DoD's $59.6M Contract for Kuwait/Iraq Logistics Awarded to IAP Worldwide Services

Contract Overview

Contract Amount: $59,625,874 ($59.6M)

Contractor: IAP Worldwide Services, Inc

Awarding Agency: Department of Defense

Start Date: 2010-05-21

End Date: 2011-01-05

Contract Duration: 229 days

Daily Burn Rate: $260.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HEAVY LIFT SIX. COMMERICAL LINE HAUL AND PERSONNEL TRANSPORTATION THROUGHOUT KUWAIT AND IRAQ. JULY-DECEMBER 2010 SEMI-ANNUAL REQUIREMENTS.

Plain-Language Summary

Department of Defense obligated $59.6 million to IAP WORLDWIDE SERVICES, INC for work described as: HEAVY LIFT SIX. COMMERICAL LINE HAUL AND PERSONNEL TRANSPORTATION THROUGHOUT KUWAIT AND IRAQ. JULY-DECEMBER 2010 SEMI-ANNUAL REQUIREMENTS. Key points: 1. Contract value of $59.6M for transportation services in Kuwait and Iraq. 2. Awarded to IAP Worldwide Services, Inc. under full and open competition. 3. Services include commercial line haul and personnel transportation. 4. Contract duration is 229 days, covering July-December 2010. 5. Specialized Freight trucking is the relevant NAICS code.

Value Assessment

Rating: fair

The contract value of $59.6M for a 229-day period appears substantial. Benchmarking against similar long-distance specialized freight contracts would be necessary to assess if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it allows multiple vendors to bid, driving down costs.

Public Impact

Ensures critical transportation and personnel movement in operational theaters. Supports military logistics and readiness in Iraq and Kuwait. Provides essential services for personnel safety and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited contract duration (229 days) may lead to frequent re-competes and potential disruption.
Geographic scope (Kuwait and Iraq) presents inherent logistical and security risks.
Firm Fixed Price contract may not fully account for unforeseen cost fluctuations in a dynamic environment.

Positive Signals

Full and open competition utilized.
Clear definition of services (line haul and personnel transport).
Specific semi-annual requirements addressed.

Sector Analysis

This contract falls under the Specialized Freight Trucking sector, specifically long-distance. Spending in this sector is crucial for military operations and logistics, especially in deployed environments. Benchmarks would depend on the specific routes and security requirements.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it was awarded to IAP Worldwide Services, Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard DoD oversight mechanisms for contract performance and financial management would apply.

Related Government Programs

Specialized Freight (except Used Goods) Trucking, Long-Distance
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Geographic location (Kuwait/Iraq) implies high operational risk.
Short contract duration may indicate a need for rapid deployment or a placeholder.
Firm Fixed Price in a volatile region could lead to contractor strain or change requests.
Lack of small business participation noted in prime award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.6 million to IAP WORLDWIDE SERVICES, INC. HEAVY LIFT SIX. COMMERICAL LINE HAUL AND PERSONNEL TRANSPORTATION THROUGHOUT KUWAIT AND IRAQ. JULY-DECEMBER 2010 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 $59.6 million.

What is the period of performance?

Start: 2010-05-21. End: 2011-01-05.

What is the typical cost per mile or per day for similar commercial line haul and personnel transportation services in the Kuwait/Iraq region, considering security and operational factors?

Determining the precise cost per mile or day for specialized transportation in conflict zones like Kuwait and Iraq is complex. Factors such as security escorts, route assessments, fuel costs, vehicle maintenance, and personnel hazard pay significantly inflate standard commercial rates. A benchmark would require detailed analysis of comparable contracts within the region, factoring in the specific risk profiles and operational tempo at the time of the award.

What specific risks were identified and mitigated by the Department of the Army prior to awarding this contract, given the operational environment?

The Department of the Army likely conducted risk assessments covering geopolitical instability, security threats to personnel and assets, logistical challenges in austere environments, and potential for contract performance failures. Mitigation strategies could include stringent security protocols, contingency planning for route diversions, robust communication systems, and performance-based incentives or penalties within the contract terms to ensure service delivery.

How effectively did the firm fixed price contract structure manage cost variations and ensure value for money throughout the contract period?

A firm fixed price contract aims to provide cost certainty for the government. However, in dynamic environments like Iraq and Kuwait, unforeseen events (e.g., security incidents, fuel price spikes, regulatory changes) could strain this structure. The effectiveness in ensuring value for money would depend on the initial pricing accuracy, the contractor's ability to absorb minor fluctuations, and the government's oversight in preventing scope creep or unnecessary change orders.

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: $59,625,874

Exercised Options: $59,625,874

Current Obligation: $59,625,874

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912D105D0011

IDV Type: IDC

Timeline