Forest Service Spends $16.6M on Exclusive Use Helicopter Services for Wildland Firefighting

Contract Overview

Contract Amount: $16,650,933 ($16.7M)

Contractor: Siller Brothers Inc

Awarding Agency: Department of Agriculture

Start Date: 2008-06-06

End Date: 2012-04-30

Contract Duration: 1,424 days

Daily Burn Rate: $11.7K/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: Transportation

Official Description: EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES

Place of Performance

Location: YUBA CITY, SUTTER County, CALIFORNIA, 95991

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $16.7 million to SILLER BROTHERS INC for work described as: EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE SERVICES Key points: 1. High cost for specialized aerial firefighting equipment. 2. Competition was full and open after source exclusion, suggesting some market engagement. 3. Risk of price escalation due to economic price adjustment clause. 4. Sector: Transportation (Air Charter)

Value Assessment

Rating: fair

The contract value of $16.6M over approximately 4 years for exclusive use helicopter services appears high. Benchmarking against similar exclusive use contracts for firefighting aircraft is needed to determine true value.

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 a competitive process but with specific limitations. This method aims for best value while addressing unique requirements.

Taxpayer Impact: Taxpayer funds are utilized for critical wildfire suppression, with the cost reflecting specialized equipment and operational needs.

Public Impact

Ensures critical aerial support for combating wildland fires, protecting lives and property. Supports specialized aviation industry and skilled personnel. Potential for cost overruns due to economic price adjustments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to higher than anticipated costs.
Exclusive use may limit flexibility and potentially increase costs compared to on-demand services.

Positive Signals

Provides essential capability for wildfire management.
Competitive bidding process was utilized.

Sector Analysis

The contract falls within the air transportation sector, specifically for specialized charter services. Spending on aerial firefighting assets is crucial for agencies like the Forest Service, especially in regions prone to wildfires.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Analysis would require further data on subcontracting or prime contractor size.

Oversight & Accountability

The contract was awarded by the Forest Service, an agency with established oversight mechanisms. However, the duration and economic price adjustment warrant monitoring for cost control.

Related Government Programs

Nonscheduled Chartered Freight Air Transportation
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Economic Price Adjustment (EPA) clause
Potential for cost overruns
Long contract duration
Exclusive use may not be the most cost-effective model for all scenarios

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $16.7 million to SILLER BROTHERS INC. EXCLUSIVE USE HELICOPTER FOR WILDLAND FIRE 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 $16.7 million.

What is the period of performance?

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

What is the cost-effectiveness of exclusive use contracts for firefighting helicopters compared to other procurement methods?

Exclusive use contracts guarantee availability but can be more expensive than on-demand services. Cost-effectiveness depends on the frequency and duration of need. If fires are consistently frequent and prolonged, exclusive use might be justified. However, if demand is sporadic, leasing or on-call services could offer better value, though potentially with less guaranteed readiness.

What are the primary risks associated with the economic price adjustment (EPA) clause in this contract?

The EPA clause exposes the government to potential cost increases tied to inflation or market fluctuations in fuel, labor, and maintenance. This introduces budget uncertainty and could lead to spending exceeding initial projections. The specific indices and caps within the EPA are critical for assessing the magnitude of this risk.

How effectively does this contract support the Forest Service's mission to combat wildland fires?

The contract directly supports the mission by providing dedicated aerial resources for fire suppression. The exclusive use nature ensures availability when needed, which is critical for rapid response. However, the overall effectiveness is also tied to the operational performance of the helicopter and crew, and the cost-efficiency of the arrangement.

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: 1250 SMITH RD, YUBA CITY, CA, 01

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

Financial Breakdown

Contract Ceiling: $16,650,933

Exercised Options: $16,650,933

Current Obligation: $16,650,933

Timeline