Interior Department awards $2.6M aircraft rental contract to Greenwood Group Inc. for aerial supervision

Contract Overview

Contract Amount: $2,647,400 ($2.6M)

Contractor: Greenwood Group Inc

Awarding Agency: Department of the Interior

Start Date: 2026-02-02

End Date: 2027-01-31

Contract Duration: 363 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AIRCRAFT RENTAL FOR BLM AERIAL SUPERVISION (LEAD PLANE - TAIL NUMBERS: N61PC & N42FC)

Place of Performance

Location: PONCA CITY, KAY County, OKLAHOMA, 74601

State: Oklahoma Government Spending

Plain-Language Summary

Department of the Interior obligated $2.6 million to GREENWOOD GROUP INC for work described as: AIRCRAFT RENTAL FOR BLM AERIAL SUPERVISION (LEAD PLANE - TAIL NUMBERS: N61PC & N42FC) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 363 days indicates a need for sustained aerial support. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The service is categorized under Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing. 5. The contract is for aircraft rental, specifically for lead planes used in aerial supervision. 6. The award value of $2.6M falls within a moderate spending range for specialized equipment rental.

Value Assessment

Rating: good

The contract value of $2.6M for aircraft rental over approximately one year appears reasonable given the specialized nature of aerial supervision. Benchmarking against similar contracts for lead plane rentals for government agencies would provide a more precise value-for-money assessment. The firm fixed-price structure offers cost predictability. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the price seems aligned with operational needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through a full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The number of bidders is not specified, but the method of competition suggests a healthy market for these services.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that public funds are used efficiently.

Public Impact

The Bureau of Land Management (BLM) will benefit from enhanced aerial supervision capabilities. Services delivered include the rental of lead aircraft crucial for monitoring operations. The geographic impact is likely focused on areas requiring aerial oversight for land management. The contract supports the operational capacity of federal land management agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased operational costs if market rates for specialized aircraft rise unexpectedly.
Dependence on a single contractor for critical aerial supervision could pose a risk if performance issues arise.

Positive Signals

The use of a firm fixed-price contract mitigates cost overrun risks.
Awarding through full and open competition suggests a competitive market, potentially leading to better service quality.
The contract duration allows for consistent and reliable support for aerial supervision needs.

Sector Analysis

The contract falls within the broader aerospace and transportation services sector, specifically focusing on specialized aircraft leasing for government operations. This niche market involves providers capable of supplying and operating aircraft for specific governmental functions like surveillance and supervision. The spending benchmark of $2.6M is moderate for such specialized services, reflecting the demand for reliable aerial assets in land management and public safety.

Small Business Impact

The data indicates that small business participation was not a specific set-aside criterion for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Greenwood Group Inc., may engage small businesses as subcontractors, which would contribute to the broader small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officer and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is facilitated by the public nature of contract awards, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Aircraft Rental Services
Aerial Surveillance Contracts
Bureau of Land Management Operations
Federal Aviation Services
Transportation Equipment Leasing

Risk Flags

Potential for cost escalation if market rates increase significantly.
Dependence on contractor performance for critical operational support.
Need for robust oversight to ensure service quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.6 million to GREENWOOD GROUP INC. AIRCRAFT RENTAL FOR BLM AERIAL SUPERVISION (LEAD PLANE - TAIL NUMBERS: N61PC & N42FC)

Who is the contractor on this award?

The obligated recipient is GREENWOOD GROUP INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2026-02-02. End: 2027-01-31.

What is the track record of Greenwood Group Inc. in providing similar aerial supervision services to federal agencies?

Assessing the track record of Greenwood Group Inc. is crucial for understanding their reliability and past performance in delivering specialized aviation services. Information regarding previous contracts, client satisfaction, safety records, and any past performance issues or awards would provide valuable context. A review of federal procurement databases and past performance reviews (if publicly available) would shed light on their experience with similar aircraft rentals and aerial supervision tasks. Without specific data on Greenwood Group Inc.'s history, it is difficult to definitively assess their suitability and reliability for this particular contract, though the award itself implies they met initial qualification criteria.

How does the awarded price of $2.6M compare to market rates for similar aircraft rental services for aerial supervision?

The awarded price of $2.6M for aircraft rental over approximately one year needs to be benchmarked against prevailing market rates for comparable services. This comparison should consider factors such as aircraft type, operational duration, required equipment, pilot services, and geographic location. If data from similar federal contracts or commercial aviation leasing agreements is available, it can provide a basis for evaluating whether the price represents good value for money. A higher-than-market rate could indicate potential inefficiencies or a lack of robust competition, while a lower rate might suggest favorable negotiation or a highly competitive bidding environment. Without specific comparative data, it's challenging to make a definitive judgment on the price's competitiveness.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential operational disruptions due to aircraft maintenance or unavailability, pilot shortages, adverse weather conditions impacting service delivery, and the possibility of cost increases if the fixed-price contract does not adequately account for unforeseen expenses. Mitigation strategies likely involve robust maintenance schedules, contingency planning for aircraft and pilot replacements, and clear performance standards within the contract. The firm fixed-price nature itself acts as a risk mitigation tool for the government against cost overruns. The contracting agency's oversight and the contractor's own operational protocols are critical for managing these risks effectively.

How effective is the use of aerial supervision via lead planes for the BLM's land management objectives?

The effectiveness of aerial supervision via lead planes for the BLM's land management objectives hinges on how these aircraft contribute to critical functions such as wildfire detection and monitoring, illegal activity surveillance, resource management, and infrastructure inspection. Lead planes often provide critical real-time situational awareness for ground crews and other aerial assets. Their effectiveness can be measured by metrics like response times to incidents, accuracy of surveillance data, reduction in unauthorized activities, and overall improvement in resource allocation and safety. The contract's duration suggests a sustained need, implying that aerial supervision is considered an effective tool for the BLM's operational requirements.

What are the historical spending patterns for aircraft rental services by the Department of the Interior for aerial supervision?

Analyzing historical spending patterns for aircraft rental by the Department of the Interior for aerial supervision provides context for the current $2.6M award. Understanding whether this amount is consistent with, higher than, or lower than previous expenditures for similar services can indicate trends in pricing, demand, and contract scope. Examining data from prior fiscal years would reveal the frequency of such contracts, the typical duration, the number of contractors utilized, and the average award values. This historical perspective is essential for assessing whether the current contract represents a sustainable level of investment or a deviation that warrants further investigation into its drivers.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2117 N WAVERLY ST, PONCA CITY, OK, 74601

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,647,400

Exercised Options: $2,647,400

Current Obligation: $2,647,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D8022D0005

IDV Type: IDC

Timeline