DoD's $141.9M Civil Reserve Air Fleet Contract Awarded to Federal Express for Air Transportation Services
Contract Overview
Contract Amount: $141,894,760 ($141.9M)
Contractor: Federal Express Corporation
Awarding Agency: Department of Defense
Start Date: 2016-10-01
End Date: 2017-09-30
Contract Duration: 364 days
Daily Burn Rate: $389.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Place of Performance
Location: MEMPHIS, SHELBY County, TENNESSEE, 38118
Plain-Language Summary
Department of Defense obligated $141.9 million to FEDERAL EXPRESS CORPORATION for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Significant contract value of $141.9 million for air transportation. 2. Federal Express Corporation is the sole awardee, raising questions about competition. 3. Risk of limited competition impacting price discovery and taxpayer value. 4. The contract falls under the Transportation sector, specifically air cargo and passenger services.
Value Assessment
Rating: fair
The contract value of $141.9 million for a one-year period appears substantial. Benchmarking against similar air transportation contracts would be necessary to definitively assess pricing, but the lack of competitive bidding suggests potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded via a Delivery Order under a larger contract, but the data indicates 'FULL AND OPEN COMPETITION' was intended. However, Federal Express Corporation is listed as the sole awardee for this specific order, suggesting limited actual competition for this particular requirement.
Taxpayer Impact: The lack of robust competition for this significant contract value may result in suboptimal pricing, potentially leading to increased costs for taxpayers.
Public Impact
Ensures critical air transport capacity for national defense needs. Supports the operational readiness of the U.S. military. Impacts the commercial aviation industry through government contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for this specific delivery order.
- Potential for non-optimal pricing due to lack of competitive pressure.
- Reliance on a single provider for critical air transport.
Positive Signals
- Secures essential air transportation capabilities for the DoD.
- Leverages established commercial logistics infrastructure.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract is within the Transportation sector, specifically focusing on air transportation services. The DoD relies on such contracts to maintain the Civil Reserve Air Fleet, ensuring surge capacity during national emergencies. Benchmarks for similar large-scale air cargo and passenger contracts would be relevant.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. The award to a large corporation like Federal Express suggests that small businesses may not have been significantly involved in this particular procurement.
Oversight & Accountability
Oversight would typically involve monitoring contract performance, delivery schedules, and adherence to terms. The contracting activity is USTRANSCOM, which is responsible for managing the Civil Reserve Air Fleet. Accountability for cost and performance rests with both the contractor and the agency.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Limited competition observed for this delivery order.
- Potential for non-competitive pricing.
- Lack of transparency regarding the competitive process for this specific award.
- Reliance on a single large corporation for critical services.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, tn, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $141.9 million to FEDERAL EXPRESS CORPORATION. IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Who is the contractor on this award?
The obligated recipient is FEDERAL EXPRESS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $141.9 million.
What is the period of performance?
Start: 2016-10-01. End: 2017-09-30.
What was the rationale for awarding this delivery order to a single vendor if the overarching contract allowed for full and open competition?
The rationale for awarding this specific delivery order to Federal Express Corporation as a sole vendor, despite the overarching contract potentially allowing for full and open competition, requires further investigation. It could be due to specific service requirements, existing pre-negotiated terms, or a lack of responsive bids from other qualified carriers for this particular order. Understanding this will clarify the actual competitive landscape.
How does the $141.9 million price compare to market rates for similar air transportation services, considering the limited competition?
Without specific performance metrics and detailed service breakdowns, a direct market rate comparison is challenging. However, the limited competition for this $141.9 million contract raises concerns about whether the government secured the best possible price. Benchmarking against historical contracts or similar solicitations with broader competition would be crucial to assess value for money and identify potential overpricing.
What are the contingency plans if Federal Express Corporation is unable to fulfill its obligations under this contract?
Given the critical nature of the Civil Reserve Air Fleet, contingency plans are essential. The Department of Defense likely has protocols in place to address contractor default or inability to perform. This could involve activating other pre-negotiated agreements, seeking alternative carriers, or potentially invoking emergency procurement procedures to ensure continuity of essential air transportation services.
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
Solicitation ID: HTC71116RC001
Offers Received: 12
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fedex Corp
Address: 2955 REPUBLICAN DR FL 1, MEMPHIS, TN, 38118
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $141,894,760
Exercised Options: $141,894,760
Current Obligation: $141,894,760
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71117DCC11
IDV Type: IDC
Timeline
Start Date: 2016-10-01
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2024-03-29
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