DoD's Civil Reserve Air Fleet contract awarded $89M for air transportation services

Contract Overview

Contract Amount: $89,166,553 ($89.2M)

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: $195.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 24

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES

Plain-Language Summary

Department of Defense obligated $89.2 million to PATRIOT TEAM for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract value of $89.2M for a 2-year period suggests significant operational scale. 2. Full and open competition indicates a broad market engagement for these services. 3. The contract's duration of 456 days (approx. 1.25 years) aligns with typical operational needs for such services. 4. Awarded as a delivery order, indicating flexibility in service call-up. 5. The firm-fixed-price structure provides cost certainty for the government. 6. No small business set-aside was utilized, suggesting the primary contractors are likely larger entities.

Value Assessment

Rating: good

The contract value of $89.2 million over approximately 1.25 years represents a substantial investment in air transportation. Benchmarking this against similar large-scale government air charter contracts is challenging without more specific service details (e.g., routes, aircraft types, passenger capacity). However, the firm-fixed-price nature suggests a degree of cost predictability. The number of offers (24) indicates a competitive environment that likely drove a reasonable price, though a direct per-unit cost comparison is not feasible with the provided data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 24 offers received. This high number of bidders suggests a robust and competitive market for air transportation services. The extensive competition is a positive indicator for price discovery and likely resulted in a more favorable price for the government compared to a sole-source or limited competition scenario. The agency actively sought a wide range of potential providers.

Taxpayer Impact: The broad competition for this contract is beneficial for taxpayers as it likely drove down costs through market forces, ensuring the government received competitive pricing for essential air transportation.

Public Impact

Benefits military personnel and potentially civilian support staff requiring air transport. Provides critical logistical support for Department of Defense operations. Geographic impact is likely global, depending on mission requirements. Supports the aviation industry and associated jobs through service provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if market conditions change significantly during the contract period, despite fixed-price structure.
Dependence on a limited number of large prime contractors could pose supply chain risks.
Ensuring consistent service quality across all delivery orders can be challenging.
Geopolitical events could impact flight availability and costs.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Full and open competition with 24 offers suggests a healthy market and competitive pricing.
Delivery order structure allows for flexible response to evolving needs.
The Civil Reserve Air Fleet program is a critical national asset for rapid global mobility.

Sector Analysis

The Civil Reserve Air Fleet (CRAF) program is a key component of national defense logistics, ensuring the availability of commercial air transport for military purposes during national emergencies. This contract falls within the broader air transportation services sector, which is a mature market with numerous established players. The total government spending on air transportation services is substantial, and this contract represents a portion of the Department of Defense's significant aviation-related expenditures. Comparable spending benchmarks would typically involve analyzing other large-scale government air charter or fleet support contracts.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary awardee is likely a larger entity capable of fulfilling the extensive service requirements. The absence of set-asides means that opportunities for small businesses may be limited to indirect roles or specific service provisions if subcontracted by the prime awardee.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Transportation Command (USTRANSCOM) and potentially the Department of Defense's Inspector General. Mechanisms likely include performance monitoring, audits, and compliance reviews to ensure adherence to contract terms and service standards. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. The firm-fixed-price nature simplifies some aspects of financial oversight.

Related Government Programs

Military Sealift Command (MSC) Contracts
Air Mobility Command (AMC) Operations
Logistics Readiness Contracts
Global Mobility Support Services
Defense Transportation Services

Risk Flags

Potential for contractor performance issues impacting critical military logistics.
Market volatility in fuel prices or aviation resources could affect long-term cost-effectiveness.
Dependence on commercial air carriers for national defense readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $89.2 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 $89.2 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 for the Civil Reserve Air Fleet (CRAF) program, particularly under USTRANSCOM, shows a consistent need for air transportation services, fluctuating based on global geopolitical events and military operational tempo. While this specific contract awarded $89.2 million for a defined period, broader CRAF program spending can encompass various contract types, including standby agreements and active service contracts. Analyzing year-over-year data reveals periods of increased investment during heightened international tensions or major deployments, and periods of reduced spending during relative peace. The program's funding is often tied to national defense budgets and strategic priorities, making its spending patterns a reflection of the nation's security posture and global commitments. Without access to a comprehensive historical database of all CRAF-related awards, a precise trend analysis is difficult, but the program's existence signifies a sustained, albeit variable, level of government expenditure.

How does the per-unit cost of this contract compare to similar government air charter services?

A direct per-unit cost comparison for this contract is not feasible with the provided data. The contract value of $89.2 million is for 'Nonscheduled Chartered Passenger Air Transportation' awarded under a firm-fixed-price structure. Key metrics for per-unit cost in air charter services typically include cost per flight hour, cost per passenger mile, or cost per aircraft mile, often varying significantly based on aircraft type, capacity, route, and duration. The 'full and open competition' with 24 offers suggests competitive pricing was sought. However, without knowing the specific number of flights, passenger loads, or routes covered by this delivery order, benchmarking against other contracts is speculative. Generally, larger, longer-term contracts with significant competition tend to achieve more favorable per-unit rates than smaller, ad-hoc charters.

What are the primary risks associated with this firm-fixed-price contract for air transportation?

The primary risks associated with this firm-fixed-price contract for air transportation, despite offering cost certainty to the government, lie with the contractor. If fuel prices, labor costs, or maintenance expenses rise unexpectedly during the contract period, the contractor may face reduced profit margins or even losses, potentially impacting service quality or leading to contract disputes. Conversely, the government bears the risk of overpaying if market rates decrease significantly after the contract is awarded, although the competitive bidding process aims to mitigate this. Another risk is the contractor's ability to maintain service levels consistently, especially if they face unforeseen operational challenges like aircraft availability issues or crew shortages. The government's risk is also tied to the contractor's financial stability and operational capacity to meet all delivery order demands effectively.

What is the track record of PATRIOT TEAM in securing and performing large federal aviation contracts?

Information regarding the specific track record of 'PATRIOT TEAM' in securing and performing large federal aviation contracts is not detailed in the provided data snippet. As the awardee of this $89.2 million contract for Civil Reserve Air Fleet services, their past performance would be a critical factor considered during the procurement process. Federal agencies typically maintain performance records and ratings for contractors. To assess PATRIOT TEAM's track record, one would need to consult databases like the Federal Awardee Performance and Integrity Information System (FAPIIS) or review past contract awards and performance evaluations. Without this external data, it's impossible to definitively state their history with large federal aviation contracts, though securing this significant award suggests a level of capability and past success.

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

The submission of 24 offers for this air transportation contract significantly enhances the perceived value for money. A high number of bidders indicates a robustly competitive market, where multiple companies vied for the opportunity. This level of competition typically drives down prices as contractors strive to offer the most attractive terms to win the award. Consequently, the government is more likely to have secured services at a price point that reflects true market value, minimizing the risk of paying a premium. Furthermore, a larger pool of bidders increases the likelihood that the selected offer represents the best overall combination of price, technical capability, and performance, thereby maximizing the value derived from the taxpayer's investment.

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

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: $89,166,553

Exercised Options: $89,166,553

Current Obligation: $89,166,553

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HTC71115DCC03

IDV Type: IDC

Timeline