Forest Service awards $2.7M contract for forestry support, with 3 bidders competing

Contract Overview

Contract Amount: $7,448,400 ($7.4M)

Contractor: High Sierra Tree Company Inc.

Awarding Agency: Department of Agriculture

Start Date: 2022-06-19

End Date: 2026-07-31

Contract Duration: 1,503 days

Daily Burn Rate: $5.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BERRY BRUSH STEWARDSHIP IRSC REVISED STEWARDSHIP VALUE OF PRODUCT: $0.00 VALUE OF SERVICE: $2,725,315 VALUE OF CONTRACT: $2,725,315

Place of Performance

Location: BERRY CREEK, BUTTE County, CALIFORNIA, 95916

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.4 million to HIGH SIERRA TREE COMPANY INC. for work described as: BERRY BRUSH STEWARDSHIP IRSC REVISED STEWARDSHIP VALUE OF PRODUCT: $0.00 VALUE OF SERVICE: $2,725,315 VALUE OF CONTRACT: $2,725,315 Key points: 1. The contract focuses on service value rather than product value, indicating a service-based delivery model. 2. A firm-fixed-price contract type suggests predictable costs for the government. 3. The contract duration of approximately 4 years allows for sustained support. 4. The award was made under Simplified Acquisition Procedures (SAP), implying a focus on smaller value procurements. 5. The geographic location in California may indicate specific regional forestry needs. 6. The absence of small business set-asides suggests the primary contractor is not a small business.

Value Assessment

Rating: good

The contract value of $2.7 million for forestry support services over roughly four years appears reasonable, especially given it was competed. Without specific benchmarks for 'Support Activities for Forestry' in California, direct comparison is difficult. However, the firm-fixed-price structure provides cost certainty. The value is primarily in services, aligning with the nature of forestry stewardship.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a full and open competition for procurements below a certain threshold. With three bidders, there was a moderate level of competition, suggesting that multiple firms were interested and capable of performing the required services. This level of competition generally helps in achieving fair market prices.

Taxpayer Impact: The competition among three bidders indicates that taxpayers likely benefited from a reasonably competitive price, avoiding potential overpayment associated with sole-source or limited competition awards.

Public Impact

The primary beneficiaries are likely the U.S. Forest Service, receiving essential support for forestry management and stewardship activities. The services delivered will contribute to the health and sustainability of forest ecosystems within California. The geographic impact is focused on California, addressing specific regional environmental needs. While not explicitly stated, the contract may indirectly support local economies through employment opportunities for the contractor's staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited visibility into specific task orders under the broader 'Support Activities for Forestry' category.
Reliance on contractor performance for critical forestry management tasks requires robust oversight.

Positive Signals

Firm-fixed-price contract type offers cost predictability.
Competition among three bidders suggests a degree of market responsiveness.
Contract duration allows for consistent service delivery and relationship building.

Sector Analysis

The contract falls within the broader 'Forestry and Logging Services' sector, which is crucial for environmental management, conservation, and resource utilization. This sector is characterized by a mix of government contracts and private industry services. The market size for such services can be substantial, driven by federal, state, and private land management needs. This specific contract appears to be a standard procurement for operational support within the Forest Service's domain.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). The primary contractor, HIGH SIERRA TREE COMPANY INC., is likely a larger entity. This means that opportunities for subcontracting to small businesses are not mandated by a set-aside provision, though they may still occur at the discretion of the prime contractor. The impact on the small business ecosystem is neutral to potentially negative if subcontracting opportunities are not pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Forest Service contracting officer and contract specialists. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Forestry Management Services
Environmental Support Contracts
Natural Resource Conservation Programs
Federal Land Management Support

Risk Flags

Performance Risk: Quality of forestry services impacts environmental health.
Scope Creep Risk: Ambiguity in 'Support Activities' could lead to issues.
Contractor Dependency: Reliance on a single entity for critical functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.4 million to HIGH SIERRA TREE COMPANY INC.. BERRY BRUSH STEWARDSHIP IRSC REVISED STEWARDSHIP VALUE OF PRODUCT: $0.00 VALUE OF SERVICE: $2,725,315 VALUE OF CONTRACT: $2,725,315

Who is the contractor on this award?

The obligated recipient is HIGH SIERRA TREE COMPANY INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $7.4 million.

What is the period of performance?

Start: 2022-06-19. End: 2026-07-31.

What is the specific nature of the 'Support Activities for Forestry' provided under this contract?

The provided data categorizes the contract under 'Support Activities for Forestry' (nd: Support Activities for Forestry) and indicates a 'VALUE OF SERVICE: $2,725,315'. While the exact tasks are not detailed, this category typically encompasses a range of activities essential for forest management and conservation. These can include, but are not limited to, silvicultural treatments (like thinning or planting), pest and disease monitoring, invasive species control, fire management support, trail maintenance, watershed protection activities, and data collection for forest inventory and health assessments. The specific services would be further defined in the contract's Statement of Work (SOW).

How does the competition level of 3 bidders compare to similar forestry support contracts awarded by the Forest Service?

A competition level of three bidders for a contract awarded under Simplified Acquisition Procedures (SAP) is generally considered moderate. For procurements within the SAP threshold (typically under $250,000, though this contract is larger, suggesting it might have been awarded under specific exceptions or older thresholds), competition can vary widely. However, for service contracts of this nature and value, having multiple bidders indicates a healthy interest from the market. More significant procurements often see higher numbers of bidders, but three is not uncommon and suggests that the Forest Service was able to solicit interest from several capable firms, which is a positive sign for price discovery and value.

What are the key risk indicators associated with this contract, given its duration and service focus?

Key risk indicators include the potential for scope creep if the 'Support Activities for Forestry' are not clearly defined in the Statement of Work, leading to cost overruns or schedule delays, although the firm-fixed-price structure mitigates direct cost overrun risk. Performance risk is present, as the quality of forestry services directly impacts ecosystem health; inadequate service delivery could have long-term environmental consequences. Contractor dependency is another risk; the Forest Service relies on HIGH SIERRA TREE COMPANY INC. for these critical functions. Finally, the long duration (approx. 4 years) increases the risk of unforeseen market changes or technological advancements that could make the contracted services less optimal over time.

Can the value of this contract be benchmarked against other federal spending in the forestry sector?

Benchmarking this $2.7 million contract requires comparing it to similar 'Support Activities for Forestry' contracts awarded by the Forest Service or other agencies managing forest lands. The 'na': 115310 code, 'Support Activities for Forestry', can be used to search for comparable awards. Factors like geographic location (California), contract duration, and specific service requirements heavily influence value. Without access to a comprehensive database of comparable contract values and performance metrics, a precise benchmark is challenging. However, the fact that it was competed suggests the pricing is likely aligned with market rates for similar services in that region.

What is the historical spending pattern for 'Support Activities for Forestry' by the Department of Agriculture?

Historical spending on 'Support Activities for Forestry' by the Department of Agriculture (specifically the Forest Service) would likely show consistent investment in forest management and conservation. Annual spending can fluctuate based on congressional appropriations, specific program needs (e.g., increased wildfire response funding), and the number and size of contracts awarded. Analyzing past years' data for the 'na': 115310 category would reveal trends in contract values, types of services procured, and key contractors. This contract represents a portion of that ongoing federal investment in maintaining and improving forest health across the nation.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Support Activities for Forestry › Support Activities for Forestry

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12363N22Q4048

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12090 LAKESHORE N, AUBURN, CA, 95602

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

Financial Breakdown

Contract Ceiling: $7,448,400

Exercised Options: $7,448,400

Current Obligation: $7,448,400

Actual Outlays: $7,213,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline