DoD's $72.8M Air Transportation Contract Awarded to Patriot Team Amidst Full and Open Competition

Contract Overview

Contract Amount: $72,848,162 ($72.8M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2019-10-01

End Date: 2020-09-30

Contract Duration: 365 days

Daily Burn Rate: $199.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 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 $72.8 million to PATRIOT TEAM for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract awarded for essential air transportation services, supporting critical national defense logistics. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract value of $72.8M over one year indicates significant resource allocation for air mobility. 4. Fixed-price contract type aims to control costs and provide predictability. 5. Delivery order structure allows for flexible tasking within the broader contract. 6. The award to Patriot Team highlights a key player in the defense air charter market.

Value Assessment

Rating: good

The contract value of $72.8 million for a one-year period for air transportation services appears reasonable given the scope of supporting the Civil Reserve Air Fleet. Benchmarking against similar large-scale air charter contracts for military support would provide a more precise value assessment. The firm fixed-price structure is generally favorable for cost control. However, without specific details on the types of aircraft, routes, and service levels, a definitive value-for-money judgment is challenging.

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,' which implies a competitive process was initiated, but specific sources were later excluded. This suggests a deliberate selection process. With 10 offers received, the competition level was substantial, which typically drives better pricing and service offerings for the government. The exclusion of sources warrants further investigation to understand its impact on the final award and potential bidder pool.

Taxpayer Impact: A competitive bidding process with multiple offers generally benefits taxpayers by fostering price discovery and encouraging contractors to offer their best value propositions. The exclusion of sources, however, could potentially limit the breadth of competition and may warrant scrutiny to ensure it did not unduly restrict market access or inflate prices.

Public Impact

Benefits the Department of Defense by ensuring critical air transportation capabilities for strategic sealift and wartime readiness. Provides essential air transport services for personnel and potentially cargo, crucial for military operations and deployments. The services are likely to have a national geographic impact, supporting U.S. military presence and operations globally. Supports the aviation industry and associated workforce through contract fulfillment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Reliance on a single contractor for a significant portion of air transport needs could pose risks.
The fixed-price nature might incentivize cost-cutting that could affect service quality if not monitored.

Positive Signals

Full and open competition indicates a structured procurement process.
Multiple offers received (10) suggest a healthy interest from the market.
The firm fixed-price contract type provides cost certainty for the government.
Awarded to a single entity (Patriot Team) for consolidated service delivery.

Sector Analysis

The Civil Reserve Air Fleet (CRAF) program is a vital component of national defense, ensuring the availability of commercial air transport for military use during national emergencies. This contract falls within the broader aerospace and defense services sector, a significant market driven by government procurement. The market for air charter services, especially for specialized government needs, is competitive but also subject to stringent regulatory and security requirements. Spending in this area is critical for maintaining readiness and projecting power.

Small Business Impact

The contract details do not indicate a specific small business set-aside. Given the scale and nature of air transportation services for the Department of Defense, it is likely that the prime contractor, Patriot Team, is a larger entity. However, there may be opportunities for small businesses to participate as subcontractors, particularly in areas such as maintenance, ground support, or specialized logistics, depending on the subcontracting plan requirements.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Defense, specifically USTRANSCOM, which is responsible for the Civil Reserve Air Fleet. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Civil Reserve Air Fleet (CRAF)
Military Airlift Command
Air Mobility Command
Department of Defense Transportation Services
Commercial Air Charter Services

Risk Flags

Potential for limited competition due to source exclusion.
Dependence on a single contractor for critical services.
Need for robust performance monitoring to ensure value and quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.8 million to PATRIOT TEAM. 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 $72.8 million.

What is the period of performance?

Start: 2019-10-01. End: 2020-09-30.

What specific types of aircraft and routes are covered under this $72.8M contract?

The provided data indicates the contract is for 'Nonscheduled Chartered Passenger Air Transportation' under the Civil Reserve Air Fleet program. However, it does not specify the exact types of aircraft (e.g., wide-body, narrow-body, specific models) or the geographic routes that are covered. This information would typically be detailed in the contract's statement of work (SOW) or performance work statement (PWS). Understanding these specifics is crucial for a comprehensive assessment of the contract's operational scope and value, as different aircraft and routes have vastly different cost structures and strategic importance.

How does the pricing structure of this contract compare to historical CRAF contracts or similar commercial air charter agreements?

This contract utilizes a 'Firm Fixed Price' (FFP) structure, which is common for services where the scope is well-defined and risks are manageable. While FFP aims to provide cost certainty, its competitiveness depends on the accuracy of the initial pricing and the market conditions at the time of award. Without access to the specific bid prices or historical data for comparable CRAF services, it's difficult to benchmark precisely. However, the fact that 10 offers were received suggests a competitive environment that likely pressured pricing. Further analysis would require comparing the awarded rates (per flight hour, per mile, or per passenger) against industry benchmarks and previous USTRANSCOM awards for similar charter services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this air transportation contract?

The provided summary data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for air transportation services supporting the military, KPIs would likely include on-time performance, aircraft availability, safety compliance, passenger comfort standards, and response times for charter requests. SLAs would define the acceptable thresholds for these metrics and potential penalties or incentives tied to performance. These elements are critical for ensuring the contractor meets the operational requirements of the Civil Reserve Air Fleet and for the government to effectively manage performance and value.

What is the significance of 'Full and Open Competition After Exclusion of Sources' and how might it have impacted the bidding?

The 'Full and Open Competition After Exclusion of Sources' designation is somewhat unusual. It implies that the procurement initially followed full and open competition procedures, allowing all responsible sources to submit an offer. However, at some point, specific sources were excluded from consideration. This exclusion could be due to various reasons, such as past performance issues, security concerns, or specific technical requirements that only a subset of potential bidders could meet. While 10 offers were received, the exclusion might have narrowed the field from what could have been achieved under pure full and open competition, potentially impacting the final price and innovation. The rationale for exclusion is key to understanding its full impact.

What is the track record of Patriot Team in fulfilling similar large-scale government air transportation contracts?

Information regarding the specific track record of 'Patriot Team' in fulfilling large-scale government air transportation contracts is not detailed in the provided data. To assess their reliability and performance history, one would need to consult contract databases (like FPDS), past performance reviews, and potentially agency-specific evaluations. Understanding their experience with the Civil Reserve Air Fleet program, their safety records, on-time performance metrics, and any past disputes or contract modifications would be crucial for evaluating the risk associated with this award.

How does the $72.8M annual spending on this contract fit into the broader context of USTRANSCOM's or DoD's overall air mobility budget?

The $72.8 million allocated to this specific contract represents a significant investment in air transportation services for the Civil Reserve Air Fleet. To contextualize this spending, it would need to be compared against the total budget allocated by USTRANSCOM and the broader Department of Defense for air mobility, strategic sealift, and contingency operations. This figure alone doesn't reveal whether it's a large or small portion of the overall budget. Analyzing historical spending trends for CRAF and similar services would help determine if this award represents an increase, decrease, or stable level of investment in these critical capabilities.

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: 12

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: $72,848,162

Exercised Options: $72,848,162

Current Obligation: $72,848,162

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71118DCC39

IDV Type: IDC

Timeline