million to COASTAL HELICOPTERS, LLC. TYPE II EXCLUSIVE USE FOR LA GRANDE, OR

Who is the contractor on this award?

The obligated recipient is COASTAL HELICOPTERS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

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

What is the specific nature of the 'TYPE II EXCLUSIVE USE' requirement for La Grande, OR?

The 'TYPE II EXCLUSIVE USE' designation typically refers to aircraft that are contracted for exclusive use by the government for a specified period, meaning the aircraft is dedicated solely to the government's mission during that time. For the Forest Service in La Grande, Oregon, this likely pertains to critical logistical support, such as transporting personnel, equipment, or supplies to remote or difficult-to-access areas, potentially for fire management, resource monitoring, or infrastructure maintenance. The 'Type II' classification might relate to specific performance or operational standards set by the agency for such exclusive-use contracts, differentiating them from other types of aerial services.

How does the $5.4 million total contract value compare to similar exclusive-use air transport contracts awarded by the Forest Service or other agencies?

Benchmarking this $5.4 million contract against similar exclusive-use air transport contracts requires detailed comparison of service scope, duration, aircraft type, and geographic operational complexity. Without such granular data, a direct comparison is difficult. However, for a three-year exclusive-use contract involving specialized helicopters or fixed-wing aircraft for demanding logistical missions, $5.4 million (averaging approximately $1.8 million annually) appears to be within a reasonable range. Agencies often pay a premium for guaranteed availability and dedicated resources, especially in remote or challenging operational environments like those potentially served by the Forest Service in Oregon.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

While the provided data does not explicitly list Key Performance Indicators (KPIs) or Service Level Agreements (SLAs), typical metrics for exclusive-use air transport contracts include aircraft availability (e.g., response time to mission requests), mission completion rates, adherence to flight schedules, safety performance (e.g., incident/accident rates), and maintenance compliance. The Forest Service would expect Coastal Helicopters, LLC to maintain the aircraft in airworthy condition and provide qualified pilots ready to execute assigned missions within agreed-upon timeframes, ensuring operational readiness for the duration of the contract.

What is the track record of Coastal Helicopters, LLC in performing similar federal contracts?

Coastal Helicopters, LLC has a history of performing federal contracts, particularly with agencies like the Department of Agriculture (Forest Service) and the Department of the Interior. Their experience often involves providing specialized aviation services, including aerial support for land management, firefighting, and logistical operations. Reviewing their past performance history, including any past performance evaluations or awards, would provide further insight into their reliability, quality of service, and ability to meet the demanding requirements of exclusive-use contracts. Public databases and agency records can offer details on their contract history and performance ratings.

What are the potential risks associated with relying on a single contractor for exclusive-use air transport in this region?

The primary risk associated with relying on a single contractor for exclusive-use air transport is operational disruption. If Coastal Helicopters, LLC experiences mechanical failures, pilot shortages, or other unforeseen issues that prevent them from fulfilling their contractual obligations, the Forest Service's operations in the La Grande area could be significantly impacted. This could lead to delays in critical missions, increased costs if emergency alternative services are needed, and potential safety risks if essential support cannot be provided. Mitigation strategies often include robust contract management, clear communication channels, and contingency planning by the government.

How does this contract align with the Forest Service's broader aviation strategy and resource allocation?

This contract aligns with the Forest Service's need for dedicated aviation resources to support its multifaceted mission, which includes wildfire management, natural resource conservation, and public land management. Exclusive-use contracts ensure predictable access to critical assets like aircraft, which are essential for operations in remote or challenging terrains. The allocation of $5.4 million reflects the agency's prioritization of reliable aerial support for its activities in the Oregon region. It suggests a strategic decision to secure dedicated capacity rather than relying solely on on-call or shared resources for specific, ongoing operational needs.

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: 24

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2015 MCKINLEY AVE SUITE F4, LA VERNE, CA, 91750

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

Financial Breakdown

Contract Ceiling: $5,440,544

Exercised Options: $5,440,544

Current Obligation: $5,440,544

Actual Outlays: $3,337,551

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9258

IDV Type: IDC

Timeline