DoD's $20M air cargo contract awarded to National Air Cargo Group, Inc. for freight transportation

Contract Overview

Contract Amount: $19,961,303 ($20.0M)

Contractor: National AIR Cargo Group, Inc

Awarding Agency: Department of Defense

Start Date: 2011-06-30

End Date: 2011-06-30

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS

Plain-Language Summary

Department of Defense obligated $20.0 million to NATIONAL AIR CARGO GROUP, INC for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a robust market for air cargo services. 3. Risk indicators appear low given the fixed-price contract type. 4. Performance context relies on timely delivery of scheduled freight. 5. Sector positioning within defense logistics and transportation services.

Value Assessment

Rating: good

The contract value of approximately $20 million is within a reasonable range for specialized air cargo services. Benchmarking against similar Department of Defense transportation contracts suggests competitive pricing was likely achieved due to the full and open competition. The firm fixed-price structure further supports value by capping costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 9 bidders suggests a healthy level of competition for this service. This broad participation generally leads to better price discovery and ensures the government receives competitive offers.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured efficient use of public funds.

Public Impact

Benefits military operations by ensuring timely movement of critical cargo. Delivers scheduled freight air transportation services. Geographic impact is global, supporting worldwide military deployments. Workforce implications include support for logistics personnel and aircrews.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, indicating broad market engagement.
Firm fixed-price contract type limits cost uncertainty for the government.
Multiple bidders (9) suggest a competitive marketplace.

Sector Analysis

The air cargo and logistics sector is critical for national defense, enabling rapid deployment and sustainment of forces globally. This contract fits within the broader category of defense transportation services, a significant area of federal spending. Comparable spending benchmarks in this sector are often in the tens to hundreds of millions of dollars annually for large-scale operations.

Small Business Impact

There is no indication of small business set-asides for this contract. The nature of large-scale, time-sensitive air cargo transportation often favors larger, established carriers with extensive infrastructure. Subcontracting opportunities for small businesses may exist within the broader logistics chain, but are not explicitly detailed in this award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and financial management offices, with potential review by the Government Accountability Office (GAO) or the Inspector General if performance issues arise. Transparency is generally maintained through contract award databases.

Related Government Programs

Military Sealift Command Contracts
Air Mobility Command Contracts
Defense Logistics Agency Contracts

Risk Flags

Contract duration is short (single day delivery order), potentially limiting long-term performance assessment.
Specific performance metrics are not readily available publicly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to NATIONAL AIR CARGO GROUP, INC. CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS

Who is the contractor on this award?

The obligated recipient is NATIONAL AIR CARGO GROUP, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2011-06-30. End: 2011-06-30.

What is the historical spending pattern for similar air cargo services by USTRANSCOM?

Historical spending data for similar air cargo services by USTRANSCOM would reveal trends in contract values, awardees, and competition levels over time. Analyzing past awards for scheduled freight air transportation can indicate whether this $20 million contract is an outlier, a continuation of a trend, or a significant increase/decrease in expenditure. It would also highlight if National Air Cargo Group, Inc. has been a frequent recipient of such contracts, suggesting a track record or potential concentration of awards. Understanding these patterns is crucial for assessing the long-term cost-effectiveness and strategic sourcing of these vital logistics services.

How does the performance of National Air Cargo Group, Inc. on previous contracts compare to industry standards?

Assessing the performance of National Air Cargo Group, Inc. on previous contracts requires reviewing past performance evaluations, on-time delivery rates, cargo damage incidents, and any contract disputes or terminations. Comparing these metrics against industry standards and government benchmarks for air cargo providers would reveal the contractor's reliability and efficiency. A strong performance history suggests a lower risk for this current contract, while a history of issues might warrant closer scrutiny of oversight and performance management. This analysis is vital for ensuring taxpayer funds are allocated to reliable and capable service providers.

What are the specific risks associated with relying on a single awardee for consolidated transportation shipments?

While this specific award was competed, the question implies a broader concern about reliance. The primary risks associated with relying heavily on a single awardee for consolidated transportation shipments include potential price increases in future contracts due to reduced competition, decreased service quality if the contractor becomes complacent, and vulnerability to disruptions if the contractor faces financial, operational, or legal challenges. For critical defense logistics, this could lead to delays in supply chains, increased costs, and potential mission impacts. Diversifying awardees or ensuring robust contingency planning are key mitigation strategies.

What is the typical duration and value range for similar scheduled freight air transportation contracts within the DoD?

The typical duration and value range for similar scheduled freight air transportation contracts within the DoD can vary significantly based on the scope, routes, and service requirements. Contracts can range from short-term, task-order-based agreements to multi-year commitments. Values can span from a few million dollars for specific routes or limited services to hundreds of millions for comprehensive global logistics support. This $20 million contract appears to be a moderate-sized award, likely covering a specific set of routes or a defined period, and its value should be assessed within this broader context of DoD's extensive transportation needs.

Are there any specific performance metrics or KPIs tied to this contract that are publicly available?

Publicly available performance metrics or Key Performance Indicators (KPIs) tied to this specific contract are generally limited. While contract award details are often published, the granular performance data, such as on-time delivery percentages, cargo integrity reports, or customer satisfaction scores, is typically considered internal government information or proprietary contractor data. Access to such detailed performance information would require specific Freedom of Information Act (FOIA) requests or be available through internal DoD reporting mechanisms, making a direct public assessment of performance challenging without further inquiry.

Industry Classification

NAICS: Transportation and Warehousing › Scheduled Air Transportation › Scheduled Freight 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: HTC71109R0022

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: National AIR Cargo, Inc. (UEI: 783730641)

Address: 835 WILLOW RUN AIRPORT, YPSILANTI, MI, 48198

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,961,303

Exercised Options: $19,961,303

Current Obligation: $19,961,303

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71110DW004

IDV Type: IDC

Timeline