DHS awarded $17.9M for transportation services, with RTW Enterprises Inc. securing the contract

Contract Overview

Contract Amount: $17,949,717 ($17.9M)

Contractor: RTW Enterprises Inc

Awarding Agency: Department of Homeland Security

Start Date: 2009-03-31

End Date: 2016-03-31

Contract Duration: 2,557 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HSFLGL-09-C-00006 TRANSPORTATION SERVICES FOR FLETC GLYNCO GA.

Place of Performance

Location: BRUNSWICK, GLYNN County, GEORGIA, 31524

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.9 million to RTW ENTERPRISES INC for work described as: HSFLGL-09-C-00006 TRANSPORTATION SERVICES FOR FLETC GLYNCO GA. Key points: 1. The contract's value of $17.9 million over its period of performance suggests a significant need for transportation services. 2. Competition dynamics for this contract are noted as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a potentially complex procurement process. 3. The contract duration of 2557 days (approximately 7 years) points to a long-term service requirement. 4. The fixed-price contract type aims to control costs by establishing a set price for services. 5. The North American Industry Classification System (NAICS) code 485113 categorizes the service as 'Bus and Other Motor Vehicle Transit Systems'. 6. The contract was awarded by the Department of Homeland Security to support the Federal Law Enforcement Training Center (FLETC) in Glynco, GA.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed service descriptions. The total award of $17.9 million over approximately seven years averages to roughly $2.5 million per year. This figure needs to be compared against the scale of operations at FLETC Glynco and the specific transportation needs it fulfills. Without more granular data on the number of vehicles, routes, or passengers served, a definitive value-for-money assessment is difficult. However, the duration and total value suggest a substantial, ongoing requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This procurement method implies that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of eligible bidders. The number of bidders is not explicitly stated in the provided data, but the procurement type suggests a deliberate selection process rather than a completely unrestricted open bid. This could impact price discovery if the excluded sources represented significant market players.

Taxpayer Impact: The exclusion of certain sources, even in an otherwise open competition, may have limited the downward pressure on pricing that could have resulted from a broader range of bids. Taxpayers may have paid a slightly higher price than if all potential providers had been allowed to compete.

Public Impact

Federal law enforcement trainees and instructors at FLETC Glynco benefit from reliable transportation services. The contract ensures the operational readiness of FLETC by providing essential logistical support. Services are geographically focused on Glynco, Georgia, supporting the primary training facility. The contract likely supports a workforce involved in providing and managing transportation services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type raises questions about fairness and potential market distortion.
Lack of detailed performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
The long contract duration could lead to complacency or reduced incentive for innovation if not managed tightly.

Positive Signals

The contract was awarded under a competitive process, suggesting some level of market vetting.
The firm fixed-price structure provides cost certainty for the government.
The long duration indicates a stable, long-term need being met by a single provider.

Sector Analysis

This contract falls within the transportation services sector, specifically motor vehicle transit systems. The market for government transportation contracts is substantial, encompassing a wide range of needs from personnel transport to specialized fleet management. Comparable spending benchmarks would typically involve analyzing other contracts for similar services at federal training facilities or large government installations. The $17.9 million award over seven years places it as a significant contract within its niche.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. The focus appears to be on fulfilling the service requirement through the most competitive means available, regardless of business size.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officer and program managers at FLETC. Accountability measures would be tied to the terms and conditions of the firm fixed-price contract, including service level agreements and performance standards. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal Law Enforcement Training Center Operations
Department of Homeland Security Logistics
Government Fleet Management Services
Transportation Services Contracts

Risk Flags

Competition Exclusion
Long Contract Duration
Lack of Detailed Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.9 million to RTW ENTERPRISES INC. HSFLGL-09-C-00006 TRANSPORTATION SERVICES FOR FLETC GLYNCO GA.

Who is the contractor on this award?

The obligated recipient is RTW ENTERPRISES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $17.9 million.

What is the period of performance?

Start: 2009-03-31. End: 2016-03-31.

What was the specific rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement?

The rationale for excluding specific sources in a 'Full and Open Competition After Exclusion of Sources' procurement typically stems from pre-qualification requirements, past performance issues, or specific technical capabilities deemed essential for the contract. Agencies may issue a Sources Sought notice or Request for Information (RFI) to identify potential sources, and then use this information to establish a list of eligible bidders. Alternatively, if a previous contract existed, the agency might exclude the incumbent if they failed to meet certain criteria, or if specific national security or technical requirements arose that only a subset of the market could meet. Without access to the specific solicitation documents and pre-award justifications for HSFLGL-09-C-00006, the precise reasons for exclusion remain unknown but would likely be documented in the contract file.

How does the average annual cost of this contract compare to similar transportation services for federal training facilities?

The average annual cost for this contract is approximately $2.5 million ($17.9 million / 7 years). Comparing this to similar contracts requires access to a database of transportation service awards for other federal training centers, factoring in size, location, and specific service requirements. For instance, a larger facility like the Marine Corps Base Quantico or a multi-agency hub might have higher costs due to scale. Conversely, smaller, more specialized facilities might have lower expenditures. Without specific benchmarks for comparable facilities, it's difficult to definitively state if $2.5 million annually is high, low, or average. However, for a significant training center like FLETC Glynco, this figure suggests a substantial but potentially reasonable investment for comprehensive transportation.

What are the key performance indicators (KPIs) used to measure the success of RTW Enterprises Inc. under this contract?

Key Performance Indicators (KPIs) for a transportation services contract like this typically revolve around reliability, safety, efficiency, and customer satisfaction. Specific KPIs could include on-time performance rates for scheduled routes, vehicle availability and uptime, accident/incident rates per mile or per trip, adherence to maintenance schedules, fuel efficiency, and passenger feedback scores. For FLETC, KPIs might also be tailored to ensure minimal disruption to training schedules and the secure, timely transport of personnel. The firm fixed-price nature of the contract implies that RTW Enterprises Inc. is responsible for meeting these KPIs within the agreed-upon price, with potential penalties or incentives tied to performance outcomes.

What is the historical spending trend for transportation services at FLETC Glynco prior to and during this contract period?

Historical spending data for transportation services at FLETC Glynco prior to and during the period of this contract (2009-2016) would provide valuable context. If previous contracts for similar services were significantly lower or higher, it could indicate changes in operational needs, market pricing, or contract scope. For example, if spending was consistently lower in prior years, it might suggest an expansion of services or increased demand. Conversely, if it was higher, it could indicate successful cost containment efforts. Analyzing spending patterns across different contract vehicles (e.g., task orders under a larger IDIQ) and comparing them to the $17.9 million total award offers insight into the consistency and scale of FLETC's transportation requirements over time.

What are the potential risks associated with a single contractor, RTW Enterprises Inc., holding this significant transportation contract for an extended period?

Holding a significant contract for an extended period (7 years) can present several risks. One primary risk is contractor complacency, where the incumbent may reduce efforts to innovate or maintain peak efficiency, assuming their position is secure. This can lead to service degradation over time. Another risk is the potential for price increases upon re-competition if the contractor has established significant operational advantages or market leverage. Furthermore, a long-term reliance on a single provider can create vulnerabilities if the contractor experiences financial instability, management turnover, or unforeseen operational challenges, potentially disrupting critical services. Robust oversight and performance management are crucial to mitigate these risks.

Industry Classification

NAICS: Transportation and Warehousing › Urban Transit Systems › Bus and Other Motor Vehicle Transit Systems

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFLGL09R0008

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: LB & B Associates Inc (UEI: 793374034)

Address: 3300 N RIDGE RD STE 105, ELLICOTT CITY, MD, 21043

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,016,770

Exercised Options: $18,016,770

Current Obligation: $17,949,717

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline