Agriculture Dept Awards $4.8M Contract to Capitol Helicopters for Montana Air Transport

Contract Overview

Contract Amount: $4,835,463 ($4.8M)

Contractor: Capitol Helicopters, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-05-06

End Date: 2026-12-31

Contract Duration: 604 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CAPITOL HELICOPTERS -T1 EU FOR LIBBY, MT

Place of Performance

Location: LIBBY, LINCOLN County, MONTANA, 59923

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.8 million to CAPITOL HELICOPTERS, INC. for work described as: CAPITOL HELICOPTERS -T1 EU FOR LIBBY, MT Key points: 1. Contract awarded to Capitol Helicopters, Inc. for nonscheduled chartered freight air transportation. 2. The contract has a duration of 604 days, ending December 31, 2026. 3. Full and open competition was utilized for this award. 4. The contract is a delivery order with a firm fixed price. 5. The service area is Montana.

Value Assessment

Rating: good

The contract value of $4.8 million for approximately two years of service appears reasonable given the specialized nature of helicopter freight transport. Benchmarking against similar contracts for aerial logistics in remote or challenging terrains would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, suggesting a robust price discovery process. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market value.

Taxpayer Impact: The use of full and open competition is generally positive for taxpayers, as it promotes efficiency and cost-effectiveness in government spending.

Public Impact

Ensures critical air transport services for the Forest Service in Montana. Supports operational needs, potentially for fire suppression, resource management, or remote access. Provides economic activity through contract award to a private company.

Waste & Efficiency Indicators

Waste Risk Score: 80 / 10

Positive Signals

Full and open competition utilized
Firm fixed price contract type
Clear service area and duration

Sector Analysis

This contract falls within the transportation and logistics sector, specifically focusing on specialized air charter services. Spending benchmarks for aerial logistics in federal agencies can vary significantly based on mission requirements, aircraft type, and operational region.

Small Business Impact

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

Oversight & Accountability

The contract is a delivery order under a larger agreement, suggesting it may be part of an existing framework. Oversight would focus on performance against delivery schedules and service quality requirements.

Related Government Programs

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

Risk Flags

Potential for vendor performance issues
Risk of unforeseen operational disruptions
Limited flexibility for scope changes under fixed price

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.8 million to CAPITOL HELICOPTERS, INC.. CAPITOL HELICOPTERS -T1 EU FOR LIBBY, MT

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 $4.8 million.

What is the period of performance?

Start: 2025-05-06. End: 2026-12-31.

What specific Forest Service operations will this air transport service support in Montana?

This air transport service is likely to support a range of Forest Service operations critical to managing public lands in Montana. This could include aerial firefighting support, such as transporting personnel and equipment to remote fire sites, or delivering supplies and resources to isolated ranger stations and research outposts. It may also be used for wildlife monitoring, environmental surveys, or infrastructure maintenance in areas inaccessible by ground transportation.

Are there any potential risks associated with relying on a single delivery order for such a critical service?

While the contract was awarded through full and open competition, relying on a single delivery order for critical air transport presents risks. These include potential vendor performance issues, unforeseen operational disruptions (e.g., mechanical failures, weather), or price escalations if additional needs arise beyond the current scope. Contingency planning and clear performance metrics are crucial to mitigate these risks.

How does the firm fixed price structure impact the government's ability to manage costs for this service?

A firm fixed price contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. This structure incentivizes the contractor to manage their expenses efficiently to maximize profit. However, it also means the government bears the risk if actual costs exceed the fixed price, and it may limit flexibility if unforeseen requirements necessitate changes to the scope of work.

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: 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: $4,835,463

Exercised Options: $4,835,463

Current Obligation: $4,835,463

Actual Outlays: $2,566,579

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9206

IDV Type: IDC

Timeline