DoD's Civil Reserve Air Fleet contract awarded $64.6M for air transportation services

Contract Overview

Contract Amount: $64,631,906 ($64.6M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2014-10-01

End Date: 2015-12-31

Contract Duration: 456 days

Daily Burn Rate: $141.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 24

Pricing Type: FIRM FIXED PRICE

Sector: Defense

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 $64.6 million to PATRIOT TEAM for work described as: IGF::OT::IGF 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 robust market for air transportation services. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. Contract duration of 456 days indicates a medium-term operational requirement. 5. The award to Patriot Team highlights a key player in the defense logistics sector. 6. This contract supports the Department of Defense's global operational readiness.

Value Assessment

Rating: good

The contract's total value of $64.6 million for air transportation services appears reasonable given the scope and duration. Benchmarking against similar large-scale airlift contracts is challenging without more specific service details, but the fixed-price nature suggests an effort to manage costs effectively. The number of offers received (24) indicates a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The solicitation received 24 offers, demonstrating a healthy level of competition for these air transportation services. This broad competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A high level of competition benefits taxpayers by driving down prices and encouraging efficient service delivery from contractors.

Public Impact

Benefits the Department of Defense by providing essential air transportation for personnel and equipment. Ensures global mobility and rapid response capabilities for military operations. Supports the readiness of U.S. military forces worldwide. Indirectly benefits the aerospace and logistics industries through contract awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a fair and accessible process.
Firm fixed price contract type helps manage budget and prevent cost overruns.
Received 24 offers, suggesting a competitive market and good value potential.
Contract supports critical national defense functions, aligning with agency mission.

Sector Analysis

The Civil Reserve Air Fleet (CRAF) program is a vital component of national defense, ensuring the availability of commercial air transport for military purposes during national emergencies. This contract falls within the broader aerospace and defense logistics sector, which is characterized by complex supply chains and significant government spending. The market for such services is specialized, requiring carriers to meet stringent military requirements.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, the nature of large-scale airlift services often involves prime contractors with substantial fleet capacity, which may limit direct subcontracting opportunities for smaller specialized firms unless they are part of a larger joint venture or offer niche support services.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of USTRANSCOM and the Department of Defense's Inspector General. The firm fixed-price structure provides a degree of accountability by capping costs. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight activities are often internal.

Related Government Programs

Civil Reserve Air Fleet (CRAF)
Military Airlift Command
Air Mobility Command
Defense Transportation Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.6 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 $64.6 million.

What is the period of performance?

Start: 2014-10-01. End: 2015-12-31.

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

Historical spending on the Civil Reserve Air Fleet (CRAF) program by USTRANSCOM has fluctuated based on global geopolitical events, operational tempo, and specific airlift needs. While this specific contract represents a $64.6 million award for a defined period, broader CRAF program spending can encompass various contract types, including standby agreements and active charter services. Analyzing year-over-year data reveals periods of increased investment during heightened military operations or international crises, and periods of reduced spending during relative peace. For instance, significant deployments in the Middle East have historically driven higher CRAF utilization and associated costs. Understanding these trends requires examining annual reports from USTRANSCOM and DoD budget justifications, which detail obligations and expenditures across different CRAF components and service categories.

How does the pricing of this contract compare to similar airlift services procured by other government agencies?

Directly comparing the pricing of this $64.6 million contract to similar airlift services is challenging without detailed service level agreements and specific route data. However, the fact that it was awarded under full and open competition with 24 offers suggests that the pricing is likely competitive within the market for scheduled and unscheduled chartered passenger air transportation. Government agencies often leverage bulk purchasing power and competitive bidding processes to secure favorable rates. The firm fixed-price nature of this contract also provides a benchmark against potential cost-plus arrangements, which can sometimes lead to higher overall expenditures. Agencies like the General Services Administration (GSA) also procure transportation services, and their schedules might offer comparative data points, though military-specific requirements often command different pricing structures due to security and operational demands.

What are the primary risks associated with this type of air transportation contract for the Department of Defense?

The primary risks associated with this air transportation contract for the Department of Defense include operational disruptions, such as flight delays or cancellations due to weather, mechanical issues, or air traffic control problems, which could impact mission timelines. There's also a risk of contractor performance issues, where the awarded company may not consistently meet service level agreements regarding aircraft availability, punctuality, or passenger comfort. Geopolitical instability in regions where flights operate could pose security risks to aircraft and personnel. Furthermore, sudden surges in demand or unforeseen global events could strain the contractor's capacity, potentially leading to price escalations if not adequately managed within the contract's fixed-price framework. Ensuring robust contingency planning and clear communication channels are crucial mitigation strategies.

What is the track record of Patriot Team as a contractor for the Department of Defense?

Assessing the track record of Patriot Team requires a review of their past performance on Department of Defense contracts. While the provided data indicates they were awarded this $64.6 million contract, it doesn't detail their history. Generally, a contractor's track record is evaluated based on factors such as on-time delivery, quality of service, adherence to contract terms, and past performance reviews. Agencies often maintain performance assessment reporting system (CPARS) data, which provides insights into a contractor's reliability and effectiveness on previous awards. A positive track record, evidenced by good past performance ratings, suggests a lower risk for future contracts. Conversely, a history of performance issues could raise concerns about the contractor's ability to meet current obligations.

How does the number of offers (24) influence the perceived value for money in this contract?

The receipt of 24 offers for this air transportation contract significantly enhances the perception of value for money. A larger number of bidders typically indicates a more competitive marketplace, where contractors are motivated to submit their most attractive proposals to secure the award. This competitive pressure generally leads to lower prices and better terms for the government than would be achievable in a less contested procurement. It suggests that the government's requirements were clearly defined and accessible to a wide range of potential providers, allowing for robust price discovery. Therefore, the high number of offers strongly supports the conclusion that the government likely secured a fair and competitive price, maximizing the value derived from the $64.6 million expenditure.

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: 24

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: $64,631,906

Exercised Options: $64,631,906

Current Obligation: $64,631,906

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HTC71115DCC03

IDV Type: IDC

Timeline