DoD's $19.4M Air Cargo Contract Awarded to National Air Cargo Group, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $19,447,808 ($19.4M)

Contractor: National AIR Cargo Group, Inc

Awarding Agency: Department of Defense

Start Date: 2011-08-31

End Date: 2011-08-31

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 $19.4 million to NATIONAL AIR CARGO GROUP, INC for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS Key points: 1. The contract, valued at $19.4 million, was awarded for scheduled freight air transportation. 2. National Air Cargo Group, Inc. secured the contract through full and open competition. 3. The award was made by USTRANSCOM, a key component of the Department of Defense. 4. This represents a single delivery order for services rendered on August 31, 2011.

Value Assessment

Rating: fair

The contract value of $19.4 million for a single delivery order of scheduled freight air transportation appears within a reasonable range for such services, though specific benchmarks are unavailable without more granular data on routes and service levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a robust process for price discovery and selection of the most advantageous offer. This method generally promotes competitive pricing.

Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value for money in essential transportation services for the Department of Defense.

Public Impact

Ensures timely and efficient movement of critical cargo for military operations. Supports the logistical capabilities of the Department of Defense. Provides a vital link in the global supply chain for national security assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single delivery order may limit long-term cost-saving opportunities.
Limited data on performance metrics and potential for future contract modifications.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Supports critical defense logistics.

Sector Analysis

The transportation sector, particularly air cargo, is crucial for defense logistics, enabling rapid deployment and sustainment of operations. Spending in this area is benchmarked against industry rates and government-wide contracts for similar services.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

USTRANSCOM's oversight ensures that contracted transportation services meet stringent military requirements. The use of a single delivery order suggests a focused oversight on this specific transaction.

Related Government Programs

Scheduled Freight Air Transportation
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

Lack of detailed performance data.
Single delivery order may not reflect broader contract trends.
Limited insight into small business participation.
No information on potential contract modifications or extensions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 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 $19.4 million.

What is the period of performance?

Start: 2011-08-31. End: 2011-08-31.

What was the specific nature of the 'scheduled freight air transportation' and the routes covered by this $19.4 million delivery order?

The specific routes and types of freight are not detailed in the provided data. 'Scheduled freight air transportation' typically refers to the movement of goods via commercial airlines on pre-determined flight paths. The $19.4 million value suggests a significant volume or distance of shipments, likely supporting critical military supply chain needs.

How did the pricing of this contract compare to other similar air cargo contracts awarded by the DoD or other federal agencies during the same period?

Without access to a broader dataset of comparable air cargo contracts from the same period, a direct price comparison is not feasible. However, the use of 'full and open competition' implies that the pricing was evaluated against multiple bids, suggesting it was deemed competitive at the time of award.

What was the overall effectiveness of National Air Cargo Group, Inc. in fulfilling this delivery order, and were there any performance issues reported?

The provided data does not include performance metrics or reports on the effectiveness of National Air Cargo Group, Inc. in fulfilling this specific delivery order. Post-award performance evaluations are typically tracked separately and would be necessary to assess the contractor's success.

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: $19,447,808

Exercised Options: $19,447,808

Current Obligation: $19,447,808

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71110DW004

IDV Type: IDC

Timeline