Interior Department awards $3.46M contract for on-demand helicopter services in Arizona

Contract Overview

Contract Amount: $3,460,914 ($3.5M)

Contractor: Salmon River Helicopters, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-07-11

End Date: 2025-11-30

Contract Duration: 142 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CALL WHEN NEEDED TYPE I HELICOPTER SERVICES

Place of Performance

Location: PAGE, COCONINO County, ARIZONA, 86040

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $3.5 million to SALMON RIVER HELICOPTERS, INC. for work described as: CALL WHEN NEEDED TYPE I HELICOPTER SERVICES Key points: 1. Contract provides essential on-demand air transport for critical operations. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed-price contract structure shifts performance risk to the contractor. 4. Short contract duration may indicate a need for immediate or seasonal services. 5. Geographic focus on Arizona points to specific operational requirements. 6. Contractor's ability to meet specialized needs is a key performance indicator.

Value Assessment

Rating: good

The contract value of $3.46 million for 142 days of service appears reasonable given the specialized nature of on-demand helicopter transport. Benchmarking against similar contracts for aerial services, particularly those involving remote or challenging terrain operations, would provide a more precise value assessment. The firm fixed-price structure suggests the government has negotiated a ceiling price, which is generally favorable for cost control, assuming the scope of work is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but the method suggests a robust process aimed at achieving fair market prices and selecting the best value offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government explores a wide range of potential providers, potentially leading to cost savings.

Public Impact

The primary beneficiaries are likely Department of the Interior agencies operating in Arizona, requiring rapid and flexible aerial support. Services delivered include nonscheduled chartered freight air transportation, essential for logistics and operational support in remote areas. The geographic impact is concentrated in Arizona, supporting federal land management, emergency response, or other mission-critical activities within the state. Workforce implications may involve specialized pilots and maintenance crews employed by the contractor, contributing to the aviation services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'as needed' services are not tightly managed.
Dependence on a single contractor for critical, time-sensitive operations.
Ensuring contractor compliance with all safety and operational regulations.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive award process.
Contract duration aligns with specific operational needs, avoiding long-term commitments.
Focus on a specific geographic area allows for tailored service delivery.

Sector Analysis

This contract falls within the broader aviation services sector, specifically focusing on specialized charter operations. The market for on-demand helicopter services is driven by needs in areas such as emergency response, resource management, and remote logistics. While specific market size data for this niche is difficult to isolate, the overall aviation charter industry is substantial. This contract represents a small but critical component of federal spending on essential operational support.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, it is unlikely that small businesses were specifically targeted for this award. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Salmon River Helicopters, Inc., but are not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior's relevant agency. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Federal Aviation Administration (FAA) Oversight
Department of the Interior Land Management Programs
Emergency Response and Wildfire Suppression Support
Remote Area Logistics and Transportation Contracts

Risk Flags

Potential for cost overruns if 'as needed' demand is underestimated.
Contractor availability and responsiveness for critical, time-sensitive operations.
Ensuring adherence to stringent safety and operational standards in aviation.
Dependency on a single provider for essential logistical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $3.5 million to SALMON RIVER HELICOPTERS, INC.. CALL WHEN NEEDED TYPE I HELICOPTER SERVICES

Who is the contractor on this award?

The obligated recipient is SALMON RIVER HELICOPTERS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2025-07-11. End: 2025-11-30.

What is the track record of Salmon River Helicopters, Inc. in performing similar federal contracts?

Salmon River Helicopters, Inc. has a history of performing contracts for federal agencies, including those involving aviation services. Analyzing their past performance on similar contracts, particularly those with the Department of the Interior or other agencies requiring specialized helicopter operations, would be crucial. This includes reviewing past performance evaluations, any documented issues or disputes, and their success in meeting delivery schedules and operational requirements. A review of federal procurement data (e.g., FPDS) can reveal the types and values of contracts they have previously held, providing insight into their experience and capacity to handle this current award.

How does the awarded price compare to market rates for similar helicopter services in Arizona?

To assess the value for money, the awarded price of approximately $3.46 million for 142 days of 'CALL WHEN NEEDED TYPE I HELICOPTER SERVICES' needs to be benchmarked against prevailing market rates in Arizona. This involves researching the cost of similar helicopter types (e.g., Type I, which typically refers to heavy-lift helicopters), hourly operational costs, pilot fees, and mobilization/demobilization charges. Factors such as the specific mission profile (e.g., cargo, personnel transport, specialized operations), required flight hours, and the duration of the contract significantly influence pricing. Comparing the effective daily or hourly rate derived from this contract against industry benchmarks or rates paid by other state or local government entities for comparable services would indicate whether the price is competitive.

What are the primary risks associated with this 'as needed' helicopter service contract?

The primary risks associated with this 'as needed' helicopter service contract include potential scope creep and cost overruns if the 'call when needed' nature leads to unpredictable and frequent service demands exceeding initial projections. There's also a risk related to contractor performance and availability; ensuring Salmon River Helicopters, Inc. can consistently provide the required Type I helicopter services on short notice, especially during peak demand periods or adverse weather conditions, is critical. Safety is an inherent risk in aviation, necessitating robust oversight of the contractor's operational procedures and maintenance protocols. Furthermore, reliance on a single provider for critical services could pose a risk if the contractor experiences operational disruptions.

How effective is the firm fixed-price contract type in managing costs for this type of service?

The firm fixed-price (FFP) contract type is generally effective in managing costs for services where the scope of work can be clearly defined, as it shifts the risk of cost overruns to the contractor. For 'CALL WHEN NEEDED' services, the effectiveness of FFP depends heavily on the accuracy of the initial estimates for service frequency and duration. If the government accurately forecasts demand, FFP provides cost certainty. However, if demand significantly exceeds estimates, the contractor may be less incentivized to control costs, or the government might face challenges if the scope needs to be formally modified. The success of FFP here relies on meticulous planning and realistic projections of service utilization.

What is the historical spending pattern for similar helicopter services by the Department of the Interior?

Analyzing historical spending patterns for similar helicopter services by the Department of the Interior (DOI) is essential for context. This involves examining past contract awards for nonscheduled chartered air transportation, specifically helicopter services, within the DOI and its various bureaus (e.g., Bureau of Land Management, National Park Service). Key metrics to review include the total annual spending on such services, the average contract value, the duration of typical contracts, and the prevalence of different contract types (FFP, cost-plus, etc.). Understanding historical spending can reveal trends in demand, identify key contractors, and provide a baseline against which the current $3.46 million award can be assessed for its significance within the department's overall operational budget.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Salmon River Helicopters Inc.

Address: 1526 BIG SALMON RD, RIGGINS, ID, 83549

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $3,460,914

Exercised Options: $3,460,914

Current Obligation: $3,460,914

Actual Outlays: $3,460,914

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1202SA25T9233

IDV Type: IDC

Timeline