Forest Service awards $10.8M contract for exclusive salmon habitat transport, raising questions on cost-effectiveness

Contract Overview

Contract Amount: $10,845,276 ($10.8M)

Contractor: Helicopter Express LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-04-01

End Date: 2026-12-31

Contract Duration: 1,004 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TYPE II EXCLUSIVE USE FOR SALMON, ID #2

Place of Performance

Location: SALMON, LEMHI County, IDAHO, 83467

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.8 million to HELICOPTER EXPRESS LLC for work described as: TYPE II EXCLUSIVE USE FOR SALMON, ID #2 Key points: 1. The contract's value of $10.8M for air transportation is significant. 2. Competition was full and open, suggesting a competitive bidding process. 3. Potential risks include the specialized nature of the cargo and the duration of the contract. 4. The sector is transportation, specifically air cargo for environmental services.

Value Assessment

Rating: questionable

The contract's fixed price of $10.8M over nearly three years for specialized air transport needs careful benchmarking against similar services. Without specific per-unit cost data, it's difficult to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specialized nature of the service might limit the number of truly capable bidders, potentially impacting price discovery.

Taxpayer Impact: Taxpayers are impacted by the $10.8M expenditure, with the value for money dependent on the necessity and efficiency of the air transport for salmon habitat.

Public Impact

Ensures critical habitat needs for salmon are met through specialized transport. Supports environmental conservation efforts in Idaho. Provides essential air cargo services for remote or sensitive areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for specialized air transport.
Long contract duration.
Potential for limited competition despite 'full and open' status due to specialization.

Positive Signals

Awarded through full and open competition.
Supports environmental conservation goals.

Sector Analysis

This contract falls within the air transportation sector, specifically for specialized freight. Benchmarking against similar environmental or resource management air transport contracts is crucial for assessing value.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Forest Service is responsible for overseeing this contract to ensure timely delivery and adherence to the terms. Accountability for the effective use of funds rests with the agency.

Related Government Programs

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

Risk Flags

High dollar value.
Specialized service potentially limiting competition.
Long contract duration.
Lack of clear per-unit cost data for benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.8 million to HELICOPTER EXPRESS LLC. TYPE II EXCLUSIVE USE FOR SALMON, ID #2

Who is the contractor on this award?

The obligated recipient is HELICOPTER EXPRESS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-12-31.

What is the specific justification for using helicopter transport for salmon habitat, and could alternative, more cost-effective methods have been employed?

The justification likely stems from the need to access remote or environmentally sensitive areas where ground transportation is infeasible or damaging. However, a thorough cost-benefit analysis comparing helicopter use against potential alternatives, such as fixed-wing aircraft for bulk transport to staging areas followed by smaller vehicles, or even optimized ground logistics, is essential to confirm cost-effectiveness.

Given the $10.8M price tag, what are the key performance indicators (KPIs) and metrics used to measure the success and efficiency of this air transportation service?

Key performance indicators would likely include on-time delivery rates of habitat materials, successful transport to designated locations without damage, adherence to flight safety protocols, and potentially metrics related to the environmental impact of the flights themselves. The contract should clearly define these KPIs and the methods for tracking and reporting on them to ensure accountability and measure the effectiveness of the service.

How does the cost per flight hour or per ton-mile for this contract compare to industry benchmarks for similar specialized helicopter cargo operations?

Benchmarking against industry standards for specialized helicopter cargo operations is critical. This involves comparing the contract's effective cost per flight hour or per ton-mile against rates charged by other providers for similar missions, considering factors like aircraft type, payload capacity, operational complexity, and geographic location. A significant deviation from benchmarks could indicate either an exceptional deal or potential overpricing.

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: 23

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2025 FLIGHTWAY DR, ATLANTA, GA, 30341

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

Financial Breakdown

Contract Ceiling: $10,845,276

Exercised Options: $10,845,276

Current Obligation: $10,845,276

Actual Outlays: $5,615,648

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9267

IDV Type: IDC

Timeline