Department of the Army awarded $56.3M for specialized freight trucking, highlighting long-distance transportation needs

Contract Overview

Contract Amount: $56,292,830 ($56.3M)

Contractor: El-Hoss Engineering & Transport Company W.L.L.

Awarding Agency: Department of Defense

Start Date: 2010-05-24

End Date: 2010-12-31

Contract Duration: 221 days

Daily Burn Rate: $254.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HEAVY LIFT (TRUCKING TRANSPORTATION) UNDER HEAVY LIFT SIX FROM 01 JUL 2010 TO 31 DEC 2010

Plain-Language Summary

Department of Defense obligated $56.3 million to EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L. for work described as: HEAVY LIFT (TRUCKING TRANSPORTATION) UNDER HEAVY LIFT SIX FROM 01 JUL 2010 TO 31 DEC 2010 Key points: 1. The contract value of $56.3 million for specialized freight trucking indicates significant demand for long-distance transport services. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and potential for taxpayer savings. 3. Risk indicators are evaluated to ensure reliable delivery and performance within the specified timeframe. 4. Performance context is crucial for understanding the scope and complexity of the specialized freight services required. 5. Sector positioning within transportation services reveals the Army's reliance on external providers for critical logistics.

Value Assessment

Rating: fair

The contract value of $56.3 million for specialized freight trucking appears substantial. Benchmarking this against similar long-distance, specialized freight contracts would be necessary to determine if the pricing is competitive. Without more data on the specific services rendered and the duration of the contract, a definitive value-for-money assessment is challenging. However, the award amount suggests a significant logistical undertaking by the Department of the Army.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that multiple bidders were likely considered. This level of competition is generally favorable for price discovery and achieving competitive pricing. The presence of multiple bidders implies that the market has the capacity to meet the specialized freight needs of the Department of the Army.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through a competitive bidding process, ensuring that the government receives the best possible value for its expenditure.

Public Impact

The primary beneficiaries are the Department of the Army and its logistical operations, ensuring the movement of specialized freight. Services delivered include long-distance, specialized freight (except used goods) trucking. The geographic impact is likely national or international, depending on the specific deployment needs of the Army. Workforce implications may involve the employment of truck drivers, logistics coordinators, and support staff within the contracting company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen logistical challenges arise during long-distance transport.
Dependence on a single contractor for critical transportation services could pose a risk if performance issues emerge.
Ensuring compliance with all safety and regulatory standards for specialized freight is paramount.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract duration of 221 days indicates a defined period of service, allowing for focused performance management.
The firm fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the specialized freight trucking sector, a critical component of the broader transportation and logistics industry. The market for specialized freight is characterized by companies with specific equipment and expertise to handle non-standard cargo. The Department of the Army's reliance on such services underscores the importance of this sector for national defense logistics. Comparable spending benchmarks would involve analyzing other large-scale government contracts for similar transportation services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L., is likely a larger entity. There is no explicit information on subcontracting plans, but large prime contracts often involve subcontracting opportunities for smaller specialized service providers within the transportation ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures would be tied to the terms and conditions of the firm fixed-price delivery order, including performance standards and delivery schedules. Transparency is generally facilitated through contract award databases, though specific performance details may be less public.

Related Government Programs

Department of Defense Logistics Services
Army Transportation Command Contracts
Specialized Freight and Cargo Movement
Long-Haul Trucking Services
Government Freight Forwarding

Risk Flags

Potential performance risks in long-distance specialized transport.
Need for robust oversight to ensure delivery and safety standards.
Dependence on contractor's logistical capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.3 million to EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L.. HEAVY LIFT (TRUCKING TRANSPORTATION) UNDER HEAVY LIFT SIX FROM 01 JUL 2010 TO 31 DEC 2010

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 $56.3 million.

What is the period of performance?

Start: 2010-05-24. End: 2010-12-31.

What is the track record of EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L. with the Department of Defense?

Information regarding the specific track record of EL-HOSS ENGINEERING & TRANSPORT COMPANY W.L.L. with the Department of Defense is not detailed in the provided data. However, the award of a $56.3 million contract suggests a level of capability and experience deemed sufficient by the Army to handle specialized freight transportation. Further investigation into past performance reviews, previous contracts awarded to this company by the DoD, and any reported issues or successes would be necessary for a comprehensive assessment of their track record. This would include examining their history of on-time delivery, adherence to budget, and overall quality of service in similar logistical operations.

How does the $56.3 million contract value compare to similar specialized freight contracts awarded by the DoD?

The $56.3 million contract value for specialized freight trucking is a significant sum, indicating a substantial requirement for long-distance transport. To benchmark this value effectively, comparisons should be made with other contracts for similar services, considering factors such as the duration of the contract, the specific types of specialized freight handled, the geographic scope of delivery, and the number of bidders involved. Without access to a broader dataset of comparable contracts, it is difficult to definitively state whether this represents a high, low, or average expenditure. However, the 'full and open competition' suggests an effort to secure competitive pricing for this substantial award.

What are the primary risks associated with long-distance specialized freight transportation for the military?

Primary risks associated with long-distance specialized freight transportation for the military include logistical complexities, potential for delays due to weather or unforeseen route issues, and the inherent risks of transporting sensitive or high-value equipment. Security concerns, ensuring the integrity and safety of the cargo throughout the journey, are also paramount. Furthermore, reliance on external transport providers introduces risks related to contractor performance, such as equipment failure, driver shortages, or adherence to strict delivery timelines. The firm fixed-price nature of this contract helps mitigate cost overrun risks for the government, but performance risks remain.

How effective is 'full and open competition' in ensuring value for taxpayer money in specialized logistics contracts?

Full and open competition is generally considered a highly effective mechanism for ensuring value for taxpayer money in specialized logistics contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment that encourages contractors to offer their best pricing and most efficient service offerings. This process helps to prevent monopolies or limited vendor situations that could lead to inflated prices. The presence of multiple bidders typically drives down costs through price competition and incentivizes contractors to demonstrate superior performance and value propositions to win the contract. The Department of the Army's use of this method for the $56.3 million contract suggests a commitment to achieving competitive pricing.

What is the historical spending pattern for specialized freight trucking by the Department of the Army?

The provided data point represents a single contract award of $56.3 million for specialized freight trucking by the Department of the Army from July to December 2010. This single data point does not provide sufficient information to establish a historical spending pattern. To understand historical spending, one would need to analyze contract awards over multiple fiscal years, examining trends in contract values, the number of contracts awarded, the types of services procured, and the primary contractors involved. This would help identify whether spending in this category has increased, decreased, or remained stable over time and understand the Army's long-term reliance on such services.

What are the implications of a 'firm fixed price' contract type for this specialized freight service?

A 'firm fixed price' (FFP) contract type, as indicated for this specialized freight service, means that the contractor agrees to perform the work for a predetermined price, regardless of the actual costs incurred. This contract type offers the greatest cost certainty for the government, as the total price is fixed. It places the risk of cost overruns on the contractor. For specialized freight, where unforeseen logistical challenges or cost fluctuations might occur, an FFP contract incentivizes the contractor to manage their costs efficiently and to accurately estimate all expenses upfront. This benefits taxpayers by preventing unexpected increases in the contract's total cost.

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: 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: $56,292,830

Exercised Options: $56,292,830

Current Obligation: $56,292,830

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912D105D0012

IDV Type: IDC

Timeline