DoD's $29.5M Civil Reserve Air Fleet Contract Awarded to Patriot Team for Air Transportation Services
Contract Overview
Contract Amount: $29,455,057 ($29.5M)
Contractor: Patriot Team
Awarding Agency: Department of Defense
Start Date: 2022-04-01
End Date: 2023-09-30
Contract Duration: 547 days
Daily Burn Rate: $53.8K/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
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $29.5 million to PATRIOT TEAM for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. The contract value is $29.5 million, awarded to Patriot Team. 2. This award falls under the 'Air Transportation Services' category. 3. The contract type is 'Fixed Price with Economic Price Adjustment'. 4. The period of performance is from April 1, 2022, to September 30, 2023. 5. The award was made after exclusion of sources, indicating a specific justification for limited competition.
Value Assessment
Rating: fair
The contract value of $29.5 million for air transportation services over 18 months appears reasonable given the nature of charter services. Benchmarking against similar ad-hoc charter contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while full and open competition was considered, certain sources were excluded. This could impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: The taxpayer impact is tied to the efficiency of the procurement process and the final negotiated price. Limited competition may result in a less competitive price than if all potential sources were allowed to bid.
Public Impact
Ensures critical air transport capabilities for the military during emergencies. Supports the operational readiness of the Department of Defense. Provides flexibility in augmenting military airlift capacity. Impacts the commercial aviation industry by providing contract opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpayment.
- Economic price adjustment clause could increase costs due to market fluctuations.
- Lack of small business participation noted (ss: false, sb: false).
Positive Signals
- Secures essential air transportation services for national defense.
- Awarded by a major defense agency (USTRANSCOM).
- Fixed-price element provides some cost certainty.
Sector Analysis
The contract falls under the broader 'Transportation and Logistics' sector, specifically air charter services. Spending in this area is crucial for military readiness and emergency response. Benchmarks for similar charter services vary widely based on aircraft type, duration, and route.
Small Business Impact
The data indicates no specific set-aside for small businesses (ss: false, sb: false). This suggests that small businesses were either not solicited or did not participate in this particular award, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
Oversight is provided by USTRANSCOM, a key component of the Department of Defense responsible for global transportation. The 'Delivery Order' nature of the award implies it's part of a larger contract vehicle, subject to its own oversight mechanisms.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Limited competition
- Potential for cost overruns due to EPA
- Lack of small business participation
- Lack of transparency regarding source exclusion justification
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 $29.5 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 $29.5 million.
What is the period of performance?
Start: 2022-04-01. End: 2023-09-30.
What was the specific justification for excluding certain sources in the competition?
The justification for excluding sources is critical for understanding the procurement's fairness and potential cost implications. Without this information, it's difficult to assess if the exclusion was necessary for national security or operational requirements, or if it unduly limited competition and potentially inflated the price paid by taxpayers.
How does the economic price adjustment clause impact the final cost certainty?
The economic price adjustment (EPA) clause allows for modifications 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, it introduces uncertainty for the government regarding the final expenditure, potentially increasing the overall cost to taxpayers beyond the initial fixed price.
What is the benchmark cost per flight hour or per passenger for this type of service?
Establishing a benchmark cost per flight hour or per passenger is essential for evaluating the value for money. Without this data, it's challenging to determine if the $29.5 million award represents a competitive price. Benchmarking requires comparing this contract's rates against similar charter services procured by government or commercial entities, considering factors like aircraft size, range, and service level.
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
Solicitation ID: HTC71118RCC04
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: $29,455,057
Exercised Options: $29,455,057
Current Obligation: $29,455,057
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: 2022-04-01
Current End Date: 2023-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2023-03-29
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