DoD's Civil Reserve Air Fleet Contract Awarded to National Air Cargo Group for $5.2M
Contract Overview
Contract Amount: $5,237,615 ($5.2M)
Contractor: National AIR Cargo Group, Inc
Awarding Agency: Department of Defense
Start Date: 2018-09-24
End Date: 2026-09-30
Contract Duration: 2,928 days
Daily Burn Rate: $1.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
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: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $5.2 million to NATIONAL AIR CARGO GROUP, INC for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract awarded to a single entity, National Air Cargo Group, Inc. 2. The contract is for air transportation services, specifically nonscheduled chartered passenger transport. 3. This award falls under the broader category of aviation and logistics services. 4. Potential for price fluctuations due to economic price adjustment clause.
Value Assessment
Rating: fair
The contract's fixed-price with economic price adjustment structure suggests a need to account for market volatility. Benchmarking against similar air charter contracts would be necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are utilized for essential air transportation services, with the limited competition potentially impacting the overall cost-effectiveness.
Public Impact
Ensures critical airlift capacity for national defense needs. Supports the operational readiness of the U.S. military. Provides flexibility in deploying personnel and resources globally.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best price.
- Economic price adjustment clause introduces cost uncertainty.
- Contract duration is substantial (over 24 years).
Positive Signals
- Secures vital national defense transportation assets.
- Provides a pre-negotiated framework for essential services.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on air transportation and logistics. Spending benchmarks for similar services can vary widely based on aircraft type, route, and service level.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this award.
Oversight & Accountability
Oversight would involve monitoring contract performance, adherence to terms, and the justification for the limited competition approach. USTRANSCOM is the contracting activity.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Limited competition may result in higher costs.
- Economic price adjustment introduces cost uncertainty.
- Long contract duration could lock in potentially suboptimal pricing.
- Lack of small business participation noted.
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 $5.2 million to NATIONAL AIR CARGO GROUP, INC. IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Who is the contractor on this award?
The obligated recipient is NATIONAL AIR CARGO GROUP, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $5.2 million.
What is the period of performance?
Start: 2018-09-24. End: 2026-09-30.
What is the justification for the 'exclusion of sources' in the competition method, and how does it impact overall value for money?
The justification for excluding sources in limited competition typically relates to specific technical requirements, existing infrastructure, or urgent needs that only certain contractors can meet. However, this restriction can limit the pool of potential bidders, potentially leading to less competitive pricing and reduced value for taxpayers. A thorough review of the justification documentation is crucial to ensure it is valid and that the government obtained fair and reasonable pricing under the circumstances.
How will the economic price adjustment clause be managed to mitigate potential cost overruns for taxpayers?
Effective management of the economic price adjustment (EPA) clause requires clear, objective, and pre-defined indices or formulas for adjusting prices based on fluctuations in specific costs (e.g., fuel, labor). The contracting agency must rigorously monitor these indices and ensure that any price increases are directly attributable to documented market changes and are calculated according to the contract's terms. Regular audits and transparent reporting on EPA adjustments are essential to protect taxpayer interests and prevent unwarranted cost escalations.
What performance metrics are in place to ensure the effectiveness and reliability of the Civil Reserve Air Fleet services provided by National Air Cargo Group?
Ensuring the effectiveness of the Civil Reserve Air Fleet (CRAF) services relies on robust performance metrics defined within the contract. These typically include on-time performance, aircraft availability, safety compliance, and responsiveness to activation orders. The contracting agency, USTRANSCOM, must actively monitor these metrics, conduct regular performance reviews, and hold the contractor accountable for meeting or exceeding established standards. Any deviations should trigger corrective actions to maintain the operational readiness and reliability of the CRAF.
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 AFTER EXCLUSION OF SOURCES
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: 5955 T G LEE BLVD STE500, ORLANDO, FL, 32822
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,237,615
Exercised Options: $5,237,615
Current Obligation: $5,237,615
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71118DCC40
IDV Type: IDC
Timeline
Start Date: 2018-09-24
Current End Date: 2026-09-30
Potential End Date: 2030-09-30 00:00:00
Last Modified: 2025-12-15
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