DoD's $20.4M Civil Reserve Air Fleet contract awarded to Patriot Team for air transportation services

Contract Overview

Contract Amount: $20,439,415 ($20.4M)

Contractor: Patriot Team

Awarding Agency: Department of Defense

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $56.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES

Plain-Language Summary

Department of Defense obligated $20.4 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. Competition dynamics suggest a robust market for specialized air charter services. 3. Performance risk appears moderate given the nature of chartered transportation. 4. This contract supports critical national defense logistics and personnel movement. 5. The award falls within the broader defense logistics and transportation sector. 6. Fixed-price contract type aims to control costs and provide budget certainty.

Value Assessment

Rating: good

The contract value of $20.4 million for air transportation services appears reasonable given the scope of supporting the Civil Reserve Air Fleet. Benchmarking against similar large-scale charter contracts is challenging due to the specialized nature of military requirements. However, the firm fixed-price structure suggests an effort to ensure cost predictability for the Department of Defense. The number of delivery orders (13) indicates a structured approach to utilizing the awarded capacity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific criteria that may have limited the pool of eligible bidders. While not a sole-source award, the 'exclusion of sources' suggests a need for specialized capabilities or certifications. The exact number of bidders is not specified, but the process implies more than one offer was considered, allowing for some price discovery.

Taxpayer Impact: This procurement method aims to balance the need for specialized services with taxpayer value by ensuring multiple qualified vendors could compete, potentially leading to better pricing than a sole-source award.

Public Impact

The primary beneficiaries are the U.S. military personnel and cargo requiring rapid global deployment. Services delivered include nonscheduled chartered passenger air transportation. Geographic impact is global, supporting worldwide military operations. Workforce implications include support for pilots, aircrews, and ground support personnel within the contracting company and its partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if mission requirements change significantly.
Dependence on a limited number of specialized air carriers.
Vulnerability to fluctuations in fuel prices and availability impacting charter costs.

Positive Signals

Firm fixed-price contract provides cost certainty.
Supports critical national defense readiness and rapid deployment.
Leverages commercial aviation assets for military logistics needs.

Sector Analysis

The defense logistics and transportation sector is crucial for national security, involving the movement of personnel and equipment globally. This contract for air transportation services fits within the broader market for commercial air charter, adapted for military requirements. The Civil Reserve Air Fleet program itself is a key component of the U.S. military's strategic sealift and airlift capability, ensuring surge capacity during national emergencies. Spending in this area is often driven by geopolitical factors and readiness requirements.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the specialized nature of military air transportation, it is possible that large, established air carriers are the primary participants. Subcontracting opportunities for small businesses might exist in ancillary services, but direct participation as a primary air charter provider is less likely unless they possess the required certifications and fleet size.

Oversight & Accountability

Oversight for this contract likely falls under the purview of the U.S. Transportation Command (USTRanscom) and potentially the Department of Defense Inspector General. Accountability measures would include adherence to flight schedules, safety regulations, and service delivery as per the contract terms. Transparency is facilitated through contract award databases, though specific operational details may be classified for security reasons.

Related Government Programs

Military Airlift Command
Strategic Sealift Program
Air Mobility Command Contracts
Defense Transportation Services

Risk Flags

Potential for reliance on a limited number of specialized providers.
Need for robust oversight to ensure service quality and safety.
Fluctuations in operational tempo could strain contracted capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 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 $20.4 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

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

Analyzing historical spending for the Civil Reserve Air Fleet (CRAF) program requires accessing detailed budget and contract data from the Department of Defense. Typically, CRAF contracts are awarded to ensure the availability of commercial air carriers during national emergencies or when military airlift capacity is insufficient. Spending can fluctuate based on global security postures, training exercises, and the activation of CRAF assets. Without direct access to specific CRAF program line items across multiple fiscal years, a precise trend analysis is not feasible. However, general defense spending trends and the operational tempo of military deployments often correlate with the need for and funding of such strategic reserve programs. Increased global instability or major military operations would likely correspond with higher CRAF-related expenditures.

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

Determining the precise per-flight cost under this contract and comparing it to commercial charter rates is complex without specific flight data (e.g., routes, aircraft type, duration, number of passengers/cargo). The contract value of $20.4 million covers a period of one year (365 days) and involves nonscheduled chartered passenger air transportation. Commercial charter rates vary significantly based on aircraft size, range, amenities, and market demand. Military contracts often include specific security, logistical, and operational requirements that can influence pricing. While the firm fixed-price nature aims for predictability, it may not always reflect the absolute lowest market rate for every individual flight, especially if the contract is designed to ensure availability and surge capacity rather than solely on per-flight cost optimization. A detailed analysis would require deconstructing the total contract value into estimated per-flight costs and comparing these to benchmark commercial rates for comparable services.

What specific criteria were used to 'exclude sources' during the competition for this contract?

The designation 'Full and Open Competition After Exclusion of Sources' implies that the solicitation was publicly advertised, but certain potential offerors were excluded based on specific, pre-defined criteria. These exclusions are typically related to the unique requirements of the service, such as possessing specific certifications (e.g., FAA Part 121 operating certificates for scheduled air carriers), security clearances, specialized equipment, demonstrated experience with military logistics, or the ability to meet stringent readiness and response time requirements. The exclusion is not arbitrary; it must be justified by the nature of the requirement to ensure that only capable and qualified entities can compete. The specific justification for excluding sources in this particular contract would be detailed in the solicitation documents or internal agency justifications, which are not publicly available in this data extract.

What is the track record of Patriot Team in fulfilling similar Department of Defense air transportation contracts?

Assessing the track record of Patriot Team requires accessing historical contract performance data, which is not fully detailed in the provided summary. However, the award of a $20.4 million contract by USTRANSCOM suggests a level of established capability and reliability recognized by the agency. Companies awarded significant defense contracts typically undergo vetting processes that include past performance evaluations. To gain a comprehensive understanding, one would need to review databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for specific ratings, past issues, or commendations related to Patriot Team's previous work with the DoD, particularly in air transportation and logistics.

Are there any performance metrics or Key Performance Indicators (KPIs) associated with this contract, and how are they monitored?

While the provided data specifies the contract type (Firm Fixed Price) and duration, it does not explicitly list the Key Performance Indicators (KPIs) or detailed performance metrics. However, for air transportation services supporting the military, common KPIs would likely include on-time performance (departure and arrival), aircraft availability, safety compliance (zero major incidents/accidents), passenger/cargo handling efficiency, and adherence to mission-specific requirements. Monitoring these KPIs is typically managed through contract officers, quality assurance personnel, and potentially automated reporting systems that track flight operations. Performance evaluations, such as those captured in CPARS, would reflect the contractor's success in meeting these critical metrics throughout the contract period.

What is the potential impact of this contract on the broader commercial air charter market, particularly regarding capacity and pricing?

This contract, by reserving capacity or ensuring availability through Patriot Team, could have a moderate impact on the broader commercial air charter market. If Patriot Team utilizes a significant portion of its fleet or relies heavily on specific aircraft types, it might reduce the availability of those resources for other commercial clients, potentially leading to increased pricing for comparable charters. Conversely, the contract could also incentivize carriers to expand capacity or invest in specialized assets to meet defense needs. The 'exclusion of sources' aspect suggests that the market segment being served is specialized, potentially limiting the direct impact on the general leisure or business charter market. However, the overall demand signal from a large government contract can influence market dynamics and investment decisions within the air charter industry.

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: 13

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: $20,439,415

Exercised Options: $20,439,415

Current Obligation: $20,439,415

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