DoD's Civil Reserve Air Fleet contract awarded to Patriot Team for $105.6M, covering air transportation services

Contract Overview

Contract Amount: $105,634,811 ($105.6M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2017-10-01

End Date: 2018-09-30

Contract Duration: 364 days

Daily Burn Rate: $290.2K/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 $105.6 million to PATRIOT TEAM for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. The contract value of $105.6 million represents a significant investment in ensuring air mobility. 2. Full and open competition was utilized, suggesting a robust market response and potential for competitive pricing. 3. The contract type, Fixed Price with Economic Price Adjustment, aims to balance cost certainty with market volatility. 4. This award falls under the broader category of air transportation services, crucial for logistical support. 5. The duration of 364 days indicates a short-term operational need for these services. 6. The contract was awarded as a delivery order, suggesting it's part of a larger framework agreement.

Value Assessment

Rating: good

The contract value of $105.6 million for air transportation services appears reasonable given the scope of supporting the Civil Reserve Air Fleet. Benchmarking against similar large-scale transportation contracts is challenging without more specific service details. However, the fixed-price nature with economic adjustments suggests an attempt to manage costs while accounting for potential fuel or operational fluctuations. The award amount is substantial, reflecting the critical nature of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the method implies a broad outreach to the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a competitive bidding process, ensuring that the government receives the best value for its expenditure.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, ensuring critical airlift capabilities. Services delivered include nonscheduled chartered passenger air transportation, vital for troop and personnel movement. The geographic impact is likely national and potentially international, depending on operational requirements. Workforce implications include support for pilots, flight crews, maintenance personnel, and logistical staff within the contracting company and potentially related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to economic price adjustment clauses if market conditions fluctuate significantly.
Dependence on a single awardee for a critical service could pose a risk if performance issues arise.
The short duration might necessitate frequent re-competition, leading to administrative overhead and potential service gaps.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially favorable pricing.
The fixed-price structure with economic adjustments provides a degree of cost control while allowing for market realities.
Ensures critical airlift capabilities for the Civil Reserve Air Fleet, a key national security asset.

Sector Analysis

The air transportation sector is a critical component of the defense and logistics infrastructure. The Civil Reserve Air Fleet (CRAF) program is a unique public-private partnership that relies on commercial airlines to augment military airlift during national emergencies. This contract represents a portion of the government's investment in maintaining this capability, ensuring that commercial aircraft and crews can be rapidly mobilized when needed. Spending in this area is driven by national security requirements and the need for flexible, on-demand airlift.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided in the data. As this is a large contract likely involving significant operational capacity, it's possible that larger, established air carriers were the primary focus. Further investigation would be needed to determine if small businesses were involved in subcontracting opportunities or if specific set-asides were applicable.

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. Mechanisms likely include performance monitoring, financial audits, and compliance checks to ensure services are delivered as specified and funds are used appropriately. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Military Airlift Command
Air Mobility Command
Civil Reserve Air Fleet Program
Department of Defense Transportation Contracts
Commercial Airlift Services

Risk Flags

Economic Price Adjustment Clause
Reliance on Commercial Assets
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $105.6 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 $105.6 million.

What is the period of performance?

Start: 2017-10-01. End: 2018-09-30.

What is the historical spending pattern for the Civil Reserve Air Fleet - Air Transportation Services contract?

Historical spending data for this specific contract award (481211) indicates a single award of $105.6 million for the period of October 1, 2017, to September 30, 2018. To understand the broader historical spending pattern for the Civil Reserve Air Fleet (CRAF) program, one would need to examine multiple contract awards over several fiscal years across different agencies and award types (e.g., standby contracts, activation contracts). This would reveal trends in program funding, fluctuations in demand for airlift services, and the overall investment in maintaining this strategic capability. Without access to a comprehensive database of all CRAF-related contracts, a detailed historical analysis is limited to the provided data point.

How does the awarded amount compare to similar air transportation contracts for military personnel?

Comparing the $105.6 million award for the Civil Reserve Air Fleet (CRAF) to similar air transportation contracts requires careful consideration of service scope, duration, and type. CRAF contracts are unique as they focus on augmenting military airlift with commercial assets during emergencies, often involving standby agreements or rapid activation. Standard commercial charter contracts for routine troop movements might have different pricing structures and competitive landscapes. However, for a 364-day period covering nonscheduled chartered passenger air transportation, $105.6 million suggests a substantial operational tempo or a large fleet commitment. Benchmarking would ideally involve comparing per-flight-hour costs or per-passenger-mile rates, adjusted for factors like aircraft type, route complexity, and service level, which are not fully detailed in the provided data.

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

While specific Key Performance Indicators (KPIs) are not detailed in the provided contract abstract, typical performance metrics for air transportation services, especially those supporting a critical program like the Civil Reserve Air Fleet (CRAF), would likely include: On-time performance (departure and arrival), aircraft availability and readiness, safety compliance (adherence to FAA and military regulations), passenger satisfaction, fuel efficiency, and responsiveness to activation or tasking orders. The Department of Defense (DoD) would monitor these KPIs to ensure the contractor, Patriot Team, meets the stringent requirements of providing reliable and safe air transportation. Failure to meet these KPIs could result in penalties, reduced future contract opportunities, or even contract termination.

What is the risk associated with the 'Fixed Price with Economic Price Adjustment' contract type for this service?

The 'Fixed Price with Economic Price Adjustment' (FPEPA) contract type for air transportation services carries a moderate level of risk for both the government and the contractor. For the government, the primary risk is potential cost escalation due to the economic price adjustment clauses, which typically adjust prices based on fluctuations in fuel costs, labor rates, or other economic factors. This can lead to higher-than-anticipated expenditures. However, the 'fixed price' component provides a baseline cost certainty. For the contractor, the risk lies in accurately forecasting these economic factors and managing operational costs within the adjusted price. If costs rise faster than the economic adjustments allow, the contractor's profit margins could be squeezed. The effectiveness of the price adjustment formula is crucial in mitigating risk for both parties.

How does this contract contribute to the overall readiness and capability of the Civil Reserve Air Fleet?

This $105.6 million contract directly contributes to the operational readiness and capability of the Civil Reserve Air Fleet (CRAF) by securing essential air transportation services. CRAF is a vital component of national defense, providing the Department of Defense with the ability to rapidly expand airlift capacity during national emergencies, humanitarian crises, or wartime. By awarding this contract through full and open competition, the DoD ensures access to commercial aviation assets and expertise. The services procured, such as nonscheduled chartered passenger air transportation, are crucial for moving personnel efficiently and effectively, thereby maintaining the fleet's ability to respond when called upon. This investment underpins the strategic goal of having a readily available pool of commercial aircraft and crews ready to support military operations.

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: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $105,634,811

Exercised Options: $105,634,811

Current Obligation: $105,634,811

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DCC13

IDV Type: IDC

Timeline