DoD's $123.8M Travel Agent Services Contract Awarded to CW Government Travel Inc

Contract Overview

Contract Amount: $12,383,902 ($12.4M)

Contractor: Carlson Travel Group, Inc

Awarding Agency: Department of Defense

Start Date: 2002-02-06

End Date: 2007-09-30

Contract Duration: 2,062 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200305!000087!2100!MT01 !HQ, MTMC !DAMT0102C0029 !A!N! !Y!P00003 !20030206!20030930!043844984!007873433!602513673!N!CW GOVERNMENT TRAVEL INC !1777 NE LOOP 410 !SAN ANTONIO !MN!78217!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000325000!N!N!000000000000!V302!TRAVEL AGENT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !481219!E! !3! ! !C! ! !99990909!B! ! !A! !A!U!J!2!003!B! !C!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78217

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to CARLSON TRAVEL GROUP, INC for work described as: 200305!000087!2100!MT01 !HQ, MTMC !DAMT0102C0029 !A!N! !Y!P00003 !20030206!20030930!043844984!007873433!602513673!N!CW GOVERNMENT TRAVEL INC !1777 NE LOOP 410 !SAN ANTONIO !MN!78217!03000!013!51!ARLINGTON !ARLIN… Key points: 1. The contract, valued at $123.8 million, was awarded to CW Government Travel Inc. 2. Competition was full and open, indicating a competitive bidding process. 3. The contract falls under the Travel Agencies (NAICS 561510) sector. 4. Potential risks include service disruptions or cost overruns if not managed effectively.

Value Assessment

Rating: fair

The contract value of $123.8 million for travel agent services appears substantial. Benchmarking against similar government travel contracts would be necessary to assess if this 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 robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for the services.

Public Impact

Ensures government personnel have access to travel booking and management services. Supports military and civilian travel needs across various Department of Defense components. Potential for cost savings through consolidated travel arrangements and negotiated rates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for scope creep if additional services are added without re-competition.
Dependence on a single vendor for critical travel services.

Positive Signals

Awarded through full and open competition.
Long-term contract duration (2002-2007) suggests established service provision.
Firm Fixed Price contract type helps control costs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically travel agencies. Government spending in this area is crucial for facilitating personnel movement and operations.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary awardee is CW Government Travel Inc., and further analysis would be needed to determine their small business status or subcontracting plans.

Oversight & Accountability

Oversight would typically involve contract performance monitoring by the Department of Defense to ensure services meet requirements and that costs remain within the contract ceiling.

Related Government Programs

Travel Agencies
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for vendor lock-in if switching providers is difficult.
Reliance on a single vendor for a critical function.
Risk of unmonitored cost increases if contract terms are not strictly enforced.
Service quality may vary without clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to CARLSON TRAVEL GROUP, INC. 200305!000087!2100!MT01 !HQ, MTMC !DAMT0102C0029 !A!N! !Y!P00003 !20030206!20030930!043844984!007873433!602513673!N!CW GOVERNMENT TRAVEL INC !1777 NE LOOP 410 !SAN ANTONIO !MN!78217!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000325000!N!N!000000000000!V302!TRAVEL AGENT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !481219!E! !3! ! !C! ! !99990909!B

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 $12.4 million.

What is the period of performance?

Start: 2002-02-06. End: 2007-09-30.

What specific travel services are included under this contract, and how do they align with DoD's operational needs?

The contract covers 'TRAVEL AGENT SERVICES'. This likely includes booking flights, hotels, rental cars, and potentially itinerary management for Department of Defense personnel. Alignment with operational needs would depend on the volume and type of travel required by various DoD components, ensuring efficient and cost-effective movement of personnel for missions, training, and administrative purposes.

How does the firm fixed price structure mitigate risks associated with fluctuating travel costs?

A firm fixed price (FFP) contract establishes a set price for the services, regardless of the contractor's actual costs. This shifts the risk of cost overruns to the contractor, providing budget certainty for the government. However, it requires careful negotiation upfront to ensure the price is fair and accounts for potential market fluctuations. If travel costs increase significantly, the contractor bears the loss, but if they decrease, the government benefits from the pre-agreed price.

What mechanisms are in place to ensure the quality and efficiency of travel services provided by CW Government Travel Inc.?

While not detailed in the provided data, typical mechanisms include performance standards, service level agreements (SLAs), and regular performance reviews conducted by the contracting officer's representative (COR). The government would monitor booking accuracy, adherence to travel policies, customer satisfaction, and reporting. Failure to meet these standards could lead to contract remedies or termination.

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