DoD's $20M Logistics Consulting Contract Awarded to A2Z INC Shows Strong Competition

Contract Overview

Contract Amount: $20,193,036 ($20.2M)

Contractor: A2Z Inc

Awarding Agency: Department of Defense

Start Date: 2017-05-12

End Date: 2022-05-27

Contract Duration: 1,841 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF RRAM WAREHOUSE SUPPORT

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to A2Z INC for work described as: IGF::OT::IGF RRAM WAREHOUSE SUPPORT Key points: 1. The contract demonstrates a commitment to competitive sourcing, with 8 bidders vying for the work. 2. A firm-fixed-price structure suggests a clear understanding of scope and potential for cost control. 3. The duration of the contract (1841 days) indicates a significant, long-term need for these services. 4. While A2Z INC is the sole awardee, the initial competition level is a positive indicator. 5. The service falls under logistics consulting, a critical area for efficient defense operations. 6. The contract's value, while substantial, needs to be benchmarked against similar services for true value assessment.

Value Assessment

Rating: good

The total award amount of $20,193,035.67 for logistics consulting services over approximately five years appears reasonable given the contract's duration and the competitive nature of its award. Without specific details on the scope of services provided by A2Z INC, a direct per-unit cost comparison is challenging. However, the firm-fixed-price contract type suggests that the government has a defined scope and the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The presence of 8 bidders signifies a healthy level of competition for this requirement, suggesting that the government received a range of proposals and pricing. This competitive environment is crucial for ensuring fair market prices and encouraging innovation among potential contractors.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government secured services at a competitive market rate. A higher number of bidders generally leads to better value and reduces the risk of overpayment.

Public Impact

The Department of the Navy benefits from enhanced logistics consulting services, potentially leading to improved operational efficiency and cost savings. The contract supports critical functions within the defense sector, ensuring the smooth flow of goods and services. The primary impact is on the Department of Defense's internal operations and supply chain management. Workforce implications are likely concentrated within A2Z INC, with potential for specialized logistics professionals to be engaged.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial requirements were not precisely defined, given the long contract duration.
Dependence on a single contractor for a significant period could limit flexibility if needs change drastically.
Ensuring continued competitive pricing throughout the contract lifecycle may require careful performance monitoring.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The high number of bidders (8) indicates strong market interest and competitive pricing.
The contract is awarded to a single entity, simplifying management and oversight.
The service category (logistics consulting) is essential for defense operations, suggesting a well-justified need.

Sector Analysis

The logistics consulting services sector is a vital component of the broader professional services market, supporting various industries, particularly government and defense. This contract fits within the government's ongoing efforts to optimize supply chains and operational efficiency. Comparable spending benchmarks in this area are difficult to establish without granular detail on the specific consulting services rendered, but the overall market for logistics support services is substantial, with significant government investment.

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 benefits for the small business ecosystem stemming from this particular award. The focus appears to be on securing the best value from the broader market, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is generally maintained through contract award databases like FPDS. Specific accountability measures would be detailed in the contract itself, including performance metrics and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Military Sealift Command (MSC) Contracts
Department of Defense Supply Chain Management Initiatives
Professional Services Schedule (PSS) Contracts
Logistics and Supply Chain Consulting Services

Risk Flags

Long contract duration may increase risk of obsolescence or changing requirements.
Sole awardee for the duration requires careful performance monitoring.
Need to verify specific deliverables and success metrics for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to A2Z INC. IGF::OT::IGF RRAM WAREHOUSE SUPPORT

Who is the contractor on this award?

The obligated recipient is A2Z INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2017-05-12. End: 2022-05-27.

What specific logistics consulting services did A2Z INC provide under this contract?

The provided data classifies the contract under NAICS code 541614 (Process, Physical Distribution, and Logistics Consulting Services). This typically encompasses a range of activities such as supply chain optimization, inventory management, transportation analysis, warehousing strategies, and distribution network design. However, the specific deliverables, methodologies, and areas of focus for A2Z INC under this $20 million contract are not detailed in the summary data. Further investigation into the contract's statement of work (SOW) would be necessary to understand the precise nature of the consulting services rendered, including whether they focused on strategic planning, operational improvements, or technology implementation within the Department of the Navy's logistics framework.

How does the $20.19 million contract value compare to similar logistics consulting contracts awarded by the Department of Defense?

Benchmarking this $20.19 million contract requires comparing it to similar logistics consulting services awarded by the Department of Defense (DoD) over comparable timeframes and with similar scopes. Without access to detailed contract line item numbers (CLINs) or specific service descriptions, a precise comparison is difficult. However, the value suggests a significant, multi-year engagement. Larger DoD logistics contracts can range from tens to hundreds of millions of dollars, often encompassing broader system-wide overhauls or extensive operational support. Smaller, more focused consulting engagements might fall in the low millions. This contract appears to be of moderate-to-large size within the consulting services category for the DoD, indicating a substantial need for A2Z INC's expertise over its 1841-day duration.

What are the key performance indicators (KPIs) used to assess A2Z INC's performance on this contract?

The provided summary data does not specify the Key Performance Indicators (KPIs) used to assess A2Z INC's performance. Typically, for logistics consulting contracts, KPIs would be tied to the objectives outlined in the Statement of Work (SOW). These could include metrics related to cost savings achieved, efficiency improvements in supply chain operations, reduction in delivery times, accuracy of inventory management, successful implementation of new logistics strategies or technologies, and overall client satisfaction. The firm-fixed-price nature of the contract implies that performance would be evaluated against the successful completion of defined tasks and milestones, with potential financial implications tied to meeting or exceeding agreed-upon service levels or achieving specific, measurable outcomes.

What is the track record of A2Z INC in performing similar government contracts?

The provided data identifies A2Z INC as the contractor for this $20.19 million Department of the Navy contract. To assess their track record, one would need to examine their past performance on other federal contracts, particularly those involving logistics consulting or similar professional services. This would involve reviewing contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Without this additional information, it's difficult to definitively state A2Z INC's track record. However, being awarded a contract of this magnitude suggests they possess the necessary qualifications and experience to meet the government's requirements.

How has spending on logistics consulting services by the Department of the Navy evolved over the past five years?

The provided data focuses on a single contract awarded in 2017. To analyze the evolution of spending on logistics consulting services by the Department of the Navy (DoN) over the past five years, a broader dataset encompassing multiple contracts would be required. This analysis would involve querying federal procurement databases (like FPDS or USASpending.gov) for all contracts categorized under relevant NAICS codes (e.g., 541614) awarded by the DoN within the specified period. Trends could then be identified, such as increases or decreases in overall spending, shifts in the types of services procured, changes in average contract values, and the prevalence of different contract types (e.g., firm-fixed-price vs. cost-plus). This contract represents one data point within that larger spending picture.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018917R0019

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: A2Z, Inc.

Address: 1604 WILLIMANTIC CT, VIRGINIA BEACH, VA, 23456

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,332,743

Exercised Options: $20,193,263

Current Obligation: $20,193,036

Actual Outlays: $1,033,604

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline