Forest Service awards $15.8M contract for exclusive helicopter use in wildland fire services

Contract Overview

Contract Amount: $15,801,528 ($15.8M)

Contractor: Construction Helicopters, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2008-06-06

End Date: 2012-04-30

Contract Duration: 1,424 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 32

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES

Place of Performance

Location: YPSILANTI, WASHTENAW County, MICHIGAN, 48198

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $15.8 million to CONSTRUCTION HELICOPTERS, INC. for work described as: EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES Key points: 1. Contract awarded to Construction Helicopters, Inc. for specialized aerial support. 2. The contract duration spans over 1400 days, indicating a long-term need. 3. Fixed-price contract with economic price adjustment suggests potential for cost fluctuations. 4. Competition was full and open after exclusion of sources, implying a thorough vetting process. 5. The North American Industry Classification System (NAICS) code 481212 points to nonscheduled air transportation services. 6. This contract supports critical wildland fire management operations for the Forest Service.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service rates. The fixed-price with economic price adjustment structure introduces some risk of cost overruns if fuel or operational costs escalate significantly. However, the duration suggests a potentially stable, albeit high, cost for dedicated services.

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.' This indicates that while the competition was broad, specific sources may have been excluded based on pre-defined criteria. The number of bidders is not specified, but the 'full and open' nature suggests a competitive process aimed at securing the best value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to bid, driving down prices and ensuring a fair market rate is achieved.

Public Impact

Provides essential aerial support for wildland firefighting efforts across various regions. Ensures the availability of specialized helicopters for rapid response to fire incidents. Supports the operational capacity of the U.S. Forest Service in protecting natural resources. May indirectly support local economies through the contractor's operational activities and potential local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to costs exceeding initial projections.
Exclusion of sources in the competition process warrants further investigation into justification.
Long contract duration may limit flexibility in adopting newer, potentially more efficient technologies.

Positive Signals

Dedicated resource for critical wildland fire suppression operations.
Full and open competition, even with exclusions, suggests an effort to achieve competitive pricing.
Contract awarded to a company specializing in helicopter services, indicating relevant expertise.

Sector Analysis

This contract falls within the air transportation services sector, specifically nonscheduled chartered freight air transportation. The market for specialized aerial firefighting services is niche, often dominated by a few key players capable of meeting stringent safety and operational requirements. The value of this contract is significant within this specialized segment, reflecting the high cost of maintaining and operating such assets for critical government functions.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. Given the specialized nature of exclusive helicopter services for wildland fires, it is possible that the primary contractor is a larger entity, and subcontracting opportunities for small businesses might be limited or focused on support services rather than core flight operations.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Forest Service contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to service delivery. Transparency is generally maintained through contract databases, though specific operational details may be sensitive.

Related Government Programs

Wildland Fire Management Programs
Aerial Firefighting Services
Department of Agriculture Contracts
Forest Service Aviation Management

Risk Flags

Economic price adjustment clause introduces cost uncertainty.
Competition details ('after exclusion of sources') require further scrutiny.
Long-term nature of the contract may limit adoption of newer technologies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $15.8 million to CONSTRUCTION HELICOPTERS, INC.. EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES

Who is the contractor on this award?

The obligated recipient is CONSTRUCTION HELICOPTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2008-06-06. End: 2012-04-30.

What is the historical spending pattern for exclusive helicopter services for wildland fire management by the Forest Service?

Analyzing historical spending requires access to a broader dataset of Forest Service contracts. However, the trend in federal agencies, particularly those involved in natural resource management and emergency response, has been to increasingly rely on contracted specialized services like aerial firefighting. This often involves long-term agreements to ensure availability and readiness. Spending can fluctuate based on fire seasons, budget allocations, and the specific needs for different types of aircraft and missions. Without specific historical data for this exact service, it's difficult to provide precise figures, but the increasing severity and frequency of wildfires suggest a sustained or growing demand for such services and, consequently, for related federal spending.

How does the pricing of this contract compare to similar exclusive helicopter service contracts for wildland fires?

Direct comparison of pricing for exclusive helicopter services is complex due to variations in aircraft type, capacity, operational duration, geographic coverage, and specific mission requirements. The provided data indicates a fixed price with economic price adjustment, totaling approximately $15.8 million over roughly 1424 days. This suggests an average daily rate in the range of $11,000. However, this figure is a gross average and doesn't account for flight hours, standby time, or specific operational demands. To benchmark effectively, one would need to compare rates for similar helicopter classes (e.g., heavy-lift, attack helicopters) performing comparable duties under similar contract structures with other agencies or within different regions. The 'full and open competition after exclusion of sources' clause also implies that the final price was determined through a process intended to achieve value, but without knowing the number of bidders and their proposals, a definitive value-for-money assessment against peers is limited.

What are the key performance indicators (KPIs) expected under this contract for Construction Helicopters, Inc.?

While specific KPIs are not detailed in the provided summary data, contracts for exclusive helicopter use in wildland fire services typically include stringent performance metrics. These often revolve around aircraft availability (e.g., guaranteed readiness within a specified response time), operational uptime, safety compliance (zero major incidents or accidents), adherence to flight regulations, and mission completion rates. For instance, the contract might specify a required number of operational hours per month or year, or a maximum allowable downtime for maintenance. Performance might also be measured by the effectiveness of the helicopter in supporting ground crews, its ability to operate under challenging conditions (e.g., smoke, high winds, remote terrain), and the overall cost-efficiency of its deployment during fire suppression efforts. Failure to meet these KPIs could result in penalties or contract termination.

What is the track record of Construction Helicopters, Inc. in fulfilling federal contracts, particularly for aviation services?

Construction Helicopters, Inc. has a history of performing federal contracts, as indicated by this award. To assess their track record thoroughly, one would need to examine their past performance evaluations on federal contract databases, such as the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems provide insights into how well the company has met contractual obligations, their timeliness, quality of service, and overall customer satisfaction. A review of past contracts would reveal their experience with similar aviation services, particularly in demanding environments like wildland firefighting. A positive performance history suggests a lower risk for this current contract, while a history of issues might raise concerns about reliability and execution.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' (FPEPA) contract type for this service?

The FPEPA contract type aims to protect both the government and the contractor from significant price fluctuations due to external economic factors, primarily inflation. For this wildland fire helicopter service, the economic price adjustment would likely be tied to indices for fuel costs, labor, and potentially parts or maintenance. The primary risk for the government is that costs could increase beyond the initial fixed-price estimate if these economic factors rise sharply. This could lead to higher overall spending than initially budgeted. The risk for the contractor is that if the adjustment formula doesn't fully capture cost increases, they might incur losses. Effective management of an FPEPA contract requires robust monitoring of the economic indices used for adjustment and clear, pre-defined mechanisms for calculating the adjustments to ensure fairness and prevent excessive cost escalation.

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: AG-024B-S-08-9003

Offers Received: 32

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

Evaluated Preference: NONE

Contractor Details

Address: 807 WILLOW RUN AIRPORT, YPSILANTI, MI, 06

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

Financial Breakdown

Contract Ceiling: $15,801,528

Exercised Options: $15,801,528

Current Obligation: $15,801,528

Timeline