DoD's Civil Reserve Air Fleet contract awarded $82.5M for air transportation services

Contract Overview

Contract Amount: $82,520,499 ($82.5M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2013-10-01

End Date: 2014-09-30

Contract Duration: 364 days

Daily Burn Rate: $226.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Defense

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

Plain-Language Summary

Department of Defense obligated $82.5 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 these services. 3. The contract duration of one year indicates a need for ongoing, flexible support. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The award to a single contractor, PATRIOT TEAM, warrants scrutiny of market concentration. 6. This contract supports critical national defense logistics and personnel movement.

Value Assessment

Rating: good

The total award of $82.5M over one year for air transportation services appears to be within a reasonable range for large-scale government contracts of this nature. Benchmarking against similar contracts for charter passenger air transportation would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the government has secured a defined cost for the services, with the contractor bearing the risk of cost overruns.

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 bids. The presence of 28 bids suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified providers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging providers to offer their best value.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, ensuring reliable transportation for military operations and readiness. Services delivered include nonscheduled chartered passenger air transportation, crucial for troop deployment and logistical support. The geographic impact is potentially global, supporting military missions worldwide. Workforce implications include employment for pilots, crew, maintenance personnel, and support staff within the aviation industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor consolidation in a critical defense sector.
Reliance on a single awardee for a significant portion of air transport needs.
Ensuring sustained competition in future contract renewals.

Positive Signals

Robust competition with 28 bids indicates a healthy market.
Firm fixed-price contract aligns cost expectations and transfers risk.
Contract supports essential national defense capabilities.

Sector Analysis

The air transportation services sector is vital for government operations, particularly for defense and emergency response. This contract falls within the broader aerospace and defense industry, which is characterized by high technological requirements and significant government spending. The market for charter air services is competitive, with numerous providers capable of meeting diverse operational needs. The $82.5M award is substantial, reflecting the scale and importance of the Civil Reserve Air Fleet's role in augmenting military airlift capacity.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the scale and nature of the services, it is likely that larger, established aviation companies were the primary bidders. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the awarded contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and financial management offices, as well as the relevant Inspector General. The firm fixed-price nature of the contract provides a degree of accountability by setting clear cost expectations. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight activities may not be publicly detailed.

Related Government Programs

Military Sealift Command (MSC) Contracts
Air Mobility Command (AMC) Operations
Department of Defense Transportation Services
Strategic Airlift Capabilities

Risk Flags

Contract awarded to a single entity (PATRIOT TEAM) warrants monitoring for market concentration.
Potential for future reliance on this contractor for critical services.
Need to ensure sustained competition in subsequent contract actions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.5 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 $82.5 million.

What is the period of performance?

Start: 2013-10-01. End: 2014-09-30.

What is the historical spending trend for the Civil Reserve Air Fleet - Air Transportation Services under USTRANSCOM?

Analyzing historical spending for the Civil Reserve Air Fleet (CRAF) air transportation services under USTRANSCOM reveals a pattern of significant, recurring investment. While the specific data for this $82.5M contract covers a single year (2013-2014), CRAF contracts are essential for augmenting the Air Mobility Command's (AMC) organic airlift capabilities during national emergencies or contingencies. Historically, these contracts have been awarded through competitive processes, though the number of bidders and award values can fluctuate based on market conditions, fleet availability, and evolving military requirements. Spending in this category is directly tied to national security needs and the readiness posture of U.S. military forces, often involving multi-year commitments and substantial financial outlays to ensure the availability of commercial aircraft and crews when needed. Examining prior years' awards would provide context on whether this $82.5M represents an increase, decrease, or stable level of investment in these critical services.

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

A direct per-unit cost comparison for this $82.5M contract is challenging without specific details on the number of flights, routes, aircraft types, and passenger/cargo capacities utilized. The contract is for 'Nonscheduled Chartered Passenger Air Transportation,' which can vary widely in cost per mile or per flight hour depending on mission requirements. However, the fact that it was awarded under full and open competition with 28 bids suggests that the pricing was likely competitive. To benchmark effectively, one would need to compare it against other USTRANSCOM or DoD contracts for similar charter services, factoring in differences in duration, service levels, and operational tempo. Generally, larger, longer-duration contracts with predictable usage patterns might achieve lower per-unit costs than highly variable, on-demand charter services. The firm fixed-price nature implies the government sought cost certainty, but the actual value is realized through efficient execution by the contractor.

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

While the specific Key Performance Indicators (KPIs) for this particular contract are not detailed in the provided data, government air transportation contracts typically include metrics focused on reliability, timeliness, safety, and cost control. For nonscheduled chartered passenger air transportation, KPIs often revolve around on-time performance (departure and arrival), mission completion rates, aircraft availability, and adherence to safety regulations and standards. Passenger satisfaction surveys might also be employed. Given the firm fixed-price nature, the contractor is incentivized to meet these performance standards efficiently to maximize profit. USTRANSCOM would likely have established reporting requirements for the contractor to track and report on these KPIs throughout the contract period. Failure to meet critical KPIs could result in penalties or impact future contract awards.

What is the track record of PATRIOT TEAM in fulfilling similar large-scale government aviation contracts?

Assessing the track record of PATRIOT TEAM is crucial for understanding their capability to fulfill this $82.5M contract. Information on past performance, including previous awards, contract values, and client agencies (particularly DoD or other federal entities), would provide insight into their experience. Key aspects to review include their history of on-time delivery, safety records, financial stability, and any past performance issues or disputes. A contractor with a proven history of successfully managing complex aviation logistics, especially for military operations, would be considered a lower risk. Conversely, a history of performance deficiencies, contract terminations, or significant cost overruns (even if not directly applicable to a fixed-price contract) would raise concerns. Publicly available contract databases and performance review systems (like the Contractor Performance Assessment Reporting System - CPARS) are primary sources for this information.

What are the potential risks associated with relying on commercial air carriers for strategic airlift capabilities?

Relying on commercial air carriers for strategic airlift, as facilitated by the Civil Reserve Air Fleet (CRAF) program, presents several potential risks. Firstly, there's the risk of availability; during a major national emergency or conflict, commercial carriers might prioritize their own revenue-generating civilian routes or be unable to provide the required assets due to global demand or operational constraints. Secondly, security risks can arise, as commercial aircraft and crews may not have the same level of security clearances or training as military personnel, potentially requiring additional screening and protocols. Thirdly, there's the risk of cost escalation, especially if contracts are awarded on a less competitive or emergency basis. Finally, integration risks exist, as coordinating commercial assets with military command and control structures requires robust planning and communication to ensure seamless operations. Despite these risks, CRAF remains a vital capability, balancing the need for surge capacity with the inherent complexities of leveraging commercial resources.

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: 28

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: $82,520,499

Exercised Options: $82,520,499

Current Obligation: $82,520,499

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HTC71113DCC04

IDV Type: IDC

Timeline