DoD's DFTS Contract Awarded to Crowley Logistics for $25.4M, Highlighting Freight Transportation Needs

Contract Overview

Contract Amount: $25,379,708 ($25.4M)

Contractor: Crowley Logistics, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-01

End Date: 2024-08-31

Contract Duration: 30 days

Daily Burn Rate: $846.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Transportation

Official Description: DFTS DECENTRALIZED SHIPMENTS

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to CROWLEY LOGISTICS, INC. for work described as: DFTS DECENTRALIZED SHIPMENTS Key points: 1. The Department of Defense (DoD) awarded a significant contract for decentralized freight shipments. 2. Crowley Logistics, Inc. secured the contract, indicating a competitive landscape in logistics services. 3. The contract's fixed-price with economic price adjustment structure presents potential cost volatility. 4. This award falls within the broader transportation and logistics sector, crucial for military operations.

Value Assessment

Rating: good

The award amount of $25.4 million for a 30-day period suggests a substantial volume of freight. Benchmarking against similar freight transportation arrangement contracts would be necessary for a precise value assessment, but the scale indicates a significant operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive rates for essential services.

Public Impact

Ensures timely delivery of goods for military operations. Supports the logistical backbone of the Department of Defense. Impacts the efficiency and readiness of military deployments. Contributes to the economic activity within the freight transportation sector.

Waste & Efficiency Indicators

Waste Risk Score: 85 / 10

Warning Flags

Economic price adjustment clause could lead to cost overruns.
Short duration (30 days) may indicate a need for ongoing, potentially higher-cost, re-competition.

Positive Signals

Awarded through full and open competition.
Significant contract value suggests robust demand and market validation.

Sector Analysis

This contract falls under freight transportation and logistics, a critical sector for government operations, especially defense. Spending in this area is often driven by operational tempo and global reach requirements. Benchmarks vary widely based on service type and volume.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Department of Defense, specifically USTRANSCOM, is responsible for this contract. Oversight would focus on performance, delivery timelines, and adherence to the economic price adjustment terms to ensure taxpayer value.

Related Government Programs

Freight Transportation Arrangement
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

Potential for cost overruns due to economic price adjustment.
Short contract duration may necessitate frequent re-competition.
Lack of small business participation data.
Dependence on a single awardee for a critical service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to CROWLEY LOGISTICS, INC.. DFTS DECENTRALIZED SHIPMENTS

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 $25.4 million.

What is the period of performance?

Start: 2024-08-01. End: 2024-08-31.

What is the historical cost performance of similar freight transportation contracts awarded by USTRANSCOM?

Historical cost performance data for similar freight transportation contracts is crucial for evaluating the value of this $25.4 million award. Analyzing past contract spending, including any economic price adjustments, will reveal trends in cost escalation and identify potential areas where costs may have exceeded initial projections. This comparison helps determine if Crowley's pricing is competitive and if the economic price adjustment clause is being managed effectively.

What are the specific risks associated with the 'economic price adjustment' clause in this contract?

The primary risk of the economic price adjustment (EPA) clause is potential cost escalation beyond initial budget expectations, impacting taxpayer funds. Fluctuations in fuel prices, labor costs, or other economic factors could lead to higher payments to Crowley Logistics. Effective oversight is required to ensure that any price adjustments are justified by documented economic changes and do not represent excessive profit or market manipulation.

How does the efficiency of this decentralized shipment arrangement compare to centralized logistics models for the DoD?

The efficiency of decentralized shipment arrangements like DFTS can offer benefits such as reduced transit times and increased flexibility for specific operational needs. However, it may also introduce complexities in tracking, inventory management, and potentially higher administrative costs compared to a centralized model. Evaluating the effectiveness requires assessing delivery performance metrics, overall cost-effectiveness, and the strategic advantages gained by the DoD in its specific operational context.

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 Alaska 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: $25,379,708

Exercised Options: $25,379,708

Current Obligation: $25,379,708

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DR003

IDV Type: IDC

Timeline