DoD's $25.3M transportation logistics contract awarded to Crowley Logistics, Inc. for freight arrangement services

Contract Overview

Contract Amount: $25,313,472 ($25.3M)

Contractor: Crowley Logistics, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-31

End Date: 2019-08-31

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Transportation

Official Description: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED TRANSPORTATION AGENTS

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to CROWLEY LOGISTICS, INC. for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED TRANSPORTATION AGENTS Key points: 1. Contract value represents a significant investment in ensuring efficient movement of goods for the Department of Defense. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. Performance period is a single day, indicating a specific, likely short-term, operational need. 4. The contract type, Fixed Price with Economic Price Adjustment, aims to balance cost certainty with market volatility. 5. This award falls under the broader category of freight transportation and logistics, crucial for military readiness. 6. The geographic focus on Florida suggests a specific regional operational requirement.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging due to its single-day duration and the 'delivery order' nature, which often signifies a task order against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. However, the total award amount of $25.3 million for a single day of freight transportation arrangement suggests a substantial operational requirement. Without knowing the scope of services or the specific goods transported, a direct value-for-money assessment is difficult. Comparing it to similar single-day, high-volume freight arrangements would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. This suggests that the Department of Defense sought to leverage the broadest possible market to secure the best value. The specific number of bidders is not provided, but the designation implies a competitive process was undertaken, which typically leads to more favorable pricing and service offerings compared to sole-source or limited competition scenarios.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that drives down costs and encourages innovation among service providers, ensuring that public funds are used efficiently.

Public Impact

Military personnel and operations benefit from the timely and efficient movement of necessary supplies and equipment. The services delivered ensure the logistical backbone supporting defense operations remains robust. The geographic impact is concentrated in Florida, indicating support for operations or deployments originating from or transiting through the state. While not directly creating new jobs, this contract supports existing roles within Crowley Logistics, Inc. and potentially related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The single-day performance period raises questions about the complexity and scale of the 'transportation shipments' managed, potentially indicating a highly concentrated or urgent logistical need.
The Fixed Price with Economic Price Adjustment (FPEPA) contract type, while managing risk, can introduce variability in final costs if economic factors fluctuate significantly.

Positive Signals

Awarded under full and open competition, signaling a healthy market and potential for competitive pricing.
The contract is managed by USTRANSCOM, a dedicated agency for transportation and logistics, implying specialized oversight and expertise.
The fixed-price nature of the contract, even with an adjustment clause, provides a baseline cost structure.

Sector Analysis

The defense logistics sector is a critical component of national security, involving the complex orchestration of supply chains to support military operations globally. This contract falls within the broader freight transportation and logistics services market, which is characterized by a mix of large established players and specialized niche providers. Spending in this area is consistently high due to the ongoing need for troop support, equipment deployment, and operational readiness. Comparable spending benchmarks would involve analyzing other large-scale transportation contracts awarded by military branches or agencies like USTRANSCOM for similar freight management services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a specific set-aside requirement. However, as a large prime contract, Crowley Logistics, Inc. may engage small businesses as subcontractors to fulfill parts of the overall service requirement, though this is not mandated by the contract's set-aside status.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the U.S. Transportation Command (USTRANSCOM), the agency responsible for providing transportation, acquisition, and deployment, sustainment, and operational logistics. As a delivery order, it likely operates under a broader IDIQ contract framework with its own oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Specific accountability measures would be detailed within the contract terms and conditions, and any concerns could be addressed through the contracting officer or potentially the Inspector General if fraud or waste is suspected.

Related Government Programs

Military Transportation Services
Freight Forwarding
Logistics and Supply Chain Management
Defense Transportation Contracts
Global Freight Movement

Risk Flags

Single-day performance period for a large dollar amount may warrant further investigation into the scope and necessity.
Economic Price Adjustment clause introduces potential for cost overruns if market conditions change unfavorably.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to CROWLEY LOGISTICS, INC.. CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED TRANSPORTATION AGENTS

Who is the contractor on this award?

The obligated recipient is CROWLEY LOGISTICS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2019-08-31. End: 2019-08-31.

What was the specific nature of the 'consolidated transportation shipments' managed under this contract?

The contract description 'CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED TRANSPORTATION AGENTS' indicates that Crowley Logistics, Inc. was responsible for consolidating and managing various freight shipments. These shipments were likely diverse, ranging from equipment and supplies to personnel-related cargo, orchestrated through decentralized agents. The 'decentralized' aspect suggests that the management and coordination of these shipments occurred at various points within the supply chain or across different operational units, rather than from a single central hub. The exact nature and volume of goods are not detailed in the provided data, but the substantial award amount implies a significant logistical undertaking for the Department of Defense within the specified Florida region.

How does the single-day performance period impact the assessment of value for money?

A single-day performance period for a $25.3 million contract is highly unusual for a comprehensive logistics service and suggests a very specific, potentially urgent, operational requirement or a task order against a larger contract. It implies that the value is derived from the rapid execution of a critical, time-bound logistical event rather than sustained service delivery over an extended period. Assessing value for money in such a scenario requires understanding the criticality of the shipments, the cost of alternatives (e.g., delays, mission failure), and the efficiency of the execution within that 24-hour window. Without this context, comparing it to typical multi-year logistics contracts is not feasible.

What are the potential risks associated with a Fixed Price with Economic Price Adjustment (FPEPA) contract type in this context?

The FPEPA contract type aims to protect both the government and the contractor from significant fluctuations in market prices, particularly for fuel or other volatile commodities that impact transportation costs. For the government, the risk is that the economic price adjustment could lead to a higher final cost than initially projected if market prices rise substantially. For the contractor, the risk is mitigated against unforeseen cost increases, but they still bear the risk of managing operational efficiencies. In this specific case, with a single-day performance, the potential for significant economic fluctuation impacting the final price is likely lower than for a multi-year contract, but it still introduces a degree of cost uncertainty.

What does the geographic focus on Florida imply for the Department of Defense's operations?

The specific mention of 'FL' (Florida) as the state of performance suggests that the consolidated transportation shipments were either originating from, destined for, or transiting through Florida. This could indicate support for military installations within Florida, deployment operations from Florida-based ports or airfields, or logistical movements related to exercises or missions that involve the southeastern United States. Florida's strategic location and numerous military facilities make it a common hub for various defense-related activities, and this contract likely facilitated a critical logistical requirement within that operational context.

How does this contract compare to other freight transportation contracts awarded by USTRANSCOM?

Comparing this specific $25.3 million, single-day delivery order to other USTRANSCOM contracts requires access to detailed historical data on contract scope, duration, and performance metrics. USTRANSCOM manages a vast portfolio of transportation and logistics contracts, many of which are large, multi-year IDIQ vehicles supporting global operations. This particular award appears to be a discrete, high-value task order focused on a specific event or requirement within Florida. While the dollar amount is substantial for a single day, it might represent a fraction of the total value of larger, ongoing transportation agreements that USTRANSCOM holds to ensure continuous logistical support for the armed forces.

Industry Classification

NAICS: Transportation and Warehousing › Freight Transportation Arrangement › Freight Transportation Arrangement

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HTC71115RR003

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Crowley Holdings, Inc.

Address: 9487 REGENCY SQUARE BLVD, JACKSONVILLE, FL, 32225

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

Financial Breakdown

Contract Ceiling: $25,313,472

Exercised Options: $25,313,472

Current Obligation: $25,313,472

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DR003

IDV Type: IDC

Timeline