Forest Service awards $25.8M contract for exclusive wildland firefighting helicopter services to Helicopter Express LLC

Contract Overview

Contract Amount: $25,810,783 ($25.8M)

Contractor: Helicopter Express LLC

Awarding Agency: Department of Agriculture

Start Date: 2014-04-27

End Date: 2018-04-30

Contract Duration: 1,464 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Transportation

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE INITIAL ATTACK HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING.

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $25.8 million to HELICOPTER EXPRESS LLC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE INITIAL ATTACK HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING. Key points: 1. Contract awarded via full and open competition after exclusion of sources, suggesting a specific justification for limited competition. 2. The fixed-price contract with economic price adjustment introduces potential for cost overruns due to fluctuating economic conditions. 3. High value contract for critical national function highlights reliance on specialized services. 4. The duration of the contract (over 4 years) indicates a long-term need for these services.

Value Assessment

Rating: fair

The contract value of $25.8M over approximately 4 years for specialized helicopter services appears reasonable given the critical nature of wildland firefighting. However, without specific benchmarks for similar exclusive-use contracts, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This method can impact price discovery by limiting the pool of potential bidders, potentially leading to higher prices than a truly open competition.

Taxpayer Impact: Taxpayer funds are utilized for essential national defense and public safety services. The specific competition method warrants scrutiny to ensure optimal value for money.

Public Impact

Ensures critical national capability for wildland firefighting, protecting lives and property. Potential for increased costs due to economic price adjustment clause. Limited competition may impact overall cost-effectiveness for taxpayers. Reliability of specialized helicopter services is paramount during fire seasons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause
Limited competition justification
Long contract duration

Positive Signals

Addresses critical national need
Dedicated resources for firefighting

Sector Analysis

This contract falls within the air transportation services sector, specifically for specialized aerial support in wildland firefighting. Benchmarks for exclusive-use contracts of this nature are scarce, making direct comparison challenging.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the primary contractor is likely a larger entity, and opportunities for small businesses in this specific service area may be limited or pursued through subcontracting.

Oversight & Accountability

The contract's duration and the 'exclusion of sources' clause warrant careful oversight to ensure continued justification for the procurement method and fair pricing throughout the contract term.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to EPA
Limited competition may reduce price competitiveness
Long-term contract duration increases exposure to economic fluctuations
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.8 million to HELICOPTER EXPRESS LLC. IGF::CT::IGF CRITICAL FUNCTIONS - NATIONAL EXCLUSIVE USE INITIAL ATTACK HELICOPTER SERVICES FOR WILDLAND FIREFIGHTING.

Who is the contractor on this award?

The obligated recipient is HELICOPTER EXPRESS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $25.8 million.

What is the period of performance?

Start: 2014-04-27. End: 2018-04-30.

What specific criteria led to the exclusion of certain sources in this 'full and open competition after exclusion of sources' award, and how did this impact the final price?

The exclusion of sources typically occurs when specific capabilities, certifications, or equipment are required that only a limited number of vendors possess. For this contract, the 'national exclusive use' requirement for initial attack helicopter services likely necessitated specialized aircraft and operational readiness that not all potential bidders could meet. This limitation on the competitive pool could have influenced the final price by reducing the number of viable offers, potentially leading to a higher cost than if a broader range of competitors had been eligible.

How does the economic price adjustment (EPA) clause in this contract mitigate or exacerbate risks associated with fluctuating fuel costs and inflation for wildland firefighting operations?

The EPA clause is designed to protect the contractor from significant cost increases due to economic factors like fuel prices and inflation, ensuring service continuity. However, it transfers some of that risk to the government, potentially increasing the total contract cost beyond initial projections. For wildland firefighting, where operational tempo can be unpredictable and fuel consumption high, the EPA could lead to substantial cost escalations, impacting the overall value for taxpayers if not carefully monitored and capped.

Given the critical nature of exclusive-use initial attack helicopter services, what are the contingency plans if the awarded contractor, Helicopter Express LLC, is unable to fulfill its obligations?

Contingency plans for critical services like exclusive-use firefighting helicopters typically involve pre-identified backup providers or mechanisms to rapidly re-compete the requirement. The Forest Service would likely have protocols to assess the situation, potentially activating secondary agreements or initiating emergency procurement procedures. The long duration of this contract underscores the importance of robust contractor performance monitoring and having well-defined escalation clauses or termination for default provisions to ensure uninterrupted service delivery.

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-13-9006

Offers Received: 17

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

Evaluated Preference: NONE

Contractor Details

Address: 2025 FLIGHTWAY DR, ATLANTA, GA, 30341

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

Financial Breakdown

Contract Ceiling: $25,810,783

Exercised Options: $25,810,783

Current Obligation: $25,810,783

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline