DoD's Civil Reserve Air Fleet contract awarded to Patriot Team for $34.3M, utilizing full and open competition

Contract Overview

Contract Amount: $34,266,220 ($34.3M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2017-10-04

End Date: 2018-09-30

Contract Duration: 361 days

Daily Burn Rate: $94.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

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

Plain-Language Summary

Department of Defense obligated $34.3 million to PATRIOT TEAM for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract value represents a significant investment in strategic airlift capabilities. 2. Full and open competition suggests a robust market for these services. 3. Fixed-price contract type aims to control costs and provide predictability. 4. Delivery order structure indicates specific, on-demand needs rather than long-term sustainment. 5. The contract duration of approximately one year aligns with tactical operational requirements. 6. Small business participation was not a stated requirement, potentially limiting SME involvement.

Value Assessment

Rating: good

The contract's total value of $34.3 million for air transportation services appears reasonable given the strategic nature of the Civil Reserve Air Fleet. Benchmarking against similar large-scale airlift contracts is challenging due to the unique requirements of military support. However, the firm fixed-price structure suggests an effort to ensure cost certainty for the government. The award was made under full and open competition, which typically drives competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is beneficial for price discovery and achieving value for the government. The agency sought a broad range of potential providers for these critical air transportation services.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it maximizes the pool of potential offerors and encourages competitive pricing, leading to potentially lower costs for government services.

Public Impact

The primary beneficiaries are the Department of Defense and U.S. military personnel requiring rapid global mobility. Services delivered include nonscheduled chartered passenger air transportation, crucial for troop deployment and logistical support. Geographic impact is global, supporting U.S. military operations worldwide. 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

Lack of specific detail on the number of bidders limits a full assessment of competitive intensity.
The contract's duration is relatively short, which might necessitate future re-competition and associated administrative costs.
No explicit small business set-aside was identified, potentially impacting opportunities for smaller aviation firms.

Positive Signals

The use of full and open competition is a positive signal for market engagement and potential cost efficiencies.
The firm fixed-price contract type provides cost certainty for the government.
The award supports a critical national defense capability, ensuring readiness and strategic mobility.

Sector Analysis

The Civil Reserve Air Fleet (CRAF) program is a vital component of national defense, ensuring the availability of commercial aircraft for military use during national emergencies. This contract falls within the broader aerospace and defense sector, specifically focusing on air transportation services. The market for such services is characterized by a mix of large commercial airlines and specialized charter operators. Spending in this area is driven by strategic readiness requirements rather than routine operational needs.

Small Business Impact

This contract does not appear to have included a small business set-aside, as indicated by the 'sb' field being false. Consequently, small businesses may not have had a direct preferential pathway to securing this work. While large prime contractors often utilize small business subcontractors, the absence of a specific set-aside or subcontracting goal means that the extent of small business involvement is not explicitly mandated or tracked within this award's parameters. This could limit opportunities for smaller aviation companies to participate directly in supporting this critical defense function.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Transportation Command (USTRANSCOM) and the Department of Defense's contracting and financial management offices. The firm fixed-price nature of the contract provides a degree of accountability by setting a predetermined cost. Transparency is generally maintained through contract award databases, although specific performance metrics and detailed oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Airlift Command
Strategic Sealift Program
Expeditionary Medical Support
Global Force Projection

Risk Flags

Potential for cost overruns if fuel prices or operational costs significantly exceed projections.
Risk of contractor performance issues impacting critical military deployment schedules.
Dependence on civilian infrastructure and personnel for national defense support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.3 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 $34.3 million.

What is the period of performance?

Start: 2017-10-04. End: 2018-09-30.

What is the historical spending trend for the Civil Reserve Air Fleet - Air Transportation Services under USTRANSCOM?

Analyzing the historical spending for IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES under USTRANSCOM reveals a fluctuating pattern, often tied to specific operational tempo increases or readiness exercises. While this specific award in FY2018 amounted to approximately $34.3 million, prior and subsequent years may show variations. For instance, periods of heightened global security concerns or major deployments could lead to increased utilization and thus higher contract values. Conversely, periods of reduced geopolitical tension or shifts in military strategy might result in lower spending. Without access to a comprehensive multi-year spending database for this specific contract line item, a precise trend analysis is difficult. However, the nature of strategic airlift suggests a baseline requirement, with significant potential for surge spending based on national security needs.

How does the awarded price compare to similar non-competitive or sole-source contracts for airlift services?

Direct comparison of this award's price to non-competitive or sole-source contracts is inherently difficult and potentially misleading, as the circumstances driving those awards differ significantly. Full and open competition, as utilized here, generally leads to more competitive pricing than sole-source procurements, which are typically justified by unique capabilities or urgent needs where competition is impractical. If this $34.3 million contract were to be compared to a sole-source award for a similar duration and scope, the sole-source contract would likely be higher due to the lack of competitive pressure. However, the true value is best assessed against other full and open competition awards for comparable airlift services, considering factors like aircraft type, capacity, route, and service level.

What are the key performance indicators (KPIs) typically associated with contracts for the Civil Reserve Air Fleet?

Key performance indicators (KPIs) for Civil Reserve Air Fleet (CRAF) contracts typically focus on readiness, reliability, and responsiveness. These often include metrics such as on-time departure and arrival rates, aircraft availability (ensuring the contracted aircraft are ready when needed), mission completion success rates, and adherence to safety standards. For passenger transport, KPIs might also encompass passenger comfort and baggage handling efficiency. Given the strategic nature of CRAF, a critical KPI is the ability to rapidly activate and deploy assets when called upon by the military, demonstrating the contractor's preparedness and logistical capability to support national defense requirements.

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

Assessing the track record of Patriot Team requires a review of their past performance on government contracts, especially within the defense sector. Information on contract databases often includes past performance ratings, contract history, and any instances of disputes or terminations. A positive track record would indicate consistent delivery of services, adherence to contract terms, and compliance with government regulations. Conversely, a history of performance issues, contract disputes, or significant overruns could raise concerns. Without specific data on Patriot Team's prior government contract performance, it is difficult to provide a definitive assessment of their reliability for this specific airlift services contract.

What is the potential risk associated with the firm fixed-price contract type for this type of service?

The firm fixed-price (FFP) contract type generally shifts most of the risk to the contractor, which is often beneficial for the government in terms of cost certainty. For air transportation services like those provided under the CRAF program, the primary risks for the contractor under an FFP contract include fluctuating fuel costs, potential maintenance issues, and unforeseen operational disruptions (e.g., weather, geopolitical events). If these costs exceed projections, the contractor's profit margin will be reduced, or they could incur a loss. The government's risk is generally lower, primarily related to ensuring the contractor has the capability and incentive to perform adequately, and that the fixed price accurately reflects the market value.

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: FIRM FIXED PRICE (J)

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: $34,266,220

Exercised Options: $34,266,220

Current Obligation: $34,266,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DCC13

IDV Type: IDC

Timeline