DoD's $30.5M transportation shipments contract awarded to ASTAR USA LLC shows strong competition

Contract Overview

Contract Amount: $30,475,662 ($30.5M)

Contractor: Astar USA LLC

Awarding Agency: Department of Defense

Start Date: 2011-07-31

End Date: 2011-07-31

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Transportation

Official Description: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33131

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to ASTAR USA LLC for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS Key points: 1. Contract value of $30.5M indicates significant demand for transportation services. 2. Full and open competition suggests a healthy market with multiple capable providers. 3. Fixed Price with Economic Price Adjustment (FP-EPA) contract type introduces some cost fluctuation risk. 4. Delivery Order award type implies flexibility in service deployment. 5. Contract performance period is limited to a single day, suggesting a specific, short-term need. 6. The contract falls within the Couriers and Express Delivery Services NAICS code, a critical logistics sector.

Value Assessment

Rating: good

The contract value of $30.5M for a single day of service delivery is substantial. Without specific performance metrics or comparable single-day delivery contracts, a precise value-for-money assessment is challenging. However, the competitive nature of the award suggests that pricing was likely scrutinized. The FP-EPA clause introduces a degree of risk for cost overruns, but is common in services subject to fluctuating market prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 9 bidders (no) suggests a robust competitive environment for these transportation services. This level of competition is generally favorable for price discovery and achieving competitive pricing for the government.

Taxpayer Impact: A high number of bidders in a full and open competition typically leads to better pricing for taxpayers, as contractors vie to win the award by offering competitive rates.

Public Impact

Benefits the Department of Defense by ensuring the timely and efficient movement of consolidated transportation shipments. Delivers essential courier and express delivery services critical for military logistics operations. Geographic impact is focused on Florida (ST), where the delivery order was likely executed. Workforce implications include support for logistics personnel and potentially drivers/couriers employed by the winning contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The FP-EPA clause introduces potential for cost increases beyond initial projections.
A single-day performance period might indicate a highly specific or urgent need, requiring rapid execution.
Limited duration of the contract makes long-term planning for service continuity more complex.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential providers.
Multiple bidders (9) indicate a healthy and competitive market for these services.
The contract value suggests a significant and necessary service for the agency.

Sector Analysis

The Couriers and Express Delivery Services sector is a vital component of the broader logistics and transportation industry. This contract, valued at $30.5M, represents a significant expenditure within this sector for the Department of Defense. Comparable spending benchmarks would typically involve analyzing other large-scale, time-sensitive delivery contracts awarded by government agencies or large commercial entities for similar volumes and distances.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb: false). There is no explicit information on subcontracting plans. Given the nature of the service and the large contract value, it's possible that larger prime contractors may utilize small businesses for specific legs of transportation or related services, but this is not guaranteed by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of USTRANSCOM (sa), a component of the Department of Defense. Accountability measures would be tied to the successful and timely execution of the delivery order as per the contract's terms and conditions. Transparency is generally facilitated through contract award databases, though specific performance details may be less publicly accessible.

Related Government Programs

Military Transportation Services
Logistics and Supply Chain Management
Department of Defense Procurement
Express Delivery Contracts
Consolidated Freight Services

Risk Flags

Potential for cost increases due to FP-EPA clause.
Single-day performance duration may indicate a highly specific or urgent need.
Limited contract duration impacts long-term service planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to ASTAR USA LLC. CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS

Who is the contractor on this award?

The obligated recipient is ASTAR USA LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $30.5 million.

What is the period of performance?

Start: 2011-07-31. End: 2011-07-31.

What is the typical performance duration for delivery orders under this contract vehicle?

The provided data indicates a performance duration of 0 days, with an award date and end date both listed as 2011-07-31. This suggests that this specific delivery order was for a single day's service. Delivery orders under larger contract vehicles can vary significantly in duration, from a few hours for immediate needs to several months for ongoing services. Without knowing the specific contract vehicle this delivery order falls under, it's difficult to establish a typical duration. However, the single-day execution points to a highly specific, time-sensitive requirement.

How does the $30.5M contract value compare to annual spending in the Couriers and Express Delivery Services sector by the DoD?

The $30.5M contract value represents a substantial single award within the Couriers and Express Delivery Services sector for the Department of Defense. To provide a comprehensive comparison, one would need to analyze historical DoD spending data for this specific NAICS code (492110) over several fiscal years. This would reveal whether $30.5M is an outlier, a typical large award, or a minor portion of the DoD's overall logistics budget. Factors such as the number of active contracts, the average contract size, and the total annual spend would be crucial for context.

What are the specific risks associated with the 'Fixed Price with Economic Price Adjustment' (FP-EPA) contract type in this context?

The FP-EPA contract type aims to protect both the contractor and the government from significant price fluctuations due to external economic factors, such as fuel costs or labor rate changes. For this transportation services contract, the primary risk to the government is that the 'economic price adjustment' clause could lead to higher costs than initially anticipated if market prices for key inputs (like fuel) increase substantially. Conversely, the contractor bears the risk if prices decrease, as the adjustment mechanism might not fully capture those savings. The effectiveness of the FP-EPA depends on the accuracy and fairness of the adjustment formula and the volatility of the underlying economic factors.

What does the presence of 9 bidders signify for the competitiveness of this service procurement?

The fact that 9 bidders submitted offers for this contract signifies a healthy level of competition within the market for these specific transportation and courier services. A larger number of bidders generally indicates that the market is not dominated by a few large players and that multiple companies possess the capability and interest to fulfill the government's requirements. This increased competition typically drives down prices, encourages innovation, and provides the government with a wider range of options, ultimately benefiting taxpayers through potentially better value and service.

Can we infer the geographic scope of services based on the 'ST' state code?

The 'ST' state code, which corresponds to Florida, likely indicates the primary geographic area where the services were performed or where the delivery order was issued from. In the context of transportation and courier services, this could mean the shipments originated, terminated, or transited within Florida. However, without more detailed information about the contract's Statement of Work (SOW) or the specific nature of the 'consolidated transportation shipments,' it's difficult to definitively ascertain the full geographic scope. It's possible that Florida was a hub or a specific delivery zone within a larger, potentially national or international, transportation network.

Industry Classification

NAICS: Transportation and Warehousing › Couriers and Express Delivery Services › Couriers and Express Delivery Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 1200 BRICKELL AVE STE 1600, MIAMI, FL, 33131

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,475,662

Exercised Options: $30,475,662

Current Obligation: $30,475,662

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71108D0001

IDV Type: IDC

Timeline