Forest Service awards $2.6M contract for air transportation to Helicopter Express LLC

Contract Overview

Contract Amount: $2,617,523 ($2.6M)

Contractor: Helicopter Express LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2028-12-31

Contract Duration: 1,826 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 44

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HSS MATOC TYPE 3 SILVER CITY NM N12HX

Place of Performance

Location: ARENAS VALLEY, GRANT County, NEW MEXICO, 88022

State: New Mexico Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.6 million to HELICOPTER EXPRESS LLC for work described as: HSS MATOC TYPE 3 SILVER CITY NM N12HX Key points: 1. Contract awarded to Helicopter Express LLC for nonscheduled chartered passenger air transportation. 2. The contract has a duration of 1826 days, ending in December 2028. 3. The total award amount is $2,617,522.51. 4. The contract was awarded under full and open competition. 5. The NAICS code associated with this contract is 481211.

Value Assessment

Rating: good

The award amount of $2.6M over five years appears reasonable for specialized air transportation services. Benchmarking against similar MATOC contracts for aerial services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

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

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value services at competitive prices.

Public Impact

Ensures continued access to critical air transportation for Forest Service operations in New Mexico. Supports wildfire suppression, resource management, and other essential missions requiring aerial support. Provides reliable transportation for personnel and equipment in remote or difficult-to-access areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases over the 5-year duration.
Dependence on a single vendor for critical air services.

Positive Signals

Awarded through full and open competition.
Long-term contract provides stability for operations.
Firm Fixed Price contract limits cost uncertainty.

Sector Analysis

This contract falls within the transportation sector, specifically air charter services. Spending in this area is often driven by operational needs, such as emergency response and resource management, with costs influenced by fuel prices, aircraft availability, and regulatory requirements.

Small Business Impact

The provided data does not indicate whether small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Forest Service. Oversight would involve monitoring performance, adherence to terms, and financial accountability throughout the contract's lifecycle.

Related Government Programs

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

Risk Flags

Potential for price escalation due to market volatility over 5 years.
Dependence on a single provider for critical air services.
Limited visibility into small business participation.
Need for ongoing performance monitoring to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.6 million to HELICOPTER EXPRESS LLC. HSS MATOC TYPE 3 SILVER CITY NM N12HX

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 $2.6 million.

What is the period of performance?

Start: 2024-01-01. End: 2028-12-31.

What is the typical cost per flight hour or per mile for similar nonscheduled chartered passenger air transportation services in New Mexico?

Benchmarking against industry standards for similar services in the region is crucial. Factors like aircraft type, capacity, operational range, and specific mission requirements (e.g., emergency response) significantly influence per-unit costs. Without specific operational data, a precise benchmark is difficult, but comparing to publicly available rates for similar charter operations can provide a reasonable estimate.

What are the potential risks associated with a 5-year firm-fixed-price contract for air transportation in a volatile market?

A significant risk is market volatility, particularly concerning fuel prices, which can erode the contractor's profit margin on a fixed-price contract. This could lead to performance issues or requests for contract modification. Additionally, unforeseen regulatory changes or maintenance challenges could impact service availability. The long duration also increases the risk of the contracted price becoming uncompetitive over time.

How effectively does this contract support the Forest Service's mission in New Mexico, particularly for wildfire response?

This contract is likely crucial for supporting the Forest Service's mission by providing essential aerial logistics and personnel transport, especially in remote areas of New Mexico. Its effectiveness hinges on the reliability and responsiveness of Helicopter Express LLC, particularly during peak seasons like wildfire season. Consistent performance and availability of the contracted aircraft are key indicators of its effectiveness in enabling timely response and resource deployment.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger 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

Offers Received: 44

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: $2,617,523

Exercised Options: $2,617,523

Current Obligation: $2,617,523

Actual Outlays: $1,605,047

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA23T9316

IDV Type: IDC

Timeline