DoD's Civil Reserve Air Fleet Contract Exceeds $6.5M for Air Transportation Services

Contract Overview

Contract Amount: $6,572,787 ($6.6M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2018-09-24

End Date: 2026-09-30

Contract Duration: 2,928 days

Daily Burn Rate: $2.2K/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: 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 $6.6 million to PATRIOT TEAM for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. The contract is for air transportation services, specifically nonscheduled chartered passenger air. 2. Patriot Team is the contractor, with the Department of Defense as the agency. 3. The contract duration is substantial, spanning from September 2018 to September 2026. 4. This contract falls under the broader category of air transportation services.

Value Assessment

Rating: fair

The contract is a fixed-price with economic price adjustment, which can lead to cost fluctuations. Benchmarking against similar air charter contracts is difficult without more granular data on routes, aircraft types, and service levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources. This suggests a competitive process was intended, but the exclusion of sources might limit the pool of bidders and potentially impact price discovery.

Taxpayer Impact: The use of economic price adjustment introduces a risk of increased costs for taxpayers if fuel prices or other economic factors rise significantly.

Public Impact

Ensures critical air transport capacity for national defense needs. Provides flexibility for troop and personnel movement during emergencies. Supports military readiness by maintaining a reserve fleet of commercial aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could increase costs.
Exclusion of sources in competition may limit price competitiveness.
Long contract duration increases exposure to market volatility.

Positive Signals

Full and open competition was utilized.
Contract supports essential national defense capabilities.

Sector Analysis

This contract falls within the air transportation sector, specifically for chartered passenger services. Spending benchmarks for such specialized services are highly variable based on demand, route, and aircraft type.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract is managed by USTRANSCOM, a component of the Department of Defense responsible for global transportation. Oversight would focus on ensuring service delivery, cost control, and compliance with contract terms.

Related Government Programs

Nonscheduled Chartered Passenger Air Transportation
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

Potential for cost overruns due to economic price adjustment.
Limited competition due to 'exclusion of sources'.
Long-term contract duration exposes government to market fluctuations.
Lack of detailed performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 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 $6.6 million.

What is the period of performance?

Start: 2018-09-24. End: 2026-09-30.

What is the typical cost per flight hour or per passenger mile for similar chartered air services to establish a better value benchmark?

Establishing a precise benchmark for per-flight-hour or per-passenger-mile costs for chartered air services is challenging due to the highly variable nature of these contracts. Factors such as aircraft type, route distance, passenger capacity, service level (e.g., catering, amenities), and demand significantly influence pricing. Without specific details on these parameters for the IGF contract, comparing it to industry averages or other government contracts is difficult. However, general market rates for similar charter services can range widely, and a detailed analysis would require access to specific operational data.

How does the 'exclusion of sources' clause in the full and open competition impact the potential for cost savings for the government?

The 'exclusion of sources' clause, while still operating under a 'full and open' framework, can limit the competitive landscape. If specific types of providers or certain capabilities are excluded, the remaining pool of bidders may be smaller. This reduced competition could potentially lead to higher prices than if all potential qualified sources were allowed to bid. The impact on cost savings depends heavily on the rationale for the exclusion and the competitiveness within the remaining eligible bidder pool.

What are the specific triggers and limits for the economic price adjustment (EPA) in this contract, and how have they affected costs to date?

The specific triggers and limits for the economic price adjustment (EPA) are not detailed in the provided data. Typically, EPAs are tied to indices for fuel costs, labor, or other significant operational expenses. To assess their impact, one would need to review the contract's specific clauses detailing these adjustments and examine historical spending data against the baseline fixed price. Understanding the EPA mechanism is crucial for evaluating the contract's true cost and potential for future cost overruns.

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 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: 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: $6,572,787

Exercised Options: $6,572,787

Current Obligation: $6,572,787

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71118DCC39

IDV Type: IDC

Timeline