Forest Service helicopter contract awarded to Croman Corp for over $12.8M, utilizing full and open competition

Contract Overview

Contract Amount: $12,827,948 ($12.8M)

Contractor: Croman Corp

Awarding Agency: Department of Agriculture

Start Date: 2008-06-16

End Date: 2012-04-30

Contract Duration: 1,414 days

Daily Burn Rate: $9.1K/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 SERVICCES

Place of Performance

Location: WHITE CITY, JACKSON County, OREGON, 97503

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $12.8 million to CROMAN CORP for work described as: EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICCES Key points: 1. The contract's value of over $12.8 million for exclusive helicopter use indicates a significant investment in critical wildland fire services. 2. Full and open competition after exclusion of sources suggests a deliberate process to ensure fair market access, though the specific exclusion needs further review. 3. The contract duration of over 3 years (1414 days) implies a long-term need for these specialized aerial resources. 4. The fixed-price with economic price adjustment structure aims to manage cost fluctuations while ensuring service availability. 5. The award to Croman Corp, a single contractor, highlights potential concentration in specialized aerial firefighting services. 6. The contract's geographic focus on Oregon (st: OR, sn: OREGON) points to specific regional needs for fire suppression support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the type of helicopter, its capabilities, and the service hours required. However, the $12.8 million price tag over approximately 3.8 years suggests a substantial annual cost. Comparing this to other exclusive-use helicopter contracts for similar firefighting missions would be necessary to determine if the pricing is competitive. The economic price adjustment clause introduces a variable that could impact the final cost, making a definitive value assessment difficult without understanding the market conditions influencing adjustments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, there was a specific reason for excluding certain sources. The number of bidders is not explicitly stated, but the 'limited' competition level suggests that not all potential offerors were considered or able to participate. This could potentially lead to less competitive pricing compared to a truly unrestricted full and open competition.

Taxpayer Impact: Taxpayers may have paid a premium due to the exclusion of some potential bidders. While the competition aimed for fairness, the limitation could have reduced the pressure on Croman Corp to offer the lowest possible price.

Public Impact

The primary beneficiaries are the US Forest Service and the communities protected by wildland fire suppression efforts in Oregon. The contract delivers exclusive use of helicopters essential for aerial firefighting, including reconnaissance, water/retardant drops, and personnel transport. The geographic impact is focused on wildland areas within Oregon, where the Forest Service operates. The contract supports specialized aviation jobs related to helicopter operation, maintenance, and firefighting support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type warrants further investigation to ensure it was justified and did not unduly limit competition.
The fixed-price with economic price adjustment structure introduces cost uncertainty for taxpayers.
Reliance on a single contractor for exclusive use of critical firefighting assets could pose a risk if the contractor faces operational issues.

Positive Signals

The contract was awarded through a competitive process, aiming to secure necessary services.
The duration of the contract suggests a stable, long-term commitment to essential firefighting capabilities.
The use of fixed-price contracts, even with adjustments, generally provides some level of cost predictability.

Sector Analysis

This contract falls within the broader aviation services sector, specifically focusing on specialized aerial support for government operations. The market for exclusive-use firefighting aircraft is niche, often dominated by a few key players due to the high capital investment and specialized certifications required. Comparable spending benchmarks would involve analyzing other government contracts for similar exclusive-use aerial firefighting platforms, considering factors like aircraft type, mission duration, and operational region.

Small Business Impact

The provided data does not indicate any small business set-aside provisions (ss: false, sb: false). This suggests that the contract was not specifically targeted towards small businesses. There is no information on subcontracting plans, so the direct impact on the small business ecosystem is unclear, but it is unlikely to have a significant positive impact unless Croman Corp actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the US Forest Service contracting officers and program managers. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Wildland Fire Management
Aviation Services
Emergency Response Contracts
Department of Agriculture Procurement

Risk Flags

Competition Limitation
Cost Uncertainty
Single Source Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $12.8 million to CROMAN CORP. EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICCES

Who is the contractor on this award?

The obligated recipient is CROMAN CORP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2008-06-16. End: 2012-04-30.

What specific types of helicopters were procured under this contract, and what are their operational capabilities relevant to wildland firefighting?

The provided data does not specify the exact model or type of helicopters used under this contract. However, 'EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICCES' implies aircraft specifically equipped and configured for firefighting missions. These typically include capabilities such as water or retardant carrying systems (bambi buckets or internal tanks), advanced communication equipment, and potentially night vision capabilities for extended operational periods. The specific capabilities would dictate their effectiveness in different fire scenarios, influencing factors like drop accuracy, speed, and capacity.

How does the awarded amount of $12.8 million compare to historical spending on similar exclusive-use helicopter contracts by the Forest Service?

To accurately compare, we would need to analyze historical contract data for exclusive-use helicopters with similar specifications and durations. The $12.8 million awarded over approximately 3.8 years (June 2008 - April 2012) translates to an average annual cost of roughly $3.37 million. This figure needs to be benchmarked against contracts awarded during the same period or slightly before/after, considering inflation and variations in service requirements. Without access to a comprehensive database of comparable contracts, a precise historical comparison is difficult, but this amount represents a significant investment in specialized aerial firefighting assets.

What were the specific reasons for the 'exclusion of sources' in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, certain potential sources were deliberately excluded. The specific reasons for exclusion are not detailed in the provided data but typically stem from requirements such as unique capabilities, proprietary technology, existing infrastructure, or specific performance history that only a limited number of contractors possess. For instance, if a particular type of specialized firefighting equipment or operational expertise was mandated, only contractors possessing that specific attribute could bid. A thorough review of the solicitation documents and justification for exclusion would be necessary to understand the precise rationale.

What is the typical operational tempo and service level expected under an 'exclusive use' helicopter contract for wildland fire services?

An 'exclusive use' contract for wildland fire services typically means the government has priority access to the contracted aircraft and its crew for the duration of the contract period, often coinciding with high-risk fire seasons. The operational tempo can be extremely high during active fire events, requiring the helicopter to be available on short notice for extended periods, potentially 12-14 hours a day, 7 days a week. Service levels include rapid deployment, effective aerial support for suppression efforts (e.g., water drops), reconnaissance, and logistical support. The contract usually specifies availability requirements, response times, and maintenance schedules to ensure mission readiness.

What are the potential risks associated with relying on a single contractor for exclusive use of critical wildland firefighting assets?

Relying on a single contractor for exclusive use of critical assets like firefighting helicopters presents several risks. Firstly, there's a risk of service disruption if the contractor experiences mechanical failures, pilot shortages, or financial instability. Secondly, the lack of immediate alternative providers could lead to extended periods without essential aerial support during peak fire seasons. Thirdly, the contractor might have significant leverage in future negotiations due to the specialized nature of the equipment and the difficulty in quickly establishing new contracts. Finally, if the contractor's performance is unsatisfactory, the process of replacing them could be lengthy and costly, potentially impacting firefighting effectiveness.

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

Parent Company: Croman Corp. (UEI: 081975773)

Address: 801 AVENUE C, WHITE CITY, OR, 02

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

Financial Breakdown

Contract Ceiling: $12,827,948

Exercised Options: $12,827,948

Current Obligation: $12,827,948

Timeline