DoD's $23.5M Fort Polk transportation services contract awarded to DST, Inc. raises value questions

Contract Overview

Contract Amount: $23,501,558 ($23.5M)

Contractor: Data Solutions & Technology (DST), Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-22

End Date: 2014-06-30

Contract Duration: 2,107 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: PROVIDE TRANSPORTATION SERVICES AT FORT POLK, LA

Place of Performance

Location: FORT POLK, VERNON County, LOUISIANA, 71459

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to DATA SOLUTIONS & TECHNOLOGY (DST), INC. for work described as: PROVIDE TRANSPORTATION SERVICES AT FORT POLK, LA Key points: 1. Contract value appears high relative to duration, suggesting potential overspending. 2. Limited competition dynamics may have impacted price discovery. 3. Risk indicators include potential for cost overruns and performance issues. 4. Performance context is a long-term, multi-year service delivery. 5. Sector positioning is within facilities support services for the Army. 6. The contract's firm fixed-price nature offers some cost certainty.

Value Assessment

Rating: questionable

The total contract value of $23.5 million over approximately 2107 days (nearly 6 years) averages to roughly $11,154 per day. This daily rate seems high for transportation services, especially when compared to industry benchmarks for similar logistical support. Without specific details on the scope of services, it's difficult to definitively assess value, but the overall cost warrants scrutiny. The firm fixed-price structure provides some cost control, but the initial award price may not reflect optimal value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while competition was sought, certain sources were excluded, potentially limiting the bidder pool. The presence of 14 award actions indicates multiple task orders were issued under this contract. The limited nature of the competition raises concerns about whether the most competitive pricing was achieved, as fewer bidders may lead to less downward pressure on prices.

Taxpayer Impact: Limited competition can result in higher prices for taxpayers, as the government may not benefit from the full range of competitive offers and innovation that a truly open market could provide.

Public Impact

Service members and personnel at Fort Polk, Louisiana, benefit from reliable transportation services. The contract ensures the delivery of essential transportation and logistical support for military operations. Geographic impact is concentrated at Fort Polk, Louisiana. Workforce implications include employment opportunities for drivers, dispatchers, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated pricing due to limited competition.
Risk of cost overruns if service requirements expand beyond initial scope.
Dependency on a single contractor for critical transportation services.

Positive Signals

Firm fixed-price contract provides cost predictability.
Long-term contract allows for stable service provision.
Awarded to a single entity, potentially streamlining management.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically focusing on transportation and logistics. The market for such services is substantial, with numerous private companies offering specialized transportation solutions to government and commercial clients. Benchmarking this contract's value against similar DoD transportation contracts or large-scale logistics support agreements would be necessary for a more precise assessment of its market competitiveness and efficiency.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, DATA SOLUTIONS & TECHNOLOGY (DST), INC., is likely a larger entity, and its role in subcontracting would depend on its own business practices and the specific needs of the services provided, rather than a mandated small business requirement within this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices at Fort Polk. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance metrics and specific oversight activities may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Fort Polk Base Operations Support
Department of Defense Logistics and Transportation Services
Army Installation Management Command Services
Federal Transportation Contracts

Risk Flags

Potential for high cost relative to duration
Limited competition may have impacted price
Long-term service contract requires sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to DATA SOLUTIONS & TECHNOLOGY (DST), INC.. PROVIDE TRANSPORTATION SERVICES AT FORT POLK, LA

Who is the contractor on this award?

The obligated recipient is DATA SOLUTIONS & TECHNOLOGY (DST), INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2008-09-22. End: 2014-06-30.

What specific transportation services were included under this contract?

The contract description 'PROVIDE TRANSPORTATION SERVICES AT FORT POLK, LA' is broad. It likely encompassed a range of services such as personnel transport, equipment movement, shuttle services, and potentially specialized logistics support within the Fort Polk installation and surrounding areas. The exact scope would be detailed in the contract's Statement of Work (SOW). Without the SOW, it's challenging to precisely define the services rendered, which impacts the ability to benchmark costs effectively against similar contracts.

How does the daily cost of this contract compare to industry benchmarks for similar services?

The average daily cost of approximately $11,154 ($23.5M / 2107 days) appears high for standard transportation services. Industry benchmarks for daily vehicle rentals, driver services, or fleet management can vary significantly based on vehicle type, mileage, and service level. For instance, large-scale logistics contracts often aim for lower per-diem rates through economies of scale. This contract's rate suggests either a highly specialized service, extensive operational scope, or potentially a less competitive pricing structure. Further analysis would require detailed service breakdowns.

What was the track record of DATA SOLUTIONS & TECHNOLOGY (DST), INC. prior to this award?

Assessing DST, Inc.'s track record prior to this 2008 award would involve reviewing their past performance on federal contracts, particularly those with the Department of Defense or similar agencies. Key indicators would include on-time delivery, quality of service, adherence to budget, and any past performance issues or disputes. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be crucial, though historical data might be limited or less accessible for contracts awarded over a decade ago. Their subsequent performance on this contract would also provide insight.

What were the primary risks associated with this contract's execution?

Key risks included potential cost overruns if the scope of services was underestimated or expanded, performance failures leading to disruptions in military operations, contractor default, and challenges in managing a long-term service contract. Given the 'limited' competition, there was also a risk that the government did not secure the most cost-effective solution. Ensuring adequate oversight and clear performance metrics were critical to mitigating these risks throughout the contract's duration.

How did the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' impact pricing?

This award type suggests that while the initial solicitation was intended for broad competition, certain potential bidders were excluded based on specific criteria. This exclusion could limit the number of viable competitors, potentially reducing the downward pressure on pricing that a truly open and unrestricted competition might generate. The government might have received fewer bids than anticipated, potentially leading to a higher final award price compared to a scenario with maximum feasible competition.

What is the historical spending trend for transportation services at Fort Polk?

Analyzing historical spending trends for transportation services at Fort Polk prior to this $23.5 million contract would provide context on whether this award represented an increase, decrease, or stable level of investment. Comparing this contract's value and duration to previous awards for similar services could reveal patterns of spending, potential cost efficiencies or inefficiencies over time, and the government's long-term commitment to outsourcing these functions. Such analysis requires access to historical contract databases.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9901 BUSINESS PKWY STE R, LANHAM, MD, 20706

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

Financial Breakdown

Contract Ceiling: $37,448,233

Exercised Options: $26,051,769

Current Obligation: $23,501,558

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SE07D0036

IDV Type: IDC

Timeline