Navy awards $23.6M for logistics support, highlighting strong competition and potential value

Contract Overview

Contract Amount: $15,405,273 ($15.4M)

Contractor: Inchcape Shipping Services

Awarding Agency: Department of Defense

Start Date: 2006-09-11

End Date: 2007-03-15

Contract Duration: 185 days

Daily Burn Rate: $83.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200612!000646!1700!N49400!NAVSUP FISC SIGONELLA DET BAHRAI!N4940005DA008 !A!N! !Y!2009 ! !20060911!20070317!236553165!236553165!236553165!N!INCHCAPE SHIPPING SERVICES HOL!SUITE 504 THE CHAMBERS !LONDON !UK! !00000! !AE! ! !UAE !+000004266000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541614!E! !5!A!S! ! !C!20070731!B! ! !A! !A!N!J!2!003!B! !Z!N!Z!B!AE!Y!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! !1761!N57007!0001! !

Plain-Language Summary

Department of Defense obligated $15.4 million to INCHCAPE SHIPPING SERVICES for work described as: 200612!000646!1700!N49400!NAVSUP FISC SIGONELLA DET BAHRAI!N4940005DA008 !A!N! !Y!2009 ! !20060911!20070317!236553165!236553165!236553165!N!INCHCAPE SHIPPING SERVICES HOL!SUITE 504 THE CHAMBERS !LONDON !UK! !00000! !AE! ! … Key points: 1. Contract awarded through full and open competition, suggesting competitive pricing. 2. Delivery order structure may indicate flexibility in service needs. 3. Limited contract duration (185 days) suggests a short-term or specific requirement. 4. Contractor has a track record with the Department of Defense. 5. Service category aligns with broader transportation and logistics support activities. 6. Potential for cost savings due to competitive bidding process.

Value Assessment

Rating: good

The contract value of $23.6 million for a period of 185 days appears reasonable given the scope of logistics support services. Benchmarking against similar contracts for international logistics support would provide a more precise value assessment. However, the competitive nature of the award suggests that pricing was likely scrutinized and aligned with market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of multiple bidders generally fosters price discovery and can lead to more favorable pricing for the government. The specific number of bidders is not detailed, but the award type suggests a robust competitive environment.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives the best value for its investment in logistics support.

Public Impact

The primary beneficiaries are the U.S. Navy personnel and operations requiring logistical support in the specified geographic region (Bahrain/UAE). Services delivered include essential logistics support, crucial for maintaining operational readiness. Geographic impact is concentrated in the Middle East, specifically supporting naval operations in the region. Workforce implications may include direct and indirect employment opportunities within the logistics sector, both domestically and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Reliance on a single contractor for critical logistics could pose a risk if performance issues arise.
Geopolitical instability in the region could impact service delivery and costs.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
Contractor has prior experience with the Department of Defense, suggesting familiarity with government contracting requirements.
Clear service category (Logistics Support Services) aids in performance monitoring.

Sector Analysis

This contract falls within the broader logistics and transportation support sector, a critical component of defense operations. The market for such services is substantial, driven by global military presence and supply chain needs. This specific award supports naval operations, fitting within the defense sub-sector of logistics. Comparable spending benchmarks would involve analyzing other contracts for similar support services in comparable geographic regions.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. As this was a full and open competition, it is possible that small businesses could have participated directly or indirectly. Further analysis would be needed to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are usually embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Supply Systems Command (NAVSUP)
Defense Logistics Agency (DLA)
Transportation Services Contracts
Base Operations Support Contracts

Risk Flags

Potential for performance issues if contractor lacks sufficient experience in the specific region.
Risk of cost overruns due to unforeseen logistical challenges in a foreign operational environment.
Dependency on contractor's ability to navigate local regulations and customs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to INCHCAPE SHIPPING SERVICES. 200612!000646!1700!N49400!NAVSUP FISC SIGONELLA DET BAHRAI!N4940005DA008 !A!N! !Y!2009 ! !20060911!20070317!236553165!236553165!236553165!N!INCHCAPE SHIPPING SERVICES HOL!SUITE 504 THE CHAMBERS !LONDON !UK! !00000! !AE! ! !UAE !+000004266000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541614!E! !5!A!S! ! !C!200

Who is the contractor on this award?

The obligated recipient is INCHCAPE SHIPPING SERVICES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2006-09-11. End: 2007-03-15.

What is Inchcape Shipping Services' track record with the Department of Defense?

Inchcape Shipping Services has a history of contracting with the Department of Defense, as indicated by this award and potentially others. Their experience likely includes providing various logistical and support services to military operations. A deeper dive into their contract history with DoD would reveal the types of services rendered, contract values, performance ratings, and any past issues or accolades. This information is crucial for assessing their reliability and capability to fulfill current and future contracts effectively. Understanding their past performance provides a data-driven basis for evaluating their suitability for sensitive and critical support roles.

How does the $23.6 million value compare to similar logistics support contracts in the Middle East?

The $23.6 million award for 185 days of logistics support services in the Middle East requires comparison with similar contracts to assess value. Factors such as the specific services provided (e.g., port operations, warehousing, transportation), duration, geographic scope, and prevailing market rates in the region are critical. Without direct comparable contract data, it's challenging to definitively benchmark. However, given the competitive award, it suggests the price was deemed fair and reasonable at the time of award. Analyzing historical data for similar support services in Bahrain and surrounding areas would provide a more robust comparison, potentially revealing cost efficiencies or areas where this contract might be an outlier.

What are the primary risks associated with this type of international logistics support contract?

Key risks for international logistics support contracts include geopolitical instability in the operating region, which can disrupt supply chains and increase operational costs. Currency fluctuations can also impact the financial aspects of the contract. Furthermore, reliance on a single contractor for critical services poses a risk if performance falters or if the contractor faces financial difficulties. Compliance with local laws and regulations in foreign countries adds another layer of complexity. Finally, security risks associated with operating in certain regions must be carefully managed to ensure the safety of personnel and assets.

How effective is full and open competition in ensuring value for taxpayer money in logistics contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in logistics contracts. By allowing all responsible sources to submit bids, it maximizes the pool of potential suppliers, thereby increasing the likelihood of receiving competitive pricing. This process encourages contractors to offer their best terms and prices to win the contract. Moreover, competition drives innovation and efficiency as contractors strive to differentiate themselves. While oversight is still necessary to ensure performance standards are met, the initial competitive bidding process lays a strong foundation for cost-effectiveness and achieving the best possible outcome for the government.

What is the typical duration for logistics support contracts of this nature?

The typical duration for logistics support contracts can vary significantly based on the specific requirements and mission objectives. Short-term contracts, like this 185-day delivery order, are often used for specific operations, surge requirements, or as bridge funding while a longer-term contract is being established. Longer-term contracts, often spanning several years with options, are more common for sustained operational support. Factors influencing duration include the predictability of the need, the complexity of the services, and the strategic importance of the support. This particular contract's duration suggests a focused, potentially time-bound need for logistics services.

What are the implications of the 'All Other Support Activities for Transportation' NAICS code for this contract?

The NAICS code 488999, 'All Other Support Activities for Transportation,' indicates that this contract covers a broad range of transportation-related support services that do not fit into more specific categories. This could encompass activities such as freight forwarding, logistics management, dispatching, cargo handling, and other related support functions necessary for the movement of goods and personnel. For this specific Navy contract, it implies the services are essential for facilitating the efficient and effective transportation operations of naval assets and personnel in the region. The broad nature of the code suggests flexibility in the types of support that can be provided under the contract.

Industry Classification

NAICS: Transportation and Warehousing › Other Support Activities for Transportation › All Other Support Activities for Transportation

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: OUD METHA RD, DUBAI

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: N4940005DA008

IDV Type: IDC

Timeline