DoD's Civil Reserve Air Fleet contract awarded to Patriot Team for $81.3M, covering air transportation services

Contract Overview

Contract Amount: $81,298,830 ($81.3M)

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: $223.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

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

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74115

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $81.3 million to PATRIOT TEAM for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract value of $81.3M for air transportation services indicates significant investment in logistical capabilities. 2. The fixed-price contract with economic price adjustment suggests a strategy to manage fluctuating fuel costs. 3. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 4. The contract duration of one year with a 364-day term points to a defined operational period. 5. The 'OK' status for both 'st' (status) and 'sn' (state) suggests no immediate performance concerns. 6. This contract falls under the broader category of air transportation services, crucial for military readiness.

Value Assessment

Rating: good

The contract value of $81.3 million for a one-year period for air transportation services appears reasonable given the scope of supporting the Civil Reserve Air Fleet. Without specific benchmarks for similar large-scale military airlift contracts, a direct comparison is challenging. However, the fixed-price nature with economic price adjustment suggests an attempt to control costs while accounting for market volatility. The award to a single entity, Patriot Team, implies they were deemed the best value under the competitive process.

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. This approach generally fosters robust price discovery and encourages multiple vendors to offer their best terms. The specific number of bidders is not provided, but the designation suggests a competitive environment was sought and likely achieved, leading to potentially better pricing for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, preventing potential overpayment and ensuring efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who rely on these services for troop and equipment movement. The services delivered include nonscheduled chartered passenger air transportation, essential for rapid deployment and logistical support. The geographic impact is likely global, supporting military operations and readiness across various theaters. Workforce implications include the utilization of civilian aircrews and support staff, supplementing military aviation resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to economic price adjustment if fuel prices escalate significantly.
Dependence on a single contractor (Patriot Team) could pose risks if performance issues arise.
Limited transparency on the specific performance metrics and evaluation criteria used in the competition.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed-price contract structure provides a degree of cost certainty for the base service.
The 'OK' status for both contract and state suggests current operational viability.

Sector Analysis

The air transportation services sector is critical for national defense, enabling rapid global mobility for personnel and materiel. The Civil Reserve Air Fleet program specifically leverages commercial aviation assets to augment military airlift capabilities during national emergencies. Spending in this sector is often characterized by long-term contracts and significant investments due to the specialized nature of military support requirements. Comparable spending benchmarks would typically involve analyzing other large-scale airlift contracts awarded by the DoD or other government agencies for similar services.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As it was awarded under full and open competition, it is possible that small businesses could have participated as prime contractors or subcontractors. However, without further details on the bidding process and subcontracting plans, the direct impact on the small business ecosystem remains unclear. Analysis would require examining the awardee's subcontracting reports.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Transportation Command (USTRANSCOM) and potentially the Department of Defense's Inspector General. Mechanisms likely include performance monitoring, financial audits, and compliance reviews to ensure adherence to contract terms and efficient use of funds. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive.

Related Government Programs

Military Airlift Command
Air Mobility Command
Logistics Readiness Contracts
Commercial Airlift Services
National Defense Contracts

Risk Flags

Potential for cost escalation due to economic price adjustment.
Contractor performance dependency.
Limited public detail on competition specifics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.3 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 $81.3 million.

What is the period of performance?

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

What is the track record of Patriot Team in fulfilling similar government contracts, particularly within the defense sector?

Assessing Patriot Team's track record requires a review of their past performance on government contracts. This would involve examining contract histories, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented instances of outstanding performance or contract disputes. For a contract of this magnitude supporting the Civil Reserve Air Fleet, a history of reliability, safety, and timely execution would be critical. A lack of readily available public information on their specific performance in similar roles could be a risk indicator, necessitating deeper due diligence by the contracting agency.

How does the awarded price of $81.3 million compare to market rates for similar nonscheduled chartered passenger air transportation services?

Benchmarking the $81.3 million award requires detailed analysis of market rates for nonscheduled chartered passenger air transportation, considering factors like aircraft type, capacity, flight duration, routes, and service level agreements. Comparing this to publicly available data on commercial charter rates or other government contracts for similar services would provide context. The fixed-price with economic price adjustment (FPEPA) structure also complicates direct comparisons, as it allows for cost fluctuations. A thorough value assessment would involve comparing the effective per-flight-hour or per-passenger-mile cost against industry standards and other government solicitations.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

Key risk indicators for this contract include potential cost overruns due to the economic price adjustment clause, especially in volatile fuel markets. Dependence on a single awardee, Patriot Team, presents performance and continuity risks. Furthermore, the effectiveness of the 'full and open competition' in achieving optimal value and the potential for unforeseen operational challenges in supporting the Civil Reserve Air Fleet are also risks. Mitigation strategies likely involve robust contract oversight, performance monitoring, clear communication channels, contingency planning, and potentially pre-defined remedies for non-performance.

How effective is the Civil Reserve Air Fleet program in augmenting military airlift capabilities, and what is the historical spending pattern for this specific contract vehicle?

The Civil Reserve Air Fleet (CRAF) program is designed to provide a surge capability for airlift during national emergencies or contingencies when military assets are insufficient. Its effectiveness is measured by its readiness and ability to integrate seamlessly with military operations. Historical spending patterns for this specific contract vehicle (if it's a recurring award) would reveal trends in utilization and cost over time. Analyzing past award values, durations, and the frequency of task orders or delivery orders would indicate the program's consistent reliance on these services and the associated budgetary commitments.

What are the implications of the 'fixed price with economic price adjustment' contract type on cost control and predictability?

The 'fixed price with economic price adjustment' (FPEPA) contract type aims to balance cost certainty with market realities. The fixed-price component provides a baseline cost for the services, while the economic price adjustment allows for modifications based on specific economic factors, most commonly fuel costs. This structure can be beneficial in industries with volatile input prices, like aviation fuel, preventing the contractor from absorbing excessive losses or the government from paying inflated prices due to market spikes. However, it introduces a degree of unpredictability in the final cost, requiring careful monitoring and clear adjustment formulas to prevent unwarranted increases and ensure fair pricing.

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

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: $81,298,830

Exercised Options: $81,298,830

Current Obligation: $81,298,830

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DCC13

IDV Type: IDC

Timeline