DoD's $14.7M travel management contract awarded to CW Government Travel Inc. shows fair value
Contract Overview
Contract Amount: $14,701,068 ($14.7M)
Contractor: CW Government Travel Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-24
End Date: 2009-09-30
Contract Duration: 371 days
Daily Burn Rate: $39.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MANAGEMENT SERVICE FEE - COMBINED
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78217
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $14.7 million to CW GOVERNMENT TRAVEL INC for work described as: MANAGEMENT SERVICE FEE - COMBINED Key points: 1. Contract value appears reasonable given the scope of travel management services. 2. Full and open competition suggests a competitive bidding process. 3. No significant risk indicators identified in the contract award. 4. Performance period of 371 days provides a clear timeframe for service delivery. 5. Contract falls within the broader professional services sector for government agencies. 6. Small business participation was not a primary focus of this award.
Value Assessment
Rating: good
The contract's value of approximately $14.7 million for travel management services over 371 days appears to be within a reasonable range for a federal contract of this nature. Benchmarking against similar government-wide travel contracts would provide a more precise value-for-money assessment, but the initial data does not suggest overpricing. The firm-fixed-price structure helps control costs for the government.
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 bids. This suggests a robust bidding environment, likely leading to competitive pricing. The presence of multiple bidders, though not explicitly detailed, is implied by the competition type, which generally benefits the government through better price discovery and service options.
Taxpayer Impact: Full and open competition typically results in better pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
Benefits Department of Defense personnel by facilitating official travel. Provides essential travel booking, management, and support services. Geographic impact is nationwide, supporting DoD personnel across various locations. Workforce implications include support for military and civilian personnel requiring travel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition, suggesting a fair and competitive process.
- Firm-fixed-price contract type helps manage cost certainty for the government.
- Contract duration of over a year allows for stable service provision.
Sector Analysis
This contract operates within the professional services sector, specifically focusing on travel agency services. The government relies heavily on such contracts to manage the complex travel needs of its personnel. Comparable spending benchmarks would involve analyzing other large-scale government travel management contracts to assess efficiency and cost-effectiveness within this niche.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The focus of this award was on securing comprehensive travel management services, and the implications for the small business ecosystem are likely minimal unless subcontracting opportunities arise.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver services within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight activities may not be publicly detailed.
Related Government Programs
- Government Travel Management Services
- Department of Defense Travel Programs
- Travel Agency Contracts
Risk Flags
- Potential for service disruption
- Data security and privacy concerns
- Contractor compliance with regulations
Tags
department-of-defense, travel-management, firm-fixed-price, full-and-open-competition, professional-services, delivery-order, cw-government-travel-inc, texas, army
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 million to CW GOVERNMENT TRAVEL INC. MANAGEMENT SERVICE FEE - COMBINED
Who is the contractor on this award?
The obligated recipient is CW GOVERNMENT TRAVEL 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 $14.7 million.
What is the period of performance?
Start: 2008-09-24. End: 2009-09-30.
What is the historical spending pattern for travel management services by the Department of Defense?
Historical spending on travel management services by the Department of Defense (DoD) has been substantial, reflecting the vast travel requirements of its personnel. While specific figures for this particular contract are provided, understanding the broader trend requires examining annual DoD travel budgets and the number and value of travel management contracts awarded over several fiscal years. Factors such as changes in travel policies, economic conditions, and the adoption of new technologies can influence these spending patterns. Analyzing past contracts can reveal shifts towards centralized booking systems, preferred travel agencies, and efforts to consolidate spending for better volume discounts. Without access to comprehensive historical DoD travel spending data, it is difficult to provide precise figures, but it is generally understood to be in the billions of dollars annually across all branches and agencies.
How does the awarded amount compare to other similar federal travel management contracts?
Comparing the $14.7 million awarded to CW Government Travel Inc. for 371 days requires benchmarking against similar federal travel management contracts. Contracts for travel management services can vary significantly based on the scope of services (e.g., booking, itinerary management, reporting, duty of care), the number of travelers supported, and the duration of the contract. Larger, multi-year contracts supporting entire agencies or branches could easily exceed this amount. Conversely, smaller contracts for specific departments or limited durations would be less. The firm-fixed-price nature of this award suggests a defined scope, which aids comparison. However, without access to a database of comparable contracts with detailed service descriptions and pricing structures, a precise comparison is challenging. Generally, this award appears to be a moderate-sized contract for travel management services within the federal landscape.
What is CW Government Travel Inc.'s track record with federal contracts, particularly in travel management?
CW Government Travel Inc. has a history of performing federal contracts, including those related to travel management. As a contractor for the Department of Defense, their track record would be assessed based on past performance evaluations, on-time delivery, adherence to contract terms, and overall client satisfaction. Federal agencies maintain performance records for contractors, which are often used in future source selection decisions. While specific details of their past performance on this or other contracts are not provided in the summary data, the fact that they were awarded this delivery order under full and open competition suggests they met the necessary qualifications and demonstrated capability. Further investigation into their contract history and performance ratings would be needed for a comprehensive assessment.
What are the potential risks associated with this travel management contract?
Potential risks associated with this travel management contract include service disruptions, such as system outages or insufficient staffing, which could impact the ability of DoD personnel to book or manage travel. Another risk is contractor non-compliance with travel regulations or policies, leading to potential cost overruns or audit issues. Data security and privacy are also critical risks, given the sensitive personal information handled by travel management companies. Furthermore, changes in government travel policies or budget constraints could affect the contract's scope or value. The firm-fixed-price nature mitigates some financial risk for the government, but performance-related risks remain.
How effective is the current travel management system in meeting DoD's needs?
The effectiveness of the current travel management system in meeting the Department of Defense's (DoD) needs is primarily determined by the contractor's performance against the contract's objectives and Key Performance Indicators (KPIs). A successful system should ensure efficient booking processes, cost savings through negotiated rates, compliance with travel regulations, and robust reporting capabilities. Given that this contract was awarded under full and open competition and is a delivery order, it implies that the system is meeting or expected to meet DoD's requirements. However, ongoing monitoring, user feedback, and performance metrics are crucial for a definitive assessment of its effectiveness. Without specific performance data or user satisfaction reports, it's presumed to be effective based on the award.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › Travel Agencies
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › RELOCATION OR TRAVEL AGENT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W91QUZ06R0051
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1777 NE LOOP 410 STE 702B, SAN ANTONIO, TX, 78217
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,701,068
Exercised Options: $14,701,068
Current Obligation: $14,701,068
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ07D0027
IDV Type: IDC
Timeline
Start Date: 2008-09-24
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2022-04-08
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