DoD's $118M Civil Reserve Air Fleet contract awarded to Patriot Team for air transportation services

Contract Overview

Contract Amount: $118,033,730 ($118.0M)

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: $323.4K/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 $118.0 million to PATRIOT TEAM for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. The contract value represents a significant investment in ensuring airlift capacity during national emergencies. 2. Competition dynamics suggest a robust bidding process for this critical service. 3. Performance will be closely monitored to ensure reliability and availability of air transport. 4. This contract is crucial for USTRANSCOM's strategic mission to project global power. 5. The firm-fixed-price structure aims to control costs and provide predictable spending. 6. The duration of the contract allows for sustained readiness of the air fleet.

Value Assessment

Rating: good

The total award of $118 million over one year for air transportation services appears reasonable given the strategic nature of the Civil Reserve Air Fleet. Benchmarking against similar large-scale airlift contracts is challenging due to the unique mission requirements of national defense. However, the firm-fixed-price contract type suggests an effort to establish clear cost expectations. The number of offers received (10) indicates a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain pre-qualification criteria or specific exclusions may have been applied. Ten offers were received, suggesting a healthy level of interest and competition among qualified providers. The exclusion of sources, if significant, could potentially limit the breadth of competition and impact price discovery.

Taxpayer Impact: The competitive process, even with exclusions, aimed to secure the best value for taxpayers. The receipt of multiple offers suggests that the government was able to solicit bids from capable contractors, likely leading to a more favorable price than a sole-source award.

Public Impact

The primary beneficiaries are the Department of Defense and U.S. military personnel requiring rapid global mobility. Services delivered include scheduled and unscheduled chartered passenger air transportation. The geographic impact is global, supporting military operations and deployments worldwide. Workforce implications include the utilization of civilian aircrews and support staff, supplementing military aviation resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen operational demands exceed the scope of the firm-fixed-price agreement.
Dependence on civilian carriers could pose risks during widespread national emergencies affecting commercial aviation.
Ensuring consistent service quality and availability across a global operational theater presents logistical challenges.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
The award to a single team (Patriot Team) suggests a consolidated and potentially streamlined management approach.
The contract duration allows for sustained operational readiness and planning.

Sector Analysis

The Civil Reserve Air Fleet (CRAF) program is a critical component of national defense, ensuring the availability of commercial aircraft for military use during national emergencies. This sector involves significant government investment to maintain readiness. The market size for such specialized airlift services is substantial, driven by defense needs. This contract fits within the broader defense logistics and transportation sector, where government spending is a primary driver.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing large-scale airlift capabilities from established carriers, potentially limiting direct opportunities for small businesses within this specific contract.

Oversight & Accountability

Oversight for this contract likely falls under USTRANSCOM's contracting and program management offices. Accountability measures would include performance metrics, adherence to flight schedules, and compliance with safety regulations. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Sealift Command Contracts
Air Mobility Command Services
Global Contingency Logistics Support
Strategic Airlift Capability Programs

Risk Flags

Potential for sole-source reliance in future renewals if competition diminishes.
Dependence on civilian infrastructure during national emergencies.
Contract performance monitoring is critical due to strategic importance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $118.0 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 $118.0 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 past five years?

Analyzing historical spending for the Civil Reserve Air Fleet (CRAF) program requires accessing detailed budget and contract award data over several fiscal years. Generally, CRAF funding is allocated to ensure the availability of commercial aircraft for military use during emergencies. Spending can fluctuate based on readiness requirements, modernization efforts, and the specific needs of the Department of Defense (DoD). For instance, periods of heightened global tension or increased military operations might see increased investment in CRAF readiness. Conversely, periods of relative stability might lead to more modest, maintenance-level funding. Without direct access to historical CRAF-specific contract awards and appropriations data, providing precise dollar figures is not possible. However, it is understood that CRAF contracts are typically long-term agreements designed to maintain a certain level of capability, implying consistent, albeit variable, annual expenditures.

How does the per-unit cost of this contract compare to similar airlift services procured by other government agencies?

Directly comparing the per-unit cost of this $118 million Civil Reserve Air Fleet (CRAF) contract to 'similar' airlift services is complex due to the specialized nature of CRAF. CRAF contracts are designed to ensure the availability of commercial aircraft for military use during national emergencies, which involves readiness commitments and potentially higher costs than standard commercial charter services. The provided data does not specify per-unit metrics (e.g., cost per flight hour, cost per passenger mile). However, given that this is a firm-fixed-price contract awarded under full and open competition after exclusions, with 10 offers received, the pricing is likely benchmarked against the unique requirements of military airlift readiness rather than standard commercial rates. Comparisons would ideally be made against other DoD airlift readiness contracts or similar strategic reserve programs, which are not readily available in the public domain for direct per-unit cost analysis.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this agreement?

While specific Key Performance Indicators (KPIs) are not detailed in the provided contract abstract, typical performance evaluations for airlift services, especially those supporting national defense like the Civil Reserve Air Fleet (CRAF), would focus on several critical areas. These would likely include aircraft availability and readiness rates, on-time performance for scheduled and unscheduled flights, adherence to safety and regulatory compliance standards, and responsiveness to mobilization or deployment orders. For CRAF, the ability of the contractor to provide the contracted aircraft and crews within specified timeframes during a national emergency is paramount. Performance metrics would also likely encompass the condition and maintenance status of the aircraft, crew qualifications, and the effectiveness of communication and coordination between the contractor and USTRANSCOM. Failure to meet these KPIs could result in contractual penalties or impact future contract awards.

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

Information regarding the specific track record of 'Patriot Team' in fulfilling large-scale government airlift contracts is not detailed in the provided abstract. To assess their performance, one would need to consult databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for past contract awards, performance evaluations, and any documented issues or commendations. Given the nature of this award, it is probable that Patriot Team has prior experience in aviation services, potentially including government contracts. A thorough review would examine their history with similar agencies (like DoD or DHS), the scale and complexity of previous contracts, and client feedback on reliability, cost-effectiveness, and responsiveness, particularly in contingency or emergency situations.

How does the current contract value compare to the total annual budget allocated for the Civil Reserve Air Fleet program?

The provided data indicates a single contract award of $118,033,729.78 for the Civil Reserve Air Fleet (CRAF) - Air Transportation Services, with a duration of 365 days (one year). This figure represents the total value of this specific contract. To compare it to the total annual budget for the CRAF program, one would need to access the U.S. Department of Defense's appropriations and budget documents for the relevant fiscal year. The CRAF program encompasses various aspects beyond just air transportation services, potentially including aircraft modifications, maintenance support, and administrative costs. Therefore, this $118 million award is likely a significant portion, but not the entirety, of the total annual CRAF budget. The exact percentage would depend on the overall funding allocated to the program in that fiscal year.

What are the potential risks associated with relying on a single contractor team for such a critical national defense asset?

Relying on a single contractor team, even one selected through a competitive process, for a critical national defense asset like the Civil Reserve Air Fleet (CRAF) introduces several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily dependent on the contractor's capabilities and pricing, potentially limiting future flexibility. Secondly, if the contractor experiences financial difficulties, operational failures, or significant labor disputes, it could directly impact the availability of vital airlift resources during a national emergency. Thirdly, a lack of ongoing competition could potentially lead to complacency in service delivery or innovation. While the contract was awarded under 'Full and Open Competition After Exclusion of Sources,' the long-term reliance on a single entity for sustained readiness requires robust oversight and contingency planning to mitigate these inherent risks.

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: $118,033,730

Exercised Options: $118,033,730

Current Obligation: $118,033,730

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