Dod's $20.8M Logistics Support Contract Awarded to Total Logistics SB Joint Venture

Contract Overview

Contract Amount: $20,880,700 ($20.9M)

Contractor: Total Logistics SB Joint Venture

Awarding Agency: Department of Defense

Start Date: 2017-01-01

End Date: 2021-08-31

Contract Duration: 1,703 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF LOGISTIC SUPPORT SERVICES (FMS)

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to TOTAL LOGISTICS SB JOINT VENTURE for work described as: IGF::OT::IGF LOGISTIC SUPPORT SERVICES (FMS) Key points: 1. Contract awarded for engineering services related to logistics support. 2. The contract was competed using full and open competition after exclusion of sources. 3. Performance period spans over 1700 days, indicating a long-term need. 4. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 5. The awardee is a small business joint venture, potentially indicating a focus on small business participation. 6. The contract is managed by the Defense Contract Management Agency. 7. The North American Industry Classification System (NAICS) code is 541330 (Engineering Services).

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight. Comparing this $20.8 million award to similar logistics support contracts within the Department of Defense would provide better context on its value for money. The duration of the contract (over 4 years) suggests a significant scope of work, but the specific deliverables and their efficiency are not detailed here.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method suggests that while competition was sought, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for excluding sources are not provided, which makes it difficult to assess the impact on price discovery and overall competition. Without knowing the number of bidders or the rationale for source exclusion, it's hard to definitively state if this led to optimal pricing.

Taxpayer Impact: The exclusion of certain sources, even within a full and open competition framework, could potentially lead to higher prices for taxpayers if it reduced the competitive pressure among bidders.

Public Impact

The Department of Defense benefits from enhanced logistics support services. Engineering services are delivered to support military operations and readiness. The contract's geographic impact is likely focused on areas where DoD logistics operations are critical. The contract may have implications for the logistics and engineering workforce, particularly within small businesses involved in the joint venture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs effectively.
The 'exclusion of sources' in the competition method warrants further investigation to ensure fair market access.
Lack of detailed performance metrics makes it difficult to assess the true value for money.

Positive Signals

Award to a small business joint venture supports small business participation goals.
The contract duration indicates a sustained need for these critical logistics services.
The contract is managed by the Defense Contract Management Agency, suggesting established oversight processes.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting logistics functions for the Department of Defense. The market for defense logistics and engineering services is substantial, driven by the complex global operational needs of the military. Comparable spending benchmarks would involve analyzing other large-scale logistics support contracts awarded by DoD and other federal agencies, considering factors like service scope, duration, and contract type. The NAICS code 541330 encompasses a broad range of engineering disciplines, and this contract appears to focus on the application of these skills to logistical challenges.

Small Business Impact

The award to TOTAL LOGISTICS SB JOINT VENTURE indicates a direct benefit to small businesses through this joint venture structure. While the contract itself is not explicitly a small business set-aside, the awardee's composition suggests a commitment to small business participation. Further analysis would be needed to understand the subcontracting plans and how other small businesses might benefit indirectly from this contract, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, implying established oversight mechanisms. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure costs are reasonable and allocable. Transparency regarding the specific services rendered and performance against objectives would be beneficial. The Inspector General's office within the Department of Defense would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

DoD Logistics Modernization Programs
Defense Engineering Services Contracts
Federal Logistics Support Services
Small Business Joint Venture Awards

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Competition method involved exclusion of sources, potentially limiting market access.
Lack of detailed performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to TOTAL LOGISTICS SB JOINT VENTURE. IGF::OT::IGF LOGISTIC SUPPORT SERVICES (FMS)

Who is the contractor on this award?

The obligated recipient is TOTAL LOGISTICS SB JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2017-01-01. End: 2021-08-31.

What is the track record of TOTAL LOGISTICS SB JOINT VENTURE in performing similar DoD contracts?

Information regarding the specific track record of TOTAL LOGISTICS SB JOINT VENTURE is not detailed in the provided data. As a joint venture, its performance history may be a composite of its member companies or a newly established entity. A thorough review would require examining past performance evaluations (past performance questionnaires), any contract awards or terminations, and any documented issues or successes on previous government contracts. Understanding the experience of the key personnel and the parent companies within the joint venture would also be crucial for assessing their capability to successfully execute this logistics support contract.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and value for money in this contract?

The CPFF contract structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While this structure can be useful for contracts with uncertain scope or high risk, it can incentivize cost overruns, as the contractor's profit (the fixed fee) remains constant regardless of the final cost. Effective cost control relies heavily on robust government oversight, detailed cost monitoring, and clear performance standards. Without strong management, CPFF contracts can be more expensive for the government compared to fixed-price contracts. Assessing the value for money requires comparing the final costs against the achieved performance and deliverables, and ensuring the fixed fee is reasonable for the services provided.

What were the specific reasons for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' procurement?

The provided data does not specify the reasons for excluding certain sources under this 'Full and Open Competition After Exclusion of Sources' procurement. This contracting approach typically involves a justification, such as national security concerns, proprietary data restrictions, or unique capabilities possessed by only a limited number of firms. Understanding these reasons is critical for evaluating the fairness and competitiveness of the procurement process. If the exclusions were not well-justified or were overly broad, it could have limited competition, potentially leading to higher prices and reduced innovation for the government. Further investigation into the solicitation documents and award justification would be necessary.

What are the key performance indicators (KPIs) and how is performance measured for this logistics support contract?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how performance is measured for this logistics support contract. For a contract of this nature and value, KPIs would typically relate to delivery timeliness, cost efficiency, quality of engineering support, responsiveness to requests, and overall mission support effectiveness. The Defense Contract Management Agency (DCMA) would likely be responsible for monitoring performance against contract requirements. Without defined KPIs and transparent reporting, it is difficult to objectively assess the contractor's performance and the overall success of the contract in meeting DoD's logistics needs.

What is the historical spending trend for similar logistics support services within the Department of Defense?

The provided data focuses on a single contract award and does not offer historical spending trends for similar logistics support services within the Department of Defense. To establish such trends, one would need to analyze aggregate spending data across multiple contracts, agencies, and fiscal years for services categorized under logistics support, engineering services (NAICS 541330), or related procurement codes. This analysis would reveal patterns in contract values, competition levels, contract types, and the prevalence of specific contractors over time, providing context for the current award and identifying potential areas for cost savings or efficiency improvements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: SEALED BID

Solicitation ID: N0042115R0052

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 615 LYNNHAVEN PKWY STE 104, VIRGINIA BEACH, VA, 23452

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,080,617

Exercised Options: $21,033,254

Current Obligation: $20,880,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042117D0015

IDV Type: IDC

Timeline