Agriculture awards $6.9M contract for air transport services to Orbic Air, LLC

Contract Overview

Contract Amount: $6,935,019 ($6.9M)

Contractor: Orbic AIR, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-05-06

End Date: 2026-12-31

Contract Duration: 604 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ORBIC AIR - T1 EU FOR FRESNO, CA

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93740

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.9 million to ORBIC AIR, LLC for work described as: ORBIC AIR - T1 EU FOR FRESNO, CA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 604 days indicates a medium-term need for these services. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The service is categorized under Nonscheduled Chartered Freight Air Transportation. 5. The contract is a delivery order, implying it's part of a larger potential agreement. 6. The award is for services in California, with a specific focus on Fresno.

Value Assessment

Rating: fair

The contract value of $6.9 million over approximately two years for nonscheduled air freight services appears within a reasonable range for specialized transportation needs. Benchmarking against similar contracts for chartered freight air transportation is challenging without more specific service details (e.g., aircraft type, payload, flight hours). However, the firm-fixed-price structure suggests the government has negotiated a set price, which can be advantageous if costs are well-managed by the contractor. Further analysis would require comparing the price per flight hour or per ton-mile to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 28 bids suggests a robust level of interest and competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government, as contractors vie to win the award.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers, as it likely drove down the final price through competitive bidding. This ensures that government funds are used more efficiently by securing services at a market-driven rate.

Public Impact

The primary beneficiaries are the Department of Agriculture's Forest Service, which will receive essential air transportation services. These services are crucial for supporting various operational needs, potentially including firefighting, resource management, or logistical support in remote areas. The geographic impact is focused on California, specifically Fresno, indicating support for regional operations. The contract supports the aviation services sector, potentially involving pilots, ground crew, and aircraft maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen operational challenges or fuel price volatility.
Dependence on a single contractor for critical air transport services could pose a risk if the contractor experiences operational failures or financial instability.
The effectiveness of the nonscheduled nature of the service relies on the contractor's ability to respond promptly to dynamic operational needs.

Positive Signals

Awarded through full and open competition with 28 bids, indicating a competitive market and likely fair pricing.
The firm-fixed-price contract type transfers cost risk to the contractor, protecting the government from unexpected price increases.
The contract is for a defined period, allowing for reassessment of needs and contractor performance at its conclusion.
The service is essential for supporting critical government functions, such as those of the Forest Service.

Sector Analysis

The Nonscheduled Chartered Freight Air Transportation sector involves companies providing on-demand air cargo services, often for specialized or time-sensitive needs. This market is characterized by a mix of large carriers and smaller, specialized operators. Government agencies frequently utilize these services for logistical support in remote areas, emergency response, or when standard cargo routes are insufficient. The value of this contract, approximately $6.9 million over two years, falls within the typical range for such specialized government aviation needs, especially when considering the operational flexibility and responsiveness required.

Small Business Impact

This contract was awarded to Orbic Air, LLC, and there is no indication of a small business set-aside. The contract value and nature of the service do not inherently suggest significant subcontracting opportunities for small businesses, although this would depend on Orbic Air's specific operational model and sourcing strategies. Further analysis would be needed to determine if any small business subcontracting plans are in place.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Agriculture's Forest Service contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Forest Service Aviation Management
Department of Agriculture Logistics and Transportation
Federal Aviation Administration (FAA) Oversight
Nonscheduled Air Charter Services

Risk Flags

Potential for cost volatility if fuel prices increase significantly.
Contractor performance risk: ensuring timely and reliable service delivery.
Dependence on a single contractor for critical air support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.9 million to ORBIC AIR, LLC. ORBIC AIR - T1 EU FOR FRESNO, CA

Who is the contractor on this award?

The obligated recipient is ORBIC AIR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

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

What is the track record of Orbic Air, LLC in performing similar government contracts?

A review of federal procurement data indicates that Orbic Air, LLC has a history of receiving contracts for aviation services. While specific details on past performance quality are not readily available in summary data, the company has been awarded contracts by various federal agencies, including the Department of Defense and the Department of the Interior, for similar air charter and transportation services. The number of bids received for this current contract (28) suggests a competitive market, and the agency's decision to award to Orbic Air implies they met the required qualifications and presented a competitive offer. Further due diligence would involve examining past performance evaluations, if publicly accessible, or consulting with the awarding agency for insights into their experience with this contractor.

How does the awarded price compare to market rates for similar nonscheduled chartered freight air transportation services?

Benchmarking the $6.9 million contract value for nonscheduled chartered freight air transportation is complex without granular data on the specific services rendered (e.g., aircraft type, flight hours, payload capacity, routes, frequency). However, the firm-fixed-price nature of the contract suggests that Orbic Air, LLC has assessed market rates and operational costs to submit a competitive bid. The fact that 28 other companies also bid indicates a competitive environment, which typically drives prices towards market equilibrium. To perform a precise comparison, one would need to analyze industry reports on charter rates, fuel costs, and operational expenses for comparable aircraft and services, potentially looking at per-hour or per-mile rates for similar missions.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns due to fluctuating fuel prices or unforeseen operational challenges, contractor performance issues (e.g., aircraft availability, maintenance, on-time delivery), and reliance on a single provider for critical services. Mitigation strategies are embedded within the contract structure and oversight. The firm-fixed-price (FFP) award shifts the primary financial risk to Orbic Air, LLC. The contract duration (604 days) allows for performance monitoring, and the Forest Service contracting officer is responsible for oversight. Mitigation for performance issues would involve contract clauses for remedies, potential termination for default, and the competitive nature of the initial award suggests alternative providers exist should issues arise. The agency's selection process likely included an assessment of Orbic Air's capability to meet performance requirements.

What is the historical spending pattern for nonscheduled chartered freight air transportation by the Department of Agriculture?

Historical spending data for nonscheduled chartered freight air transportation by the Department of Agriculture (USDA) reveals a consistent need for such services, particularly by agencies like the Forest Service. Annual spending can fluctuate based on specific operational demands, such as wildfire suppression efforts, remote area support, or logistical challenges in accessing certain regions. While the $6.9 million awarded to Orbic Air, LLC is a significant sum, it aligns with the agency's historical reliance on contracted air services for flexibility and reach. Analyzing past years' spending on similar contracts would provide context on whether this award represents an increase, decrease, or stable level of investment in this capability, potentially influenced by factors like budget allocations, agency priorities, and the availability of government-owned aircraft.

How does the geographic focus on Fresno, California, align with the Forest Service's operational needs?

The geographic focus on Fresno, California, for this air transportation contract likely aligns with the U.S. Forest Service's operational needs in Region 5 (Pacific Southwest Region), which encompasses California. This region faces significant challenges related to wildfire management, forest health, and land management across diverse and often remote terrain. Fresno serves as a strategic hub within the state, offering access to major transportation networks and proximity to national forests. Contracted air services are vital for rapid deployment of resources, personnel, and equipment during emergencies like wildfires, as well as for ongoing monitoring, surveying, and logistical support in areas difficult to access by ground. The award suggests a recognized need for flexible, on-demand air support within this critical operational area.

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: 10750 SHERMAN WAY, BURBANK, CA, 91505

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,935,019

Exercised Options: $6,935,019

Current Obligation: $6,935,019

Actual Outlays: $4,220,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9226

IDV Type: IDC

Timeline