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 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
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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