USAID Awards $7.2M for Foreign Warehousing in South Africa to C Steinweg Logistics
Contract Overview
Contract Amount: $7,200,000 ($7.2M)
Contractor: C Steinweg Logistics (PTY) Ltd
Awarding Agency: Agency for International Development
Start Date: 2020-12-02
End Date: 2026-06-30
Contract Duration: 2,036 days
Daily Burn Rate: $3.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: M/OAA/T - TITLE II FOREIGN PREPO WAREHOUSES DURBAN, SOUTH AFRICA.
Plain-Language Summary
Agency for International Development obligated $7.2 million to C STEINWEG LOGISTICS (PTY) LTD for work described as: M/OAA/T - TITLE II FOREIGN PREPO WAREHOUSES DURBAN, SOUTH AFRICA. Key points: 1. Contract awarded for essential warehousing services in Durban, South Africa. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract with a firm fixed price. 4. No small business participation was noted in this award.
Value Assessment
Rating: fair
The contract value of $7.2 million over approximately 5.6 years (December 2020 to June 2026) averages to about $1.28 million per year. Without specific benchmarks for foreign prepositioning warehousing services, it's difficult to definitively assess pricing, but it appears to be a significant investment for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: Taxpayer funds are being utilized for essential logistical support in a foreign country, ensuring the availability of prepositioned supplies.
Public Impact
Ensures readiness and accessibility of critical supplies in South Africa. Supports U.S. foreign policy and humanitarian aid efforts. Provides essential infrastructure for U.S. government operations abroad.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration (over 5 years) may limit flexibility.
- Geographic concentration of services in one location.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract provides cost certainty.
- Supports critical foreign operations.
Sector Analysis
This contract falls under the General Warehousing and Storage sector, specifically for foreign prepositioning. Spending in this area is crucial for maintaining operational readiness and supporting international missions, though specific benchmarks are highly dependent on location and service scope.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or if opportunities were missed for small business participation in this procurement.
Oversight & Accountability
The Agency for International Development (USAID) is responsible for overseeing this contract. Standard oversight procedures for definitive contracts would apply, ensuring that the terms and conditions are met and services are delivered as specified.
Related Government Programs
- General Warehousing and Storage
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Long contract duration.
- Single geographic location.
- No small business participation noted.
- Potential for unforeseen cost increases impacting contractor performance.
Tags
general-warehousing-and-storage, agency-for-international-development, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $7.2 million to C STEINWEG LOGISTICS (PTY) LTD. M/OAA/T - TITLE II FOREIGN PREPO WAREHOUSES DURBAN, SOUTH AFRICA.
Who is the contractor on this award?
The obligated recipient is C STEINWEG LOGISTICS (PTY) LTD.
Which agency awarded this contract?
Awarding agency: Agency for International Development (Agency for International Development).
What is the total obligated amount?
The obligated amount is $7.2 million.
What is the period of performance?
Start: 2020-12-02. End: 2026-06-30.
What specific types of 'foreign prepositioned' goods are being warehoused, and how does this impact the overall value proposition?
The specific nature of the 'foreign prepositioned' goods is not detailed in the provided data. Understanding whether these are humanitarian aid supplies, equipment for diplomatic missions, or emergency response materials would significantly clarify the value proposition. The type of goods dictates storage requirements, security needs, and the urgency of access, all of which influence the justification for the $7.2 million expenditure.
What are the risks associated with concentrating warehousing operations in a single location in Durban, South Africa?
Concentrating operations in Durban presents risks such as geopolitical instability, natural disasters (e.g., port disruptions, extreme weather), or localized security threats that could impede access to or the integrity of the stored goods. A single point of failure could disrupt critical supply chains for U.S. operations in the region. Diversification of storage locations could mitigate these risks.
How effectively does a firm fixed price contract manage potential cost overruns for long-term warehousing services in a foreign market?
A firm fixed price contract provides cost certainty for the government by locking in the price, which is effective in preventing cost overruns due to contractor inefficiencies or scope creep. However, it places the risk of unforeseen cost increases (e.g., inflation, regulatory changes, unexpected operational challenges in South Africa) on the contractor. If the contractor underestimated these risks, it could lead to performance issues or a desire to renegotiate.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 7200AA20R00013
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 201 SOLOMON MAHLANGU DRIVE, DURBAN
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $13,000,000
Exercised Options: $13,000,000
Current Obligation: $7,200,000
Actual Outlays: $6,047,776
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-12-02
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-29
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