Forest Service awards $25.8M helicopter services contract to Croman Corp under full and open competition

Contract Overview

Contract Amount: $25,808,988 ($25.8M)

Contractor: Croman Corp

Awarding Agency: Department of Agriculture

Start Date: 2016-04-10

End Date: 2019-04-30

Contract Duration: 1,115 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTER SERVICES

Place of Performance

Location: WHITE CITY, JACKSON County, OREGON, 97503

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $25.8 million to CROMAN CORP for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTER SERVICES Key points: 1. Contract awarded to Croman Corp for critical fire support helicopter services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 1115 days indicates a significant operational commitment. 4. The firm-fixed-price structure aims to control costs for the government. 5. Awarded by the Department of Agriculture's Forest Service, highlighting a focus on land management and wildfire response. 6. The contract value of $25.8 million represents a substantial investment in aerial firefighting capabilities.

Value Assessment

Rating: good

The contract value of $25.8 million for 1115 days of helicopter services appears reasonable given the critical nature of wildfire support. Benchmarking against similar large-scale aerial firefighting contracts would provide a more precise value-for-money assessment. The firm-fixed-price type suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for the government.

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 competition was sought, specific sources may have been excluded based on pre-qualification criteria. The presence of 17 bids suggests a healthy level of competition, which typically drives down prices and encourages innovation. This competitive environment is beneficial for price discovery.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by selecting the most cost-effective and capable provider.

Public Impact

Provides essential helicopter services for wildfire suppression and support to the Forest Service. Benefits federal land management agencies in protecting natural resources and public safety. Geographic impact is primarily in Oregon, where the contract was awarded. Supports the aviation sector and specialized helicopter service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues given the critical nature of fire support.
Dependence on a single contractor for a significant period could pose risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Firm-fixed-price contract type helps manage cost certainty for the government.
Significant number of bids received (17) suggests a competitive market for these services.

Sector Analysis

This contract falls within the aviation services sector, specifically focusing on specialized aerial support for government operations. The market for large-scale aerial firefighting is often characterized by a limited number of highly specialized providers due to the unique equipment and certifications required. Comparable spending benchmarks would involve analyzing other large contracts for similar services across federal agencies like the Department of the Interior or state-level firefighting efforts.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Analysis of subcontracting plans would be necessary to determine the extent of small business participation. Without this information, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) within the Forest Service, ensuring adherence to contract terms and performance standards. 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

Wildfire Suppression Support
Aerial Firefighting Services
Forest Management Aviation Contracts
Department of Agriculture Procurement

Risk Flags

Critical Service Delivery
Contractor Performance Risk
Safety Compliance
Budgetary Constraints

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.8 million to CROMAN CORP. IGF::CT::IGF CRITICAL FUNCTIONS - LARGE FIRE SUPPORT EU HELICOPTER SERVICES

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 $25.8 million.

What is the period of performance?

Start: 2016-04-10. End: 2019-04-30.

What is Croman Corp's track record with federal contracts, particularly for aviation services?

Croman Corp has a history of federal contracting, primarily within the aviation services domain. While specific details on past performance for large-scale fire support are not detailed in the provided data, their engagement in this sector suggests experience. A deeper dive into their contract history, including past performance reviews and any documented issues or commendations on previous federal awards, would be necessary for a comprehensive assessment. Examining their safety records and operational certifications is also crucial, given the high-risk nature of aerial firefighting.

How does the $25.8 million contract value compare to similar helicopter services contracts for wildfire support?

The $25.8 million contract value for 1115 days of helicopter services is substantial, reflecting the specialized nature and operational demands of wildfire support. To benchmark this value effectively, comparisons should be made with other large-scale contracts awarded by agencies like the Forest Service, Bureau of Land Management, or Department of the Interior for similar helicopter types (e.g., Type I or Type II helicopters) and service durations. Factors such as the specific mission requirements (e.g., water drops, personnel transport, surveillance), geographic operating areas, and prevailing market rates for aviation assets and pilots during peak fire seasons would need to be considered for an accurate comparison. Without these specific comparative data points, it's difficult to definitively state if this represents excellent, fair, or concerning value.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential contractor underperformance, equipment failure, safety incidents, and cost overruns (though mitigated by the firm-fixed-price structure). Performance risks are typically managed through rigorous contract oversight, performance metrics, and defined remedies for non-compliance. Safety risks are inherent in aviation and firefighting; mitigation involves strict adherence to safety protocols, pilot qualifications, and maintenance standards, often stipulated in the contract. The firm-fixed-price nature shifts much of the financial risk to the contractor, incentivizing efficient performance and cost control. However, unforeseen operational challenges or scope changes could still impact the government.

How effective has the Forest Service been in leveraging competition for its aviation contracts?

The Forest Service, like many federal agencies, aims to maximize competition for its contracts to ensure best value. The 'full and open competition' designation for this specific contract, with 17 bids, suggests a successful competitive process. However, the aviation services market, particularly for specialized assets like firefighting helicopters, can be concentrated. While this award demonstrates competition, a broader analysis of the Forest Service's overall contracting strategy for aviation would reveal trends in competition levels across different types of aerial services and over time. Factors such as pre-qualification requirements and contract bundling can influence the number of potential bidders.

What is the historical spending pattern for helicopter services by the Forest Service?

Historical spending on helicopter services by the Forest Service has likely fluctuated based on wildfire activity, budget allocations, and procurement strategies. Analyzing spending data over several fiscal years would reveal trends. This contract, valued at $25.8 million, represents a significant single award. Understanding the total annual expenditure on aviation support, including fixed-wing aircraft and other aerial resources, would provide context. Examining whether spending has increased or decreased, and the reasons behind these shifts (e.g., increased fire seasons, fleet modernization, changes in contracting approaches), is crucial for assessing long-term fiscal management.

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-15-9007

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Croman Corp. (UEI: 081975773)

Address: 801 AVENUE C, WHITE CITY, OR, 97503

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

Financial Breakdown

Contract Ceiling: $26,714,014

Exercised Options: $26,714,014

Current Obligation: $25,808,988

Actual Outlays: $771,367

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline