Agriculture Forest Service awards $5.5M contract for air transport services in Oregon

Contract Overview

Contract Amount: $5,531,273 ($5.5M)

Contractor: Rotak LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-05-05

End Date: 2026-12-31

Contract Duration: 605 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ROTAK - T1 EU FOR JOHN DAY, OR #3

Place of Performance

Location: JOHN DAY, GRANT County, OREGON, 97845

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.5 million to ROTAK LLC for work described as: ROTAK - T1 EU FOR JOHN DAY, OR #3 Key points: 1. Contract awarded to ROTAK LLC for air transportation services. 2. Service period spans from May 2025 to December 2026. 3. The contract is a firm-fixed-price delivery order. 4. Competition was full and open, indicating a competitive bidding process. 5. The contract is for nonscheduled chartered freight air transportation. 6. The primary service location is Oregon.

Value Assessment

Rating: good

The contract value of $5.5 million for approximately two years of service appears reasonable given the nature of specialized air transportation. Benchmarking against similar contracts for freight air charter services would provide a more precise value assessment. However, the firm-fixed-price structure suggests that the government has locked in costs, which can be advantageous if market rates increase.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates 28 offers were received, suggesting a robust and competitive bidding environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A high number of bidders in a full and open competition typically leads to better pricing for taxpayers, as contractors vie to offer the most attractive terms.

Public Impact

The contract directly benefits the Department of Agriculture's Forest Service by providing essential air transportation for freight. This service is crucial for supporting operations, potentially including fire suppression, resource management, and logistical support in remote areas. The geographic impact is focused on Oregon, where the services will be delivered. The contract supports the aviation services sector, including pilots, ground crew, and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in fuel costs impacting long-term value if not adequately managed within the fixed price.
Dependence on a single contractor for critical air transport services could pose a risk if performance issues arise.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term contract duration allows for stable service provision and potential for relationship building with the contractor.

Sector Analysis

The nonscheduled chartered freight air transportation sector is vital for government agencies requiring flexible and on-demand aerial logistics. This contract fits within the broader aviation services industry, which is characterized by specialized equipment, skilled labor, and stringent regulatory requirements. Comparable spending benchmarks for similar air charter services can vary significantly based on aircraft type, duration, and operational complexity.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or if ROTAK LLC is a small business. Further analysis would be needed to determine the impact on the small business ecosystem and subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of services as specified. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Logistics Support
Federal Air Charter Services
Nonscheduled Air Transportation Contracts

Risk Flags

Potential for performance issues
Dependence on contractor for critical services
Weather-related operational disruptions

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.5 million to ROTAK LLC. ROTAK - T1 EU FOR JOHN DAY, OR #3

Who is the contractor on this award?

The obligated recipient is ROTAK LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2025-05-05. End: 2026-12-31.

What is the track record of ROTAK LLC in performing similar federal contracts?

A review of federal contract databases indicates that ROTAK LLC has a history of performing aviation services for various government agencies. Specific details regarding past performance on contracts of similar scope, value, and duration would require a deeper dive into contract award histories and performance evaluations. Analyzing past performance ratings, any documented disputes, or contract modifications can provide insight into their reliability and capability to meet the requirements of this new Forest Service contract. Understanding their experience with firm-fixed-price contracts and adherence to delivery schedules is crucial for assessing future performance.

How does the awarded price compare to market rates for similar air charter services?

Benchmarking the $5.5 million award against market rates for nonscheduled chartered freight air transportation requires detailed analysis of aircraft types, flight hours, operational regions, and service levels. Without specific details on the aircraft utilized and the exact nature of the freight, a precise comparison is difficult. However, the firm-fixed-price nature of the contract suggests that ROTAK LLC has factored in expected market conditions, including fuel, labor, and maintenance costs, into their bid. A comprehensive market analysis would involve comparing the implied hourly or daily rates to industry averages for comparable charter operations in Oregon and surrounding regions.

What are the primary risks associated with this contract for the Forest Service?

The primary risks associated with this contract include potential performance failures by the contractor, such as delays, equipment malfunctions, or inability to meet service demands. Given the firm-fixed-price structure, cost overruns are less of a risk for the government, but scope creep or the need for contract modifications could arise. Operational risks, such as weather disruptions or safety incidents, are inherent in air transportation and require robust mitigation strategies from the contractor and oversight from the Forest Service. Dependence on a single provider for critical services also presents a risk if unforeseen circumstances lead to service interruption.

How effective is the full and open competition process in ensuring value for this type of specialized service?

The full and open competition process is generally effective in ensuring value for specialized services like nonscheduled chartered freight air transportation, especially when a sufficient number of qualified bidders participate. The data shows 28 offers were received, indicating a competitive market. This competition drives down prices as contractors vie for the award. However, the effectiveness also depends on the clarity of the solicitation requirements and the government's ability to accurately evaluate technical capabilities alongside price. For highly specialized services, ensuring that bidders possess the necessary certifications, equipment, and experience is as critical as the price offered.

What is the historical spending pattern for similar air transportation services by the Forest Service?

Analyzing historical spending patterns for similar air transportation services by the Forest Service is essential for context. This involves examining previous contracts for nonscheduled chartered freight air transportation, noting award amounts, contract durations, and the number of bidders. Understanding trends in pricing, service providers, and the frequency of such contracts can reveal whether the current $5.5 million award is consistent with past expenditures or represents a significant deviation. Such analysis helps in assessing whether the current contract represents good value over time and identifies any shifts in market dynamics or agency needs.

What are the implications of the contract duration (605 days) on service continuity and contractor performance?

The contract duration of 605 days (approximately 20 months) provides a substantial period for service continuity, allowing the Forest Service to rely on ROTAK LLC for essential air transportation without frequent re-competition. This extended period can foster a stronger working relationship between the agency and the contractor, potentially leading to improved efficiency and responsiveness. For the contractor, it offers a stable revenue stream, encouraging investment in equipment and personnel. However, a longer duration also means the government is committed for a longer period, making it crucial that performance standards are clearly defined and rigorously monitored to address any potential issues early on.

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

Offers Received: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5014 CAPTAIN HILL CT, ANCHORAGE, AK, 99502

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

Financial Breakdown

Contract Ceiling: $5,531,273

Exercised Options: $5,531,273

Current Obligation: $5,531,273

Actual Outlays: $2,909,566

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9231

IDV Type: IDC

Timeline