DoD's $27.7M Alaska airlift contract awarded to Wheels Up Partners LLC for nonscheduled passenger transport

Contract Overview

Contract Amount: $27,763,746 ($27.8M)

Contractor: Wheels UP Partners LLC

Awarding Agency: Department of Defense

Start Date: 2019-02-01

End Date: 2024-03-31

Contract Duration: 1,885 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IGF::OT::IGF ALASKA EIGHT PASSENGER CHARTERED AIRLIFT - AIR TRANSPORTATION SERVICES

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99502

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to WHEELS UP PARTNERS LLC for work described as: IGF::OT::IGF ALASKA EIGHT PASSENGER CHARTERED AIRLIFT - AIR TRANSPORTATION SERVICES Key points: 1. Value for money assessed through comparison with similar airlift services. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include the duration of the contract and potential for schedule disruptions. 4. Performance context is critical given the remote nature of Alaska operations. 5. Sector positioning within transportation services, specifically air charter for government needs.

Value Assessment

Rating: fair

The contract's total value of $27.7 million over its period of performance suggests a significant investment in air transportation. Benchmarking this against similar government airlift contracts, particularly those in remote or challenging environments like Alaska, is crucial. Without specific per-flight cost data or comparison to commercial charter rates for comparable routes and aircraft types, a precise value-for-money assessment is difficult. However, the duration and scope imply a need for reliable service, which may justify the expenditure if performance metrics are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to more favorable pricing for the government. The agency sought proposals from all responsible sources, suggesting a robust process to ensure fair market value.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overpricing that could occur with less competitive methods.

Public Impact

Military personnel and potentially civilian employees operating in or traveling to/from Alaska benefit from this service. Provides essential air transportation for personnel movement, supporting operational readiness and logistical needs in remote areas. Geographic impact is concentrated within Alaska, serving various locations that may lack conventional transportation infrastructure. Workforce implications are minimal directly from the contract award, but it supports the operational capacity of the DoD workforce in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases over the contract's extended duration.
Dependence on a single contractor for critical transportation in remote areas.
Operational risks associated with weather and remote logistics in Alaska.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long-term contract provides stability for service provision in a challenging environment.
Focus on a specific, critical need (Alaska airlift) indicates strategic resource allocation.

Sector Analysis

This contract falls within the broader air transportation and logistics sector, specifically focusing on chartered passenger services. The market for government air charter is significant, driven by the need for flexible and often specialized transportation solutions, particularly to remote or austere locations. Comparable spending benchmarks would involve analyzing other government contracts for similar airlift services, considering factors like route, aircraft type, and duration. The market size for government aviation services is substantial, with numerous providers competing for these contracts.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement for this contract (sb: false). Therefore, the direct impact on small businesses through subcontracting opportunities is not explicitly detailed. However, the prime contractor, Wheels Up Partners LLC, may engage small businesses for ancillary services, though this is not guaranteed by the contract terms. The absence of a small business set-aside suggests the primary focus was on securing the most competitive offer for the core service.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of USTRANSCOM, the contracting agency. Accountability measures are embedded in the contract's performance standards and delivery requirements. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

Military Airlift Command
Government Travel Services
Logistics and Transportation Services
Department of Defense Aviation Contracts

Risk Flags

Potential for increased costs over the contract's long duration.
Operational challenges in remote Alaskan environment.
Dependence on a single provider for critical airlift.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to WHEELS UP PARTNERS LLC. IGF::OT::IGF ALASKA EIGHT PASSENGER CHARTERED AIRLIFT - AIR TRANSPORTATION SERVICES

Who is the contractor on this award?

The obligated recipient is WHEELS UP PARTNERS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2019-02-01. End: 2024-03-31.

What is the historical spending pattern for similar airlift services in Alaska by the Department of Defense?

Analyzing historical spending on airlift services in Alaska by the DoD requires access to detailed procurement data over several fiscal years. This would involve identifying contracts with similar scopes of work, such as nonscheduled passenger or cargo air transportation, specifically within the Alaskan region. Key metrics to examine would include the total annual expenditure, the number of contracts awarded, the average contract value, and the primary contractors. Understanding these patterns can reveal trends in pricing, contractor concentration, and the evolution of service requirements. For instance, a consistent increase in spending might indicate growing demand or rising costs, while a shift in awarded contractors could suggest changes in market competition or contractor performance. Without specific historical data for this precise service category and region, it's challenging to provide a definitive historical spending context, but such an analysis would be crucial for long-term budget planning and identifying potential cost efficiencies.

How does the per-flight cost of this contract compare to commercial charter rates for similar routes in Alaska?

To compare the per-flight cost of this DoD contract with commercial charter rates in Alaska, one would need to derive an average per-flight cost from the total contract value and estimate the number of flights. The total contract value is $27,763,746.14, and the duration is 1885 days (approximately 5.16 years). The number of flights is not provided. Assuming a hypothetical number of flights, say 1000 flights over the contract period, the average cost per flight would be approximately $27,764. This figure must then be benchmarked against prevailing commercial charter rates for similar aircraft types (e.g., turboprop or light jet) operating on comparable routes within Alaska. Commercial rates are influenced by factors such as demand, aircraft availability, fuel costs, and specific route challenges. If the DoD's average per-flight cost is significantly higher than commercial rates, it could indicate a potential issue with value for money, although factors like guaranteed availability, specific service requirements, and the remote operating environment might justify some premium.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or service level agreements (SLAs) for this contract. Typically, government contracts for transportation services include clauses that define acceptable performance standards. These often cover aspects such as on-time performance (e.g., percentage of flights departing and arriving within a specified window), aircraft availability, safety compliance, passenger handling, and response times for scheduling changes or emergencies. Failure to meet these SLAs can result in penalties, such as financial deductions or even contract termination. For a critical service like airlift in Alaska, stringent SLAs are essential to ensure operational continuity and safety. A thorough review of the contract's Statement of Work (SOW) and associated clauses would be necessary to identify these specific performance requirements and understand how contractor performance is monitored and enforced by USTRANSCOM.

What is the track record of Wheels Up Partners LLC in fulfilling similar government contracts, particularly in remote or challenging environments?

Wheels Up Partners LLC has a history of providing aviation services, including charter flights. Assessing their track record specifically with government contracts, especially those involving remote operations like in Alaska, requires examining past performance evaluations and contract completion data. Information on previous government awards, their values, durations, and any reported issues (e.g., past performance concerns, contract disputes, or terminations) would be pertinent. While the company is known in the private aviation sector, its experience and performance in the government contracting arena, particularly under stringent military requirements and in challenging logistical environments like Alaska, needs specific verification. Publicly available contract databases and performance assessment reports (if accessible) would provide insights into their reliability, safety record, and ability to meet demanding operational needs for federal agencies.

Are there any identified risks associated with the contractor's financial stability or operational capacity to sustain this long-term contract?

The provided data does not include information on the financial stability or operational capacity of Wheels Up Partners LLC. Assessing these risks for a long-term contract (over 5 years) is crucial. This would typically involve reviewing the contractor's financial health through credit reports, financial statements (if publicly available or required by the contract), and any history of bankruptcy or financial distress. Operational capacity would involve evaluating their fleet size and maintenance programs, pilot staffing levels, and their ability to consistently provide aircraft and crews meeting DoD specifications throughout Alaska's demanding climate and geography. Government contracting officers usually conduct pre-award responsibility determinations and may monitor these aspects throughout contract performance. Without specific due diligence reports or performance history, it's difficult to definitively assess these risks, but they are standard considerations for contracts of this magnitude and duration.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9656 METRO AIRPORT AVE, BROOMFIELD, CO, 80021

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,763,746

Exercised Options: $27,763,746

Current Obligation: $27,763,746

Actual Outlays: $5,136,290

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71119DCC54

IDV Type: IDC

Timeline