DoD's Civil Reserve Air Fleet contract awarded to Patriot Team for $70.3M, utilizing full and open competition

Contract Overview

Contract Amount: $70,282,073 ($70.3M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2012-10-01

End Date: 2013-09-30

Contract Duration: 364 days

Daily Burn Rate: $193.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES

Plain-Language Summary

Department of Defense obligated $70.3 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 suggests a potentially competitive pricing environment. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of one year indicates a need for ongoing, flexible air transport. 5. The service is critical for augmenting military sealift and airlift during national emergencies. 6. This contract supports the Department of Defense's global logistics and readiness posture.

Value Assessment

Rating: good

The contract value of $70.3 million for one year of air transportation services appears reasonable given the strategic nature of the Civil Reserve Air Fleet. Benchmarking against similar large-scale transportation contracts is challenging due to the unique requirements of military augmentation. However, the firm fixed-price structure suggests that the government has negotiated a set price, which can be advantageous if performance is met without significant cost overruns by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (3 noted) suggests a healthy competitive landscape, which typically drives down prices and encourages innovation. The agency's decision to use full and open competition is a positive sign for achieving best value for taxpayer dollars.

Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and a wider selection of qualified providers, ensuring efficient use of public funds for essential services.

Public Impact

The primary beneficiaries are the Department of Defense and U.S. military personnel who rely on these services for global mobility. Services delivered include nonscheduled chartered passenger air transportation, crucial for troop movement and logistical support. The geographic impact is global, supporting U.S. military operations and readiness worldwide. Workforce implications include support for airline industry jobs and related aviation services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if mission requirements evolve beyond initial contract parameters.
Dependence on civilian airline availability and scheduling can introduce logistical complexities.
Ensuring consistent service quality across all chartered flights requires robust oversight.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition likely resulted in competitive pricing.
Contract supports a critical national security capability, ensuring readiness.
Experienced contractor (Patriot Team) likely possesses the necessary expertise.
Clear service delivery requirements are outlined for performance expectations.

Sector Analysis

The air transportation sector is a vital component of the defense industrial base, providing essential logistical support. The Civil Reserve Air Fleet (CRAF) program specifically focuses on augmenting military airlift capabilities during national emergencies or periods of heightened security. Spending in this area is driven by strategic necessity rather than routine operational needs, making it a specialized segment of the broader transportation market. Comparable spending benchmarks are difficult to establish due to the unique nature of CRAF requirements.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a large-scale transportation service contract, it is likely that the prime contractor, Patriot Team, is a significant entity. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors, and what their role might be.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of USTRANSCOM, the contracting agency. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance monitoring details may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Sealift Command Contracts
Air Mobility Command Contracts
Logistics and Transportation Services
Strategic Airlift Capabilities
National Defense Contracts

Risk Flags

Contract performance risk
Dependence on commercial aviation sector stability
Potential for cost escalation in future contract periods
Ensuring consistent service quality and safety standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.3 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 $70.3 million.

What is the period of performance?

Start: 2012-10-01. End: 2013-09-30.

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 requires examining contract awards over multiple fiscal years. While this specific contract award is for $70.3 million in FY2013, broader CRAF spending can fluctuate based on national security needs, geopolitical events, and the readiness status of commercial air carriers. USTRANSCOM, as the responsible agency, manages these contracts to ensure surge airlift capacity. Historically, CRAF contracts have been awarded through competitive processes, with values varying significantly year-to-year depending on the specific requirements for aircraft activation, standby agreements, or direct charter services. Detailed historical data would reveal patterns of investment in maintaining this critical national asset and the typical range of annual expenditures.

How does the pricing of this contract compare to similar commercial air charter services?

Directly comparing the pricing of this $70.3 million contract for nonscheduled chartered passenger air transportation to standard commercial air charter services is complex. This contract supports the Civil Reserve Air Fleet (CRAF), which involves strategic national defense requirements, potentially including specific security protocols, rapid deployment capabilities, and guaranteed availability that exceed typical commercial offerings. While the firm fixed-price structure aims for cost efficiency, the inclusion of these specialized military-grade services might result in a higher per-unit cost than a standard commercial charter. Benchmarking would ideally involve comparing it to other large-scale government contracts for similar strategic airlift or emergency response transportation, rather than routine business travel charters.

What are the key performance indicators (KPIs) used to evaluate Patriot Team's performance under this contract?

Key Performance Indicators (KPIs) for a contract like the Civil Reserve Air Fleet (CRAF) air transportation services typically focus on reliability, timeliness, and safety. Specific metrics would likely include on-time performance for scheduled departures and arrivals, aircraft availability as per contract stipulations, passenger and baggage handling efficiency, and adherence to all safety regulations and military-specific security requirements. The firm fixed-price nature of the contract incentivizes the contractor, Patriot Team, to meet these KPIs to avoid penalties or ensure continued contract eligibility. Performance would be monitored by USTRANSCOM contracting officers and technical representatives throughout the contract period.

What is the track record of Patriot Team in fulfilling government air transportation contracts?

Patriot Team's track record in fulfilling government air transportation contracts is a crucial factor in assessing the risk associated with this $70.3 million award. As a contractor for the Civil Reserve Air Fleet (CRAF), their past performance would be evaluated based on their ability to provide reliable, timely, and safe nonscheduled chartered passenger air transportation. Government contract databases and past performance reviews would indicate their history with USTRANSCOM and other agencies. A positive track record would suggest a lower risk of performance issues, while any history of delays, safety incidents, or contract disputes would raise concerns about their capacity to meet the demanding requirements of military airlift augmentation.

What are the potential risks associated with relying on a single contractor for such a critical service?

While this contract was awarded under full and open competition, the data indicates Patriot Team as the awardee. Relying on a single contractor for critical services like the Civil Reserve Air Fleet (CRAF) introduces several potential risks. These include a lack of competitive pressure post-award, which could lead to complacency or price increases in future contract renewals. There's also the risk of contractor failure due to financial instability, operational issues, or unforeseen events, which could leave the government without essential airlift capacity. Furthermore, a single point of failure can complicate contingency planning and reduce the government's flexibility in adapting to changing mission requirements or seeking alternative solutions.

Industry Classification

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

Offers Received: 3

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: $70,282,073

Exercised Options: $70,282,073

Current Obligation: $70,282,073

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HTC71113DCC04

IDV Type: IDC

Timeline