LTM INC awarded $23.2M for logistics support, with 4 bidders and a firm fixed price contract

Contract Overview

Contract Amount: $23,184,769 ($23.2M)

Contractor: LTM Inc

Awarding Agency: Department of Defense

Start Date: 2014-04-14

End Date: 2015-10-14

Contract Duration: 548 days

Daily Burn Rate: $42.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF 8500838194!LOGISTICS SUPPORT SERVICES

Place of Performance

Location: HAVELOCK, CRAVEN County, NORTH CAROLINA, 28532

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to LTM INC for work described as: IGF::OT::IGF 8500838194!LOGISTICS SUPPORT SERVICES Key points: 1. The contract utilized a firm-fixed-price structure, which shifts cost risk to the contractor. 2. With 4 bidders, the competition level suggests a reasonably competitive environment for this service. 3. The contract duration of 548 days indicates a medium-term need for logistics support. 4. The award was made under a Blanket Purchase Agreement (BPA) Call, suggesting it's part of a larger framework. 5. The North Carolina location for service delivery may have implications for local economic impact. 6. The absence of small business set-aside flags requires further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The total award of $23.2 million over approximately 1.5 years for logistics support services appears reasonable given the scope. Benchmarking against similar contracts is challenging without more detailed service descriptions, but the firm-fixed-price nature generally promotes cost control. The number of bidders (4) suggests a healthy level of competition that should have driven a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bidders suggests a competitive marketplace for these logistics support services. A higher number of bidders typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best possible price and quality through market forces, preventing potential overcharges associated with less competitive solicitations.

Public Impact

The Department of Defense, specifically the Defense Logistics Agency, is the primary beneficiary, receiving essential logistics support. Services delivered likely include warehousing, transportation coordination, inventory management, and other supply chain functions. The geographic impact is concentrated in North Carolina, potentially supporting local jobs and businesses in that region. Workforce implications could include the creation or maintenance of jobs related to logistics and facility operations in North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business participation noted; requires review of subcontracting plans.
BPA Call award mechanism may obscure the full scope and cost compared to a standalone contract.
Firm-fixed-price contracts can sometimes lead to contractor reluctance to perform beyond minimum requirements if scope is not clearly defined.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Full and open competition generally leads to better pricing and value.
Awarded by the Defense Logistics Agency, indicating a focus on critical defense supply chain needs.

Sector Analysis

Logistics support services are a critical component of the broader facilities support services sector, which includes a wide range of operational and maintenance activities. The market for these services is substantial, driven by government and commercial entities requiring efficient supply chain management. This contract fits within the Defense Logistics Agency's mission to provide comprehensive logistics support to the armed forces, ensuring readiness and operational effectiveness.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement for this award (ss: false, sb: false). This means that while small businesses could have bid, there was no explicit mandate for them to receive a portion of the work. Further analysis would be needed to determine if LTM INC has a history of subcontracting with small businesses or if opportunities exist within the BPA framework.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Logistics Agency's contracting officer and program managers. The firm-fixed-price nature provides some inherent accountability by tying payment to performance. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Logistics and Supply Chain Management Services
Facilities Support Services
Defense Logistics Agency Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential lack of small business subcontracting opportunities.
Scope definition clarity within BPA Call structure.
Contractor performance history not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to LTM INC. IGF::OT::IGF 8500838194!LOGISTICS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is LTM INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2014-04-14. End: 2015-10-14.

What is the track record of LTM INC in performing similar government contracts?

Information on LTM INC's specific track record for government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or claims, and the successful completion of prior contracts of similar size and scope. Without this data, it's difficult to definitively assess their reliability and capability for this specific logistics support role. However, being awarded a contract by the Defense Logistics Agency suggests they met initial vetting requirements.

How does the awarded price compare to market rates for similar logistics support services?

The provided data does not include specific line-item costs or detailed service descriptions, making a direct price-to-market comparison difficult. The total award of $23.2 million over approximately 548 days (about $42,300 per day) is a high-level figure. To benchmark effectively, one would need to compare the unit costs for specific services (e.g., cost per square foot for warehousing, cost per mile for transportation, cost per item for inventory management) against industry standards and other government contracts for comparable services in the same geographic region. The firm-fixed-price structure and the number of bidders (4) suggest the price was negotiated competitively.

What are the primary risks associated with this contract?

Key risks include potential scope creep if the BPA Call's requirements are not tightly defined, leading to cost overruns despite the firm-fixed-price structure. Contractor performance risk exists, as with any contract, where LTM INC might fail to meet service level agreements, impacting the Defense Logistics Agency's operations. There's also a risk related to the concentration of services in North Carolina, which could be vulnerable to localized disruptions. Furthermore, the lack of explicit small business participation raises concerns about equitable distribution of subcontracting opportunities.

How effective is the firm-fixed-price contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their expenses efficiently. For logistics support services, where operational efficiency is key, FFP can drive cost savings. However, if the requirements are ambiguous or subject to frequent changes, an FFP contract might lead to disputes or a contractor's reluctance to perform tasks not explicitly covered, potentially undermining overall program effectiveness.

What is the historical spending trend for logistics support services by the Defense Logistics Agency?

The provided data is for a single contract award. To understand historical spending trends, one would need to analyze aggregate spending data for logistics support services by the Defense Logistics Agency (DLA) over multiple fiscal years. This would involve examining total contract obligations, the number and value of contracts awarded, and the types of contract vehicles used (e.g., FFP, cost-plus). Such an analysis would reveal whether spending in this category is increasing, decreasing, or remaining stable, and identify any shifts in procurement strategies or contractor landscapes.

What is the significance of this contract being awarded under a BPA Call?

Awarding this contract as a BPA Call signifies that it is a task order placed against a pre-existing Blanket Purchase Agreement (BPA). BPAs are established with vendors to streamline the procurement of commonly purchased supplies or services. This approach allows the government to obtain goods and services more quickly and often at pre-negotiated prices. For taxpayers, it can mean faster delivery and potentially better pricing due to the established relationship and volume commitments under the parent BPA. However, it can sometimes make it harder to assess the true cost-competitiveness of individual task orders compared to a standalone, fully competed contract.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 925 EAST MAIN STREET, SUIT, HAVELOCK, NC, 28532

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $81,864,341

Exercised Options: $23,258,290

Current Obligation: $23,184,769

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470213A0001

IDV Type: BPA

Timeline