DoD's $28.9M Civil Reserve Air Fleet Contract Awarded to Patriot Team for Air Transportation
Contract Overview
Contract Amount: $28,903,261 ($28.9M)
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: $39.6K/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: Transportation
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 $28.9 million to PATRIOT TEAM for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. The contract value is $28.9 million, awarded to Patriot Team. 2. Full and open competition was used, indicating a competitive bidding process. 3. The contract is for air transportation services, specifically nonscheduled chartered passenger air transport. 4. The contract duration is 729 days, spanning from October 2020 to September 2022.
Value Assessment
Rating: good
The contract's fixed-price with economic price adjustment structure aims to balance cost certainty with market fluctuations. Benchmarking against similar air transportation contracts would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method suggests a competitive process was initiated, but specific sources might have been excluded initially. This approach can still yield competitive pricing if the exclusion criteria were justified and the remaining pool was sufficiently competitive.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, though the economic price adjustment clause introduces potential for cost increases.
Public Impact
Ensures critical air transport capacity for national defense needs. Supports the Civil Reserve Air Fleet program, vital for strategic airlift. Provides employment and revenue for the awarded contractor and related aviation industries. Potential for cost fluctuations due to economic price adjustments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment could lead to higher-than-anticipated costs.
- Exclusion of sources in competition needs further justification.
- Contract duration is relatively long, increasing exposure to market volatility.
Positive Signals
- Awarded through full and open competition.
- Supports a critical national defense program.
- Fixed-price element provides some cost control.
Sector Analysis
This contract falls under air transportation services, a sector crucial for logistics and defense operations. Spending benchmarks for similar government air charter services would provide further context on the $28.9 million award.
Small Business Impact
The data does not indicate if small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by USTRANSCOM, a component of the Department of Defense, suggesting established oversight mechanisms. The use of delivery orders under a larger contract framework implies ongoing monitoring.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Potential for cost overruns due to Economic Price Adjustment.
- Lack of clarity on Small Business participation.
- Justification for 'exclusion of sources' needs review.
- Long contract duration increases exposure to market risks.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.9 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 $28.9 million.
What is the period of performance?
Start: 2020-10-01. End: 2022-09-30.
What was the specific justification for excluding sources in the 'full and open competition after exclusion of sources' process, and did this exclusion impact the final price?
The justification for excluding sources is critical to understanding the true competitiveness of the bidding process. If exclusions were based on specific capabilities or security requirements, it might be warranted. However, if arbitrary, it could have limited competition and potentially inflated the price paid by taxpayers. A review of the solicitation documents and award justification would clarify this.
How does the economic price adjustment (EPA) clause typically affect the final cost of air transportation services compared to fixed-price contracts without EPA?
An EPA clause allows for adjustments to the contract price based on fluctuations in specific economic factors, such as fuel costs or labor rates. While it can protect contractors from unforeseen market volatility and ensure service availability, it introduces uncertainty for the government regarding the final cost. Contracts without EPA offer greater price certainty but may face contractor reluctance or higher initial bids to account for risk.
What is the typical utilization rate and readiness level of the Civil Reserve Air Fleet (CRAF) during non-wartime periods, and how does this contract contribute to maintaining that readiness?
The CRAF program is designed to augment the Air Mobility Command during national emergencies. During non-wartime, its utilization is generally low, focusing on maintaining readiness and training. Contracts like this ensure that participating commercial carriers maintain the necessary aircraft and crews, keeping them prepared for rapid activation when needed, thus fulfilling the program's core objective.
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: 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: $28,903,261
Exercised Options: $28,903,261
Current Obligation: $28,903,261
Actual Outlays: $26,323,904
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71118DCC39
IDV Type: IDC
Timeline
Start Date: 2020-10-01
Current End Date: 2022-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2022-01-18
More Contracts from Patriot Team
- Civil Reserve AIR Fleet - AIR Transportation Services — $142.9M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $140.1M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $118.0M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $115.2M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $111.4M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)