Logistics support services contract awarded to LOGMET LLC for over $13.1 million, spanning nearly 7 years

Contract Overview

Contract Amount: $10,318,759 ($10.3M)

Contractor: Logmet LLC

Awarding Agency: Department of Defense

Start Date: 2006-04-06

End Date: 2013-02-26

Contract Duration: 2,518 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200607!000073!5700!FA2816!61CONS/LGC !FA281606C0007 !A!N! !Y! ! !20060406!20060930!131631942!131631942!131631942!N!LOGMET LLC !15521 GUSTINE COVE !AUSTIN !TX!78717!44007!037!06!LOS ANGELES AF STA. !LOS ANGELES !CALIFORNIA!+000000793727!N!N!000008302837!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!006!K! !C!N!E! ! !Y!A!Y!N!C!B! ! !D!A!000!A!B!N! ! ! ! !571S!FA2816!0001! !

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.3 million to LOGMET LLC for work described as: 200607!000073!5700!FA2816!61CONS/LGC !FA281606C0007 !A!N! !Y! ! !20060406!20060930!131631942!131631942!131631942!N!LOGMET LLC !15521 GUSTINE COVE !AUSTIN !TX!78717!44007!037!06!LOS ANGELES AF STA. !LOS … Key points: 1. Contract value of $13.1M for logistics support services indicates a significant investment in operational efficiency. 2. The contract was awarded under full and open competition, suggesting a robust market for these services. 3. A duration of nearly 7 years implies a long-term need and potential for sustained contractor performance. 4. The award to LOGMET LLC, a single entity, highlights the importance of specialized capabilities in this sector. 5. The North American Industry Classification System (NAICS) code 561210 points to facilities support services, a critical component of base operations. 6. The contract's performance location in Los Angeles, California, suggests a focus on a specific geographic region with significant military presence.

Value Assessment

Rating: good

The contract value of $13.1 million for nearly 7 years of logistics support services appears reasonable given the scope. Benchmarking against similar large-scale facilities support contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without detailed service delivery metrics, a definitive assessment of performance value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bidders were likely considered. The presence of 6 bids suggests a competitive environment, which typically drives better pricing and service offerings for the government. The exclusion of sources clause might imply specific technical requirements or past performance considerations that narrowed the field from a purely unrestricted competition.

Taxpayer Impact: A competitive bidding process generally leads to more favorable pricing for taxpayers by encouraging vendors to offer their best terms. The participation of multiple bidders helps ensure that the government secures services at a market-driven rate.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Los Angeles Air Force Station, who receive essential logistics support. Services delivered include a broad range of logistics support, crucial for maintaining the operational readiness of the military installation. The geographic impact is concentrated in Los Angeles, California, supporting federal operations in that region. The contract likely supports a workforce involved in logistics, warehousing, transportation, and related facility management functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if contract scope is not tightly managed, despite firm-fixed-price structure.
Dependence on a single contractor for critical logistics functions could pose a risk if performance falters.
Ensuring adequate oversight to confirm that all contracted logistics services are delivered effectively and efficiently.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
Long contract duration suggests a stable and predictable operational environment for the supported facility.
Firm-fixed-price contract type shifts cost risk to the contractor, potentially saving taxpayer money.

Sector Analysis

The facilities support services sector is a significant part of the government contracting landscape, encompassing a wide array of services necessary for the operation and maintenance of federal facilities. This contract, under NAICS code 561210, falls within this broad category. The market for such services is competitive, with numerous firms capable of providing logistics and facility management. Spending in this sector is often driven by the needs of large military installations and government agencies requiring comprehensive support to maintain readiness and operational efficiency.

Small Business Impact

There is no explicit indication from the provided data that this contract included a small business set-aside. The contract was awarded under full and open competition, and the prime contractor is LOGMET LLC. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized for small businesses, which is a common practice in larger federal contracts to promote small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services for an agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Logistics Support Services
Facilities Management Contracts
Base Operations Support Contracts
Department of Defense Logistics Spending
Air Force Installation Support

Risk Flags

Contract duration is long, requiring sustained performance monitoring.
Firm-fixed-price contracts can sometimes lead to less flexibility in scope adjustments.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.3 million to LOGMET LLC. 200607!000073!5700!FA2816!61CONS/LGC !FA281606C0007 !A!N! !Y! ! !20060406!20060930!131631942!131631942!131631942!N!LOGMET LLC !15521 GUSTINE COVE !AUSTIN !TX!78717!44007!037!06!LOS ANGELES AF STA. !LOS ANGELES !CALIFORNIA!+000000793727!N!N!000008302837!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is LOGMET LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2006-04-06. End: 2013-02-26.

What is the historical spending trend for logistics support services at Los Angeles Air Force Station?

Analyzing historical spending for logistics support services at Los Angeles Air Force Station prior to this $13.1 million contract would provide valuable context. This would involve examining contract awards for similar services over the past 5-10 years to identify trends in contract values, durations, and awarded contractors. A significant increase or decrease in spending could indicate changes in operational requirements, base utilization, or shifts in contracting strategies. Understanding this historical pattern helps in assessing whether the current contract represents a continuation of established spending levels, a substantial increase, or a decrease, and whether it aligns with broader Air Force or DoD budget trends for base support services.

How does the per-unit cost of LOGMET LLC's services compare to industry benchmarks for similar logistics support contracts?

Determining the per-unit cost for LOGMET LLC's services requires breaking down the total contract value ($13.1M) by the specific units of service delivered over the contract's duration (2518 days). For example, if the contract includes services like warehouse space utilization, personnel hours, or vehicle maintenance, calculating a cost per square foot, per labor hour, or per vehicle serviced would be necessary. This calculated per-unit cost can then be benchmarked against industry data for similar facilities support contracts, ideally those with comparable scope, geographic location, and security requirements. A favorable comparison would indicate good value for money, while a significantly higher per-unit cost might suggest potential inefficiencies or a less competitive pricing structure.

What are the key performance indicators (KPIs) used to evaluate LOGMET LLC's performance under this contract?

Key Performance Indicators (KPIs) for a logistics support services contract typically focus on operational efficiency, timeliness, and quality. Examples could include on-time delivery rates for supplies, inventory accuracy percentages, response times for facility maintenance requests, equipment uptime, and safety incident rates. The contract documents would specify these KPIs and the acceptable performance thresholds. Regular performance reviews would assess LOGMET LLC's adherence to these metrics. Failure to meet KPIs could result in contractual remedies, such as service level credits or, in severe cases, contract termination. Understanding these KPIs is crucial for assessing the contractor's effectiveness and the overall value delivered.

What is LOGMET LLC's track record with similar government contracts, particularly in logistics and facilities support?

LOGMET LLC's track record with similar government contracts is a critical factor in assessing their capability and reliability. Researching their past performance on contracts with the Department of Defense, specifically the Air Force, and for services falling under NAICS code 561210 (Facilities Support Services) or related logistics codes, would be essential. This includes examining contract histories for on-time delivery, quality of service, cost control, and any past performance issues or disputes. A history of successful contract completion, positive performance reviews, and minimal disputes would indicate a lower risk profile for this current contract. Conversely, a history of performance problems could signal potential risks for the government.

What is the potential impact of this contract on the local small business ecosystem in the Los Angeles area?

The impact of this $13.1 million contract on the local small business ecosystem in the Los Angeles area depends heavily on the subcontracting plan, if any, associated with the award. While the prime contract was awarded through full and open competition to LOGMET LLC, federal regulations often encourage or mandate the use of small businesses for subcontracting opportunities. If LOGMET LLC actively seeks out and utilizes local small businesses for specialized services (e.g., maintenance, specialized equipment supply, local transportation), it could provide a significant economic boost. However, if the contract is largely self-performed or relies on large subcontractors, the direct impact on the local small business ecosystem might be limited. Assessing the value of any small business subcontracting goals or achievements would be key.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15521 GUSTINE COVE, AUSTIN, TX, 90

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline