DoD's $28.4M transportation contract with Crowley Logistics shows strong competition and fair pricing

Contract Overview

Contract Amount: $28,449,899 ($28.4M)

Contractor: Crowley Logistics, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2024-10-31

Contract Duration: 30 days

Daily Burn Rate: $948.3K/day

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 $28.4 million to CROWLEY LOGISTICS, INC. for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS Key points: 1. Value for money appears favorable given the competitive bidding process. 2. The contract was awarded under full and open competition, indicating a healthy market. 3. Risk indicators are low, with a fixed-price contract type and defined performance period. 4. Performance context suggests a routine service delivery within the logistics sector. 5. This contract positions Crowley Logistics as a key provider for USTRANSCOM's freight needs. 6. The contract value is significant but within the expected range for large-scale logistics services.

Value Assessment

Rating: good

The contract value of approximately $28.4 million for a one-month delivery order appears reasonable when benchmarked against similar large-scale transportation and logistics contracts. The fixed-price structure with economic price adjustment helps mitigate some cost volatility. While a direct per-unit cost comparison is difficult without more granular service details, the competitive award suggests the pricing achieved was market-reflective.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates a robust competitive environment, which typically leads to better price discovery and value for the government. The specific number of bidders is not provided, but the award type suggests multiple entities vied for this requirement.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where providers compete on price and performance, ultimately driving down costs.

Public Impact

The Department of Defense (DoD) benefits from reliable and efficient transportation services for its consolidated shipments. Crowley Logistics, Inc. is the primary service provider, delivering freight transportation arrangement services. The geographic impact is centered in Florida (ST), where the delivery order is managed. Workforce implications include potential employment opportunities within Crowley Logistics and its partners to fulfill this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to the economic price adjustment clause, though mitigated by fixed-price structure.
Dependence on a single contractor for a significant transportation requirement during the performance period.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Fixed-price contract type provides cost certainty for the majority of the contract value.
Clear performance period (one month) limits long-term exposure.
Contractor has a track record in logistics and transportation services.

Sector Analysis

This contract falls within the broader transportation and logistics sector, a critical component of the defense industrial base. The market for freight transportation arrangement services is large and competitive, with numerous providers capable of handling government requirements. USTRANSCOM, as the contracting agency, frequently procures such services to support global military operations. Benchmarks for similar large-scale, short-term transportation contracts can range from tens to hundreds of millions of dollars annually, depending on scope and duration.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Crowley Logistics, Inc. is the prime contractor, there is no explicit information on subcontracting plans with small businesses. Further analysis would be needed to determine the extent of small business participation in fulfilling this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the USTRANSCOM contracting office and relevant Department of Defense oversight bodies. Accountability is ensured through the contract's terms and conditions, performance metrics, and payment processes. Transparency is facilitated by the public availability of contract award data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USTRANSCOM Global Freight Management
DoD Logistics and Transportation Services
Defense Transportation System
Military Sealift Command Contracts

Risk Flags

Economic Price Adjustment Clause
Potential for Performance Delays
Dependence on Single Contractor for Period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 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 $28.4 million.

What is the period of performance?

Start: 2024-10-01. End: 2024-10-31.

What is Crowley Logistics, Inc.'s track record with the Department of Defense and USTRANSCOM?

Crowley Logistics, Inc. has a significant history of contracting with the Department of Defense and its various components, including USTRANSCOM. They are a well-established provider of global logistics, transportation, and marine solutions. Their experience often includes managing complex supply chains, ocean transportation, and freight forwarding for military operations. Past performance data, available through government databases like the Contractor Performance Assessment Reporting System (CPARS), would provide specific details on their execution of previous contracts, including on-time delivery, cost control, and overall customer satisfaction. This specific contract award suggests continued confidence from USTRANSCOM in Crowley's capabilities.

How does the pricing of this contract compare to similar freight transportation arrangements for the DoD?

Benchmarking the pricing of this $28.4 million, one-month contract requires comparison with similar large-scale freight transportation arrangement services procured by USTRANSCOM or other DoD entities. Given the 'full and open competition' award type, the price achieved is likely competitive. However, without specific details on the volume, types of goods, transit times, and specific routes covered, a precise per-unit cost comparison is challenging. Generally, fixed-price contracts with economic price adjustments aim to balance cost certainty for the government with flexibility for the contractor to manage fluctuating market conditions like fuel prices. The 'br' value of $948,330 might represent a baseline or estimated value for a portion of the services, but its exact meaning in relation to the total contract value is unclear without further context.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns due to the economic price adjustment (EPA) clause, although the base contract is fixed-price. Market volatility in fuel prices or shipping rates could impact the contractor's costs, potentially leading to claims or adjustments under the EPA. Another risk is performance-related, such as delays in shipment or damage to goods, which could disrupt DoD operations. Mitigation strategies include the fixed-price nature of the base award, which caps the government's liability for base costs. The EPA is designed to account for specific economic factors, not unlimited inflation. USTRANSCOM likely has performance monitoring mechanisms in place, and Crowley Logistics, as an experienced provider, is expected to have robust internal quality control and risk management processes to ensure timely and safe delivery.

What is the expected effectiveness of this contract in supporting DoD's transportation needs?

This contract is expected to be highly effective in supporting the DoD's consolidated transportation shipments for the specified one-month period. By awarding to Crowley Logistics, Inc. through full and open competition, USTRANSCOM secures the services of a capable provider at a competitive price. The contract's purpose is to ensure the efficient arrangement and movement of freight, which is critical for maintaining operational readiness and supply chain integrity. The fixed-price structure, combined with the EPA, provides a balance of cost control and adaptability. The effectiveness will ultimately be measured by the contractor's ability to meet delivery schedules, maintain the integrity of shipments, and provide responsive service throughout the contract duration.

How does this contract's value and duration compare to historical spending patterns for similar services by USTRANSCOM?

This contract, valued at approximately $28.4 million for a 30-day duration (October 2024), represents a significant expenditure for a single month of freight transportation arrangement services. USTRANSCOM historically manages substantial budgets for logistics and transportation, often involving multi-year contracts and numerous delivery orders that collectively amount to billions of dollars annually. A single $28.4 million delivery order for one month, while large, is likely within the expected range of spending for critical, high-volume transportation needs. Historical data would reveal if such large monthly expenditures are typical for specific operational periods or types of shipments managed by USTRANSCOM, indicating whether this contract aligns with established spending patterns or represents an outlier.

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: $28,449,899

Exercised Options: $28,449,899

Current Obligation: $28,449,899

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DR003

IDV Type: IDC

Timeline