Department of the Army awarded $19.6M for long-distance freight trucking services to SANDI GROUP, INC

Contract Overview

Contract Amount: $19,631,000 ($19.6M)

Contractor: Sandi Group, Inc, the

Awarding Agency: Department of Defense

Start Date: 2011-06-12

End Date: 2016-04-11

Contract Duration: 1,765 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: [PIIN: W91B4N-09-D-5001-0010] TSG TO FOR 10 JUNE FUNDING

Plain-Language Summary

Department of Defense obligated $19.6 million to SANDI GROUP, INC, THE for work described as: [PIIN: W91B4N-09-D-5001-0010] TSG TO FOR 10 JUNE FUNDING Key points: 1. The contract value of $19.6 million over approximately five years suggests a significant need for freight services. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type generally shifts risk to the contractor, potentially benefiting the government. 4. The duration of the contract (1765 days) allowed for sustained service delivery. 5. The North American Industry Classification System (NAICS) code 484121 points to a specialized service within the transportation sector. 6. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed service scope. The $19.6 million award over nearly five years averages to approximately $4 million annually for general freight trucking. This figure needs to be compared against the volume and distance of freight moved, as well as the specific types of goods transported, to assess value for money. Without more granular data on the services rendered, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that the solicitation was broadly advertised, and multiple bidders were likely considered. The specific exclusion of sources might suggest a pre-qualification or a specific set of requirements that narrowed the field, but the 'full and open' aspect implies a robust competitive environment was intended.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers, as multiple companies vie for the contract. This mechanism helps ensure that the government is receiving competitive pricing for the services rendered.

Public Impact

The primary beneficiaries are likely Department of the Army units requiring the movement of goods and equipment. The services delivered include general freight trucking, specifically long-distance, truckload services. The geographic impact would be nationwide, covering the long-distance transportation needs of the Army. Workforce implications include employment opportunities for truck drivers, logistics personnel, and support staff within SANDI GROUP, INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The 'after exclusion of sources' clause warrants further investigation to understand the rationale and potential impact on competition.
Limited information on subcontracting practices could obscure the full distribution of funds and impact on smaller businesses.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
The firm-fixed-price contract type transfers cost overrun risk to the contractor.
The contract duration of nearly five years indicates a stable, long-term need for these services.

Sector Analysis

The transportation and logistics sector is critical for government operations, particularly for defense agencies. General freight trucking, especially long-distance truckload services, forms a substantial part of this sector. The market is characterized by numerous providers, ranging from large carriers to smaller specialized firms. Government contracts in this area often involve significant volumes and complex logistical requirements, making them a key area of federal spending. Benchmarks for this type of service would typically be based on per-mile rates, per-load rates, and fuel surcharges, which can fluctuate with market conditions.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This means that the competition was open to all eligible businesses, regardless of size. While this ensures broad competition, it also means that specific opportunities for small businesses to directly secure this prime contract were not prioritized. However, SANDI GROUP, INC. may engage small businesses as subcontractors, which would be a separate consideration for their impact on the small business ecosystem.

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 contract, which obligates the contractor to deliver services at an agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Department of Defense Freight Transportation Services
General Services Administration (GSA) Schedule for Transportation Services
Military Surface Deployment and Distribution Command (SDDC) Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics hinders value assessment.
Fuel price volatility could impact contractor costs and potentially lead to future claims or price adjustments if not adequately managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to SANDI GROUP, INC, THE. [PIIN: W91B4N-09-D-5001-0010] TSG TO FOR 10 JUNE FUNDING

Who is the contractor on this award?

The obligated recipient is SANDI GROUP, INC, THE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.6 million.

What is the period of performance?

Start: 2011-06-12. End: 2016-04-11.

What was the specific rationale for excluding certain sources in the 'full and open competition after exclusion of sources' award?

The phrase 'full and open competition after exclusion of sources' suggests that while the competition was intended to be broad, certain potential bidders were excluded prior to the main solicitation phase. This exclusion could be based on various factors, such as specific technical capabilities, past performance requirements, security clearances, or geographic limitations deemed essential for the contract's execution. Without access to the solicitation documents or award justification, the precise reasons for excluding specific sources remain unclear. Understanding this rationale is crucial for assessing whether the exclusion unduly limited competition or was a necessary measure to ensure the government received the most suitable offer for its specialized needs.

How does the average annual cost of $4 million for SANDI GROUP, INC. compare to industry benchmarks for similar long-distance freight trucking services?

Comparing the average annual cost of approximately $4 million for SANDI GROUP, INC. to industry benchmarks requires detailed data on the volume, distance, and type of freight transported. General freight trucking costs are influenced by factors such as per-mile rates, fuel costs, driver wages, equipment maintenance, and administrative overhead. For long-distance, truckload services, industry benchmarks can vary significantly. For instance, per-mile rates might range from $2.00 to $3.50, and a contract of this value could represent thousands of truckloads or millions of miles annually. Without specific metrics on the services rendered under this contract, a direct comparison to industry averages is speculative. However, the scale of the award suggests a substantial operational volume.

What were the key performance indicators (KPIs) used to evaluate SANDI GROUP, INC.'s performance under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) that were used to evaluate SANDI GROUP, INC.'s performance. Typically, for freight trucking contracts, KPIs might include on-time delivery rates, transit time adherence, damage rates during transit, fuel efficiency, and compliance with safety regulations. The effectiveness of the contract and the value for money derived would be assessed against these metrics. The absence of this information in the summary data limits a thorough assessment of the contractor's track record and the overall success of the service delivery.

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

Historical spending patterns for similar long-distance freight trucking services by the Department of the Army would reveal trends in contract values, durations, and types of competition over time. Analyzing past awards for NAICS code 484121 or equivalent services would indicate whether this $19.6 million contract is an outlier, a continuation of a trend, or a significant shift in procurement strategy. Such analysis could also highlight changes in pricing, the prevalence of different contract types (e.g., fixed-price vs. cost-reimbursement), and the level of competition experienced in previous solicitations. Understanding this context is vital for assessing the current contract's place within the Army's broader logistics and transportation procurement history.

Were there any significant risks identified during the procurement or performance phases of this contract?

The provided data does not explicitly list any significant risks identified during the procurement or performance phases of this contract. However, general risks associated with long-distance freight trucking contracts can include fuel price volatility, driver shortages, potential for accidents or cargo damage, regulatory changes, and equipment breakdowns. The firm-fixed-price nature of this contract shifts some of these financial risks to the contractor. Further assessment would require reviewing contract performance reports, any issued task orders, and any modifications or claims filed during the contract's life.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2215 M ST NW, WASHINGTON, DC, 20037

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

Financial Breakdown

Contract Ceiling: $26,537,077

Exercised Options: $19,631,000

Current Obligation: $19,631,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91B4N09D5001

IDV Type: IDC

Timeline