DoD awards $29.3M for specialized freight services to support CJTF Iraq operations

Contract Overview

Contract Amount: $29,323,944 ($29.3M)

Contractor: El-Hoss Engineering & Transport Company W.L.L.

Awarding Agency: Department of Defense

Start Date: 2018-05-25

End Date: 2019-05-31

Contract Duration: 371 days

Daily Burn Rate: $79.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HL8 TASK ORDER 0001 FOR CJTF IRAQ-BASED PERFORMANCE

Plain-Language Summary

Department of Defense obligated $29.3 million to EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L. for work described as: HL8 TASK ORDER 0001 FOR CJTF IRAQ-BASED PERFORMANCE Key points: 1. Contract value appears reasonable given the specialized nature of long-distance, cross-border freight in a contingency environment. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 371 days aligns with operational needs for sustained support. 4. Performance is tied to CJTF Iraq, indicating a critical role in military logistics. 5. The award to EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L. represents a significant single award for this specific task order.

Value Assessment

Rating: good

The contract value of $29.3 million for specialized freight services over approximately one year is within a reasonable range for supporting military operations in a complex environment like Iraq. Benchmarking against similar long-distance trucking contracts in contingency zones suggests that pricing is likely competitive, especially given the inherent risks and logistical challenges. The firm-fixed-price structure helps control costs for the government.

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 4 bids suggests a healthy level of interest and competition for this specialized service. This competitive environment is generally favorable for price discovery and achieving a fair market price for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value.

Public Impact

Military personnel and operations in Iraq benefit from reliable and timely transportation of essential goods and equipment. The contract ensures the delivery of specialized freight services, crucial for maintaining operational readiness. Geographic impact is primarily focused on Iraq and potentially surrounding regions supporting CJTF operations. Workforce implications include employment opportunities for drivers, logistics personnel, and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays due to geopolitical instability or security threats in the operational area.
Dependence on a single contractor for critical freight movement could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Firm-fixed-price contract type helps manage cost certainty for the government.
Contract duration aligns with the expected operational tempo for CJTF Iraq.

Sector Analysis

This contract falls within the transportation and logistics sector, specifically specialized freight trucking. The market for long-distance freight in contingency operations is niche, often requiring specialized security, equipment, and operational expertise. While general trucking benchmarks exist, contracts in active operational zones typically command higher rates due to increased risk and complexity. The $29.3 million award is a significant sum for a single task order within this specialized sub-sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. The award went to EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L., which may or may not be a small business itself. Further analysis would be needed to determine if small business subcontracting opportunities were pursued or mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and logistics commands, with specific oversight likely managed by the Army contracting office responsible for the task order. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, though detailed performance metrics may not always be publicly available.

Related Government Programs

CJTF-OIR Logistics Support
DoD Contingency Contracting
Long-Haul Trucking Services
Military Freight Forwarding

Risk Flags

Potential security risks in the operational environment.
Dependence on contractor performance for critical logistics.
Geopolitical instability impacting service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L.. HL8 TASK ORDER 0001 FOR CJTF IRAQ-BASED PERFORMANCE

Who is the contractor on this award?

The obligated recipient is EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2018-05-25. End: 2019-05-31.

What is the track record of EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L. with the Department of Defense?

EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L. has a history of receiving contracts from the Department of Defense, primarily for transportation and logistics services. While this specific task order for CJTF Iraq is a significant award, the company's broader contract history would need to be reviewed to assess its overall performance, reliability, and experience in similar operational environments. Analyzing past performance evaluations, any contract disputes, or awards for similar services would provide a more comprehensive understanding of their capabilities and suitability for critical logistical support in challenging regions.

How does the awarded price compare to similar specialized freight contracts in contingency operations?

Benchmarking this $29.3 million contract against similar specialized freight services in contingency operations is challenging without access to detailed pricing structures and specific operational requirements of comparable contracts. However, given the inherent risks, security costs, and logistical complexities associated with operating in Iraq, the price appears to be within a reasonable range. Factors such as route security, vehicle types, cargo sensitivity, and transit times significantly influence pricing in these environments. The firm-fixed-price nature suggests that the contractor assumed much of the cost risk, which is often reflected in the overall price.

What are the primary risks associated with this type of long-distance freight contract in Iraq?

The primary risks associated with this long-distance freight contract in Iraq include security threats to personnel and equipment (e.g., IEDs, ambushes), potential for delays due to infrastructure issues, political instability, or border crossing complexities. Operational risks also include vehicle breakdowns in remote areas, cargo damage or loss, and adherence to strict timelines critical for military operations. Furthermore, regulatory changes or evolving security protocols could impact operational costs and efficiency. The contractor's ability to mitigate these risks through robust security measures, contingency planning, and experienced personnel is crucial for successful performance.

How effective is the firm-fixed-price contract type in managing costs for this specialized service?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for specialized services like long-distance freight in contingency operations because it shifts the cost-risk burden to the contractor. This means the government pays a set price, and the contractor is responsible for controlling their costs to maintain profitability. For the government, this provides budget certainty and protection against cost overruns, assuming the initial price was set appropriately based on realistic estimates. However, if the initial price was too high due to inadequate market research or unforeseen circumstances, the government might overpay. The FFP structure incentivizes the contractor to perform efficiently to maximize profit.

What is the historical spending trend for specialized freight trucking by the Department of Defense?

Historical spending trends for specialized freight trucking by the Department of Defense can fluctuate significantly based on global operational tempo, troop deployments, and specific mission requirements. During periods of heightened military activity in regions like Iraq and Afghanistan, spending on logistics and transportation services, including specialized freight, has historically been substantial. While this specific $29.3 million award is for a single task order, the overall DoD budget allocated to transportation and logistics services represents a multi-billion dollar category annually. Analyzing trends over the past decade would reveal peaks during active combat operations and potential decreases during periods of drawdown or strategic shifts.

What are the implications of awarding this contract under 'full and open competition' for price discovery?

Awarding this contract under 'full and open competition' is highly beneficial for price discovery. It allows any responsible company meeting the stated requirements to submit a bid, fostering a competitive environment. When multiple bidders vie for the contract, they are incentivized to offer their most competitive pricing to win the award. This process helps establish a market-based price for the specialized freight services, ensuring the government is likely to receive a fair value. The presence of 4 bids, as indicated, suggests sufficient competition to inform price discovery, reducing the likelihood of paying inflated prices compared to a sole-source or limited competition scenario.

Industry Classification

NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Long-Distance

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

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: PLOT NO. 6, 9 & 31 INDUSTRIAL, AHMADI

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $29,323,944

Exercised Options: $29,323,944

Current Obligation: $29,323,944

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18D0004

IDV Type: IDC

Timeline