DoD's Civil Reserve Air Fleet contract awarded for $62.6M, utilizing full and open competition
Contract Overview
Contract Amount: $62,608,238 ($62.6M)
Contractor: Patriot Team
Awarding Agency: Department of Defense
Start Date: 2016-01-01
End Date: 2016-09-30
Contract Duration: 273 days
Daily Burn Rate: $229.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Place of Performance
Location: TULSA, TULSA County, OKLAHOMA, 74115
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $62.6 million to PATRIOT TEAM for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract value of $62.6M for air transportation services. 2. Awarded under full and open competition, suggesting market-driven pricing. 3. Potential risk related to the fixed-price nature in a volatile market. 4. Sector is transportation, specifically air cargo and charter services.
Value Assessment
Rating: good
The contract value of $62.6M for air transportation services appears reasonable given the scope. Benchmarking against similar large-scale charter contracts would provide a more precise assessment, but the fixed-price structure suggests an attempt to control costs upfront.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a broad range of potential contractors to bid. This method is expected to yield fair market prices.
Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives competitive pricing and avoids overpayment.
Public Impact
Ensures critical air transport capacity for national defense needs. Supports the readiness of the U.S. military by providing flexible airlift. Impacts the commercial aviation industry through contract awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation if fuel costs rise significantly.
- Dependence on a limited number of large air carriers.
Positive Signals
- Utilizes established commercial air carriers, leveraging existing infrastructure.
- Fixed-price contract provides cost certainty for the government.
Sector Analysis
This contract falls within the transportation sector, specifically air cargo and charter services. Spending benchmarks for similar airlift services can vary widely based on aircraft type, route, and duration, but this award represents a significant investment in strategic airlift capability.
Small Business Impact
The data does not indicate specific participation or set-asides for small businesses in this particular contract award. Larger contracts for specialized services like the Civil Reserve Air Fleet often involve major commercial carriers.
Oversight & Accountability
The contract is managed by USTRANSCOM, a key component of the Department of Defense responsible for coordinating people and cargo movement. Oversight would focus on performance, delivery, and adherence to contract terms.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Potential for fuel price volatility impacting fixed-price contract.
- Dependence on commercial aviation sector's capacity and availability.
- Geopolitical events could impact operational feasibility and costs.
- Contract duration and potential for scope creep if not managed tightly.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.6 million to PATRIOT TEAM. IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Who is the contractor on this award?
The obligated recipient is PATRIOT TEAM.
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $62.6 million.
What is the period of performance?
Start: 2016-01-01. End: 2016-09-30.
What is the historical performance of this contract and its predecessors in terms of reliability and cost-effectiveness?
Historical performance data for this specific contract award is not provided. However, the Civil Reserve Air Fleet program generally aims for reliability by contracting with established carriers. Cost-effectiveness would be assessed by comparing actual costs against budgeted amounts and the value of services rendered during actual activations, which are not detailed here.
Are there any identified risks associated with the specific carriers selected for this contract, such as financial stability or operational capacity?
The provided data does not specify the individual carriers awarded under this contract, only the prime contractor 'PATRIOT TEAM'. A comprehensive risk assessment would require evaluating the financial health, safety records, and operational capabilities of the specific airlines involved to ensure they can meet the demanding requirements of the Civil Reserve Air Fleet.
How does the pricing structure compare to market rates for similar unscheduled chartered freight air transportation services?
The contract utilizes a Firm Fixed Price (FFP) structure, which aims to lock in costs. Without specific details on the services rendered (e.g., aircraft type, routes, tonnage), a direct comparison to market rates is challenging. However, the use of full and open competition suggests that the pricing was vetted against market conditions at the time of award.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HTC71115RC001
Offers Received: 13
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3303 N SHERIDAN RD, TULSA, OK, 74115
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,608,238
Exercised Options: $62,608,238
Current Obligation: $62,608,238
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71116DCC12
IDV Type: IDC
Timeline
Start Date: 2016-01-01
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2023-08-11
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