Forest Service awards $29M for exclusive fixed-wing airtanker services to Minden Air Corp

Contract Overview

Contract Amount: $28,960,350 ($29.0M)

Contractor: Minden AIR Corp.

Awarding Agency: Department of Agriculture

Start Date: 2008-03-10

End Date: 2012-12-31

Contract Duration: 1,757 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: EXCLUSIVE USE FIXED-WING AIRTANKER SERVICES

Place of Performance

Location: MINDEN, DOUGLAS County, NEVADA, 89423

State: Nevada Government Spending

Plain-Language Summary

Department of Agriculture obligated $29.0 million to MINDEN AIR CORP. for work described as: EXCLUSIVE USE FIXED-WING AIRTANKER SERVICES Key points: 1. Contract value represents a significant investment in aerial firefighting capabilities. 2. Minden Air Corp. secured this contract through a competitive process. 3. The contract duration of over 4 years suggests a need for sustained aerial support. 4. Fixed-price contracts with economic price adjustments can offer cost certainty while accounting for market fluctuations. 5. The service area in Nevada indicates a focus on regions prone to wildfires. 6. This contract is crucial for the Forest Service's wildfire suppression efforts.

Value Assessment

Rating: good

The contract value of approximately $29 million over its duration appears reasonable for exclusive fixed-wing airtanker services, considering the specialized nature of the equipment and operations. Benchmarking against similar contracts for aerial firefighting services would provide a more precise value-for-money assessment. However, the fixed-price structure with economic price adjustments aims to balance cost control with the need to adapt to changing operational costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific criteria or exclusions were applied. The presence of 4 bidders suggests a healthy level of competition for this specialized service. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging providers to offer their best pricing.

Public Impact

The primary beneficiaries are communities and ecosystems protected from wildfires through enhanced aerial firefighting capabilities. The service delivered is exclusive fixed-wing airtanker support, critical for rapid response to wildfires. The geographic impact is focused on Nevada, a state with significant wildfire risk. This contract supports specialized aviation jobs and the operational readiness of the Forest Service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if economic price adjustments are not carefully managed.
Dependence on a single contractor for exclusive services could pose risks if performance issues arise.
The specific nature of 'after exclusion of sources' warrants further understanding of the competitive landscape.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract duration suggests a stable and reliable service provision.
Minden Air Corp.'s role in providing exclusive airtanker services highlights their specialized capabilities.

Sector Analysis

The aerial firefighting sector is a critical component of national defense against wildfires, involving specialized aircraft, highly trained personnel, and significant operational costs. This contract fits within the broader context of government spending on natural resource management and emergency response. Comparable spending benchmarks would involve analyzing other large contracts for exclusive airtanker services across different federal agencies and regions.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly detailed in the provided data. As this is a specialized aviation service, the primary contractor is likely a large business. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within this contract's scope.

Oversight & Accountability

Oversight of this contract would typically fall under the U.S. Forest Service's contracting and program management divisions. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive.

Related Government Programs

Wildfire Suppression Services
Aviation Support Contracts
Natural Resource Management
Emergency Response Services

Risk Flags

Contract duration
Sole provider risk
Economic price adjustment management

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $29.0 million to MINDEN AIR CORP.. EXCLUSIVE USE FIXED-WING AIRTANKER SERVICES

Who is the contractor on this award?

The obligated recipient is MINDEN AIR CORP..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $29.0 million.

What is the period of performance?

Start: 2008-03-10. End: 2012-12-31.

What is the historical spending pattern for exclusive fixed-wing airtanker services by the Forest Service?

Analyzing historical spending for exclusive fixed-wing airtanker services requires examining past contract awards for similar services over several fiscal years. This would involve looking at contract databases to identify previous awards to Minden Air Corp. and other potential providers, noting contract values, durations, and the scope of services. Trends in spending can reveal whether the Forest Service is increasing or decreasing its reliance on exclusive airtanker contracts, potentially influenced by wildfire frequency, severity, and budget allocations. Understanding these patterns helps contextualize the current $29 million award and assess its alignment with long-term strategic investments in aerial firefighting.

How does the pricing structure of this contract compare to industry benchmarks for similar airtanker services?

The pricing structure of this contract, 'Fixed Price with Economic Price Adjustment' (FPEPA), is common in long-term service contracts where operational costs can fluctuate. To benchmark its value, one would compare the per-hour or per-mission rates against similar contracts awarded by other federal agencies (e.g., Department of the Interior) or state-level firefighting agencies. Factors like aircraft type, capacity, required response times, and geographic operating areas significantly influence pricing. Without access to detailed cost breakdowns or a comprehensive database of comparable contracts, a precise value-for-money assessment is challenging. However, the competitive bidding process suggests that the awarded price is likely within a reasonable range for the services rendered.

What are the specific risks associated with Minden Air Corp. being the sole provider of exclusive fixed-wing airtanker services in this region?

The primary risk associated with a sole provider for exclusive services is the potential for service disruptions if the contractor faces operational issues, such as mechanical failures, pilot shortages, or financial instability. This exclusivity means the Forest Service has limited immediate alternatives for this specific type of support in the contracted region. While the contract likely includes performance clauses and penalties, the government's recourse might be limited in the short term. Mitigating this risk often involves robust contractor oversight, contingency planning by the agency, and ensuring the contract terms adequately address performance failures and potential remedies.

What is the track record of Minden Air Corp. in providing aerial firefighting services?

Minden Air Corp.'s track record in providing aerial firefighting services is crucial for assessing the reliability and effectiveness of this contract. A review of their past performance, including previous contracts with federal or state agencies, would reveal their operational history, safety record, and ability to meet performance requirements. Information on past incidents, commendations, or criticisms related to their services would provide valuable insights. A strong track record suggests a lower risk of performance issues, while a history of problems might indicate potential concerns that warrant closer monitoring and risk mitigation strategies.

How does the duration of this contract (1757 days) impact the overall value and risk for the Forest Service?

The contract duration of approximately 1757 days (over 4.8 years) provides significant stability and predictability for the Forest Service's aerial firefighting capabilities in Nevada. This extended period allows for consistent service delivery and potentially better long-term planning for wildfire suppression efforts. From a value perspective, longer-term contracts can sometimes secure more favorable pricing due to the commitment involved. However, it also increases the risk exposure to potential changes in market conditions, technology, or contractor performance over the extended period. The economic price adjustment clause is designed to mitigate some of the financial risks associated with long-term inflation.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AG024BS070016

Offers Received: 4

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

Evaluated Preference: NONE

Contractor Details

Address: 2311 P51 CT, MINDEN, NV, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $28,960,350

Exercised Options: $28,960,350

Current Obligation: $28,960,350

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline