DoD's $25.6M Civil Reserve Air Fleet Contract Awarded to Patriot Team for Air Transportation
Contract Overview
Contract Amount: $25,616,046 ($25.6M)
Contractor: Patriot Team
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2024-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $23.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Transportation
Official Description: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Plain-Language Summary
Department of Defense obligated $25.6 million to PATRIOT TEAM for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract awarded to Patriot Team for essential air transportation services. 2. Significant value of $25.6 million over three years. 3. Competition method indicates a move towards broader market engagement. 4. Fixed Price with Economic Price Adjustment (FPEPA) introduces potential cost volatility. 5. Sector focus on air transportation is critical for defense logistics.
Value Assessment
Rating: good
The contract value of $25.6 million appears reasonable for three years of air transportation services. Benchmarking against similar large-scale charter contracts would provide a more precise assessment, but the fixed-price structure with economic adjustments suggests a balance between cost control and market responsiveness.
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,' indicating a competitive process that aimed to maximize participation. This method is generally favorable for price discovery and ensuring fair market value is obtained.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical air transportation needs.
Public Impact
Ensures critical airlift capacity for national defense needs. Supports military personnel and equipment deployment globally. Provides flexibility for unexpected surges in transportation demand. Contributes to the readiness of the U.S. strategic sealift and airlift capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may lead to cost overruns.
- Reliance on a single awardee for a critical service.
- Potential for service disruptions if the awardee faces operational issues.
Positive Signals
- Full and open competition promotes fair pricing.
- Long-term contract provides service stability.
- Supports national defense readiness.
Sector Analysis
This contract falls within the air transportation sector, specifically for charter services supporting the Civil Reserve Air Fleet. Spending in this area is crucial for maintaining strategic airlift capabilities, with benchmarks often tied to commercial charter rates and operational readiness requirements.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
USTRANSCOM, as the contracting activity, is responsible for overseeing this contract. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a structured procurement process, but ongoing monitoring of performance and costs is essential for accountability.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Economic price adjustment clause introduces cost uncertainty.
- Potential for sole-source reliance if follow-on contracts are not competed.
- Dependence on commercial carriers for strategic airlift capacity.
- Geopolitical instability could impact service availability and cost.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.6 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 $25.6 million.
What is the period of performance?
Start: 2021-10-01. End: 2024-09-30.
What is the expected utilization rate of the Civil Reserve Air Fleet under this contract?
The expected utilization rate is not explicitly detailed in the provided data. However, the contract's purpose is to ensure standby airlift capacity, meaning utilization will likely be low during routine operations but critical during national emergencies or surge requirements. USTRANSCOM manages activation based on defense needs.
How are economic price adjustments calculated and capped to mitigate taxpayer risk?
Economic price adjustments (EPAs) are typically tied to specific indices (e.g., fuel costs, labor rates) outlined in the contract. The 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FPEPA) structure means the base price is fixed, but adjustments are made for documented changes in economic factors. Caps or limitations on these adjustments are crucial to control taxpayer exposure.
What performance metrics are in place to ensure the effectiveness of the air transportation services?
Effectiveness is likely measured through on-time performance, aircraft availability, safety compliance, and adherence to mission requirements. USTRANSCOM would monitor these metrics to ensure the Patriot Team meets contractual obligations and maintains the readiness of the Civil Reserve Air Fleet.
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: 1
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: $25,616,046
Exercised Options: $25,616,046
Current Obligation: $25,616,046
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
Start Date: 2021-10-01
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2024-07-02
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