DoD's $84.9M Heavy Lift Contract Awarded to IAP Worldwide Services, Inc
Contract Overview
Contract Amount: $84,909,279 ($84.9M)
Contractor: IAP Worldwide Services, Inc
Awarding Agency: Department of Defense
Start Date: 2009-12-18
End Date: 2010-06-30
Contract Duration: 194 days
Daily Burn Rate: $437.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: REACH-BACK HVY LIFT VI OPTYR4
Plain-Language Summary
Department of Defense obligated $84.9 million to IAP WORLDWIDE SERVICES, INC for work described as: REACH-BACK HVY LIFT VI OPTYR4 Key points: 1. Significant contract value of $84.9 million for specialized freight services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risk associated with long-distance specialized freight, including logistics and delivery. 4. Spending falls within the transportation and logistics sector.
Value Assessment
Rating: good
The contract value of $84.9 million for specialized freight services appears reasonable given the scope. Benchmarking against similar long-distance heavy lift contracts would provide further clarity on its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for specialized freight services.
Public Impact
Ensures critical logistical support for Department of Defense operations. Facilitates the movement of heavy and specialized equipment, potentially for military deployments or exercises. Supports the broader transportation and logistics industry through contract awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in specialized freight due to unforeseen logistical challenges.
- Dependence on a single contractor for critical heavy lift services.
- Limited visibility into the specific types of 'heavy lift' equipment being transported.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contract duration is relatively short, allowing for reassessment of needs.
- Clear contract type (Firm Fixed Price) provides cost certainty.
Sector Analysis
This contract falls under the Specialized Freight (except Used Goods) Trucking, Long-Distance category within the transportation sector. Spending in this area is crucial for government logistics and supply chain operations, with benchmarks varying based on the complexity and distance of the freight.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses were subcontractors or if opportunities were missed.
Oversight & Accountability
Oversight would focus on ensuring timely and safe delivery of heavy lift cargo, adherence to the firm fixed price, and compliance with all contractual terms by IAP Worldwide Services, Inc.
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 the inherent complexities of long-distance specialized freight.
- Risk of delivery delays impacting operational readiness if unforeseen issues arise.
- Limited information on the specific performance metrics and oversight applied to this contract.
- Lack of small business participation noted in the award data.
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 $84.9 million to IAP WORLDWIDE SERVICES, INC. REACH-BACK HVY LIFT VI OPTYR4
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 $84.9 million.
What is the period of performance?
Start: 2009-12-18. End: 2010-06-30.
What specific types of 'heavy lift' cargo were transported under this contract, and how did their nature influence the cost?
The contract description 'REACH-BACK HVY LIFT VI OPTYR4' and the category 'Specialized Freight (except Used Goods) Trucking, Long-Distance' suggest the transport of large, heavy, or unusually shaped equipment. The specific nature of this cargo, such as military vehicles, oversized machinery, or sensitive equipment, would directly impact costs due to specialized handling, permits, route planning, and potential security requirements.
Given the $84.9 million value and full and open competition, what was the range of bids received, and how did IAP Worldwide Services, Inc.'s bid compare?
While the data confirms full and open competition, it does not provide the range of bids received. To assess the value effectively, one would need to examine the bid history. A competitive bid process implies that IAP Worldwide Services, Inc.'s offer was deemed the most advantageous, likely considering both price and technical factors, but without comparative bid data, a precise assessment of their pricing advantage is limited.
What mechanisms were in place to ensure the effectiveness and efficiency of the specialized freight services provided by IAP Worldwide Services, Inc.?
Effectiveness and efficiency would likely be monitored through performance metrics outlined in the contract, such as on-time delivery rates, condition of goods upon arrival, and adherence to safety protocols. The firm fixed price structure incentivizes the contractor to manage costs efficiently. Regular progress reports and potential site inspections by the Department of the Army would also contribute to oversight and ensure service effectiveness.
Industry Classification
NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Long-Distance
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
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, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $84,909,279
Exercised Options: $84,909,279
Current Obligation: $84,909,279
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912D105D0011
IDV Type: IDC
Timeline
Start Date: 2009-12-18
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2010-09-10
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