DoD's Army Spent $11.4M on Long-Distance Trucking in 2008 Amid Full and Open Competition
Contract Overview
Contract Amount: $11,369,566 ($11.4M)
Contractor: El-Hoss Engineering & Transport Company W.L.L.
Awarding Agency: Department of Defense
Start Date: 2007-12-30
End Date: 2008-06-30
Contract Duration: 183 days
Daily Burn Rate: $62.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: 2008 JANUARY TO JUNE SEMI-ANNUAL REQUIREMENTS
Plain-Language Summary
Department of Defense obligated $11.4 million to EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L. for work described as: 2008 JANUARY TO JUNE SEMI-ANNUAL REQUIREMENTS Key points: 1. Spending of $11.4M on specialized freight trucking over six months. 2. Full and open competition was utilized, suggesting a competitive market. 3. Contract awarded to EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L. 4. Potential for cost savings due to competitive bidding.
Value Assessment
Rating: fair
The contract value of $11.4M for six months of specialized freight trucking appears significant. Benchmarking against similar long-distance trucking contracts would be necessary to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of potential contractors to bid. This method is generally effective in achieving fair market value.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for cost-effectiveness in securing essential transportation services for the Department of the Army.
Public Impact
Ensures timely delivery of specialized equipment and supplies for military operations. Supports logistical readiness and operational capabilities of the Army. Provides employment opportunities within the transportation and logistics sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in fuel and operational costs.
- Geopolitical risks affecting long-distance transportation routes.
- Dependence on a single contractor for critical services.
Positive Signals
- Competitive bidding process likely secured favorable pricing.
- Clear contract duration and defined services.
- Awarded to a company with a specific name, suggesting established operations.
Sector Analysis
The transportation sector, particularly specialized freight trucking, is crucial for military logistics. Spending benchmarks for similar long-distance, specialized trucking contracts would provide context for the $11.4M expenditure over six months.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific indication of small business participation or set-asides in the provided data. Further analysis would be needed to assess small business involvement.
Oversight & Accountability
The Department of the Army's procurement process, including the use of full and open competition, is subject to oversight to ensure fairness and value for taxpayer money. Contract performance monitoring would be key.
Related Government Programs
- Specialized Freight (except Used Goods) Trucking, Long-Distance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to fuel price volatility.
- Risk of delivery delays due to unforeseen logistical challenges or external factors.
- Contract performance risk associated with the specific capabilities of the awarded company.
- Geopolitical instability impacting international or long-distance routes.
Tags
specialized-freight-except-used-goods-tr, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.4 million to EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L.. 2008 JANUARY TO JUNE SEMI-ANNUAL REQUIREMENTS
Who is the contractor on this award?
The obligated recipient is EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $11.4 million.
What is the period of performance?
Start: 2007-12-30. End: 2008-06-30.
What was the average cost per mile or per shipment for this contract?
The provided data does not include specific metrics like cost per mile or per shipment. To assess value effectively, this granular data would be essential. Without it, we can only evaluate the total contract value against the duration and service type.
What were the specific types of 'Specialized Freight' transported under this contract?
The data identifies the service as 'Specialized Freight (except Used Goods) Trucking, Long-Distance' but does not detail the specific nature of the freight. Understanding the cargo's characteristics (e.g., size, weight, hazardous materials, sensitivity) is crucial for assessing the complexity and risk associated with the contract.
How did the winning bid compare to other bids received during the full and open competition?
The data confirms 'FULL AND OPEN COMPETITION' but does not provide details on the number of bids received or the price spread among them. Knowing how the awarded price compared to other offers would offer insight into the effectiveness of the competition in driving down costs.
Industry Classification
NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Long-Distance
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: INDUSTRIAL AREA OF EAST AHMADI, AHMADI
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership
Financial Breakdown
Contract Ceiling: $11,369,566
Exercised Options: $11,369,566
Current Obligation: $11,369,566
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912D105D0012
IDV Type: IDC
Timeline
Start Date: 2007-12-30
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2010-07-23
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