DoD's $17.3M Civil Reserve Air Fleet contract awarded to National Air Cargo Group for air transportation services

Contract Overview

Contract Amount: $17,351,873 ($17.4M)

Contractor: National AIR Cargo Group, Inc

Awarding Agency: Department of Defense

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES

Plain-Language Summary

Department of Defense obligated $17.4 million to NATIONAL AIR CARGO GROUP, INC for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term commitment for essential services. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. This contract supports the Civil Reserve Air Fleet, a critical component of national defense logistics. 5. The award to a single contractor, National Air Cargo Group, Inc., warrants examination of market concentration. 6. The North American Industry Classification System (NAICS) code 481211 points to nonscheduled chartered passenger air transportation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. However, the firm-fixed-price structure provides some cost control. Comparing this to similar contracts for air transportation services would require access to a broader dataset of government and commercial air charter agreements. The total award amount of $17.3 million over three years suggests a moderate level of spending for specialized air transport.

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,' which implies that while the competition was open, certain pre-existing conditions or exclusions were applied. This suggests a structured procurement process designed to ensure fair competition among eligible bidders. The number of bids received (10) indicates a reasonable level of interest from the market, which is generally positive for price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices through market forces. The presence of multiple bidders suggests that the government is likely to receive competitive pricing for these essential air transportation services.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, ensuring logistical support for personnel and potentially cargo. The services delivered include nonscheduled chartered passenger air transportation, crucial for military deployment and operations. The geographic impact is likely global, supporting military movements wherever required. Workforce implications include support for pilots, aircrew, and ground support personnel within the contracting company and potentially related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if market conditions change significantly over the 3-year contract term, despite the fixed-price nature.
Dependence on a single contractor, National Air Cargo Group, Inc., could pose risks if the contractor faces operational or financial difficulties.
The 'after exclusion of sources' clause in the competition type warrants further understanding of any limitations imposed on potential bidders.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides budget certainty for the government.
The contract supports a critical national defense capability (Civil Reserve Air Fleet).

Sector Analysis

The air transportation sector is a vital component of the global economy and national infrastructure. Within the federal government, spending on air transportation services supports a wide range of activities, from military logistics to agency travel. This contract, specifically for nonscheduled chartered passenger air transportation, falls under the broader category of air cargo and passenger services. Comparable spending benchmarks would involve analyzing other government contracts for similar charter services, as well as commercial charter rates, to assess value for money.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. However, the prime contractor may engage small businesses as subcontractors, which would depend on their own procurement practices and the nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the U.S. Transportation Command (USTRANSCOM), the contracting agency. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Military Sealift Command Contracts
Air Mobility Command Contracts
Department of Defense Transportation Services
Civil Reserve Air Fleet Program

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Dependence on a single contractor for critical services.
Lack of detailed performance metrics in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to NATIONAL AIR CARGO GROUP, INC. CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES

Who is the contractor on this award?

The obligated recipient is NATIONAL AIR CARGO GROUP, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the historical spending pattern for Civil Reserve Air Fleet - Air Transportation Services awarded to National Air Cargo Group, Inc.?

Analyzing historical spending requires access to past contract awards. Without specific historical data for this contractor and this service category, it's difficult to establish a precise spending pattern. However, the current award of $17.3 million over three years provides a benchmark for recent spending. To understand historical trends, one would need to query contract databases for previous awards to National Air Cargo Group, Inc. for similar services, as well as for the Civil Reserve Air Fleet program in general, looking at award amounts, durations, and competition levels over time. This would reveal if this contract represents an increase, decrease, or consistent level of spending for these services.

How does the per-unit cost of this contract compare to similar government or commercial air charter services?

Determining a precise per-unit cost benchmark is challenging without knowing the specific units of service (e.g., cost per passenger mile, cost per flight hour, cost per aircraft type). The contract is for 'Nonscheduled Chartered Passenger Air Transportation,' and the total value is $17.3 million over 1095 days. To compare, we would need to know the expected volume of service. If, for example, the contract is expected to cover 100,000 passenger miles annually, the implied cost per passenger mile would be approximately $56. This figure would then need to be benchmarked against publicly available data for similar government charters or commercial air charter rates, which can vary significantly based on aircraft type, route, and demand. Without this granular data, a direct comparison is speculative.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for air transportation services, KPIs might include on-time performance, aircraft availability, safety compliance, passenger satisfaction, and response times for charter requests. SLAs would define the expected standards for these metrics. The effectiveness of the contract and the value for money are directly tied to the contractor's adherence to these performance standards. Further details would likely be found in the contract's statement of work (SOW) or performance work statement (PWS).

What is the track record of National Air Cargo Group, Inc. in fulfilling government contracts, particularly for air transportation?

Assessing the track record of National Air Cargo Group, Inc. requires reviewing their past performance on government contracts. This would involve searching contract databases for previous awards, examining past performance reviews (if publicly available), and looking for any documented instances of contract disputes, terminations, or successful completions. A positive track record would indicate reliability and competence in delivering air transportation services, suggesting a lower risk for this current contract. Conversely, a history of issues could raise concerns about the contractor's ability to meet the requirements of the $17.3 million Civil Reserve Air Fleet contract.

What are the potential risks associated with the 'full and open competition after exclusion of sources' award type?

The 'full and open competition after exclusion of sources' award type suggests that while the competition was intended to be open, certain pre-defined exclusions were applied. This could mean that specific types of companies, technologies, or geographical locations were ineligible to bid from the outset. While it aims to ensure competition among a relevant pool of offerors, the exclusions might limit the overall number of potential bidders or inadvertently favor certain market segments. The risk lies in whether these exclusions unnecessarily restricted competition, potentially leading to higher prices or reduced innovation compared to a truly unrestricted full and open competition.

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: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5955 T G LEE BLVD STE500, ORLANDO, FL, 32822

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,351,873

Exercised Options: $17,351,873

Current Obligation: $17,351,873

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71118DCC40

IDV Type: IDC

Timeline