DoD's $15.9M Civil Reserve Air Fleet Contract Awarded to Amerijet International Inc
Contract Overview
Contract Amount: $15,900,426 ($15.9M)
Contractor: Amerijet International Inc
Awarding Agency: Department of Defense
Start Date: 2024-10-01
End Date: 2026-09-30
Contract Duration: 729 days
Daily Burn Rate: $21.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Plain-Language Summary
Department of Defense obligated $15.9 million to AMERIJET INTERNATIONAL INC for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Amerijet International Inc. secured a $15.9M contract for air transportation services. 2. The contract falls under the Civil Reserve Air Fleet program, vital for national defense. 3. Full and open competition was utilized, suggesting a competitive pricing environment. 4. The firm fixed-price contract type shifts risk to the contractor. 5. This award supports USTRANSCOM's logistical capabilities.
Value Assessment
Rating: good
The contract value of $15.9M for a 729-day duration appears reasonable given the specialized nature of air transportation services for defense needs. Benchmarking against similar large-scale air charter contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The use of full and open competition is expected to yield a cost-effective solution for taxpayers by leveraging market forces to determine the best price.
Public Impact
Ensures critical airlift capacity is available for national defense emergencies. Supports the Department of Defense's global logistics and deployment needs. Provides essential air transportation for cargo during peacetime and wartime. Amerijet International Inc. will provide services over a two-year period. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for increased demand impacting future pricing.
- Geopolitical events could affect operational costs and availability.
- Dependence on a single awardee for this specific delivery order.
Positive Signals
- Firm fixed-price contract mitigates cost overrun risk for the government.
- Full and open competition suggests a competitive award process.
- Supports critical national defense infrastructure.
- Long-term contract provides stability for planning.
Sector Analysis
This contract falls within the transportation sector, specifically air cargo and logistics. Government spending in this area is crucial for maintaining national security and supporting global operations. Benchmarks for similar large-scale air charter services vary significantly based on route, aircraft type, and duration.
Small Business Impact
The data indicates that Amerijet International Inc. is the awardee. Further analysis would be needed to determine if small businesses were involved as subcontractors or if this contract specifically aimed to support small business participation.
Oversight & Accountability
The award was made by USTRANSCOM, a key component of the Department of Defense responsible for global mobility. Oversight would involve monitoring performance, adherence to contract terms, and ensuring timely delivery of services.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Potential for service disruptions due to unforeseen global events.
- Reliance on a single contractor for a significant portion of airlift needs.
- Fluctuations in fuel prices could impact contractor's profitability and potentially future bids.
- Ensuring compliance with all safety and regulatory standards throughout the contract duration.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to AMERIJET INTERNATIONAL INC. CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Who is the contractor on this award?
The obligated recipient is AMERIJET INTERNATIONAL INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $15.9 million.
What is the period of performance?
Start: 2024-10-01. End: 2026-09-30.
What is the historical performance of Amerijet International Inc. with similar government contracts?
Historical performance data for Amerijet International Inc. on similar government contracts is crucial for assessing reliability and past success. Reviewing past contract awards, performance reviews, and any documented issues or commendations would provide insight into their capabilities and adherence to terms. This information helps validate the current award decision and predict future performance.
How does the per-unit cost of this contract compare to industry benchmarks for similar air cargo services?
Comparing the per-unit cost (e.g., cost per ton-mile or per flight hour) against industry benchmarks for comparable air cargo services is essential for value assessment. Factors like aircraft type, route complexity, and service level agreements influence these costs. A favorable comparison indicates efficient use of taxpayer funds, while a higher cost may warrant further investigation into justification.
What are the contingency plans if Amerijet International Inc. is unable to fulfill its contractual obligations?
Contingency planning is vital for ensuring mission continuity. The government should have pre-defined protocols in place should Amerijet face operational disruptions, financial instability, or other issues preventing service delivery. This might include activating backup carriers, utilizing other government assets, or having pre-negotiated terms with alternative providers to minimize impact on defense operations.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight 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: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4500 NW 36TH ST, MIAMI SPRINGS, FL, 33166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,900,426
Exercised Options: $15,900,426
Current Obligation: $15,900,426
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71125DCC03
IDV Type: IDC
Timeline
Start Date: 2024-10-01
Current End Date: 2026-09-30
Potential End Date: 2030-09-30 00:00:00
Last Modified: 2025-10-09
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