Forest Service awards $11.4M for helicopter services, highlighting air transport needs in California

Contract Overview

Contract Amount: $11,358,764 ($11.4M)

Contractor: Siller Brothers Inc

Awarding Agency: Department of Agriculture

Start Date: 2005-07-01

End Date: 2008-04-30

Contract Duration: 1,034 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 81

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CWN TYPE L HELICOPTER SERVICES

Place of Performance

Location: YUBA CITY, SUTTER County, CALIFORNIA, 95991

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $11.4 million to SILLER BROTHERS INC for work described as: CWN TYPE L HELICOPTER SERVICES Key points: 1. Contract value represents a significant investment in aerial support for wildfire suppression and other critical operations. 2. The fixed-price structure with economic price adjustment suggests potential for cost fluctuations based on market conditions. 3. A substantial number of bids indicates a competitive market for these specialized aviation services. 4. The contract duration of over three years points to a long-term requirement for consistent aerial support. 5. Geographic focus on California aligns with high-risk wildfire zones, underscoring the strategic importance of this award.

Value Assessment

Rating: good

The contract value of approximately $11.4 million over roughly three years averages to about $3.8 million annually. Benchmarking this against similar large-scale aerial firefighting contracts is challenging without more specific service details (e.g., aircraft type, hours, mission profiles). However, the number of bidders suggests competitive pricing was likely achieved. The fixed-price with economic price adjustment clause indicates a mechanism to account for potential cost increases in fuel or other operational expenses, which is common in long-term aviation contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, attracting 81 bids. The high number of responsive bids suggests a robust and competitive market for aerial firefighting and transport services. This level of competition is generally favorable for the government, as it allows for a wider range of offers and potentially drives down prices through market forces. The agency received a significant number of proposals, indicating broad industry interest and capability.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in a more cost-effective award compared to a sole-source or limited competition scenario. It ensures that public funds are used efficiently by leveraging market dynamics to secure the best possible value.

Public Impact

The primary beneficiaries are the US Forest Service and other agencies involved in wildfire management and natural resource protection in California. Services delivered include essential aerial support, likely encompassing firefighting, reconnaissance, personnel transport, and equipment delivery. The geographic impact is concentrated in California, a state with significant wildfire risk and extensive federal land holdings. Workforce implications include support for pilots, mechanics, and ground crews involved in aviation operations, as well as the broader firefighting workforce relying on this support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the economic price adjustment clause, depending on fuel price volatility.
Dependence on a single contractor for critical aerial services could pose a risk if performance issues arise.
The long contract duration might limit the agency's ability to adopt newer, more efficient technologies if they emerge during the contract period.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that likely secured favorable pricing.
A large number of bids (81) suggests a healthy market and strong contractor interest, promoting reliability.
The contract's focus on California aligns with critical needs for wildfire suppression in a high-risk area.

Sector Analysis

This contract falls within the broader aviation services sector, specifically focusing on specialized air charter and transport for government operations. The market for aerial firefighting and support services is critical for agencies managing vast natural resources, particularly in regions prone to wildfires like California. Spending in this area is often driven by seasonal needs and emergency response requirements. Comparable spending benchmarks would typically involve analyzing other large contracts for similar helicopter services used for firefighting or heavy-lift operations across federal agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the primary award may not have a small business set-aside, the prime contractor, Siller Brothers Inc., may engage small businesses for subcontracting opportunities. The scale and nature of helicopter services often require specialized equipment and certifications that can be challenging for smaller firms to meet independently. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Forest Service. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to service delivery. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Wildfire Suppression Support
Aviation Services Contracts
Department of Agriculture Contracts
Forest Service Operations
Air Charter Services
Emergency Response Aviation

Risk Flags

Economic Price Adjustment Clause
Long-Term Contract Dependency
Performance Risk
Operational Safety

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $11.4 million to SILLER BROTHERS INC. CWN TYPE L HELICOPTER SERVICES

Who is the contractor on this award?

The obligated recipient is SILLER BROTHERS INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2005-07-01. End: 2008-04-30.

What is the track record of Siller Brothers Inc. in performing similar federal contracts?

Information on Siller Brothers Inc.'s track record with federal contracts is available through public databases like FPDS. A review of past awards would reveal their history with the Forest Service and other agencies, including contract types, values, and performance ratings if available. Analyzing their past performance on similar aerial services, particularly those involving demanding operational requirements like firefighting or heavy-lift transport, would provide insight into their reliability and capability. Specific details on past performance issues or commendations would offer a more nuanced understanding of their suitability for this type of contract.

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

Directly comparing the awarded price to precise market rates is complex without detailed service specifications (e.g., helicopter model, flight hours, mission type, required equipment). However, the fact that this contract was awarded under full and open competition with 81 bids suggests that the pricing achieved was likely competitive. Market rates for specialized helicopter services, especially those used for demanding tasks like aerial firefighting, can vary significantly based on aircraft capabilities, operational tempo, and geographic location. A deeper analysis would involve benchmarking against publicly available data for similar services or consulting industry cost guides, while accounting for the specific terms and conditions of this contract, including the economic price adjustment.

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

Key risks include potential cost increases due to the economic price adjustment clause, particularly concerning fuel prices. Performance risks also exist, as the agency relies heavily on the contractor for critical operations; any failure in service delivery could impact mission success. Operational risks, such as aircraft mechanical failures or accidents, are inherent in aviation. Mitigation strategies likely include robust contract monitoring by the Forest Service, clear performance standards, contingency planning for service disruptions, and adherence to strict safety protocols by the contractor. The competitive nature of the award also serves as a form of risk mitigation by ensuring multiple capable providers exist.

How effective has the Forest Service been in leveraging aviation services for its mission over the past decade?

The Forest Service has historically relied heavily on aviation services, particularly for wildfire management, which is a core component of its mission. Over the past decade, the agency has increasingly utilized a mix of government-owned aircraft and contracted services to meet its aerial needs. Effectiveness can be measured by response times, cost-efficiency, and the ability to support suppression efforts across vast and often remote areas. While contracts like this one provide essential capabilities, challenges have included ensuring sufficient capacity during peak demand periods and managing costs effectively. Continuous evaluation of contract performance and market dynamics is crucial for maintaining effectiveness.

What is the historical spending trend for helicopter services by the Forest Service or Department of Agriculture?

Historical spending on helicopter services by the Forest Service and the broader Department of Agriculture has generally trended upwards, driven by increased needs for wildfire suppression, resource management, and other operational support. Factors such as climate change leading to more severe fire seasons, increased development in wildland-urban interfaces, and the expansion of conservation programs contribute to this trend. Analyzing spending data over the last 5-10 years would reveal patterns in contract values, types of services procured, and the primary contractors utilized. This contract's value of approximately $11.4 million over three years fits within the expected range for significant aerial support requirements.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFP 49-05-08

Offers Received: 81

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 1250 SMITH RD, YUBA CITY, CA, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $11,358,764

Exercised Options: $11,358,764

Current Obligation: $11,358,764

Timeline