Notice of Intent to Increase Contract Ceiling

The USDA Forest Service, Region 10 Acquisition Management intends to increase the ceiling of contract number AG0109C179001 with Maritime Helicopters LLC, located at 3520 F.A.A Road, Homer AK 99603. This increase is necessary to account for the following costs: 1.    Economic Price Adjustments.  The specified flight rate (hourly rate) changes each year with application of an economic price adjustment.  The exact rates for options years are unknown at the time of award.  When calculating the total contract value (base + options), the base year hourly flight rate was used without applying any anticipated economic price adjustments.2.    Total number of flight hours.  The original contract used an estimated number of flight hours per year to calculate the contract ceiling.  However, there are many factors that influence the actual number of flight hours required for each season’s work.  These factors include weather, weight and balance, and location of the vessel compared to the location

of the landing zone.  These individual factors are impossible to calculate precisely when estimating hours and total cost of those hours over the life of the contract.3.    Per-diem/lodging for helicopter crew.  The contract allows for per-diem/lodging for helicopter crew when vessel encounters rough waters or helicopter has necessary repairs and has to fly to land and remain overnight.  These expenses are impossible to calculate precisely since weather conditions or unanticipated repairs over the life of the contract are not predictable.4.    Weather impacts to contract performance.  Weather impacts total flight hours and the number of plots that can be completed in a season.  Work that could not be completed during one season (mainly due to weather) is transferred to the next season.  Moving work from one season to the next results in a higher cost due to economic price adjustments to the hourly flight rate (see item #1 in this list).  It is impossible to predict the impacts that weather has on performance.5.    It is estimated that the contract’s ceiling price will increase by approximately $500,000.00 with the exercise of option year four (4).This notice of intent to increase the contract ceiling is not a request for competitive proposals.  Any responses to this notice must show clear and convincing evidence that competition of the work would be advantages to the government.  There will be no solicitation available for competitive proposals.  A determination not to compete this contract ceiling increase based upon responses to this notice is solely within the discretion of the Government.