Treasury's $701K contract for freight transportation arrangement awarded to Express Logistics Solutions Inc

Contract Overview

Contract Amount: $70,121 ($70.1K)

Contractor: Express Logistics Solutions Inc

Awarding Agency: Department of the Treasury

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $64/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUFFALO COURIER SERVICES

Place of Performance

Location: BUFFALO, ERIE County, NEW YORK, 14202

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $70,120.98 to EXPRESS LOGISTICS SOLUTIONS INC for work described as: BUFFALO COURIER SERVICES Key points: 1. Value for money appears fair given the 3-year duration and fixed-price nature. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are moderate, with a sole-source award and a long contract duration. 4. Performance context is limited due to the nature of freight arrangement services. 5. Sector positioning is within the broader transportation and logistics industry.

Value Assessment

Rating: fair

The contract value of $701,201.98 over three years averages approximately $233,734 per year. Without specific details on the volume or type of freight being arranged, a direct comparison to similar contracts is challenging. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value. The absence of competition, however, makes it difficult to benchmark the pricing against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the simplified acquisition procedures (SAP) and was awarded as a sole-source purchase order. The lack of competition means that only one offer was solicited and received. This approach can be justified for specific needs or when only one source is capable of meeting the requirement, but it limits the government's ability to explore alternative pricing and service options.

Taxpayer Impact: The sole-source nature of this award means taxpayers did not benefit from competitive bidding, which could have potentially led to lower prices or better terms.

Public Impact

The primary beneficiary is the Department of the Treasury, specifically the Internal Revenue Service, which will receive freight transportation arrangement services. The services delivered will facilitate the movement of goods and materials essential for IRS operations. The geographic impact is primarily within New York, where the contractor is located, but the services will likely support national operations. Workforce implications are minimal, as this contract is for arrangement services rather than direct labor provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the selection process due to sole-source award.
Contract duration of three years could lock in potentially suboptimal pricing.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Contract awarded to a single entity, potentially indicating specialized capability.
Clear start and end dates provide defined service period.

Sector Analysis

The freight transportation arrangement sector is a critical component of the logistics industry, enabling the efficient movement of goods. This contract falls under NAICS code 488510 (Freight Transportation Arrangement). Spending in this sector is substantial, driven by government agencies' needs for supply chain management and logistical support. Benchmarking is difficult without specific service details, but government contracts for logistics services can range from thousands to millions of dollars depending on scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses. The award to Express Logistics Solutions Inc. does not directly contribute to the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

As a purchase order, oversight is typically managed through the contracting officer's representative (COR) and adherence to the terms and conditions of the contract. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules for Logistics and Transportation Services
Department of Defense (DoD) Logistics and Transportation Contracts
Other Agency-Specific Freight and Shipping Contracts

Risk Flags

Sole-source award limits price competition.
Contract duration of 3 years may not reflect current market conditions.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $70,120.98 to EXPRESS LOGISTICS SOLUTIONS INC. BUFFALO COURIER SERVICES

Who is the contractor on this award?

The obligated recipient is EXPRESS LOGISTICS SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $70,120.98.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the track record of Express Logistics Solutions Inc. with federal contracts?

Information regarding Express Logistics Solutions Inc.'s specific track record with federal contracts is not detailed in the provided data. A deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain their past performance, including the types of contracts awarded, their value, and any performance ratings. Without this historical data, it's difficult to assess their reliability and experience in fulfilling government requirements. The current award is a sole-source purchase order, which doesn't inherently speak to their broader federal contracting history or capabilities across different contract types and agencies.

How does the pricing of this contract compare to similar freight arrangement services?

Directly comparing the pricing of this $701,201.98 contract to similar freight arrangement services is challenging without more granular data. The contract is for freight transportation arrangement, a service that can vary significantly in cost based on the volume, weight, destination, urgency, and type of goods being shipped. Furthermore, the sole-source nature of this award means there was no competitive bidding process to establish a market-driven price. To benchmark effectively, one would need to identify comparable government contracts for similar services, considering factors like the agency, the scope of work, and the contract duration, and then analyze their per-unit costs or overall value.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract stem from the lack of competition. This can lead to a higher price than might be achieved through a competitive process, as the government does not benefit from multiple bidders driving down costs. There's also a potential risk of reduced innovation or service quality, as the contractor may face less pressure to excel compared to a competitive environment. Furthermore, the three-year duration, while providing stability, could lock the government into a contract that becomes less advantageous over time if market conditions or needs change. Ensuring robust oversight and performance management becomes crucial in sole-source situations.

How effective is the IRS in managing freight transportation arrangements?

The effectiveness of the IRS in managing freight transportation arrangements cannot be determined solely from the details of this single contract award. This contract is for the *arrangement* of freight, meaning the contractor is responsible for coordinating shipments, not necessarily performing the physical transportation. The effectiveness would depend on the IRS's internal processes for defining needs, selecting contractors (even sole-source), overseeing performance, and ensuring timely and cost-efficient delivery of goods. The success of this specific contract would be measured by whether the arranged freight services meet the IRS's operational requirements within the agreed-upon terms and budget.

What are the historical spending patterns for freight transportation arrangement by the IRS?

Historical spending patterns for freight transportation arrangement by the IRS are not provided in the given data. To analyze this, one would need to access historical federal procurement data (e.g., through FPDS or SAM.gov) and filter for contracts awarded by the IRS under NAICS code 488510 (Freight Transportation Arrangement) or similar codes. This analysis would reveal the total amount spent over previous fiscal years, the number of contracts awarded, the types of competition used (competitive vs. sole-source), and the primary contractors utilized. Such data would help contextualize the current $701,201.98 award within the IRS's broader logistical spending trends.

What is the significance of the contract type (Purchase Order) for this service?

The significance of this contract being a Purchase Order (PO) is that it is typically used for simpler, lower-value acquisitions, often for commercial items or services. While this PO is for $701,201.98, which is above the typical threshold for micro-purchases, it falls within the range where POs can still be utilized, especially if the services are considered commercial. POs are generally less formal than other contract types and are often used when a single source is identified or when the acquisition is straightforward. For freight arrangement services, a PO can be an efficient mechanism, provided that the terms and conditions are clearly defined and adequate oversight is maintained to ensure satisfactory performance.

Industry Classification

NAICS: Transportation and Warehousing › Freight Transportation Arrangement › Freight Transportation Arrangement

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6391 WALMORE RD, NIAGARA FALLS, NY, 14304

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $113,420

Exercised Options: $81,620

Current Obligation: $70,121

Actual Outlays: $60,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline