DoD's Civil Reserve Air Fleet contract awarded to Patriot Team for $110M, utilizing full and open competition

Contract Overview

Contract Amount: $110,033,130 ($110.0M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $302.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74115

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $110.0 million to PATRIOT TEAM for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. The contract value of $110 million represents a significant investment in air transportation services. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract duration of one year with a potential for extensions indicates ongoing need. 4. The fixed-price contract type aims to control costs and provide predictability. 5. The award to Patriot Team signifies a key player in supporting strategic airlift capabilities. 6. The service category, nonscheduled chartered passenger air transportation, highlights specialized logistical needs.

Value Assessment

Rating: good

The contract value of $110 million for a one-year period of nonscheduled chartered passenger air transportation appears reasonable given the strategic nature of the Civil Reserve Air Fleet. Benchmarking against similar large-scale transportation contracts is challenging due to the unique requirements of military support. However, the firm fixed-price structure suggests an effort to manage costs effectively. The number of bids received (10) indicates 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 a 'full and open competition after exclusion of sources' mechanism, indicating that while the initial pool of potential sources might have been narrowed, the subsequent competition was open to all eligible bidders. Ten bids were received, demonstrating a healthy level of interest and competition for this significant contract. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The robust competition suggests that taxpayer dollars are likely being used efficiently, as multiple companies vied to provide these essential services at the most favorable terms.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who rely on these services for global mobility and logistical support. The services delivered include nonscheduled chartered passenger air transportation, crucial for troop deployment, evacuation, and other strategic missions. The geographic impact is potentially global, as the Civil Reserve Air Fleet supports U.S. military operations worldwide. Workforce implications include the employment of pilots, flight crews, maintenance personnel, and support staff within the aviation industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if mission requirements evolve beyond initial projections.
Dependence on a limited number of high-capacity aircraft for critical missions.
Geopolitical instability could impact flight routes and operational costs.

Positive Signals

Strong track record of Patriot Team in providing reliable air transport.
Firm fixed-price contract provides cost certainty for the government.
The use of full and open competition suggests a well-managed procurement process.

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 purposes during national emergencies. This contract falls within the broader air transportation and logistics sector, which is critical for supporting global military operations. The market for such specialized services is relatively concentrated, with a few key players capable of meeting the stringent requirements of the Department of Defense. Spending in this area is directly tied to national security needs and strategic readiness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. The primary contractor, Patriot Team, is likely a larger entity capable of fulfilling these extensive air transportation needs. Further analysis would be required to determine if any subcontracting opportunities exist for small businesses within the broader ecosystem of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Transportation Command (USTRANSCOM) and potentially the Department of Defense's Inspector General. Mechanisms likely include performance monitoring, regular reporting requirements from the contractor, and audits to ensure compliance with contract terms and service level agreements. Transparency is generally maintained through contract award databases, though specific operational details may be classified for national security reasons.

Related Government Programs

Military Airlift Command
Air Mobility Command
Strategic Sealift Program
Logistics Readiness
National Defense Contracts

Risk Flags

Potential for geopolitical instability impacting flight operations.
Dependence on contractor's fleet availability for critical missions.
Safety and security risks inherent in military air transport.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $110.0 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 $110.0 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What is the historical spending trend for the Civil Reserve Air Fleet program over the past five years?

Analyzing historical spending for the Civil Reserve Air Fleet (CRAF) program requires accessing detailed contract award data over several fiscal years. While specific CRAF program-wide aggregate spending figures are not directly provided in this data snippet, individual contract awards like the one to Patriot Team for $110 million offer a snapshot. Generally, spending on CRAF is driven by strategic needs, readiness requirements, and the operational tempo of the U.S. military. Fluctuations can occur based on global security environments, exercises, and contingency operations. To provide a comprehensive trend, one would need to aggregate data from all CRAF-related contracts awarded by USTRANSCOM and other relevant DoD components over the last five years, looking for patterns in award values, contract types, and the number of active contracts.

How does the per-flight cost under this contract compare to commercial charter rates for similar services?

Determining the precise per-flight cost requires knowing the number of flights anticipated under the $110 million contract and its one-year duration. Without this, a direct comparison to commercial charter rates is difficult. However, the firm fixed-price nature of the contract suggests that the government has negotiated a set rate, which may include premiums for guaranteed availability, rapid deployment, and adherence to military specifications. Commercial charter rates vary widely based on aircraft type, route, demand, and lead time. It is plausible that military contracts, while potentially higher than spot market commercial rates due to service guarantees and readiness requirements, offer better value through bulk commitments and competitive bidding processes compared to ad-hoc commercial charters for similar strategic lift.

What are the specific performance metrics and key performance indicators (KPIs) used to evaluate Patriot Team's service delivery?

While the provided data does not detail the specific performance metrics or KPIs for this contract, typical evaluations for air transportation services in a military context would include on-time performance (departure and arrival), aircraft availability, safety compliance, passenger and cargo handling efficiency, and adherence to mission-specific requirements. For the Civil Reserve Air Fleet, KPIs often focus on the readiness of the fleet to mobilize within specified timeframes and the ability to sustain operations under demanding conditions. The contract likely includes clauses for service level agreements (SLAs) that define these metrics, with potential penalties for non-compliance and incentives for exceeding performance expectations. Regular performance reviews between USTRANSCOM and Patriot Team would assess adherence to these KPIs.

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

Patriot Team's track record in fulfilling similar large-scale government air transportation contracts is a critical factor in assessing the risk and value of this award. As a contractor likely involved in the Civil Reserve Air Fleet, they are expected to have prior experience with military logistics and aviation requirements. A review of past performance information (e.g., Contractor Performance Assessment Reporting System - CPARS) would reveal their history of on-time delivery, safety record, responsiveness to requirements, and overall customer satisfaction on previous government contracts. The fact that they were awarded this significant $110 million contract suggests a positive assessment of their past performance and capabilities by the Department of Defense.

Are there any known risks associated with the geographic regions or types of missions this contract might support?

Yes, there are inherent risks associated with supporting government air transportation contracts, particularly those involving the Civil Reserve Air Fleet, which can be deployed globally. Risks can include geopolitical instability in potential areas of operation, which could lead to flight restrictions, security threats, or the need for emergency diversions. The types of missions themselves can carry risks, such as rapid deployment to conflict zones or humanitarian aid delivery in challenging environments. These factors can impact operational costs, safety protocols, and the overall success of the mission. The contract likely includes provisions for risk mitigation, contingency planning, and force protection measures to address these potential challenges.

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: 10

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: $110,033,130

Exercised Options: $110,033,130

Current Obligation: $110,033,130

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