Department of the Army awarded $2.07M for long-distance truckload freight services to VLOX, LLC

Contract Overview

Contract Amount: $20,668,750 ($20.7M)

Contractor: Vlox, LLC

Awarding Agency: Department of Defense

Start Date: 2010-11-30

End Date: 2012-01-21

Contract Duration: 417 days

Daily Burn Rate: $49.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: [PIIN: W91B4N-09-D-5005-0009] OCT FY 11 5005 (SF 1449)

Plain-Language Summary

Department of Defense obligated $20.7 million to VLOX, LLC for work described as: [PIIN: W91B4N-09-D-5005-0009] OCT FY 11 5005 (SF 1449) Key points: 1. The contract was awarded using a firm-fixed-price structure, which shifts cost risk to the contractor. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 417 days indicates a medium-term service requirement. 4. The North American Industry Classification System (NAICS) code 484121 points to general freight trucking services. 5. The contract was a delivery order against a larger contract vehicle. 6. The small business status of the contractor is not indicated as a set-aside.

Value Assessment

Rating: fair

The contract value of $2.07 million for approximately 14 months of service appears to be within a reasonable range for long-distance freight trucking. Without specific details on the volume of freight, routes, or service levels, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type suggests that the government has locked in a price, which can be advantageous if costs rise unexpectedly. Benchmarking against similar government contracts for general freight trucking would provide a clearer picture of cost-effectiveness.

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 number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The government likely sought the best value through a competitive process, which should theoretically lead to more favorable terms for the taxpayer.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach as it maximizes the pool of potential offerors, driving down prices and improving service quality through market forces.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who will receive reliable freight transportation services. The service delivered is general freight trucking, specifically long-distance, truckload services. The geographic impact is likely nationwide, given the nature of long-distance freight, though specific routes are not detailed. The contract supports the logistics and supply chain operations essential for military readiness and deployment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess service quality beyond the contractual terms.
The duration of the contract is relatively short, which might lead to frequent re-competition and potential disruption.
Details on the specific types of freight and their sensitivity are not provided, which could indicate potential risks if specialized handling is required.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Award under full and open competition suggests a robust and fair bidding process.
The contractor, VLOX, LLC, is providing a core logistics service essential for military operations.

Sector Analysis

The general freight trucking industry is a critical component of the U.S. economy, facilitating the movement of goods across the country. This contract falls within the transportation and logistics sector, which is characterized by a large number of providers, from small owner-operators to large fleet companies. Government contracts for freight services are common, supporting various agencies' operational needs. Benchmarks for this sector often consider factors like cost per mile, cost per ton-mile, and fuel surcharges, which are not detailed here.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. The award to VLOX, LLC, does not specify its size category. Without this information, it's difficult to assess the direct impact on the small business ecosystem or whether opportunities were provided to small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Performance monitoring would likely involve tracking delivery times, freight condition, and adherence to contractual terms. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Logistics Services
General Freight Trucking Contracts
Long-Distance Transportation Services
Military Supply Chain Management

Risk Flags

Potential for delivery delays
Risk of cargo damage
Contractor performance uncertainty
Limited transparency on specific service metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to VLOX, LLC. [PIIN: W91B4N-09-D-5005-0009] OCT FY 11 5005 (SF 1449)

Who is the contractor on this award?

The obligated recipient is VLOX, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2010-11-30. End: 2012-01-21.

What is the track record of VLOX, LLC in performing government contracts, particularly for the Department of Defense?

Information regarding VLOX, LLC's specific track record with government contracts, especially for the Department of Defense, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, any documented disputes or contract terminations, and the scope and value of previous awards. Without this historical data, it is difficult to definitively assess their reliability and capability for this specific freight trucking requirement. Further research into contract databases and performance assessment reports would be necessary to provide a detailed analysis of their contractor performance.

How does the awarded amount compare to market rates for similar long-distance, truckload freight services?

The provided data does not include sufficient detail to benchmark the $2.07 million award against current market rates for similar services. Key factors such as the total mileage, weight of goods, specific routes, delivery timeframes, and fuel surcharges are missing. To conduct a proper comparison, one would need to gather quotes from commercial carriers for comparable services or consult industry rate indices. The firm-fixed-price nature of the contract suggests a negotiated rate, but its competitiveness relative to the open market cannot be determined without more granular information on the service scope and prevailing industry pricing.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential delays in delivery, damage to goods during transit, and contractor non-performance. Given the firm-fixed-price structure, the risk of cost overruns is largely borne by VLOX, LLC. Mitigation strategies likely include performance monitoring by the contracting officer's representative, adherence to strict delivery schedules, and potentially insurance requirements for the cargo. The contract's relatively short duration (417 days) also limits the long-term exposure to performance issues. However, the lack of detailed performance metrics in the summary data makes a thorough risk assessment challenging.

What is the historical spending pattern for similar freight trucking services by the Department of the Army?

Analyzing historical spending patterns for similar freight trucking services by the Department of the Army would require access to comprehensive contract databases covering multiple fiscal years. This specific award of $2.07 million represents a single delivery order. To understand the broader spending context, one would need to aggregate data on all contracts awarded for general freight trucking, long-distance, and truckload services by the Army over several years. This would reveal trends in contract values, competition levels, and dominant contractors, allowing for a comparison of the current award against historical norms and identifying any significant shifts in procurement strategy or spending volume.

What specific performance standards or metrics are in place to ensure the quality of the freight services provided?

The provided data does not specify the performance standards or metrics used to evaluate the quality of the freight services. Typically, government contracts include clauses related to on-time delivery, condition of goods upon arrival, and proper handling procedures. For a firm-fixed-price contract like this, performance is often monitored through delivery confirmations and inspection of goods. However, without access to the contract's Statement of Work (SOW) or Performance Work Statement (PWS), the exact metrics (e.g., acceptable percentage of on-time deliveries, maximum allowable damage rate) and the associated remedies for non-performance remain unknown.

Industry Classification

NAICS: Transportation and Warehousing › General Freight Trucking › General Freight Trucking, Long-Distance, Truckload

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6867 ELM ST STE 100, MC LEAN, VA, 22101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $20,668,750

Exercised Options: $20,668,750

Current Obligation: $20,668,750

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91B4N09D5005

IDV Type: IDC

Timeline