DoD's Civil Reserve Air Fleet contract awarded to Patriot Team for $72.3M, utilizing full and open competition

Contract Overview

Contract Amount: $72,264,737 ($72.3M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2022-09-30

Contract Duration: 729 days

Daily Burn Rate: $99.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

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 $72.3 million to PATRIOT TEAM for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract value represents a significant investment in strategic airlift capabilities. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. Fixed-price with economic price adjustment contract type introduces some cost fluctuation risk. 4. The contract duration of 729 days indicates a medium-term commitment for air transportation services. 5. Awarded by USTRANSCOM, this contract supports critical Department of Defense logistics. 6. The specific service is nonscheduled chartered passenger air transportation, highlighting specialized needs.

Value Assessment

Rating: good

The contract value of $72.3 million for air transportation services appears reasonable given the strategic nature of supporting the Civil Reserve Air Fleet. Benchmarking against similar large-scale airlift contracts is challenging without more specific service details, but the fixed-price with economic price adjustment structure allows for some market volatility. The number of bids (9) suggests a competitive environment that likely contributed to a fair price.

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 a broad solicitation process. Nine bids were received, suggesting a healthy level of interest and competition among potential providers. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured a wider pool of qualified vendors were considered, leading to a more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who rely on these services for strategic mobility. Services delivered include nonscheduled chartered passenger air transportation, crucial for troop movement and logistical support. The geographic impact is national, supporting U.S. military operations worldwide. Workforce implications include employment for pilots, flight crews, maintenance personnel, and support staff within the contracted airlines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces potential for cost increases beyond initial projections.
Reliance on chartered services may present less control over fleet availability compared to government-owned assets.
The strategic nature of the service means disruptions could have significant national security implications.

Positive Signals

Full and open competition process likely secured competitive pricing and a broad base of qualified vendors.
Award to a single contractor (Patriot Team) can streamline management and coordination of services.
The contract supports a critical national defense capability, ensuring readiness.

Sector Analysis

The air transportation sector is vital for both commercial and governmental operations. This contract falls within the broader defense logistics and transportation services market. While specific benchmarks for CRAF contracts are not readily available, the overall defense transportation spending is substantial, with significant portions allocated to airlift capabilities. This contract represents a component of that larger spending, focusing on specialized chartered passenger transport.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify small business set-asides. Therefore, the direct impact on small business set-asides is likely minimal. However, the prime contractor, Patriot Team, may engage small businesses as subcontractors for various support services, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight is likely managed by USTRANSCOM, with performance metrics and reporting requirements built into the contract. The fixed-price with economic price adjustment structure necessitates careful monitoring of cost adjustments. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.

Related Government Programs

Military Sealift Command (MSC) Contracts
Air Mobility Command (AMC) Operations
Logistics and Transportation Services
Strategic Airlift Capabilities
Defense Transportation Contracts

Risk Flags

Potential for cost escalation due to economic price adjustment.
Dependence on commercial carriers for strategic airlift.
Contract performance risk associated with a single awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.3 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 $72.3 million.

What is the period of performance?

Start: 2020-10-01. End: 2022-09-30.

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

Analyzing historical spending for the Civil Reserve Air Fleet (CRAF) requires examining contract awards over multiple fiscal years. While this specific contract is for $72.3 million, understanding the trend involves looking at the total obligated amounts and number of contracts awarded annually for similar services. Data from previous years would reveal if spending on CRAF air transportation has been increasing, decreasing, or remaining stable. Factors influencing these trends could include geopolitical events, changes in military deployment strategies, and the availability of commercial airlift capacity. A consistent or increasing trend might suggest a growing reliance on these services or a stable demand for strategic airlift support. Conversely, a decreasing trend could indicate shifts towards other transportation methods or reduced operational tempo requiring such support.

How does the per-unit cost of this contract compare to similar nonscheduled chartered passenger air transportation services?

Determining the precise per-unit cost for this contract is difficult without knowing the number of passengers transported or flight hours utilized, as 'per-unit' can vary significantly in air charter services. However, we can infer value by examining the total contract value ($72.3M) against the duration (729 days) and the number of bids received (9). A higher number of bids generally suggests a competitive market, which tends to drive per-unit costs down. If comparable contracts for similar routes, aircraft types, and service levels (e.g., emergency response, troop deployment) have lower total values or shorter durations for similar scope, it might indicate this contract's pricing is on the higher end. Conversely, if other contracts involve more complex logistical challenges or less competitive bidding, this contract's pricing could be considered favorable.

What are the primary risks associated with the 'Fixed Price with Economic Price Adjustment' contract type for this service?

The 'Fixed Price with Economic Price Adjustment' (FPEPA) contract type for air transportation services introduces specific risks. The primary risk for the government is cost escalation. While the base price is fixed, the economic price adjustment clause allows for modifications based on fluctuations in specific economic factors, such as fuel costs, labor rates, or material prices. If these factors increase significantly, the total cost to the government could exceed the initially anticipated fixed price. For the contractor, the risk is that the economic adjustments might not fully cover unforeseen cost increases, or that delays in approving adjustments could impact cash flow. Effective management requires robust monitoring of the economic indicators tied to the adjustment formula and clear communication between the contracting parties to manage expectations and potential cost overruns.

What is the track record of Patriot Team in providing similar air transportation services to the government?

Assessing Patriot Team's track record requires reviewing their past performance on government contracts, particularly those involving air transportation and logistical support. Information on previous awards, contract values, performance evaluations (if publicly available), and any history of contract disputes or terminations would be crucial. A history of successful, on-time, and within-budget performance on similar contracts would indicate reliability and capability. Conversely, any significant past issues, such as performance failures, cost overruns, or compliance problems, would raise concerns about their ability to meet the demands of this $72.3 million contract. Government contract databases and performance rating systems (like CPARS) are key resources for this analysis.

How does the competition level (9 bidders) impact the overall value for money achieved in this contract?

A competition level of nine bidders is generally considered strong and indicates a healthy market for the required nonscheduled chartered passenger air transportation services. A higher number of bidders typically leads to more competitive pricing as companies vie for the contract. This increased competition enhances the government's ability to achieve better value for money by securing lower prices and potentially higher quality services. It also reduces the risk of contractor lock-in and provides greater assurance that the selected vendor offers a fair price relative to the market. The government benefits from a wider range of options and a more robust negotiation position, ultimately translating to more efficient use of taxpayer funds.

What are the potential implications of this contract on the broader defense logistics and airlift readiness posture?

This contract is integral to the Civil Reserve Air Fleet (CRAF) program, which augments the Department of Defense's organic airlift capabilities during national emergencies or contingencies. By securing air transportation services through contracts like this, the DoD ensures it has access to commercial aircraft and crews when needed, bolstering overall airlift readiness. The $72.3 million award signifies a commitment to maintaining this surge capacity. The reliability and performance of contractors like Patriot Team directly impact the DoD's ability to rapidly deploy personnel and equipment, thereby influencing the effectiveness of global military operations and contingency response. A well-managed CRAF program enhances strategic flexibility and reduces reliance solely on military assets.

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: 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: $72,264,737

Exercised Options: $72,264,737

Current Obligation: $72,264,737

Actual Outlays: $67,095,143

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71118DCC39

IDV Type: IDC

Timeline