Logistics & Environmental Solutions Corp. awarded $10.2M contract for warehouse operations, with a 1289-day duration

Contract Overview

Contract Amount: $10,201,994 ($10.2M)

Contractor: Logistics & Environmental Solutions Corporation

Awarding Agency: Department of Defense

Start Date: 2005-11-14

End Date: 2009-05-26

Contract Duration: 1,289 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200602!430687!97AS!SP3100!DEFENSE DISTRIBUTION CENTER !SP310004D7002 !A!N! !Y!0006 ! !20051114!20061130!874202393!874202393!874202393!N!LOGISTICS & ENVIRONMENTAL !4845 UNIVERSITY SQUARE !HUNTSVILLE !AL!35816!80508!153!13!WARNER ROBINS !HOUSTON !GEORGIA !+000009326192!N!N!000000000000!M179!OPERATION/OTHER WAREHOUSE BUILDINGS !S1 !SERVICES !000 !NOT DISCERNABLE !493110!E! !5!B!S! ! !D!20091130!B! ! !A! !A!Y!J!2!008!B! !C!N!Z! ! !N!C!Y! ! ! !A!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to LOGISTICS & ENVIRONMENTAL SOLUTIONS CORPORATION for work described as: 200602!430687!97AS!SP3100!DEFENSE DISTRIBUTION CENTER !SP310004D7002 !A!N! !Y!0006 ! !20051114!20061130!874202393!874202393!874202393!N!LOGISTICS & ENVIRONMENTAL !4845 UNIVERSITY SQUARE !HUNTSVILLE !AL!35816!80508!153!13!WARNER ROBINS !HOUS… Key points: 1. Contract value of $10.2M over approximately 3.5 years suggests a moderate annual spend. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The North American Industry Classification System (NAICS) code 493190 points to a focus on warehousing and storage services. 4. The contract's performance period spans over 1000 days, suggesting a need for sustained operational support. 5. The award type 'DO' (Defense) signifies a critical defense-related procurement. 6. The firm fixed-price contract type aims to provide cost certainty for the government.

Value Assessment

Rating: fair

The total award amount of $10.2 million over 1289 days equates to an average annual spend of approximately $2.9 million. Benchmarking this against similar contracts for warehousing and logistics support within the Department of Defense would be necessary for a precise value-for-money assessment. However, the duration and scope suggest a standard operational support contract rather than one with exceptionally high or low unit costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bids received, but this method generally promotes a competitive environment, which can lead to better pricing and service offerings for the government. The absence of a limited competition or sole-source designation suggests that the agency sought the best value through a broad solicitation.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of service providers to participate.

Public Impact

The primary beneficiaries are likely military personnel and operations supported by the Defense Logistics Agency, which relies on efficient warehousing and storage. The contract delivers essential logistics and environmental services, crucial for maintaining supply chain integrity within the Department of Defense. The geographic impact is centered around the Defense Distribution Center, with specific operational sites in Huntsville, AL, and potentially other locations managed by the contractor. Workforce implications include the creation or maintenance of jobs in logistics, warehousing, and potentially environmental services, primarily in Georgia and Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental remediation needs arise beyond the scope of 'LOGISTICS & ENVIRONMENTAL'.
Risk of service disruption if contractor faces significant operational challenges or labor disputes.
Dependence on contractor's ability to maintain compliance with evolving environmental regulations.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Full and open competition suggests a competitive award process, potentially leading to better value.
Long contract duration (1289 days) indicates a stable, ongoing need for these services.

Sector Analysis

This contract falls within the broader logistics and support services sector, specifically focusing on warehousing and storage. The market for these services is substantial within the federal government, particularly for defense agencies requiring robust supply chain management. Comparable spending benchmarks would involve analyzing other contracts for similar warehousing, distribution, and environmental services awarded by the Department of Defense and other federal agencies.

Small Business Impact

The data indicates that small business participation was not a primary set-aside factor for this contract, as it was awarded under full and open competition and the contractor is not explicitly identified as a small business. However, the prime contractor, Logistics & Environmental Solutions Corporation, may utilize small businesses for subcontracting opportunities to fulfill specific aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Logistics Agency (DLA) contracting office. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reports are standard mechanisms to ensure contractor compliance and service delivery. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency (DLA) Operations
Department of Defense Supply Chain Management
Federal Warehousing and Storage Contracts
Environmental Services Contracts
Logistics Support Services

Risk Flags

Contract Duration
Contract Value
Competition Type
Contract Type
NAICS Code Specificity
Contract Performance Location

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to LOGISTICS & ENVIRONMENTAL SOLUTIONS CORPORATION. 200602!430687!97AS!SP3100!DEFENSE DISTRIBUTION CENTER !SP310004D7002 !A!N! !Y!0006 ! !20051114!20061130!874202393!874202393!874202393!N!LOGISTICS & ENVIRONMENTAL !4845 UNIVERSITY SQUARE !HUNTSVILLE !AL!35816!80508!153!13!WARNER ROBINS !HOUSTON !GEORGIA !+000009326192!N!N!000000000000!M179!OPERATION/OTHER WAREHOUSE BUILDINGS !S1 !SERVICES !000 !NOT DISCERNABLE !493110!E! !5!B!S! ! !D!200

Who is the contractor on this award?

The obligated recipient is LOGISTICS & ENVIRONMENTAL SOLUTIONS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2005-11-14. End: 2009-05-26.

What is the track record of Logistics & Environmental Solutions Corporation with federal contracts, particularly within the Department of Defense?

Information on the specific track record of Logistics & Environmental Solutions Corporation (LESC) is not detailed in the provided data snippet. However, the award of this $10.2 million contract by the Department of Defense suggests a level of capability and past performance deemed sufficient by the contracting agency. To fully assess their track record, one would need to examine their contract history, including past performance evaluations, any documented disputes or terminations, and the types and values of previous federal awards. A deeper dive into federal procurement databases like FPDS or SAM.gov would reveal more about LESC's history and reliability as a government contractor.

How does the $10.2 million contract value compare to similar warehousing and logistics contracts awarded by the Defense Logistics Agency?

The $10.2 million total award value for Logistics & Environmental Solutions Corporation's contract, spanning 1289 days (approximately 3.5 years), translates to an average annual value of roughly $2.9 million. To benchmark this effectively, one would need to compare it against the average annual values of similar warehousing and logistics contracts awarded by the Defense Logistics Agency (DLA) over comparable periods. Factors such as the specific services required (e.g., hazardous material storage, specialized equipment handling), geographic location, and contract type (e.g., firm-fixed-price vs. cost-plus) significantly influence contract values. Without access to a broader dataset of DLA contracts for similar services, it is difficult to definitively state whether this $10.2 million award represents a high, low, or average expenditure.

What are the primary risks associated with this contract, considering its focus on logistics and environmental services?

Key risks associated with this contract include potential cost overruns related to unforeseen environmental compliance issues or remediation needs, as the 'Environmental' aspect of the contractor's name suggests this may be part of their scope. Operational risks involve the contractor's ability to maintain consistent service delivery, manage workforce effectively, and adapt to changing logistical demands or regulatory requirements. There's also a risk of service disruption due to factors like natural disasters, equipment failure, or contractor performance issues. Furthermore, the government faces risks related to data security if sensitive information is handled and the potential for contractor non-compliance with safety and environmental regulations, which could lead to fines or operational shutdowns.

How effective is the 'full and open competition' strategy in ensuring value for money for this specific type of logistics and environmental service?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of potential contractors to bid, fostering price competition and innovation. For logistics and environmental services, this approach enables the government to solicit bids from a diverse range of companies, potentially uncovering specialized capabilities or more cost-effective solutions. However, the ultimate effectiveness depends on the clarity of the solicitation requirements, the evaluation criteria used, and the actual number and quality of bids received. If the requirements are poorly defined or if only a few qualified bidders participate, the competitive advantage may be diminished. Continuous monitoring of contractor performance post-award is also crucial to ensure the anticipated value is realized throughout the contract's life.

What are the historical spending patterns for warehousing and storage services by the Defense Logistics Agency?

Historical spending patterns for warehousing and storage services by the Defense Logistics Agency (DLA) are substantial, reflecting the critical role these services play in military readiness and operations. DLA manages a vast network of distribution centers and relies heavily on both organic capabilities and contracted services to store, manage, and transport a wide array of supplies. Annual spending can fluctuate based on global deployments, inventory management strategies, and specific operational needs. While this $10.2 million contract represents a specific investment, DLA's overall budget allocation for logistics, which includes warehousing, often runs into billions of dollars annually. Analyzing trends over several fiscal years would reveal patterns related to contract types, competition levels, and the geographic distribution of spending on these essential services.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4845 UNIVERSITY SQ STE 1, HUNTSVILLE, AL, 05

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP310004D7002

IDV Type: IDC

Timeline