DoD's $147.7M contract for auto logistics services awarded to American Auto Logistics LP in 2005

Contract Overview

Contract Amount: $173,037,551 ($173.0M)

Contractor: American Auto Logistics, LP

Awarding Agency: Department of Defense

Start Date: 2004-11-08

End Date: 2005-10-31

Contract Duration: 357 days

Daily Burn Rate: $484.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200512!500014!2100!W81GYE!HQ, MTMC !DAMT0103D0184 !A!N! !Y!0001 !05 !20041108!20051031!147679943!147679943!147679943!N!AMERICAN AUTO LOGISTICS LP !85 CHESTNUT RIDGE RD !MONTVALE !NJ!07645!47610!003!34!MONTVALE !BERGEN !NEW JERSEY!+000179409432!N!N!000000000000!V119!OTHER CARGO & FREIGHT SERVICES !S1 !SERVICES !000 !* !481112!E! !5!A!S!C! !D!20051031!B! ! !A! !A!N!J!2!003!B! !C!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: PARK RIDGE, BERGEN County, NEW JERSEY, 07656

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $173.0 million to AMERICAN AUTO LOGISTICS, LP for work described as: 200512!500014!2100!W81GYE!HQ, MTMC !DAMT0103D0184 !A!N! !Y!0001 !05 !20041108!20051031!147679943!147679943!147679943!N!AMERICAN AUTO LOGISTICS LP !85 CHESTNUT RIDGE RD !MONTVALE !NJ!07645!47610!003!34!MONTVALE !BERG… Key points: 1. Contract awarded for vehicle transportation and logistics services. 2. Significant portion of spending allocated to a single provider. 3. Contract duration of approximately one year. 4. Services provided under a firm-fixed-price agreement. 5. Geographic scope includes New Jersey. 6. Contract falls under the 'Other Cargo & Freight Services' category.

Value Assessment

Rating: fair

The contract value of $147.7 million for approximately one year of service appears substantial. Benchmarking against similar contracts for auto logistics services would be necessary to determine if this represents good value for money. The firm-fixed-price structure suggests that cost overruns were intended to be borne by the contractor, which can be a positive indicator of price control if managed effectively. However, without more granular data on the scope of services and performance metrics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 3 bidders suggests a moderate level of competition for this service. While full and open competition is generally preferred for ensuring fair pricing and access for qualified vendors, the specific number of bidders can influence the final price. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it aims to secure the best possible price through a competitive bidding process, preventing potential overcharges from a lack of alternatives.

Public Impact

Military personnel and equipment benefit from the efficient transportation of vehicles. Services ensure readiness and operational capability by maintaining vehicle availability. The contract supports the logistics infrastructure of the Department of Defense. Workforce implications are likely within the logistics and transportation sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation in future contracts if competition diminishes.
Reliance on a single contractor for a critical logistics function could pose a risk if performance falters.
Limited transparency on specific performance metrics and service quality achieved under this contract.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm-fixed-price contract structure can provide cost certainty for the government.
Contractor is an established entity in the logistics sector.

Sector Analysis

This contract falls within the broader transportation and logistics sector, specifically focusing on the movement and management of vehicles. The market for auto logistics services is competitive, with numerous providers offering specialized solutions for government and commercial clients. The size of this contract, over $147 million, indicates a significant requirement, likely for large-scale military deployments or ongoing operational support. Comparable spending benchmarks would involve analyzing other large-scale vehicle transportation contracts within the DoD or other federal agencies.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. The award to American Auto Logistics LP, a large company, suggests that small businesses may not have been the primary focus or were not awarded the prime contract. Subcontracting opportunities for small businesses could exist, but this information is not detailed in the provided data. The impact on the small business ecosystem would depend on whether they were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Transportation Command (USTRANSCOM), the contracting agency. Accountability measures would be embedded in the contract's performance work statement and delivery requirements. Transparency is generally facilitated through contract award databases, but detailed performance reports and Inspector General investigations, if any, are not publicly detailed here. The firm-fixed-price nature of the contract provides a degree of cost accountability.

Related Government Programs

Military Vehicle Transportation Services
Department of Defense Logistics Contracts
Automotive Freight Services
USTRANSCOM Procurement
Federal Transportation Contracts

Risk Flags

Contract Value
Single Contractor Award
Limited Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $173.0 million to AMERICAN AUTO LOGISTICS, LP. 200512!500014!2100!W81GYE!HQ, MTMC !DAMT0103D0184 !A!N! !Y!0001 !05 !20041108!20051031!147679943!147679943!147679943!N!AMERICAN AUTO LOGISTICS LP !85 CHESTNUT RIDGE RD !MONTVALE !NJ!07645!47610!003!34!MONTVALE !BERGEN !NEW JERSEY!+000179409432!N!N!000000000000!V119!OTHER CARGO & FREIGHT SERVICES !S1 !SERVICES !000 !* !481112!E! !5!A!S!C! !D!200

Who is the contractor on this award?

The obligated recipient is AMERICAN AUTO LOGISTICS, LP.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $173.0 million.

What is the period of performance?

Start: 2004-11-08. End: 2005-10-31.

What was the specific scope of services provided under this contract?

The contract data indicates the primary service category as 'OTHER CARGO & FREIGHT SERVICES' with a Product Service Code (PSC) that aligns with vehicle transportation and logistics. This likely encompassed the movement, storage, and management of various types of vehicles for the Department of Defense. Specific services could include domestic and international shipping, fleet management, maintenance coordination, and delivery to designated locations. The exact details would be outlined in the contract's Performance Work Statement (PWS), which is not provided in this data extract. The scale of the award suggests a broad operational requirement.

How does the $147.7 million contract value compare to similar auto logistics contracts awarded by the DoD?

Without access to a comprehensive database of historical DoD auto logistics contracts with detailed service scopes and durations, a direct comparison is difficult. However, $147.7 million for approximately one year of service is a substantial sum, suggesting a significant operational requirement. Large-scale military deployments, ongoing force projection, or extensive vehicle fleet management needs could justify such an expenditure. To provide a precise benchmark, one would need to identify contracts with similar service requirements (e.g., global reach, specific vehicle types, volume of units) and compare their total values and per-unit costs over comparable timeframes.

What were the key performance indicators (KPIs) and how did American Auto Logistics LP perform against them?

The provided data does not include specific Key Performance Indicators (KPIs) or performance evaluation metrics for this contract. Typically, such contracts would have KPIs related to on-time delivery rates, vehicle condition upon arrival, damage rates, cost control, and responsiveness to logistical challenges. Performance assessments are usually documented in contract performance reports, which are not available here. The firm-fixed-price nature implies that meeting delivery schedules and service standards was crucial for the contractor to achieve profitability without additional government funding.

What is the track record of American Auto Logistics LP with federal contracts, particularly with the DoD?

American Auto Logistics LP has a history of receiving federal contracts, including those with the Department of Defense. This specific contract, valued at $147.7 million, indicates a significant engagement. A deeper analysis would involve reviewing their contract history across various agencies, contract types (e.g., prime, subcontractor), award values, and performance ratings. Examining past performance, including any contract disputes, terminations, or awards for excellence, would provide a more comprehensive understanding of their track record and reliability as a government contractor.

Were there any significant risks identified during the procurement or execution of this contract?

The provided data does not explicitly list identified risks for this contract. However, potential risks inherent in large-scale logistics contracts include performance failures (delays, damage), cost overruns (though mitigated by FFP), contractor default, geopolitical instability affecting transportation routes, and cybersecurity threats if IT systems are involved. The firm-fixed-price (FFP) structure shifts much of the cost risk to the contractor. The fact that it was awarded under full and open competition suggests that the agency assessed the competitive landscape as adequate to mitigate risks related to sole-sourcing or lack of viable alternatives.

How does this contract fit into the broader context of USTRANSCOM's mission and spending patterns?

This contract directly supports USTRANSCOM's mission of providing global mobility and logistics services to the Department of Defense. USTRANSCOM manages a vast array of transportation and logistics contracts to move personnel, equipment, and supplies worldwide. Auto logistics, as provided here, is a critical component for deploying and maintaining military vehicles. The $147.7 million expenditure represents a significant investment in ensuring the readiness and operational capability of the armed forces. Analyzing this contract alongside other USTRANSCOM procurements for sea, air, and land transportation would reveal patterns in their overall logistics spending and strategic priorities.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 85 CHESTNUT RIDGE RD, MONTVALE, NJ, 05

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: DAMT0103D0184

IDV Type: IDC

Timeline