DoD's $124M Civil Reserve Air Fleet contract with FedEx for air transportation services awarded under full and open competition
Contract Overview
Contract Amount: $124,315,283 ($124.3M)
Contractor: Federal Express Corporation
Awarding Agency: Department of Defense
Start Date: 2020-10-01
End Date: 2022-09-30
Contract Duration: 729 days
Daily Burn Rate: $170.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Transportation
Official Description: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $124.3 million to FEDERAL EXPRESS CORPORATION for work described as: CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES Key points: 1. Significant contract value of $124.3M for essential air transportation. 2. Sole awardee is Federal Express Corporation, indicating a single provider for this specific order. 3. Contract covers a 2-year period, from Oct 2020 to Sep 2022. 4. The service is categorized under Nonscheduled Chartered Passenger Air Transportation.
Value Assessment
Rating: good
The contract's fixed-price with economic price adjustment structure aims to manage cost fluctuations. Benchmarking against similar large-scale air charter contracts would provide further insight into its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process but with specific source exclusions. This method aims for best value while potentially limiting the pool of bidders.
Taxpayer Impact: The competitive bidding process is intended to secure favorable pricing for taxpayers, though the exclusion of sources warrants scrutiny.
Public Impact
Ensures critical airlift capacity for national defense and emergency response. Supports the operational readiness of the U.S. military by providing flexible air transport. Reliable transportation services are crucial for troop and cargo movement during contingencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to source exclusion.
- Economic price adjustment clause may lead to cost increases.
- Reliance on a single provider for this delivery order.
Positive Signals
- Secures vital national defense airlift capabilities.
- Utilizes a well-established air cargo provider.
- Contract structure aims to balance cost and operational needs.
Sector Analysis
This contract falls under air transportation services, a critical component of the logistics and defense sector. Spending benchmarks for similar large-scale air charter services are typically in the millions, making this contract significant but within expected ranges for such capabilities.
Small Business Impact
The data indicates this contract was awarded to Federal Express Corporation, a large business. There is no direct indication of small business participation in this specific delivery order.
Oversight & Accountability
USTRANSCOM, the awarding agency, is responsible for managing the Civil Reserve Air Fleet. Oversight would involve monitoring performance, adherence to contract terms, and managing the economic price adjustment clauses.
Related Government Programs
- Nonscheduled Chartered Passenger Air Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Potential for limited competition.
- Risk associated with economic price adjustment.
- Dependence on a single contractor for this delivery order.
- Lack of explicit small business participation noted.
Tags
nonscheduled-chartered-passenger-air-tra, department-of-defense, il, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $124.3 million to FEDERAL EXPRESS CORPORATION. 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 $124.3 million.
What is the period of performance?
Start: 2020-10-01. End: 2022-09-30.
What is the specific justification for excluding certain sources in the 'full and open competition after exclusion of sources' method, and how did it impact the final price?
The exclusion of sources typically occurs when specific capabilities, security clearances, or certifications are required that only a limited number of entities possess. This can impact price discovery by reducing the number of potential bidders. A thorough review of the solicitation documents and award justification would reveal the precise reasons for exclusion and its effect on the negotiated price for this $124.3M contract.
How effectively did the economic price adjustment clause protect the government from excessive cost increases during the contract period, given potential market volatility?
The effectiveness of the economic price adjustment (EPA) clause hinges on the specific indices and formulas used to adjust pricing. If market conditions, such as fuel costs or labor rates, rose significantly during the 2020-2022 period, the EPA would allow for price increases. Analyzing the actual price paid versus the initial fixed price would determine the extent of cost impact and whether the government was adequately protected against unforeseen escalations.
What was the government's contingency plan if Federal Express Corporation was unable to fulfill its obligations under this delivery order?
Given the critical nature of the Civil Reserve Air Fleet, the government likely maintains alternative arrangements or has provisions within the broader CRAF program for service disruption. This could include pre-negotiated agreements with other carriers, activating different tiers of the CRAF, or utilizing organic military airlift assets. The specific contingency plan would be detailed in USTRANSCOM's operational protocols for the CRAF program.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 9
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fedex Corp (UEI: 003141970)
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: $124,315,283
Exercised Options: $124,315,283
Current Obligation: $124,315,283
Actual Outlays: $122,429,479
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71118DCC37
IDV Type: IDC
Timeline
Start Date: 2020-10-01
Current End Date: 2022-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2021-10-13
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