DoD Awards $18.4M Contract for Alaska Air Passenger Services to Wheels Up Partners LLC

Contract Overview

Contract Amount: $18,443,389 ($18.4M)

Contractor: Wheels UP Partners LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2026-03-31

Contract Duration: 729 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: ALASKA COMMUTER PASSENGER SERVICES

Place of Performance

Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to WHEELS UP PARTNERS LLC for work described as: ALASKA COMMUTER PASSENGER SERVICES Key points: 1. Contract awarded to Wheels Up Partners LLC for $18.4 million. 2. Service is nonscheduled chartered passenger air transportation in Alaska. 3. Full and open competition was utilized. 4. Contract duration is 729 days. 5. Firm fixed price contract type.

Value Assessment

Rating: fair

The contract value of $18.4 million for 729 days of service appears reasonable given the specialized nature of chartered air transport in remote regions like Alaska. Benchmarking against similar contracts for unscheduled passenger air services is difficult due to unique operational requirements and geographic limitations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific details of the bidding and selection process are not provided, making it difficult to fully assess the effectiveness of price discovery.

Taxpayer Impact: Taxpayers are impacted by the cost of this essential service, which is subject to market competition. The firm fixed price structure provides cost certainty.

Public Impact

Ensures essential transportation for military personnel and potentially civilians in remote Alaskan locations. Supports operational readiness and personnel mobility for the Department of Defense. The contract's success relies on the reliability and safety of the air carrier.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in fuel and operational costs impacting the fixed price.
Dependence on a single vendor for critical transportation services.
Geographic isolation of Alaska can lead to higher operational costs and logistical challenges.

Positive Signals

Awarded through full and open competition, indicating potential for competitive pricing.
Firm fixed price contract provides budget predictability.
Service duration of two years offers stability for planning.

Sector Analysis

This contract falls under air transportation services, a sector critical for logistics and personnel movement, especially in geographically challenging areas like Alaska. Spending benchmarks for chartered air services vary significantly based on route, aircraft type, and demand.

Small Business Impact

The data indicates the award went to Wheels Up Partners LLC, a known entity in the aviation sector. There is no explicit information provided regarding small business participation or subcontracting opportunities within this specific award.

Oversight & Accountability

Oversight will be managed by USTRANSCOM. The firm fixed price contract and defined service period provide a clear framework for accountability. Monitoring performance against delivery orders and service level agreements will be key.

Related Government Programs

Nonscheduled Chartered Passenger Air Transportation
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

Potential for high operational costs in remote Alaskan environment.
Dependence on a single vendor for critical transportation.
Risk of service disruption due to weather or operational issues.
Limited visibility into specific performance metrics and cost breakdowns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to WHEELS UP PARTNERS LLC. ALASKA COMMUTER PASSENGER SERVICES

Who is the contractor on this award?

The obligated recipient is WHEELS UP PARTNERS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-03-31.

What is the cost per passenger or per flight hour, and how does it compare to industry averages for similar services in remote locations?

The provided data does not include cost per passenger or per flight hour, making direct comparison to industry averages impossible. The total contract value of $18.4 million over 729 days for nonscheduled chartered passenger air transportation in Alaska is difficult to benchmark without specific operational details like flight frequency, routes, and aircraft utilized. Further analysis would require access to detailed delivery order data and relevant industry cost metrics for similar services in remote, challenging environments.

What are the specific risks associated with relying on a single provider for critical air transportation in Alaska, and what mitigation strategies are in place?

The primary risks include service disruptions due to the provider's operational issues (e.g., aircraft maintenance, pilot availability), potential price increases if contract terms are renegotiated, and limited recourse if performance is unsatisfactory. Mitigation strategies could involve robust performance monitoring, clear contract clauses for service failures, contingency planning for alternative transport, and potentially requiring the contractor to maintain backup resources or have established relationships with other carriers.

How effectively does this contract ensure the timely and safe transportation of personnel in Alaska, and what metrics are used to measure this effectiveness?

The effectiveness of this contract in ensuring timely and safe transportation is primarily measured through the successful execution of delivery orders and adherence to flight schedules and safety regulations. USTRANSCOM's oversight would likely involve tracking on-time performance, incident reports, and compliance with aviation standards. The firm fixed price nature incentivizes the contractor to meet these requirements efficiently, but the ultimate effectiveness depends on the contractor's operational capabilities and the rigor of the government's performance monitoring.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AIR Partner PLC

Address: 2135 AMERICAN WAY, CHAMBLEE, GA, 30341

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,443,389

Exercised Options: $18,443,389

Current Obligation: $18,443,389

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71120DR019

IDV Type: IDC

Timeline