DoD awards $17.6M for global logistics support, raising questions about value and competition

Contract Overview

Contract Amount: $17,673,946 ($17.7M)

Contractor: Global Logistics Support Services Inc

Awarding Agency: Department of Defense

Start Date: 2023-02-01

End Date: 2026-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT FIELD TEAM SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $17.7 million to GLOBAL LOGISTICS SUPPORT SERVICES INC for work described as: CONTRACT FIELD TEAM SUPPORT Key points: 1. The contract's value appears reasonable given the global scope and duration, but detailed benchmarking is needed. 2. Limited competition dynamics may have impacted price discovery and potentially inflated costs. 3. The fixed-price contract type mitigates some cost overrun risks for the government. 4. Performance context is limited without specific deliverables and performance metrics. 5. This contract falls within the broader Defense sector, supporting aircraft readiness. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The $17.6 million award over three years for global logistics support is substantial. Benchmarking against similar contracts for worldwide logistical services is crucial to determine if the pricing is competitive. Without specific details on the scope of services, it's difficult to definitively assess value for money. However, the duration and global reach suggest a significant operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. The number of bidders is not specified, but the 'limited' competition designation suggests fewer than ideal participation, potentially impacting price negotiation and the government's ability to secure the best possible terms.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as it reduces the pressure on contractors to offer their most competitive bids.

Public Impact

The Department of Defense benefits from enhanced global logistics capabilities, ensuring operational readiness. Services delivered likely include transportation, warehousing, and supply chain management for military assets. The geographic impact is global, supporting military operations worldwide. Workforce implications may involve personnel for logistics operations, though specific numbers are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the exclusion of sources in the competition.
Potential for inflated costs due to limited competitive bidding.
Unclear performance metrics make it difficult to assess contractor effectiveness.
Absence of small business participation raises concerns about broader economic impact.

Positive Signals

Firm Fixed Price contract type helps control costs.
Global reach indicates critical support for DoD operations.
Contract duration of three years provides stability for logistics planning.

Sector Analysis

This contract operates within the Defense Logistics and Support Services sector, a critical component of the broader aerospace and defense industry. This sector is characterized by high demand for specialized services, often involving complex global supply chains. Spending in this area is substantial, driven by national security requirements. Comparable spending benchmarks would typically involve analyzing other large-scale, geographically dispersed logistics contracts awarded by the DoD and other federal agencies.

Small Business Impact

The contract data indicates that small business participation was not a primary consideration, as the 'sb' field is false and there is no mention of set-asides. This suggests that the prime contractor, GLOBAL LOGISTICS SUPPORT SERVICES INC, is likely a large business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this award and if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are usually tied to the contract's performance work statement and delivery schedules. Transparency is moderate, with basic contract details available, but deeper insights into the procurement process and performance evaluations would require access to more detailed government reports or inspector general findings.

Related Government Programs

Defense Logistics Agency (DLA) Contracts
Global Support Services
Aircraft Maintenance Support
Military Transportation Services

Risk Flags

Limited competition may lead to higher costs.
Lack of transparency in source exclusion.
Performance metrics not clearly defined.
Potential for inadequate small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to GLOBAL LOGISTICS SUPPORT SERVICES INC. CONTRACT FIELD TEAM SUPPORT

Who is the contractor on this award?

The obligated recipient is GLOBAL LOGISTICS SUPPORT SERVICES INC.

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 $17.7 million.

What is the period of performance?

Start: 2023-02-01. End: 2026-01-31.

What is the track record of GLOBAL LOGISTICS SUPPORT SERVICES INC in performing similar global logistics contracts for the Department of Defense?

Assessing the track record of GLOBAL LOGISTICS SUPPORT SERVICES INC requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A history of successful, on-time delivery of complex global logistics services would indicate a lower risk for this current contract. Conversely, past performance issues, such as cost overruns, schedule delays, or quality deficiencies, would raise concerns about the contractor's ability to meet the requirements of this $17.6 million award.

How does the awarded price compare to market rates for similar global logistics support services?

Determining if the $17.6 million award represents good value requires benchmarking against market rates. This involves comparing the contract's unit prices (if discernible) or total price against similar services procured by other government agencies or commercial entities. Factors such as the geographic scope, duration, specific services included (e.g., transportation, warehousing, maintenance coordination), and required service levels are critical for an accurate comparison. Without detailed service breakdowns and market data, a precise value assessment is challenging, but the 'limited' competition suggests potential for prices above optimal market levels.

What are the specific risks associated with the 'limited' competition and 'exclusion of sources' in this contract award?

The primary risks associated with limited competition and the exclusion of sources stem from reduced price discovery and potential for contractor complacency. When fewer bidders participate, the government may not receive the most competitive pricing, potentially leading to higher costs for taxpayers. Furthermore, a lack of robust competition can reduce the incentive for the awarded contractor to innovate or maintain high service levels throughout the contract period. The exclusion of specific sources, without clear justification, also raises questions about the fairness and transparency of the procurement process, potentially limiting the pool of qualified and cost-effective providers.

What are the key performance indicators (KPIs) and deliverables for this contract, and how will they be measured?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this global logistics support contract. Typically, such contracts would include metrics related to on-time delivery rates, inventory accuracy, response times for logistical requests, cost control, and compliance with safety and security regulations. The effectiveness of the contract hinges on clearly defined, measurable, and achievable KPIs that align with the Department of Defense's operational needs. Without this information, assessing the program's effectiveness and the contractor's performance is speculative.

What has been the historical spending trend for global logistics support services by the Department of the Air Force?

Analyzing historical spending trends for global logistics support by the Department of the Air Force (DoAF) would provide context for the $17.6 million award. This involves examining past contract awards for similar services over several fiscal years. Trends might reveal increasing or decreasing demand, shifts in contracting strategies (e.g., towards or away from full and open competition), and average contract values. Understanding these patterns can help determine if the current award is consistent with historical spending, represents an anomaly, or reflects a strategic change in the DoAF's approach to logistics support.

Are there any known issues or controversies related to GLOBAL LOGISTICS SUPPORT SERVICES INC's past government contracts?

To determine if there are known issues or controversies related to GLOBAL LOGISTICS SUPPORT SERVICES INC's past government contracts, a thorough review of public databases, news archives, and government accountability reports (e.g., from GAO or Inspectors General) is necessary. This would include searching for past performance disputes, contract terminations, allegations of fraud or misconduct, or significant cost overruns on previous awards. Identifying any such issues would be a critical risk indicator for the current contract, potentially necessitating closer oversight and more stringent performance management.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 615 DISCOVERY DR, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,076,980

Exercised Options: $21,076,980

Current Obligation: $17,673,946

Actual Outlays: $2,428,228

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0002

IDV Type: IDC

Timeline