DoD's $10.4M Distribution Services Contract Awarded to Logistics & Environmental Solutions Corp
Contract Overview
Contract Amount: $10,417,915 ($10.4M)
Contractor: Logistics & Environmental Solutions Corporation
Awarding Agency: Department of Defense
Start Date: 2006-11-30
End Date: 2009-06-29
Contract Duration: 942 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DISTRIBUTION SERVICES AT DDWG
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to LOGISTICS & ENVIRONMENTAL SOLUTIONS CORPORATION for work described as: DISTRIBUTION SERVICES AT DDWG Key points: 1. Contract awarded for distribution services, a critical logistics function. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The contract duration of 942 days (approx. 2.5 years) is substantial. 4. No small business participation was noted in the award.
Value Assessment
Rating: fair
The contract value of $10.4M over approximately 2.5 years averages around $4.16M annually. Benchmarking this against similar distribution and warehousing contracts is difficult without more specific service details, but the value appears moderate for a federal logistics requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to more competitive pricing. The specific price discovery mechanism within this competition isn't detailed, but the method itself is favorable for taxpayers.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.
Public Impact
Ensures the flow of goods and materials for Department of Defense operations. Supports military readiness by maintaining essential supply chain functions. Potential impact on local employment in Georgia where services are rendered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Contract duration could lead to price erosion if not managed.
- Potential for cost overruns if scope creeps.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type limits cost risk.
- Awarded to a single entity, potentially simplifying management.
Sector Analysis
This contract falls under the 'Other Warehousing and Storage' category, which is a component of the broader logistics and transportation sector. Federal spending in this area is substantial, supporting the movement and storage of goods essential for government operations, particularly defense.
Small Business Impact
The data indicates that this contract was not awarded to a small business, nor does it appear to have provisions for small business subcontracting. This represents a missed opportunity for small business engagement within this significant federal expenditure.
Oversight & Accountability
Oversight would typically be managed by the Defense Logistics Agency (DLA) to ensure contract terms are met and services are performed satisfactorily. Accountability for performance and cost rests with both the contractor and the contracting officer.
Related Government Programs
- Other Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- No small business participation.
- Potential for vendor lock-in due to contract duration.
- Dependence on a single contractor for critical distribution services.
- Risk of performance degradation over the contract term if not actively managed.
Tags
other-warehousing-and-storage, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to LOGISTICS & ENVIRONMENTAL SOLUTIONS CORPORATION. DISTRIBUTION SERVICES AT DDWG
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 $10.4 million.
What is the period of performance?
Start: 2006-11-30. End: 2009-06-29.
What specific distribution services are included in this contract, and how do they align with current DoD logistics needs?
The contract specifies 'DISTRIBUTION SERVICES AT DDWG,' likely referring to services at a DoD Distribution Warehouse. These services typically encompass receiving, storing, inventory management, order fulfillment, and shipping of supplies and equipment. Their alignment with current needs depends on the specific types of materiel being handled and the operational tempo of the supported military units.
Given the firm fixed price, what mechanisms are in place to prevent scope creep and ensure the contractor doesn't incur unexpected costs?
A firm fixed price (FFP) contract places the cost risk on the contractor. To prevent scope creep, a clear and detailed Statement of Work (SOW) is crucial. Any changes to the SOW would require a formal contract modification, including potential adjustments to price and schedule, negotiated by the contracting officer.
How does the performance of Logistics & Environmental Solutions Corporation on this contract compare to industry benchmarks for similar warehousing and distribution services?
Without specific performance metrics (e.g., on-time delivery rates, inventory accuracy, damage rates), a direct comparison to industry benchmarks is not possible. The contracting officer's representative (COR) would be responsible for monitoring performance against the SOW and reporting any deficiencies. A review of past performance or award-term evaluations would provide further insight.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
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
Financial Breakdown
Contract Ceiling: $10,451,786
Exercised Options: $10,451,786
Current Obligation: $10,417,915
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP310004D7002
IDV Type: IDC
Timeline
Start Date: 2006-11-30
Current End Date: 2009-06-29
Potential End Date: 2009-06-29 00:00:00
Last Modified: 2009-10-01
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