DoD's $12.1M CARGO TRANSPORT IT contract awarded to Global Fleet Sales LLC shows fair value with 9 bidders

Contract Overview

Contract Amount: $12,124,218 ($12.1M)

Contractor: Global Fleet Sales LLC

Awarding Agency: Department of Defense

Start Date: 2008-04-24

End Date: 2009-03-31

Contract Duration: 341 days

Daily Burn Rate: $35.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CARGO TRANSPORT IT

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to GLOBAL FLEET SALES LLC for work described as: CARGO TRANSPORT IT Key points: 1. The contract achieved a competitive outcome with 9 bidders, suggesting a healthy price discovery process. 2. While specific performance metrics are not detailed, the firm-fixed-price structure incentivizes contractor efficiency. 3. The contract's duration of 341 days is relatively short, potentially limiting long-term risk exposure. 4. Awarded to Global Fleet Sales LLC, a company with a track record in vehicle sales and services. 5. The IT component of this cargo transport contract warrants further examination for its specific role and value. 6. Geographic impact is concentrated in Virginia, the state of the contracting activity.

Value Assessment

Rating: good

The contract's value of $12.1 million for cargo transport IT services appears reasonable given the competitive nature of the award. With 9 bidders, the pricing likely reflects market conditions. Benchmarking against similar IT support contracts for logistics or transportation within the Department of Defense would provide a more precise value assessment. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable 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. The presence of 9 bidders suggests a robust level of interest and competition for this requirement. This high number of bidders generally leads to more competitive pricing and a wider range of potential solutions, benefiting the government.

Taxpayer Impact: A high level of competition ensures that taxpayer dollars are used efficiently, as the government is likely to receive the best possible price and quality due to the multiple offers received.

Public Impact

The Department of Defense benefits from enhanced IT capabilities supporting cargo transport operations. Services delivered likely include software, hardware, or network support crucial for logistics management. The primary geographic impact is within Virginia, where the contracting activity is located. Workforce implications may involve IT specialists and logistics personnel supporting the contract's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if IT requirements are not clearly defined within the cargo transport context.
Dependence on Global Fleet Sales LLC for critical IT support could pose a risk if performance falters.
Integration challenges between IT systems and existing cargo transport infrastructure may arise.

Positive Signals

Firm-fixed-price contract structure aligns incentives for cost control and efficient delivery.
Full and open competition suggests a strong market response and potential for competitive pricing.
The award to a single entity simplifies contract management and oversight.

Sector Analysis

This contract falls within the broader IT services sector, specifically supporting defense logistics and transportation. The market for IT solutions in defense is substantial, driven by the need for advanced capabilities in command, control, and logistics. Comparable spending benchmarks would involve analyzing other IT support contracts for military branches or agencies focused on supply chain management and transportation.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Global Fleet Sales LLC voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivery within the agreed-upon price. Transparency is facilitated by the public award data, though detailed performance reports are generally not publicly accessible.

Related Government Programs

Defense Logistics Agency IT Support
Army Materiel Command IT Services
Global Transportation Network IT Solutions
Military Sealift Command IT Modernization

Risk Flags

Potential mismatch between contractor's primary industry classification (vehicle manufacturing) and IT service requirements.
Lack of detailed performance metrics in the provided data makes assessing effectiveness challenging.
Limited information on subcontracting to small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to GLOBAL FLEET SALES LLC. CARGO TRANSPORT IT

Who is the contractor on this award?

The obligated recipient is GLOBAL FLEET SALES 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 $12.1 million.

What is the period of performance?

Start: 2008-04-24. End: 2009-03-31.

What specific IT services were included in the CARGO TRANSPORT IT contract?

The provided data does not specify the exact IT services procured under the CARGO TRANSPORT IT contract. However, given the 'CARGO TRANSPORT' designation, it likely encompassed IT solutions related to logistics management, supply chain visibility, fleet tracking, inventory control, or communication systems essential for moving military cargo. This could include software development, hardware procurement, network infrastructure support, or cybersecurity services tailored to the transportation domain. Further investigation into the contract's statement of work would be necessary to detail the precise IT deliverables.

How does the $12.1 million contract value compare to similar IT contracts for cargo transport within the DoD?

Benchmarking the $12.1 million contract value requires comparing it against similar IT support contracts for cargo transport or logistics within the Department of Defense. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, considering the firm-fixed-price award and the competitive nature (9 bidders), the value appears reasonable for a contract of approximately one year's duration. Larger, multi-year contracts for enterprise-level logistics IT systems would naturally be significantly higher. This specific award likely addresses a focused IT need within a particular cargo transport operation or unit.

What is the track record of Global Fleet Sales LLC in performing government IT contracts?

Global Fleet Sales LLC's primary classification is 'Motor Vehicle Body Manufacturing' (NAICS 336211), suggesting their core business is not IT services. While they have secured this $12.1 million contract from the Department of the Army, their history with IT-specific government contracts is not evident from the provided data. It is possible they are a prime contractor leveraging IT subcontractors, or this contract represents a diversification into IT support. A deeper dive into their contract history and past performance evaluations would be needed to assess their IT-specific track record and reliability.

What are the potential risks associated with awarding an IT contract to a company primarily classified in vehicle manufacturing?

The primary risk associated with awarding an IT contract to a company primarily classified in vehicle manufacturing, like Global Fleet Sales LLC, is a potential lack of specialized IT expertise. This could lead to challenges in delivering complex IT solutions, managing IT infrastructure, or ensuring cybersecurity. There's a risk of over-reliance on subcontractors for the IT components, which can increase costs and complicate oversight. Furthermore, the contractor might lack a deep understanding of the specific IT needs within a defense cargo transport context, potentially leading to scope creep or suboptimal solutions. However, the firm-fixed-price structure and the competitive award process may mitigate some of these risks by incentivizing performance and ensuring a market-validated price.

How does the 'FULL AND OPEN COMPETITION' designation impact the value and efficiency of this contract?

The 'FULL AND OPEN COMPETITION' designation is a significant positive indicator for the value and efficiency of this contract. It means that the Department of the Army solicited bids from all responsible sources, fostering a competitive environment. With 9 bidders participating, the government likely received multiple proposals offering various solutions and price points. This intense competition drives down prices as contractors vie for the award, ensuring that the government obtains the services at a market-driven rate. It also increases the likelihood of receiving innovative solutions and high-quality service delivery, as contractors are motivated to differentiate themselves. Ultimately, full and open competition maximizes the value of taxpayer dollars spent.

What is the historical spending pattern for CARGO TRANSPORT IT services by the Department of the Army?

The provided data only details a single contract award for 'CARGO TRANSPORT IT' valued at $12.1 million to Global Fleet Sales LLC, awarded in April 2008 with an end date in March 2009. This single data point does not allow for the analysis of historical spending patterns. To understand historical spending, one would need to examine contract awards over multiple fiscal years for similar services (e.g., IT support for logistics, transportation, or supply chain management) within the Department of the Army or the broader Department of Defense. This would reveal trends in contract values, types of services procured, and the contractors frequently awarded such work.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 890 RIO EAST COURT, CHARLOTTESVILL, VA

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $12,124,218

Exercised Options: $12,124,218

Current Obligation: $12,124,218

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV06DG002

IDV Type: IDC

Timeline