DoD's $25.6M Carlson Travel contract awarded in 2002 for travel agency services
Contract Overview
Contract Amount: $25,595,063 ($25.6M)
Contractor: Carlson Travel Group, Inc
Awarding Agency: Department of Defense
Start Date: 2002-01-06
End Date: 2007-09-30
Contract Duration: 2,093 days
Daily Burn Rate: $12.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78217
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $25.6 million to CARLSON TRAVEL GROUP, INC for work described as: Key points: 1. Contract awarded for travel agency services, indicating a need for booking and logistical support. 2. The firm-fixed-price contract type suggests predictable costs for the government. 3. Awarded by the Department of the Army, this contract supports military personnel travel. 4. The duration of the contract (2093 days) suggests a long-term need for these services. 5. The contract was awarded under full and open competition, implying a robust bidding process. 6. The contractor, Carlson Travel Group, Inc., has secured a significant federal award.
Value Assessment
Rating: fair
Benchmarking the value of this 2002 contract is challenging due to the age of the data and the specific nature of travel agency services. Without comparable contract data from the same period or detailed service breakdowns, it's difficult to definitively assess if the $25.6 million awarded represents excellent value. The firm-fixed-price structure, however, offers cost certainty. Further analysis would require understanding the volume and complexity of travel managed under this contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this travel agency service contract. While not an exceptionally high number of bidders, it demonstrates that multiple companies were interested and capable of fulfilling the requirement, which generally aids in price discovery.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging service providers to offer their best terms.
Public Impact
Military personnel and their families benefit from streamlined travel arrangements for official duties, relocations, and leave. The contract provides essential travel agency services, including booking flights, hotels, and rental cars. Services are likely geographically dispersed, supporting the travel needs of the Department of the Army across various locations. The contract supports jobs within the travel industry, specifically at Carlson Travel Group, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases over the contract's long duration if not adequately managed.
- Reliance on a single contractor for a critical service like travel management could pose risks if performance falters.
Positive Signals
- Awarded under full and open competition, suggesting a fair and competitive process.
- Firm-fixed-price contract provides cost predictability for the government.
- Long contract duration indicates a stable, ongoing relationship and potentially established service quality.
Sector Analysis
The travel agency sector is a mature industry providing essential booking and logistical services. Federal spending in this area supports government operations by facilitating personnel movement. This contract fits within the broader category of professional services, specifically supporting administrative and logistical functions for the Department of Defense. Comparable spending benchmarks would typically involve analyzing other large federal travel contracts or government-wide travel management agreements.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver services within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Travel System
- GSA SmartPay Travel Card Program
- Joint Travel Regulations (JTR)
Risk Flags
- Contract awarded in 2002; data may not reflect current market conditions or service standards.
Tags
department-of-defense, department-of-the-army, travel-agencies, firm-fixed-price, full-and-open-competition, professional-services, texas, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.6 million to CARLSON TRAVEL GROUP, INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is CARLSON TRAVEL GROUP, 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 $25.6 million.
What is the period of performance?
Start: 2002-01-06. End: 2007-09-30.
What was the specific scope of services provided by Carlson Travel Group, Inc. under this contract?
The provided data indicates the contract was for 'Travel Agencies' services (NAICS code 561510). This typically encompasses a range of services including booking airline tickets, hotel accommodations, rental vehicles, and potentially arranging group travel or specialized itineraries for military personnel and civilian employees. The scope would also likely include managing travel documentation, adhering to government travel regulations (like the Joint Travel Regulations), and providing customer support for travelers. Without the full contract statement of work, the precise details of services, such as reporting requirements, duty of care provisions, or specific technology platforms used, remain unspecified.
How does the $25.6 million award compare to other federal travel agency contracts awarded around 2002?
Directly comparing the $25.6 million award from 2002 to other federal travel contracts of that era requires access to historical contract databases and specific award details. General trends suggest that large federal agencies, particularly the Department of Defense, often award substantial contracts for travel management due to the high volume of personnel movement. Contracts could range from tens to hundreds of millions of dollars depending on the agency's size, scope of operations, and the specific services included (e.g., full-service travel management vs. basic booking). The number of bids (3) suggests moderate competition, which could imply a competitive price point for the services rendered at that time.
What are the potential risks associated with a firm-fixed-price contract for travel services?
While firm-fixed-price (FFP) contracts offer cost certainty to the government, they can introduce risks for the contractor. For travel services, the primary risk for the contractor is managing fluctuating market prices for airfare, lodging, and car rentals. If costs increase significantly beyond projections, the contractor may experience reduced profit margins or even losses, potentially impacting service quality or their willingness to continue the contract. Conversely, the government benefits from predictable budgeting. Risks for the government under FFP are generally lower regarding cost overruns but could arise if the contractor cuts corners on service quality to maintain profitability, or if the initial price was set too high due to inadequate competition or flawed cost estimation.
What does the '3' bids indicate about the competition level and its impact on price discovery?
An award resulting from 3 bids suggests a moderate level of competition. This is generally considered sufficient to provide a reasonable degree of price discovery, meaning the bids likely reflected market conditions and the cost of providing the services. More bids (e.g., 5+) often lead to more aggressive pricing as contractors vie for the award. Fewer than 3 bids might indicate limited market interest, potential barriers to entry, or a highly specialized requirement, which could result in less competitive pricing. In this case, 3 bidders imply that Carlson Travel Group, Inc. likely offered a competitive proposal among a few interested parties.
How has federal spending on travel agencies evolved since this contract was awarded in 2002?
Federal spending on travel agencies has likely evolved significantly since 2002, driven by technological advancements, policy changes, and the rise of online booking platforms. While large contracts for managed travel services still exist, there's been a trend towards more centralized travel management solutions, potentially leveraging government-wide contracts or integrated booking tools. Increased emphasis on cost-saving measures, duty of care, and data analytics for travel patterns may also have reshaped requirements. Furthermore, the consolidation within the travel industry itself could have impacted the landscape of federal contractors. Quantifying the exact evolution requires analyzing aggregate federal travel spending data over the past two decades.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › Travel Agencies
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › RELOCATION OR TRAVEL AGENT SERVICES
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: 701 CARLSON PKWY, MINNETONKA, MN, 03
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-01-06
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2010-04-09
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