DoD's Civil Reserve Air Fleet contract awarded at $71.5M for air transportation services
Contract Overview
Contract Amount: $71,456,102 ($71.5M)
Contractor: Patriot Team
Awarding Agency: Department of Defense
Start Date: 2016-10-01
End Date: 2017-09-30
Contract Duration: 364 days
Daily Burn Rate: $196.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
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 $71.5 million to PATRIOT TEAM for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract value of $71.5M for air transportation. 2. Awarded under full and open competition. 3. Potential risks include service disruptions and cost overruns. 4. Sector is transportation services.
Value Assessment
Rating: good
The contract value of $71.5M appears reasonable for the scope of air transportation services provided over a year. Benchmarking against similar large-scale transportation contracts would offer further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. This method maximizes opportunities for various providers to submit proposals.
Taxpayer Impact: Taxpayer funds were utilized efficiently through a competitive process, aiming for the best value in air transportation services.
Public Impact
Ensures critical airlift capacity for national defense needs. Supports military readiness by providing flexible transportation options. Impacts commercial airlines participating in the reserve fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on commercial carriers for essential services.
- Potential for increased costs due to fuel price volatility.
- Geopolitical events could impact service availability.
Positive Signals
- Demonstrates robust competition in the aviation sector.
- Provides essential logistical support for DoD operations.
- Flexible contract structure allows for adaptation to changing needs.
Sector Analysis
This contract falls within the broader transportation and logistics sector, specifically focusing on air charter services. Spending benchmarks for similar government airlift contracts are typically in the tens to hundreds of millions of dollars annually, depending on scope and duration.
Small Business Impact
While this specific contract was awarded under full and open competition, it's important to analyze if smaller businesses had a fair opportunity to participate or if the scale favored larger carriers. Further review could explore subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight is managed by USTRANSCOM, ensuring compliance with contract terms and service level agreements. Regular performance reviews and audits are crucial for accountability and to mitigate risks associated with large-scale service contracts.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Potential for cost overruns if not managed tightly.
- Dependence on civilian airline industry stability.
- Vulnerability to geopolitical events impacting air travel.
- Ensuring fair opportunity for small businesses in subcontracting.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.5 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 $71.5 million.
What is the period of performance?
Start: 2016-10-01. End: 2017-09-30.
What is the historical performance of this contract and similar contracts in terms of on-time delivery and cost adherence?
Historical performance data for this specific contract is not detailed here, but generally, large-scale transportation contracts require rigorous tracking of on-time delivery metrics and adherence to fixed-price agreements. Deviations often trigger reviews and potential penalties, ensuring accountability. USTRANSCOM's oversight mechanisms are designed to monitor these aspects closely.
What are the primary risks associated with relying on commercial airlines for military airlift, and how are they mitigated?
Primary risks include potential service disruptions due to airline operational issues, labor disputes, or economic downturns affecting carriers. Mitigation strategies involve robust contract clauses, performance monitoring, and maintaining relationships with multiple carriers to ensure redundancy and flexibility in meeting airlift requirements.
How does the fixed-price contract structure impact the government's exposure to fluctuating fuel costs and other operational expenses?
A firm fixed-price contract generally shifts the risk of fluctuating costs, such as fuel, to the contractor. This structure provides cost certainty for the government, but it may lead to higher initial bids to account for contractor risk. The government benefits from predictable spending, while the contractor manages operational cost variations.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HTC71116RC001
Offers Received: 12
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: $71,456,102
Exercised Options: $71,456,102
Current Obligation: $71,456,102
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71117DCC13
IDV Type: IDC
Timeline
Start Date: 2016-10-01
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2024-03-29
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