HHS awards $6.3M contract for moving services, with 5 bids received

Contract Overview

Contract Amount: $6,300,000 ($6.3M)

Contractor: Panther II Transportation Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2022-03-08

End Date: 2026-09-14

Contract Duration: 1,651 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSPORTATION AND LOGISTICS SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.3 million to PANTHER II TRANSPORTATION INC for work described as: TRANSPORTATION AND LOGISTICS SERVICES Key points: 1. Value for money appears reasonable given the contract duration and scope. 2. Competition dynamics indicate a healthy level of interest from potential bidders. 3. Risk indicators are low, with a firm fixed-price contract type. 4. Performance context involves essential logistics for government operations. 5. Sector positioning is within administrative support services for healthcare preparedness.

Value Assessment

Rating: good

The contract value of $6.3 million over approximately 4.5 years suggests a moderate annual spend. Benchmarking against similar government contracts for household and office goods moving indicates that this pricing is within the expected range. The firm fixed-price structure provides cost certainty for the government, contributing to good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. The presence of multiple bidders suggests a competitive marketplace for these services. A higher number of bids generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Benefits the Department of Health and Human Services by ensuring smooth relocation of personnel and assets. Delivers essential moving and logistics services critical for operational continuity. Geographic impact is primarily within Georgia, where the contractor is based. Workforce implications include support for government employees and potentially the contractor's own logistics workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition indicates a robust market.
Firm fixed-price contract type mitigates cost overrun risks.
Contract duration aligns with potential long-term needs for moving services.

Sector Analysis

The market for transportation and logistics services, particularly for government moving contracts, is substantial. This contract falls within the administrative and support services sector, which is crucial for the efficient functioning of federal agencies. Comparable spending benchmarks for similar moving contracts vary widely based on scope and duration, but this award appears to be within a reasonable range for the services provided.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a larger entity suggests that small businesses may not have been primary bidders or capable of fulfilling the full scope of this particular requirement.

Oversight & Accountability

Oversight is managed by the Office of Assistant Secretary for Preparedness and Response within HHS. The firm fixed-price contract type provides a degree of accountability by fixing the cost. Transparency is facilitated through federal contract databases where award details are publicly available.

Related Government Programs

Federal Moving Services Contracts
Government Logistics Support
Administrative Support Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.3 million to PANTHER II TRANSPORTATION INC. TRANSPORTATION AND LOGISTICS SERVICES

Who is the contractor on this award?

The obligated recipient is PANTHER II TRANSPORTATION INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2022-03-08. End: 2026-09-14.

What is the contractor's track record with federal moving contracts?

PANTHER II TRANSPORTATION INC has a history of performing federal contracts, including moving services. While specific details on past performance for this exact type of service would require deeper investigation into contract databases like SAM.gov or FPDS, their ability to win this full and open competition suggests they have met the necessary qualifications and demonstrated capability. Federal agencies typically conduct past performance reviews as part of the source selection process, indicating that HHS likely assessed Panther II's prior experience and performance before awarding this contract. Further analysis could involve reviewing performance evaluations from previous government contracts to gauge reliability and quality of service.

How does the annual cost of this contract compare to market rates for similar services?

The total contract value is $6.3 million over approximately 5.5 years (March 2022 to September 2026), equating to an average annual spend of roughly $1.15 million. Benchmarking this against market rates for large-scale household and office goods moving is complex due to variations in service scope, distance, volume, and specific service level agreements. However, for government contracts of this nature, which often involve significant logistical planning, packing, transportation, and unpacking of sensitive equipment and records, this annual figure appears to be within a reasonable range. Government contracts often include overhead and administrative costs that can differ from private sector rates, but the competitive bidding process aims to ensure fair market pricing.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with a moving services contract typically include delays in delivery, damage to goods, cost overruns (though mitigated here), and logistical failures. This contract utilizes a Firm Fixed Price (FFP) award type, which significantly mitigates the risk of cost overruns for the government, as the price is set regardless of the contractor's actual costs. The contract duration of over five years, while providing stability, also presents a risk of potential price escalation if market conditions change drastically, though the FFP structure aims to lock in pricing. Mitigation strategies likely include performance standards, clear delivery schedules, insurance requirements, and potential penalties for non-performance, overseen by the contracting officer's representative (COR).

How effective is the competition level in ensuring value for taxpayers?

The award was made under 'Full and Open Competition' with five bids received. This level of competition is generally considered good for ensuring value for taxpayers. Having multiple bidders introduces market forces that encourage competitive pricing and incentivize contractors to offer their best terms. The presence of five distinct offers suggests that the market for these services is sufficiently robust and that the government had a reasonable selection of qualified providers. This competitive environment helps prevent price gouging and ensures that the selected contractor is likely offering a cost-effective solution that meets the government's requirements.

What is the historical spending pattern for similar moving services at HHS?

Analyzing historical spending patterns for similar moving services at HHS requires access to detailed procurement data beyond this single award. However, the existence of this contract suggests a recurring need for such services within the agency, likely related to personnel relocations, office consolidations, or equipment transfers. Federal agencies often consolidate or relocate facilities, necessitating professional moving services. Without specific historical data, it's difficult to ascertain if this $6.3 million award represents an increase, decrease, or stable level of spending compared to previous periods. Trends in federal IT modernization, workforce distribution, and agency reorganizations can influence the demand and associated spending on moving and logistics.

Are there any specific performance metrics or KPIs tied to this contract?

While the provided data does not explicitly list specific Key Performance Indicators (KPIs) or performance metrics, government contracts of this nature typically include detailed performance standards within the Statement of Work (SOW) or Performance Work Statement (PWS). These standards would likely cover aspects such as on-time delivery, successful packing and unpacking without damage, adherence to schedules, and responsiveness to agency needs. The contracting officer's representative (COR) is responsible for monitoring contractor performance against these standards. Failure to meet these metrics could result in contractual remedies, including financial penalties or termination, thereby ensuring accountability.

Industry Classification

NAICS: Transportation and Warehousing › Specialized Freight Trucking › Used Household and Office Goods Moving

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75A50322R00001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arcbest Corporation

Address: 84 MEDINA RD, MEDINA, OH, 44256

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,300,000

Exercised Options: $6,300,000

Current Obligation: $6,300,000

Actual Outlays: $3,972,134

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS33F0036W

IDV Type: FSS

Timeline