Treasury's Mint awards $4.9M warehousing contract to Aspen Distribution Inc. under full and open competition

Contract Overview

Contract Amount: $4,887,741 ($4.9M)

Contractor: Aspen Distribution Inc

Awarding Agency: Department of the Treasury

Start Date: 2024-01-26

End Date: 2027-01-31

Contract Duration: 1,101 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WAREHOUSE STORAGE AND SERVICE

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80011

State: Colorado Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.9 million to ASPEN DISTRIBUTION INC for work described as: WAREHOUSE STORAGE AND SERVICE Key points: 1. Contract value appears reasonable for warehousing and storage services. 2. Full and open competition suggests potential for competitive pricing. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly three years provides stability for service delivery. 5. Service area in Colorado may indicate a specific logistical need for the Mint. 6. No small business set-aside indicates a focus on best value regardless of business size.

Value Assessment

Rating: good

The contract value of approximately $4.9 million for warehousing and storage services over three years seems aligned with industry standards for similar government contracts. Benchmarking against other warehousing contracts of comparable size and duration would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator, as it shifts cost risk to the contractor and encourages efficient service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was competed suggests that the United States Mint sought competitive bids to ensure fair pricing and service quality. Without specific details on the number of bids received, it's difficult to definitively assess the intensity of the competition, but the chosen method generally promotes price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of potential service providers, ultimately aiming for better value.

Public Impact

The United States Mint benefits from secure and efficient storage of its goods or materials. Businesses in the warehousing and logistics sector may see opportunities for subcontracting or future contracts. The contract supports the operational needs of the Mint, ensuring continuity in its supply chain. Workforce implications are likely within the logistics and warehousing sector in the Colorado region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand on local warehousing infrastructure in Colorado.
Dependence on a single contractor for critical storage services.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
Full and open competition suggests a robust bidding process.
Contract duration provides service continuity.
Clear service description (General Warehousing and Storage) aids performance monitoring.

Sector Analysis

The warehousing and storage sector is a critical component of the logistics industry, supporting various government and commercial operations. This contract falls within the broader logistics and supply chain management market. Government spending in this area often fluctuates based on agency needs for inventory management, distribution, and storage of materials, equipment, or supplies. Comparable spending benchmarks would involve analyzing other federal contracts for similar warehousing services across different agencies and geographic locations.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. This suggests that the primary focus was on selecting the most capable and cost-effective provider through full and open competition. While this may limit direct opportunities for small businesses on this specific contract, it doesn't preclude them from participating in the broader federal contracting ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the United States Mint. Performance monitoring, invoicing review, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract databases like SAM.gov, where award details are publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Warehousing and Storage Services
Logistics and Supply Chain Management Contracts
Department of the Treasury Contracts
United States Mint Procurement

Risk Flags

Potential for vendor lock-in if performance is unsatisfactory.
Reliance on contractor's internal quality control for service standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.9 million to ASPEN DISTRIBUTION INC. WAREHOUSE STORAGE AND SERVICE

Who is the contractor on this award?

The obligated recipient is ASPEN DISTRIBUTION INC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

Start: 2024-01-26. End: 2027-01-31.

What is the track record of Aspen Distribution Inc. in performing government contracts, particularly for warehousing services?

A review of federal procurement data indicates that Aspen Distribution Inc. has been awarded contracts primarily for warehousing and storage services. While specific performance details for past contracts are not readily available in public databases, the company's consistent award of such contracts suggests a level of capability and reliability. Further investigation into past performance reviews or any reported issues would be necessary for a comprehensive assessment of their track record. The United States Mint's decision to award this contract implies a positive assessment of Aspen Distribution Inc.'s past performance or capabilities relevant to this requirement.

How does the awarded price compare to market rates for similar warehousing services in Colorado?

Determining the precise market rate comparison for this contract requires detailed knowledge of the specific warehousing services required (e.g., climate control, security levels, inventory management complexity) and the exact location within Colorado. However, the contract value of approximately $4.9 million over 1101 days (roughly $4,450 per day) for general warehousing and storage can be benchmarked against industry reports and publicly available contract data. Without more granular data on the scope of services and specific location, a definitive comparison is challenging. Generally, firm fixed-price contracts awarded under full and open competition aim to align with or beat market rates.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this warehousing contract include potential service disruptions, inadequate inventory management, or failure to meet security requirements. Given the firm fixed-price nature of the contract, the risk of cost overruns for the government is low. Mitigation strategies likely include performance standards outlined in the contract, regular performance reviews by the United States Mint, and the contractor's own quality control processes. The contractor's track record and the competitive bidding process also serve as risk-reduction factors, suggesting a capable provider was selected.

How effective is the firm fixed-price contract type in ensuring value for money for this specific warehousing service?

The firm fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and risks are manageable. For warehousing services, where the requirements are often predictable, FFP shifts the burden of cost control and efficiency to the contractor. This incentivizes Aspen Distribution Inc. to manage its operations effectively to maintain profitability. The United States Mint benefits by having a predictable cost for these services, reducing the risk of unexpected price increases. The success of FFP relies on accurate initial scope definition and robust performance monitoring.

What is the historical spending pattern for warehousing and storage services by the United States Mint?

Analyzing historical spending patterns for warehousing and storage by the United States Mint would require access to detailed historical contract databases. However, it is reasonable to assume that the Mint, like other government entities managing physical assets or inventory, requires ongoing warehousing services. Spending in this area can fluctuate based on specific projects, inventory levels, or changes in logistical needs. This $4.9 million contract represents a significant, multi-year investment, suggesting a sustained requirement for these services rather than a short-term or ad-hoc need.

What are the implications of the contract being awarded to a single entity (Aspen Distribution Inc.) for service continuity and potential future competition?

Awarding the contract to a single entity like Aspen Distribution Inc. ensures a dedicated provider for the United States Mint's warehousing needs over the contract's duration, promoting service continuity. However, it also means the Mint is reliant on this one contractor. For future competition, the performance of Aspen Distribution Inc. during this contract period will be crucial. A strong performance could lead to contract renewal or future awards, while a poor performance might encourage more aggressive competition from other firms in subsequent procurements. The current full and open competition suggests a healthy market exists.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19503 E 34TH DR, AURORA, CO, 80011

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

Financial Breakdown

Contract Ceiling: $15,221,480

Exercised Options: $7,116,216

Current Obligation: $4,887,741

Actual Outlays: $3,398,199

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline