DoD's $6.5M Civil Reserve Air Fleet Contract Awarded to Miami Air International
Contract Overview
Contract Amount: $6,553,256 ($6.6M)
Contractor: Miami AIR International, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-10-01
End Date: 2018-09-30
Contract Duration: 364 days
Daily Burn Rate: $18.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Transportation
Official Description: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $6.6 million to MIAMI AIR INTERNATIONAL, INC. for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract awarded for air transportation services under the Civil Reserve Air Fleet. 2. Miami Air International, Inc. is the sole contractor for this delivery order. 3. The contract duration is 364 days, with a total value of $6,553,256.13. 4. This falls under the Air Transportation Services NAICS code 481211.
Value Assessment
Rating: fair
The contract value of $6.55 million for a year of service appears within a reasonable range for specialized air charter services. Benchmarking against similar USTRANSCOM contracts for airlift would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this specific award is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where competition details vary.
Taxpayer Impact: Taxpayer funds are utilized for essential military airlift capabilities, ensuring readiness and logistical support for the Department of Defense.
Public Impact
Ensures critical airlift capacity for U.S. military personnel and equipment during national emergencies. Supports the operational readiness of the U.S. Transportation Command (USTRANSCOM). Provides a flexible and responsive air transportation solution for the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility due to economic price adjustment clause.
- Reliance on a single contractor for this specific delivery order.
Positive Signals
- Supports a key component of national defense readiness.
- Awarded through full and open competition.
Sector Analysis
The air transportation sector is vital for government logistics, particularly for defense. Spending benchmarks for similar charter services can vary significantly based on aircraft type, duration, and operational requirements.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight is provided by the Department of Defense (USTRANSCOM). The use of delivery orders under potentially larger IDIQ contracts requires careful monitoring to ensure fair competition and value for money across all awards.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Economic Price Adjustment Clause
- Potential for increased costs due to market fluctuations
- Single contractor for this specific delivery order
- Limited visibility into specific performance metrics without further data
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, il, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.6 million to MIAMI AIR INTERNATIONAL, INC.. IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Who is the contractor on this award?
The obligated recipient is MIAMI AIR INTERNATIONAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $6.6 million.
What is the period of performance?
Start: 2017-10-01. End: 2018-09-30.
How does the pricing of this contract compare to historical awards for similar airlift services by USTRANSCOM?
A comprehensive comparison would require access to historical contract data for similar services, including aircraft type, route, duration, and economic conditions at the time of award. Without this, a precise value assessment is difficult. However, the fixed-price with economic adjustment suggests an attempt to balance cost certainty with market fluctuations.
What are the specific risks associated with the economic price adjustment (EPA) clause in this contract?
The EPA clause introduces risk by allowing for price increases based on fluctuating economic factors, such as fuel costs or labor rates. This can lead to higher-than-anticipated expenditures for the government if these factors rise significantly during the contract period, potentially impacting the overall budget.
How effectively does the Civil Reserve Air Fleet program, including contracts like this, meet the DoD's long-term strategic airlift needs?
The CRAF program is a crucial component of the DoD's strategic airlift capability, providing surge capacity beyond organic military assets. Contracts like this ensure the availability of commercial aircraft and crews when needed. Its effectiveness relies on continuous evaluation of fleet readiness, contractor performance, and alignment with evolving global operational requirements.
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: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: TSI Holding Company
Address: 5000 NW 36TH ST STE 307, MIAMI, FL, 33122
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,553,256
Exercised Options: $6,553,256
Current Obligation: $6,553,256
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71117DCC12
IDV Type: IDC
Timeline
Start Date: 2017-10-01
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2025-12-19
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