DoD awards $14.6M contract for Civil Reserve Air Fleet transportation services to National Air Cargo Group

Contract Overview

Contract Amount: $14,568,157 ($14.6M)

Contractor: National AIR Cargo Group, Inc

Awarding Agency: Department of Defense

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES

Plain-Language Summary

Department of Defense obligated $14.6 million to NATIONAL AIR CARGO GROUP, INC for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. The contract is for air transportation services under the Civil Reserve Air Fleet program. 2. National Air Cargo Group, Inc. is the sole awardee for this delivery order. 3. The contract duration is 364 days, with a firm fixed price. 4. This award falls under the broader category of air transportation services.

Value Assessment

Rating: fair

The firm fixed price contract of $14.6M for a 364-day period appears reasonable given the specialized nature of air transportation services for the Civil Reserve Air Fleet. Benchmarking against similar contracts for charter passenger air transportation is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this specific award is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where the initial competition determined the overall terms.

Taxpayer Impact: The firm fixed price structure provides cost certainty for taxpayers, assuming the competition effectively drove down prices to a fair market value.

Public Impact

Ensures the availability of commercial air transport for national defense needs. Supports the operational readiness of military personnel and equipment during emergencies. Provides a critical link in the global logistics chain for the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics in the provided data.
  • Potential for price escalation if fuel costs or operational demands increase significantly.
  • Dependence on a single awardee for this specific delivery order.

Positive Signals

  • Awarded under full and open competition.
  • Firm fixed price contract provides cost predictability.
  • Supports a critical national security function.

Sector Analysis

This contract falls within the air transportation sector, specifically for specialized charter services supporting government operations. Spending benchmarks for such niche services are highly variable and depend on aircraft type, route, and demand.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this specific delivery order, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight would typically involve USTRANSCOM monitoring performance, adherence to contract terms, and financial accountability. The firm fixed price nature simplifies some aspects of financial oversight.

Related Government Programs

  • Nonscheduled Chartered Passenger Air Transportation
  • Department of Defense Contracting
  • USTRANSCOM Programs

Risk Flags

  • Potential for single-source dependency.
  • Limited visibility into subcontractor performance.
  • Reliance on commercial air carriers for national security.
  • Uncertainty of future pricing beyond the current contract term.

Tags

nonscheduled-chartered-passenger-air-tra, department-of-defense, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 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 $14.6 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical cost performance of National Air Cargo Group, Inc. under similar USTRANSCOM contracts?

Historical cost performance data for National Air Cargo Group, Inc. under similar USTRANSCOM contracts is not provided. A thorough review would require accessing past performance evaluations and financial records related to previous awards. This information is crucial for assessing the value and reliability of the current award and ensuring taxpayer funds are used efficiently.

What are the specific risks associated with relying on a single awardee for this critical air transportation service?

Relying on a single awardee for critical air transportation services presents risks such as potential service disruptions due to the contractor's operational issues, limited leverage for price negotiation in future procurements, and reduced incentive for the contractor to innovate or exceed performance expectations. Contingency planning and robust performance monitoring are essential to mitigate these risks.

How effectively does this contract support the strategic goals of the Civil Reserve Air Fleet program?

This contract directly supports the Civil Reserve Air Fleet program's strategic goal of ensuring the availability of commercial air transport for national defense. By securing dedicated air transportation services, the Department of Defense can rapidly mobilize assets during national emergencies, underscoring the contract's effectiveness in maintaining readiness and logistical support capabilities.

Industry Classification

NAICS: Transportation and WarehousingNonscheduled Air TransportationNonscheduled Chartered Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5955 T G LEE BLVD STE 500, ORLANDO, FL, 32822

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

Financial Breakdown

Contract Ceiling: $14,568,157

Exercised Options: $14,568,157

Current Obligation: $14,568,157

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71125DCC20

IDV Type: IDC

Timeline

Start Date: 2025-10-01

Current End Date: 2026-09-30

Potential End Date: 2030-09-30 00:00:00

Last Modified: 2025-12-02

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