DoD's $67M Civil Reserve Air Fleet contract awarded to Patriot Team for air transportation services

Contract Overview

Contract Amount: $67,060,837 ($67.1M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2012-01-01

End Date: 2012-09-30

Contract Duration: 273 days

Daily Burn Rate: $245.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 32

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES

Plain-Language Summary

Department of Defense obligated $67.1 million to PATRIOT TEAM for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract value represents a significant investment in strategic airlift capabilities. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. Fixed-price contract type aims to control costs and provide predictability. 4. The contract duration of 273 days indicates a focused operational period. 5. This award falls under the broader category of defense logistics and transportation. 6. The specific service is nonscheduled chartered freight air transportation.

Value Assessment

Rating: good

The contract value of approximately $67 million for air transportation services appears reasonable given the scope of supporting the Civil Reserve Air Fleet. While specific per-unit cost benchmarks for this type of specialized service are not readily available, the firm fixed-price structure suggests an effort to manage costs effectively. Comparing this to similar large-scale airlift contracts would provide further insight into its value proposition, but the nature of strategic reserve support often involves unique pricing considerations.

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 the competition was broad, certain sources may have been excluded based on specific criteria. The presence of 32 bids suggests a highly competitive environment, which typically benefits the government by driving down prices and encouraging innovation. This level of competition is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: A competitive bidding process with 32 bidders helps ensure that the government secures the best possible pricing for these critical air transportation services, maximizing the value of taxpayer investments.

Public Impact

The primary beneficiaries are the Department of Defense and U.S. military personnel requiring rapid global deployment of personnel and equipment. Services delivered include nonscheduled chartered freight air transportation, crucial for logistical support during national emergencies or military operations. The geographic impact is global, as the Civil Reserve Air Fleet is designed to augment airlift capacity worldwide. Workforce implications include the utilization of civilian aircrews and support staff, supplementing the military's organic airlift capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if excluded sources had offered more competitive pricing.
Dependence on civilian carriers could be a vulnerability if commercial availability is strained during crises.

Positive Signals

Robust competition with 32 bidders indicates strong market interest and potential for cost savings.
Firm fixed-price contract provides cost certainty for the government.
Supports strategic national defense objectives by ensuring airlift capacity.

Sector Analysis

The Civil Reserve Air Fleet (CRAF) program is a vital component of national defense, ensuring sufficient airlift capacity during national emergencies. This contract falls within the broader aerospace and defense logistics sector, which is characterized by high technological requirements and significant government spending. The market for specialized air transportation services supporting defense needs is relatively concentrated, with a few key players capable of meeting stringent military requirements. Benchmarking this contract's value against other CRAF agreements or large-scale military airlift procurements would be necessary for a comprehensive assessment.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. The nature of large-scale air transportation services for defense purposes often involves major aerospace and logistics companies, which may or may not have extensive subcontracting plans with small businesses. Further investigation into the contractor's subcontracting practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Transportation Command (USTRANSCOM), the contracting agency. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed operational oversight are often considered internal government matters. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Sealift Command (MSC) Contracts
Air Mobility Command (AMC) Operations
National Defense Contracts
Strategic Airlift Programs
Civil Reserve Air Fleet (CRAF) Program

Risk Flags

Potential for reliance on civilian infrastructure during national emergencies.
Contract competition excluded certain sources, warranting review of justification.
Performance data not fully detailed in provided summary.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.1 million to PATRIOT TEAM. 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 $67.1 million.

What is the period of performance?

Start: 2012-01-01. End: 2012-09-30.

What is the historical spending trend for the Civil Reserve Air Fleet program under USTRANSCOM?

Analyzing historical spending for the Civil Reserve Air Fleet (CRAF) program under USTRANSCOM reveals a consistent need for augmenting military airlift capabilities. While specific year-over-year figures fluctuate based on operational tempo and contract awards, the program generally represents a significant and recurring investment. For instance, prior to this $67 million award in 2012, USTRANSCOM would have likely engaged in similar, albeit potentially smaller or differently structured, agreements to maintain readiness. The overall trend indicates a sustained commitment to ensuring surge airlift capacity, reflecting the ongoing global security environment and the need for rapid force projection. Understanding these patterns helps contextualize the current contract's value and its place within a long-term strategic framework.

How does the pricing of this contract compare to similar nonscheduled chartered freight air transportation services in the commercial market?

Directly comparing the pricing of this $67 million Civil Reserve Air Fleet (CRAF) contract to standard commercial nonscheduled chartered freight air transportation is challenging due to the specialized nature and strategic requirements of CRAF. Commercial rates are driven by market demand, fuel costs, aircraft availability, and route specifics. CRAF contracts, however, include factors such as readiness commitments, availability guarantees, and often involve larger, more specialized aircraft capable of military cargo. The 'Full and Open Competition After Exclusion of Sources' with 32 bidders suggests competitive pricing within the specialized defense sector. While the firm fixed-price nature aims for cost control, the government likely pays a premium for the guaranteed availability and strategic readiness that CRAF provides, which is not a typical component of commercial charter rates.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

Key Performance Indicators (KPIs) for a contract like the Civil Reserve Air Fleet (CRAF) air transportation services would focus on reliability, availability, and responsiveness. Specific metrics likely include on-time performance for scheduled flights (if applicable, though this is nonscheduled freight), aircraft serviceability rates, adherence to safety and security protocols, and the contractor's ability to meet surge requirements within defined timeframes. For a firm fixed-price contract, the primary KPI is successful delivery of the contracted service. USTRANSCOM would monitor the contractor's operational readiness and performance against contractual obligations, ensuring that the fleet remains a viable augmentation to military airlift assets. Failure to meet these critical readiness and performance standards could result in penalties or contract termination.

What is the track record of Patriot Team in fulfilling similar government contracts, particularly within the defense logistics sector?

Assessing the track record of Patriot Team requires a review of their past performance on government contracts, especially those involving air transportation and defense logistics. Information on contract databases and performance evaluation reports (like the Contractor Performance Assessment Reporting System - CPARS) would be crucial. A positive history of on-time delivery, adherence to budget, and compliance with contractual terms on similar large-scale operations would indicate reliability. Conversely, any past issues related to performance failures, cost overruns (though less likely on a fixed-price contract), or compliance problems would raise concerns. Given the strategic importance of the Civil Reserve Air Fleet, Patriot Team would have undergone rigorous vetting to ensure they possess the necessary experience and capability to fulfill this critical role effectively.

What are the potential risks associated with relying on civilian carriers for strategic airlift, as facilitated by this contract?

Relying on civilian carriers through the Civil Reserve Air Fleet (CRAF) program, as exemplified by this contract, presents several potential risks. Firstly, during a major national emergency or conflict, commercial demand for air cargo and passenger services could surge simultaneously, potentially straining the availability of civilian assets needed for military purposes. Secondly, civilian carriers may have different operational priorities, safety standards, or labor agreements that could impact their responsiveness or suitability for military missions. Thirdly, there's a risk of price escalation if the government's need becomes critical and commercial options are limited. Finally, ensuring consistent security protocols and personnel vetting across multiple civilian operators requires diligent oversight to mitigate potential vulnerabilities.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 32

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, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,060,837

Exercised Options: $67,060,837

Current Obligation: $67,060,837

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HTC71112DCC04

IDV Type: IDC

Timeline