DoD's $26.1M Civil Reserve Air Fleet Contract Awarded to Federal Express Corporation

Contract Overview

Contract Amount: $26,108,638 ($26.1M)

Contractor: Federal Express Corporation

Awarding Agency: Department of Defense

Start Date: 2018-03-05

End Date: 2018-09-30

Contract Duration: 209 days

Daily Burn Rate: $124.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

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

Plain-Language Summary

Department of Defense obligated $26.1 million to FEDERAL EXPRESS CORPORATION for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract value of $26.1 million for air transportation services. 2. Federal Express Corporation secured the award. 3. Potential risks include reliance on a single provider for critical services. 4. Spending falls within the transportation sector.

Value Assessment

Rating: fair

The contract value of $26.1 million for air transportation services appears reasonable given the scope. Benchmarking against similar large-scale air charter contracts would provide a more definitive assessment 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. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential services.

Public Impact

Ensures critical air transport capacity for national defense needs. Supports military deployment and logistical operations. Provides a reliable transportation network during emergencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential over-reliance on a single carrier for critical infrastructure.
Limited visibility into specific service delivery metrics.
Geopolitical risks impacting global air routes.

Positive Signals

Awarded through full and open competition.
Utilizes a firm fixed-price contract type.
Supports essential national defense capabilities.

Sector Analysis

This contract falls under air transportation services, a critical component of the defense sector's logistical capabilities. Spending benchmarks for similar large-scale air charter agreements are not readily available but are expected to be significant given the nature of the service.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this contract award. The nature of the service likely favors large, established air cargo providers.

Oversight & Accountability

Oversight is provided by USTRANSCOM, ensuring the contract meets the requirements for the Civil Reserve Air Fleet. Accountability is maintained through the delivery order process under a larger contract.

Related Government Programs

Nonscheduled Chartered Passenger Air Transportation
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

Potential single point of failure if Federal Express cannot perform.
Limited transparency on specific performance metrics.
Dependence on a commercial entity for strategic national defense capability.
Potential for price increases in future contract renewals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to FEDERAL EXPRESS CORPORATION. IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2018-03-05. End: 2018-09-30.

What is the historical performance of Federal Express Corporation in fulfilling similar government contracts, particularly regarding on-time delivery and cost adherence?

Assessing Federal Express Corporation's historical performance is crucial for understanding their reliability and efficiency in fulfilling government contracts. Reviewing past delivery orders, performance reports, and any documented issues related to cost or timeliness will provide insights into their capabilities and potential risks associated with this award. This information helps in evaluating the overall value and effectiveness of the contract.

How does the pricing structure of this contract compare to industry standards for similar air transportation services, considering the specific requirements of the Civil Reserve Air Fleet?

Comparing the pricing structure to industry standards requires detailed analysis of the firm fixed price against market rates for comparable air charter services, factoring in the unique demands of the Civil Reserve Air Fleet. This includes assessing costs for availability, response times, and operational readiness. Understanding this comparison is key to determining if the government is receiving competitive pricing and maximizing the value of taxpayer funds.

What contingency plans are in place if Federal Express Corporation is unable to fulfill its obligations under this contract, and what is the process for activating alternative providers?

Contingency planning is vital for ensuring the continuity of critical air transportation services. The government must have clear protocols for addressing potential failures by the awarded contractor, including identifying alternative providers and the procedures for their rapid activation. This ensures national security and logistical needs are met without disruption, mitigating risks associated with sole-source or limited competition scenarios.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fedex Corp

Address: 2955 REPUBLICAN DR FL 1, MEMPHIS, TN, 38118

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,108,638

Exercised Options: $26,108,638

Current Obligation: $26,108,638

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DCC11

IDV Type: IDC

Timeline