DoD's $130M Civil Reserve Air Fleet Contract Awarded to Federal Express for Air Transportation Services
Contract Overview
Contract Amount: $129,746,958 ($129.7M)
Contractor: Federal Express Corporation
Awarding Agency: Department of Defense
Start Date: 2014-10-01
End Date: 2015-12-31
Contract Duration: 456 days
Daily Burn Rate: $284.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 24
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Plain-Language Summary
Department of Defense obligated $129.7 million to FEDERAL EXPRESS CORPORATION for work described as: IGF::OT::IGF CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. The contract awarded to Federal Express for $129.7M represents a significant investment in air transportation capabilities. 2. Federal Express, a major player in logistics, likely offers competitive pricing and extensive network reach. 3. Potential risks include reliance on a single provider for critical air transport, impacting surge capacity. 4. The IT sector is not directly involved; this falls under transportation and logistics services.
Value Assessment
Rating: good
The award amount of $129.7M for air transportation services appears reasonable given the scale and duration of the contract. Benchmarking against similar large-scale government air charter contracts would provide a more definitive assessment.
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. This method typically ensures the government receives competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers, as it aims to secure the best value and price for services rendered.
Public Impact
Ensures critical air transport capacity for national defense needs. Supports rapid deployment of personnel and resources during emergencies. Provides flexibility for the Department of Defense in managing logistical requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential over-reliance on a single carrier for critical services.
- Geopolitical instability impacting air routes or fuel costs.
- Changes in demand for air transport services.
Positive Signals
- Established provider with proven track record.
- Contract awarded through competitive bidding.
- Supports national security objectives.
Sector Analysis
This contract falls under the transportation and logistics sector, specifically air cargo and charter services. Government spending in this area is crucial for maintaining operational readiness and supporting national security missions, often involving large sums for specialized services.
Small Business Impact
The data indicates the primary awardee is Federal Express Corporation, a large business. There is no explicit information regarding subcontracting opportunities for small businesses within this specific award, which warrants further investigation.
Oversight & Accountability
The Department of Defense, through USTRANSCOM, is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders and performance monitoring are expected to be in place to ensure compliance and service delivery.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Sole-source provider risk for critical infrastructure.
- Potential for cost escalation not fully captured in fixed price.
- Dependence on a single entity for national security logistics.
- Limited visibility into small business participation.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $129.7 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 $129.7 million.
What is the period of performance?
Start: 2014-10-01. End: 2015-12-31.
What is the specific capacity and service level commitment under this contract, and how does it compare to historical requirements?
The contract details the provision of air transportation services for the Civil Reserve Air Fleet. Specific capacity and service levels are defined within the delivery order, likely encompassing cargo and/or passenger transport. Comparison to historical needs would reveal if this award represents an increase or decrease in contracted capacity, potentially indicating shifts in strategic planning or operational tempo.
What are the contingency plans if Federal Express is unable to fulfill its obligations due to unforeseen circumstances?
Contingency plans typically involve pre-identified backup carriers or alternative transportation methods. Given the critical nature of the Civil Reserve Air Fleet, the Department of Defense would likely have established protocols to activate secondary agreements or utilize other government-owned or controlled assets to ensure mission continuity.
How is the 'firm fixed price' structure evaluated against potential fluctuations in fuel costs and operational expenses?
A firm fixed price contract aims to transfer risk to the contractor. While the price is fixed, the contract may include clauses addressing extraordinary circumstances or significant market shifts. The initial pricing would have been based on projected costs, and the contractor assumes the risk of cost overruns, while the government benefits from cost certainty.
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: 24
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fedex Corp
Address: 2955 REPUBLICAN, 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: $129,746,958
Exercised Options: $129,746,958
Current Obligation: $129,746,958
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HTC71115DCC01
IDV Type: IDC
Timeline
Start Date: 2014-10-01
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2023-08-11
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