DoD's Civil Reserve Air Fleet contract awarded $142.9M for air transportation services, with 9 bidders

Contract Overview

Contract Amount: $142,918,232 ($142.9M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2018-10-01

End Date: 2022-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $97.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

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 $142.9 million to PATRIOT TEAM for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract value represents significant investment in strategic airlift capabilities. 2. Full and open competition suggests a robust bidding process. 3. Potential for cost efficiencies due to multiple bidders. 4. Contract duration of 4 years indicates a long-term need. 5. Fixed-price contract type shifts risk to the contractor. 6. Performance period spans across multiple fiscal years, requiring sustained oversight.

Value Assessment

Rating: good

The contract's total value of $142.9 million over four years suggests a substantial commitment to ensuring air transportation readiness. Benchmarking against similar large-scale airlift contracts is challenging without more specific service details, but the number of bidders (9) indicates a competitive market. The firm fixed-price structure is generally favorable for the government, as it caps costs, provided the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations might have had specific criteria, the final award was made after a broad competitive process. The participation of 9 bidders suggests a healthy level of competition for these specialized air transportation services.

Taxpayer Impact: A competitive bidding process like this generally leads to better pricing for taxpayers by encouraging vendors to offer their most cost-effective solutions to win the contract.

Public Impact

Benefits the Department of Defense by ensuring strategic airlift capacity. Provides nonscheduled chartered passenger air transportation. Geographic impact is likely global, supporting military deployments and operations. Workforce implications include pilots, crew, and support staff within the contracted airlines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service requirements are not clearly defined.
Reliance on external vendors for critical national security assets.
Ensuring consistent service quality across multiple flights and potential carriers.

Positive Signals

Firm fixed-price contract limits cost overruns for the government.
Multiple bidders suggest a competitive environment that can drive efficiency.
Long-term contract provides stability for planning and operations.

Sector Analysis

The Civil Reserve Air Fleet (CRAF) program is a critical component of national defense, ensuring that the U.S. military has access to commercial aviation assets during national emergencies. This contract falls within the broader air transportation and logistics sector, which is vital for supporting military operations worldwide. The market for such services is specialized, involving airlines capable of meeting stringent military requirements for readiness and availability.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and there is no information provided regarding subcontracting plans. Given the nature of large-scale air transportation services for defense, prime contracts are typically awarded to major airlines, which may or may not have robust small business subcontracting programs.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Transportation Command (USTRANSCOM), the contracting agency. Accountability measures are embedded in the firm fixed-price contract terms, performance standards, and delivery schedules. Transparency is facilitated through contract award databases, though specific operational details may be sensitive.

Related Government Programs

Military Airlift Command
Strategic Sealift Program
Logistics Readiness Commands

Risk Flags

Potential for contractor performance issues impacting readiness.
Reliance on commercial sector for critical national security assets.
Ensuring consistent service quality and safety standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $142.9 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 $142.9 million.

What is the period of performance?

Start: 2018-10-01. End: 2022-09-30.

What is the historical spending trend for the Civil Reserve Air Fleet program?

Historical spending data for the Civil Reserve Air Fleet (CRAF) program indicates a fluctuating but consistently significant investment by the Department of Defense. While specific figures for CRAF vary year to year based on operational needs and contract renewals, the program's overall budget reflects its strategic importance. For instance, prior to this $142.9 million contract, there would have been preceding contracts and potentially different funding allocations. Analyzing spending trends requires examining annual defense budgets and specific appropriations for airlift and contingency operations. The program's funding is often tied to national security readiness levels and the perceived need for surge capacity in air transportation. Without access to detailed historical appropriations and contract awards specifically for CRAF over multiple years, a precise trend analysis is difficult, but the sustained existence of the program suggests ongoing, substantial financial commitment.

How does the pricing of this contract compare to similar airlift services?

Directly comparing the pricing of this $142.9 million contract to similar airlift services is challenging without detailed breakdowns of the services rendered, such as specific routes, aircraft types, passenger/cargo capacity, and service level agreements. However, the fact that this contract was awarded under full and open competition with 9 bidders suggests a competitive market, which typically drives prices towards market rates. The firm fixed-price nature of the contract also implies that the government has negotiated a set price, shifting cost-overrun risks to the contractor. To benchmark effectively, one would need to analyze the 'per-seat-mile' or 'per-ton-mile' costs against industry standards for commercial charter services and other government airlift contracts, considering the unique requirements and readiness obligations associated with the Civil Reserve Air Fleet.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract revolve around ensuring consistent service quality and availability, managing potential cost escalations if contract terms are not tightly managed, and maintaining the readiness of the contracted fleet. Although it's a firm fixed-price contract, there's a risk that contractors might cut corners on maintenance or crew training to maximize profits, potentially impacting safety and reliability. Another risk is the dependency on commercial carriers for strategic assets; if a major airline faces financial difficulties or operational disruptions, it could impact the government's airlift capabilities. Furthermore, the long-term nature of the contract (4 years) means the government is committed to these specific providers, potentially limiting flexibility if better options emerge or if geopolitical situations change rapidly.

How effective is the Civil Reserve Air Fleet program in meeting DoD's strategic airlift needs?

The Civil Reserve Air Fleet (CRAF) program is generally considered highly effective and essential for meeting the Department of Defense's (DoD) strategic airlift needs, particularly during large-scale mobilizations or national emergencies that exceed the capacity of military-owned aircraft. CRAF provides a vital surge capability, augmenting the Air Mobility Command's fleet by integrating commercial aircraft and aircrews. Its effectiveness lies in its pre-negotiated agreements and established relationships with commercial carriers, ensuring rapid activation and deployment. The program has been instrumental in past operations, demonstrating its value in projecting power and delivering personnel and equipment globally. While its activation is infrequent, its readiness is crucial for national security, making it a cornerstone of DoD's logistical framework.

What is the track record of the primary contractor (PATRIOT TEAM) in fulfilling similar government contracts?

Information regarding the specific track record of 'PATRIOT TEAM' in fulfilling similar government contracts is not directly available within the provided data snippet. To assess their performance, one would need to consult databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) to review past performance evaluations, contract history, and any reported issues or commendations. Given that this is a large contract for air transportation services, it's likely that PATRIOT TEAM is an established entity in the aviation sector. A thorough analysis would involve examining their history with USTRANSCOM and other agencies, looking for patterns in on-time delivery, quality of service, and adherence to contract terms, especially for similar large-scale, fixed-price agreements.

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: 9

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: $142,918,232

Exercised Options: $142,918,232

Current Obligation: $142,918,232

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71118DCC39

IDV Type: IDC

Timeline