DoD's Civil Reserve Air Fleet contract awarded to Patriot Team for $111M, utilizing full and open competition

Contract Overview

Contract Amount: $111,368,917 ($111.4M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2018-10-01

End Date: 2019-09-30

Contract Duration: 364 days

Daily Burn Rate: $306.0K/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

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74115

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $111.4 million to PATRIOT TEAM for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract value of $111.4 million for air transportation services. 2. Awarded under a full and open competition after exclusion of sources. 3. Services include nonscheduled chartered passenger air transportation. 4. Contract duration of 364 days. 5. Firm fixed price contract type indicates predictable costs. 6. The contract was awarded to Patriot Team. 7. The contract falls under the USTRANSCOM agency within the Department of Defense.

Value Assessment

Rating: good

The contract value of $111.4 million for a year of air transportation services appears reasonable given the scope. Benchmarking against similar large-scale charter contracts is difficult without more specific service details, but the firm fixed price structure suggests a degree of cost certainty for the government. The number of bids received (9) indicates a healthy level of interest, which typically correlates with competitive pricing.

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 some exclusions, the final award was made through a competitive process open to all eligible sources. Nine bids were received, demonstrating a robust competitive environment for these air transportation services.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by driving down prices and ensuring the government receives the best value for its expenditure on critical air transport capabilities.

Public Impact

Provides essential air transportation services for Department of Defense personnel. Supports military readiness and logistical operations through reliable charter flights. Benefits military members and their families by facilitating necessary travel. The geographic impact is likely broad, supporting global operations as needed. The contract supports the aviation industry through charter service provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Firm fixed price contract type provides cost predictability.
Received multiple bids (9), indicating market interest and potential for competitive pricing.
Contract awarded to Patriot Team, a known entity in the sector.

Sector Analysis

The Civil Reserve Air Fleet (CRAF) program is a critical component of national defense, ensuring the availability of commercial air transport for U.S. military operations during national emergencies. This contract for air transportation services fits within the broader defense logistics and transportation sector, which is a significant area of federal spending. The market for charter air services is competitive, with numerous providers capable of meeting military requirements.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. However, the nature of large-scale air charter services often involves prime contractors with significant fleet capabilities, and the extent of small business participation would depend on the specific subcontracting opportunities generated by Patriot Team.

Oversight & Accountability

The Department of Defense and USTRANSCOM are responsible for the oversight of this contract. As a firm fixed-price contract, financial oversight focuses on ensuring adherence to the agreed-upon price for services rendered. Transparency is generally maintained through contract award databases and reporting requirements, with potential oversight from the Government Accountability Office (GAO) and the Inspector General's office for any performance or financial discrepancies.

Related Government Programs

Civil Reserve Air Fleet (CRAF)
Military Sealift Command (MSC) contracts
Air Mobility Command (AMC) airlift services

Risk Flags

Potential for operational disruptions affecting service delivery.
Dependence on contractor's fleet maintenance and availability.
Geopolitical factors could impact flight routes or operational feasibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $111.4 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 $111.4 million.

What is the period of performance?

Start: 2018-10-01. End: 2019-09-30.

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

Historical spending data for the Civil Reserve Air Fleet (CRAF) - Air Transportation Services under USTRANSCOM reveals a consistent need for these services, particularly for troop movement and logistical support. While specific year-over-year figures fluctuate based on global operational tempo and specific mission requirements, the program represents a significant and ongoing investment by the Department of Defense. For instance, prior to this $111.4 million award, there would have been preceding contracts, potentially with different awardees or values, reflecting the continuous demand for charter air capabilities. Analyzing trends over several fiscal years would show periods of higher or lower expenditure, often correlating with geopolitical events or shifts in military deployment strategies. The sustained funding indicates the strategic importance the DoD places on maintaining this flexible airlift capacity.

How does the pricing of this contract compare to similar air transportation services procured by the government?

Directly comparing the pricing of this $111.4 million contract to 'similar' government air transportation services is challenging without granular data on flight hours, routes, aircraft types, and service levels. However, the firm fixed-price (FFP) nature of this award is a positive indicator for price predictability. FFP contracts generally aim to transfer risk to the contractor, and competitive bidding, as evidenced by the nine proposals received, typically drives prices toward market rates. If the per-flight-hour cost or per-passenger-mile cost, once calculated, falls within the expected range for chartered military transport, it suggests good value. Benchmarking would ideally involve comparing this contract's unit costs against other USTRANSCOM or DoD contracts for similar nonscheduled chartered passenger air transportation, accounting for differences in operational scope and duration.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

Key Performance Indicators (KPIs) for a contract like this typically revolve around operational reliability, safety, and timeliness. For nonscheduled chartered passenger air transportation, critical KPIs would include on-time performance for departures and arrivals, adherence to flight plans, passenger satisfaction (if measured), and the absence of safety incidents or violations. The contractor, Patriot Team, would be expected to meet stringent service level agreements (SLAs) outlined in the contract. USTRANSCOM would monitor these metrics through flight tracking, post-flight reports, and potentially passenger feedback mechanisms. Failure to meet these KPIs could result in penalties or impact future contract awards, ensuring accountability for service delivery.

What is the track record of Patriot Team in fulfilling similar government contracts?

Patriot Team's track record in fulfilling similar government contracts is a crucial factor in assessing the risk and potential success of this award. While the provided data doesn't detail their past performance history, government contracting databases and past performance reviews would typically be consulted during the source selection process. A history of successful, on-time, and within-budget delivery of air transportation services, particularly for military clients, would indicate a lower risk profile. Conversely, a record marred by performance issues, safety concerns, or financial instability could raise red flags. Agencies often maintain performance assessment reports (PARs) that inform future contracting decisions, making a contractor's past performance a significant determinant of future awards.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks associated with this air transportation contract include operational disruptions (e.g., aircraft maintenance issues, weather delays), fluctuations in fuel costs (though mitigated by FFP), geopolitical instability affecting flight routes, and potential contractor performance issues. Mitigation strategies are embedded within the contract structure and oversight processes. The firm fixed-price nature shifts some cost risk to the contractor. The requirement for multiple bids helps ensure a competitive market that incentivizes performance. USTRANSCOM's oversight, including monitoring KPIs and SLAs, provides a mechanism for early detection and correction of performance problems. Contingency planning within the contract and the DoD's broader CRAF program also addresses potential disruptions by having alternative arrangements or surge capabilities available.

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: 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: $111,368,917

Exercised Options: $111,368,917

Current Obligation: $111,368,917

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