DoD's Army awards $25.4M for specialized freight trucking over 6 months, full and open competition
Contract Overview
Contract Amount: $25,381,781 ($25.4M)
Contractor: IAP Worldwide Services, Inc
Awarding Agency: Department of Defense
Start Date: 2009-06-25
End Date: 2009-12-31
Contract Duration: 189 days
Daily Burn Rate: $134.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: AWARD 2009 JUL-DEC SEMI-ANNUAL REQUIREMENTS.
Plain-Language Summary
Department of Defense obligated $25.4 million to IAP WORLDWIDE SERVICES, INC for work described as: AWARD 2009 JUL-DEC SEMI-ANNUAL REQUIREMENTS. Key points: 1. Spending of $25.4M over 6 months indicates significant demand for specialized long-distance trucking. 2. Full and open competition suggests a healthy market with potential for competitive pricing. 3. The contract type (Firm Fixed Price) shifts cost risk to the contractor. 4. Specialized Freight Trucking is a critical but niche sector within logistics.
Value Assessment
Rating: good
The award amount of $25.4M for a 6-month period suggests a substantial contract. Benchmarking against similar long-distance specialized freight contracts would be necessary for a precise value assessment, but the scale appears reasonable for the service duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives the best value by leveraging market forces.
Taxpayer Impact: The use of full and open competition is taxpayer-favorable as it aims to secure the most cost-effective solution for specialized freight services.
Public Impact
Ensures timely delivery of critical goods for military operations. Supports supply chain resilience for the Department of the Army. Facilitates movement of specialized equipment requiring specific transport capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration (6 months) may lead to frequent re-competition and potential price fluctuations.
- Reliance on a single awardee for a critical service could pose a risk if performance issues arise.
Positive Signals
- Full and open competition drives market efficiency.
- Firm Fixed Price contract protects against cost overruns.
- Clear service period (July-Dec 2009) provides defined operational scope.
Sector Analysis
The specialized freight trucking sector is vital for logistics, particularly for moving goods that require specific handling or equipment. Spending benchmarks vary widely based on the nature of the freight and distance, but this $25.4M award over six months represents a significant investment in this niche.
Small Business Impact
While the contract was awarded to IAP Worldwide Services, Inc., the data does not specify if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in fulfilling this specialized freight requirement.
Oversight & Accountability
The award was a delivery order under a larger requirements contract, suggesting a structured procurement process. Oversight would focus on performance monitoring, timely delivery, and adherence to contract terms throughout the 6-month period.
Related Government Programs
- Specialized Freight (except Used Goods) Trucking, Long-Distance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Short contract duration
- Potential for price increase upon re-competition
- Reliance on a single awardee for critical service
- Lack of detail on specific freight type
Tags
specialized-freight-except-used-goods-tr, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.4 million to IAP WORLDWIDE SERVICES, INC. AWARD 2009 JUL-DEC SEMI-ANNUAL REQUIREMENTS.
Who is the contractor on this award?
The obligated recipient is IAP WORLDWIDE SERVICES, 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 $25.4 million.
What is the period of performance?
Start: 2009-06-25. End: 2009-12-31.
What was the specific nature of the 'specialized freight' being transported, and did it justify the $25.4M expenditure over six months?
The data identifies the service as 'Specialized Freight (except Used Goods) Trucking, Long-Distance'. Without further details on the cargo's size, weight, fragility, or destination, it's difficult to definitively justify the $25.4M cost. However, specialized freight often involves high-value, sensitive, or oversized items requiring unique handling, equipment, and expedited delivery, which inherently command higher prices.
Given the short 6-month duration, what are the potential risks associated with contractor performance and price stability?
A short contract duration like six months can increase risks. The contractor might face challenges in resource allocation or be less incentivized for long-term performance improvements. For the government, there's a risk of price increases upon re-competition or potential disruption if the incumbent contractor is not selected again. It also limits the opportunity to build a strong, long-term performance history.
How effectively did the 'full and open competition' process ensure value for money in this specialized trucking contract?
Full and open competition is designed to maximize value by encouraging multiple bids, which typically drives down prices. For this $25.4M contract, it suggests that the market had sufficient capable providers. The effectiveness in ensuring value hinges on the quality of the bids received and the evaluation criteria used. A competitive bid process is generally a strong indicator of achieving good value for specialized services.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)
Address: 413 WESTERN LN, IRMO, SC, 29063
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,381,781
Exercised Options: $25,381,781
Current Obligation: $25,381,781
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912D105D0011
IDV Type: IDC
Timeline
Start Date: 2009-06-25
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2019-11-24
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