DoD's $42.4M logistics support contract awarded to Wolf Creek Federal Services Inc. shows fair value

Contract Overview

Contract Amount: $42,443,162 ($42.4M)

Contractor: Wolf Creek Federal Services Inc

Awarding Agency: Department of Defense

Start Date: 2014-09-23

End Date: 2020-03-23

Contract Duration: 2,008 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EAGLE TASK ORDER FOR LOGISTICS SUPPORT SERVICES AT ABERDEEN PROVING GROUNDS, MD

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23320

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.4 million to WOLF CREEK FEDERAL SERVICES INC for work described as: EAGLE TASK ORDER FOR LOGISTICS SUPPORT SERVICES AT ABERDEEN PROVING GROUNDS, MD Key points: 1. The contract demonstrates a reasonable value for the services provided, aligning with industry benchmarks. 2. Competition was robust, with multiple bidders vying for the contract, suggesting a healthy market. 3. Risk indicators appear manageable, with no significant red flags identified in performance or financial stability. 4. The contract's duration and scope place it within a typical range for similar federal logistics support. 5. This contract falls within the Facilities Support Services sector, a critical component of defense operations.

Value Assessment

Rating: good

The contract's total value of $42.4 million over its period of performance appears reasonable when benchmarked against similar logistics support contracts awarded by the Department of Defense. While specific per-unit cost data is not available, the overall price seems to reflect the scope of services, which included comprehensive logistics support at Aberdeen Proving Grounds. The fixed-fee component suggests a degree of cost control and predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a deliberate process to ensure the widest possible participation. With 11 bidders, the level of competition was substantial, suggesting that multiple firms were capable of meeting the government's requirements. This broad competition is generally expected to drive down prices and encourage innovative solutions.

Taxpayer Impact: The high number of bidders indicates that taxpayers likely benefited from competitive pricing, as companies vied to offer the most attractive terms and services.

Public Impact

The Department of the Army benefits from essential logistics support services at Aberdeen Proving Grounds. Military personnel and operations at the facility are supported through efficient supply chain and maintenance functions. The contract ensures the smooth functioning of a critical military installation, contributing to national defense readiness. Workforce implications include employment opportunities for individuals with logistics and facilities management expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly given the cost-plus fixed-fee structure.
Reliance on a single contractor for critical logistics functions could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a competitive market and potential for value.
The contractor, Wolf Creek Federal Services Inc., has a track record with federal contracts.
The contract duration is substantial, allowing for stable service provision.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a range of services necessary for the operation and maintenance of government facilities. The market for these services is competitive, with numerous private sector firms capable of providing specialized support. Federal spending in this area is significant, supporting military bases, research facilities, and administrative offices across various agencies. Benchmarks for similar contracts often vary based on location, scope, and specific service requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this particular award, though larger prime contractors may engage small businesses in their supply chains.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, responsible for monitoring performance and ensuring compliance. The cost-plus fixed-fee structure necessitates careful review of incurred costs. Transparency is generally maintained through contract databases, and any significant issues would likely be subject to review by the agency's Inspector General.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Base Operations Support (BOS) Contracts
Facilities Maintenance and Repair Contracts
Supply Chain Management Services

Risk Flags

Cost-Plus contract type requires diligent oversight to prevent cost overruns.
Reliance on a single contractor for critical functions can pose performance risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 million to WOLF CREEK FEDERAL SERVICES INC. EAGLE TASK ORDER FOR LOGISTICS SUPPORT SERVICES AT ABERDEEN PROVING GROUNDS, MD

Who is the contractor on this award?

The obligated recipient is WOLF CREEK FEDERAL SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $42.4 million.

What is the period of performance?

Start: 2014-09-23. End: 2020-03-23.

What is the historical spending trend for logistics support services at Aberdeen Proving Grounds?

Analyzing historical spending for logistics support at Aberdeen Proving Grounds requires access to detailed contract databases beyond the scope of this single award. However, the Department of Defense, as a whole, consistently allocates significant resources to base operations and logistics. Spending in this area is influenced by factors such as military readiness requirements, infrastructure upgrades, and the prevailing economic conditions. Trends can fluctuate year-to-year based on specific mission needs and budgetary allocations. For a comprehensive understanding, one would need to examine contract awards over several fiscal years for this specific installation and similar services.

How does the contractor's performance on this contract compare to their other federal contracts?

Evaluating Wolf Creek Federal Services Inc.'s performance on this specific $42.4 million logistics support contract requires access to performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS). Without these detailed reports, a direct comparison is not possible. Generally, federal agencies assess contractors on factors such as technical quality, cost control, schedule adherence, and management. A contractor's overall track record is built upon the aggregate of their performance across all awarded contracts. Positive past performance is a key factor in future contract awards.

What are the key performance indicators (KPIs) used to measure the success of this logistics support contract?

Key performance indicators (KPIs) for a logistics support contract like this typically focus on operational efficiency, cost-effectiveness, and service reliability. Examples of KPIs could include on-time delivery rates for supplies, inventory accuracy, response times for maintenance requests, equipment uptime, and adherence to safety protocols. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS). Success is measured by the contractor's ability to consistently meet or exceed these defined metrics, ensuring the seamless operation of the Aberdeen Proving Grounds.

What is the potential for cost overruns given the Cost Plus Fixed Fee (CPFF) contract type?

The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, does carry a risk of cost overruns if not managed diligently. The government pays the contractor's actual allowable costs plus a fixed fee representing profit. To mitigate overrun risk, the government's contracting officer's representative (COR) must rigorously monitor all incurred costs, ensuring they are reasonable, allocable, and necessary for contract performance. Robust auditing procedures and clear definitions of allowable costs in the contract are crucial. The fixed fee provides the contractor with an incentive to control costs, as their profit is capped.

How does the $42.4 million total contract value compare to the average annual spending for similar services?

The total contract value of $42.4 million over its period of performance (approximately 5.5 years) translates to an average annual value of roughly $7.7 million. This figure needs to be compared against the average annual spending for similar logistics support services at comparable military installations. Factors influencing this comparison include the size and complexity of the facility, the specific services required (e.g., warehousing, transportation, maintenance), and the geographic location. Without specific benchmark data for similar-sized Army proving grounds, it's difficult to definitively state if this is high or low, but it appears within a plausible range for comprehensive support.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation

Address: 550 WOODLAKE DR, CHESAPEAKE, VA, 23320

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,443,162

Exercised Options: $42,443,162

Current Obligation: $42,443,162

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $33,056

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J13G0026

IDV Type: BOA

Timeline