DOI awards $3.2M for aerial firefighting, highlighting a critical need for specialized aviation services

Contract Overview

Contract Amount: $3,194,792 ($3.2M)

Contractor: Rutledge Airborne Applications, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-06-04

End Date: 2026-07-02

Contract Duration: 758 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SINGLE ENGINE AIR TANKER (SEAT) EXCLUSIVE USE FLIGHT SERVICES - MILES CITY, MT

Place of Performance

Location: CASA GRANDE, PINAL County, ARIZONA, 85122

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $3.2 million to RUTLEDGE AIRBORNE APPLICATIONS, LLC for work described as: SINGLE ENGINE AIR TANKER (SEAT) EXCLUSIVE USE FLIGHT SERVICES - MILES CITY, MT Key points: 1. The contract value of $3.2 million for exclusive use flight services indicates a significant investment in wildfire suppression capabilities. 2. Competition dynamics for specialized aerial firefighting assets can be limited due to unique equipment and operational requirements. 3. Performance risks include potential flight delays due to weather, aircraft maintenance, and the inherent dangers of aerial firefighting. 4. This contract supports critical forestry support activities, directly contributing to land management and natural resource protection. 5. The firm-fixed-price structure aims to provide cost certainty for the government, though it may limit flexibility. 6. The duration of the contract (758 days) suggests a need for sustained operational capacity over multiple fire seasons.

Value Assessment

Rating: good

The contract value of $3.2 million for exclusive use flight services appears reasonable given the specialized nature of Single Engine Air Tankers (SEATs) and their critical role in wildfire suppression. Benchmarking against similar contracts for SEAT services would provide a more precise value-for-money assessment, but the cost reflects the high operational expenses, maintenance, and pilot expertise required. The firm-fixed-price contract type helps manage cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was sought, specific circumstances or pre-existing conditions may have limited the pool of eligible bidders. The exact number of bidders is not provided, but the 'limited' competition level could imply that fewer than ideal vendors were able to meet the stringent requirements for specialized aerial firefighting assets like SEATs.

Taxpayer Impact: Limited competition may result in higher prices for taxpayers compared to a fully open and robust bidding process. It also suggests potential challenges in ensuring the most cost-effective solution was secured.

Public Impact

Federal land management agencies, such as the Department of the Interior, benefit from enhanced wildfire suppression capabilities. The services delivered include critical aerial firefighting support, directly aiding in the containment and extinguishment of wildfires. The geographic impact is focused on areas managed by the Department of the Interior, particularly around Miles City, Montana, and potentially broader regions requiring SEAT support. Workforce implications include support for specialized aviation personnel, pilots, and ground crews involved in aerial firefighting operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to drive up costs for taxpayers.
Reliance on a single vendor for exclusive use of critical assets could pose supply chain risks.
Operational risks associated with aviation, including weather delays and maintenance downtime, could impact service availability.
The specialized nature of SEATs means a limited pool of qualified contractors, potentially impacting future competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Exclusive use ensures dedicated availability of the asset during critical periods.
Contract supports essential wildfire suppression, a vital public service.
The award signifies investment in critical infrastructure for natural resource protection.

Sector Analysis

The aerial firefighting sector is highly specialized, requiring significant capital investment in aircraft, maintenance, and trained personnel. Contracts for exclusive use of assets like Single Engine Air Tankers (SEATs) are crucial for agencies like the Department of the Interior to manage wildfire risks effectively. Market size for such specialized services is driven by the prevalence and severity of wildfires, which are influenced by climate, land management practices, and environmental conditions. Comparable spending benchmarks would involve analyzing other exclusive use contracts for SEATs or similar aerial firefighting platforms across federal and state agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). The nature of exclusive-use aerial firefighting contracts often involves large, specialized aircraft and significant operational overhead, which may favor larger, established companies. There is no explicit mention of subcontracting requirements for small businesses within the provided data, suggesting limited direct opportunities for small business participation in this specific contract, though they might be involved in supporting roles or as suppliers to the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is facilitated through federal contract databases where such awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected in the procurement or execution of the contract.

Related Government Programs

Wildfire Management Services
Aviation Support Contracts
Forestry and Land Management
Emergency Response Services
Department of the Interior Contracts

Risk Flags

Limited competition may impact price.
Reliance on exclusive-use contract for critical assets.
Inherent risks of aerial firefighting operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $3.2 million to RUTLEDGE AIRBORNE APPLICATIONS, LLC. SINGLE ENGINE AIR TANKER (SEAT) EXCLUSIVE USE FLIGHT SERVICES - MILES CITY, MT

Who is the contractor on this award?

The obligated recipient is RUTLEDGE AIRBORNE APPLICATIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2024-06-04. End: 2026-07-02.

What is the historical spending pattern for Single Engine Air Tanker (SEAT) exclusive use flight services by the Department of the Interior?

Analyzing historical spending for SEAT exclusive use flight services by the Department of the Interior requires access to detailed contract databases over multiple fiscal years. Without specific historical data, it's difficult to provide precise figures. However, it is generally understood that spending in this area fluctuates based on wildfire activity, budget allocations for land management and firefighting, and the availability of contracted assets. Factors like the number of active fire seasons, the severity of fires, and the strategic decisions to utilize exclusive-use contracts versus call-when-needed services all influence the total expenditure. Trends may show increased spending in years with high wildfire risk or significant fire events, and potentially a move towards longer-term exclusive-use contracts to ensure asset availability.

How does the awarded price compare to market rates for similar SEAT exclusive use contracts?

A direct comparison of the awarded price ($3.2 million for approximately 758 days) to current market rates for similar SEAT exclusive use contracts requires access to a broader dataset of recent federal and state procurements. Factors influencing market rates include the specific aircraft model, its capabilities (e.g., retardant capacity, speed), the duration of the contract, geographic location of operations, and the level of competition. Generally, exclusive use contracts command a premium over call-when-needed services due to guaranteed availability. If this contract was awarded through a competitive process, even if limited, the price is likely reflective of prevailing market conditions for such specialized assets. However, without specific benchmark data, a definitive assessment of whether this represents excellent, good, or fair value is challenging.

What are the primary risks associated with this specific contract for aerial firefighting?

The primary risks associated with this contract include operational risks inherent in aviation and aerial firefighting, such as weather disruptions, mechanical failures, and the safety hazards to pilots and ground crews. There's also a risk of performance issues if the contractor fails to meet service level agreements, potentially impacting wildfire response times. Furthermore, the limited competition aspect raises a risk of suboptimal pricing for the government. Dependence on a single provider for exclusive use of critical assets can also pose a supply chain risk if the contractor faces unforeseen operational challenges or financial instability. Ensuring consistent availability and readiness of the aircraft throughout the contract period is paramount.

What is the track record of Rutledge Airborne Applications, LLC in performing similar federal contracts?

Assessing the track record of Rutledge Airborne Applications, LLC requires a review of their past performance on federal contracts, particularly those involving aerial firefighting or similar aviation services. Information on past performance, including contract awards, completion history, any past performance evaluations, and any instances of contract disputes or terminations, would be available through federal procurement databases like SAM.gov or FPDS. A positive track record would indicate reliability, adherence to contract terms, and successful delivery of services. Conversely, any history of performance issues or contract challenges would be a significant indicator of potential future risks. Without direct access to their performance history, it's difficult to definitively evaluate their reliability for this specific contract.

How effective are SEATs in wildfire suppression compared to other aerial firefighting assets?

Single Engine Air Tankers (SEATs) are highly effective for initial attack and containment of smaller to medium-sized wildfires, particularly in rugged terrain where larger aircraft may have difficulty operating. Their advantage lies in their maneuverability, speed of reload and return to the fire, and lower operational cost per sortie compared to Very Large Air Tankers (VLATs) or air tankers with larger capacities. SEATs are typically used to deliver retardant or water directly onto the fire's edge, slowing its spread and allowing ground crews to engage. While they are not designed for large-scale fire suppression on their own, they are a crucial component of a multi-asset aerial firefighting strategy, working in conjunction with other resources to manage wildfire incidents effectively.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140D0424D0067

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1078 W DESCANSO CANYON DR, CASA GRANDE, AZ, 85122

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

Financial Breakdown

Contract Ceiling: $9,062,840

Exercised Options: $3,194,792

Current Obligation: $3,194,792

Actual Outlays: $3,194,792

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0424D0067

IDV Type: IDC

Timeline