DoD's $26.2M freight transportation contract awarded to Crowley Logistics, Inc. for Florida shipments

Contract Overview

Contract Amount: $26,225,347 ($26.2M)

Contractor: Crowley Logistics, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-08-31

End Date: 2022-08-31

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Transportation

Official Description: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to CROWLEY LOGISTICS, INC. for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS Key points: 1. The contract value of $26.2M appears to be for a single delivery order, suggesting a specific, potentially short-term need. 2. Competition dynamics are positive, with a 'FULL AND OPEN COMPETITION' award indicating broad market engagement. 3. Risk indicators are moderate; the fixed-price with economic price adjustment (EPA) structure can introduce cost volatility. 4. Performance context is limited to a single delivery order, making long-term performance assessment difficult. 5. Sector positioning is within freight transportation, a critical but potentially commoditized segment of logistics. 6. The contract's focus on Florida shipments suggests a geographically specific operational requirement.

Value Assessment

Rating: fair

Benchmarking the value of this $26.2M delivery order is challenging without more context on the specific services rendered and the duration of the requirement. However, the fixed-price with economic price adjustment (EPA) clause introduces a degree of uncertainty regarding the final cost. While EPA clauses are common in transportation contracts to account for fuel and other market fluctuations, they can lead to costs exceeding initial estimates if not carefully managed. Comparing this to similar freight transportation contracts would require detailed analysis of shipment volumes, distances, and service levels.

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 a robust bidding process where multiple companies likely vied for the opportunity. The level of competition is generally favorable for price discovery, as it encourages bidders to offer competitive pricing to secure the award. Without knowing the number of bids received, it's difficult to definitively assess the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality, ensuring government funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Defense units requiring consolidated transportation services within Florida. The service delivered is freight transportation arrangement, facilitating the movement of goods. The geographic impact is concentrated in Florida, supporting logistical operations within the state. Workforce implications are likely related to the logistics and transportation sector, potentially supporting jobs in freight handling and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (EPA) clause introduces potential for cost overruns if market conditions, such as fuel prices, increase significantly.
The contract is a single delivery order, which may indicate a short-term or project-specific need, limiting insights into long-term contractor performance and value.
Lack of detailed service scope makes it difficult to assess if the price is competitive for the specific services rendered.

Positive Signals

Awarded under 'FULL AND OPEN COMPETITION,' suggesting a competitive bidding process that should have yielded favorable pricing.
Crowley Logistics, Inc. is a known entity in the logistics sector, implying a degree of established capability.
The contract supports critical Department of Defense transportation needs, contributing to national security operations.

Sector Analysis

The freight transportation sector is a vital component of the U.S. economy and national defense, encompassing the movement of goods via various modes. This contract falls within the broader logistics and transportation services market, which is characterized by a mix of large established players and specialized providers. Spending in this sector is often driven by operational needs, supply chain efficiency, and national security requirements. Comparable spending benchmarks would typically involve analyzing the volume, distance, and type of goods transported, as well as the specific modes used.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. However, as a large contract, it's possible that the prime contractor, Crowley Logistics, Inc., may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and financial management structures, specifically USTRANSCOM, which is the awarding agency. Accountability measures are inherent in the contract terms, including performance expectations and payment schedules. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency (DLA) Contracts
Military Sealift Command (MSC) Contracts
Transportation Services Contracts
Freight Forwarding Services
Global Logistics Support

Risk Flags

Potential cost volatility due to EPA clause
Limited performance data from single delivery order
Geographic concentration may limit broader applicability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to CROWLEY LOGISTICS, INC.. CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS

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 $26.2 million.

What is the period of performance?

Start: 2022-08-31. End: 2022-08-31.

What is the typical cost range for similar freight transportation arrangement contracts awarded by the Department of Defense?

Determining a precise cost range for similar freight transportation arrangement contracts is complex due to the variability in shipment size, distance, mode of transport, urgency, and specific services included (e.g., warehousing, customs brokerage). However, contracts for freight forwarding and transportation management can range from tens of thousands to hundreds of millions of dollars annually, depending on the scope. For instance, large-scale, multi-modal transportation contracts supporting global military operations often exceed $100 million. Smaller, geographically focused contracts, like this $26.2 million delivery order for Florida, would typically fall within a lower tier, but the specific unit costs (e.g., cost per ton-mile) are crucial for a detailed comparison. Without more granular data on the services provided under this specific contract, a direct benchmark is difficult, but the award value suggests a significant volume or complexity of shipments.

How does the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (EPA) clause typically impact the final cost of transportation contracts?

The 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (EPA) clause is designed to protect both the contractor and the government from significant, unforeseen fluctuations in market prices, particularly for volatile commodities like fuel, labor, or materials. In transportation contracts, EPA clauses commonly adjust the price based on indices for fuel costs. While this can prevent the contractor from absorbing unexpected cost increases (which might otherwise lead to contract disputes or reduced service quality), it also means the final price paid by the government could be higher than the initially proposed fixed price. The government benefits from the contractor's willingness to bid competitively, knowing that extreme market shifts are accounted for. However, it introduces a degree of cost uncertainty, and the government bears the risk of price increases if market conditions worsen. Effective oversight involves monitoring the indices used for adjustment and ensuring they accurately reflect market changes.

What is Crowley Logistics, Inc.'s track record with federal transportation contracts?

Crowley Logistics, Inc. has a substantial history of performing federal transportation and logistics contracts. As a major player in the maritime and logistics industry, the company frequently secures contracts with various government agencies, including the Department of Defense (DoD), U.S. Transportation Command (USTRANSCOM), and Military Sealift Command (MSC). Their experience often spans a wide range of services, from ocean transportation and port operations to domestic freight management and specialized logistics solutions. Publicly available contract data indicates numerous awards to Crowley Logistics for services supporting military deployments, supply chain operations, and disaster relief efforts. While specific performance metrics for individual contracts are not always public, their continued success in winning competitive bids suggests a generally positive track record and capability to meet government requirements.

What are the potential risks associated with a single delivery order contract of this magnitude?

A single delivery order contract, even one as substantial as $26.2 million, carries specific risks. Primarily, it suggests a potentially short-term or project-specific need rather than an ongoing, long-term requirement. This can limit the ability to fully assess the contractor's long-term performance, reliability, and cost-effectiveness over an extended period. Furthermore, if this single order represents a significant portion of the contractor's business or a critical logistical function, any disruption in service could have a disproportionately large impact on the agency's operations. From a value perspective, a single large order might not benefit from the economies of scale or sustained efficiency improvements that can be achieved through longer-term, multi-year contracts. It also means that the government may need to re-compete or re-negotiate similar requirements in the future, incurring additional administrative costs.

How does the geographic focus on Florida impact the contract's overall significance?

The geographic focus on Florida for this $26.2 million contract signifies a concentration of logistical needs within that specific region. This could be tied to military base operations, deployment staging areas, or specific supply chain nodes located in Florida. While significant for regional operations, it suggests this contract is not addressing a nationwide or global transportation requirement. The impact on the broader transportation market is likely localized to Florida and potentially adjacent regions. For the Department of Defense, it highlights the importance of robust logistical support within Florida to maintain readiness and operational capabilities in that area. The value indicates a substantial volume of freight movement is anticipated within the state, requiring efficient and reliable transportation arrangements.

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

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: $26,225,347

Exercised Options: $26,225,347

Current Obligation: $26,225,347

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DR003

IDV Type: IDC

Timeline