DoD's $23.7M Warehousing Support Contract Awarded to A2Z Inc. with 8 Bidders

Contract Overview

Contract Amount: $23,703,869 ($23.7M)

Contractor: A2Z Inc

Awarding Agency: Department of Defense

Start Date: 2022-05-28

End Date: 2026-05-27

Contract Duration: 1,460 days

Daily Burn Rate: $16.2K/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: WAREHOUSING SUPPORT SERVICES

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to A2Z INC for work described as: WAREHOUSING SUPPORT SERVICES Key points: 1. Contract value of $23.7 million over 4 years for warehousing support. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is a Definitive Contract with a Firm Fixed Price. 4. The North American Industry Classification System (NAICS) code is 541614 for Process, Physical Distribution, and Logistics Consulting Services. 5. The contract is managed by the Department of the Navy, a sub-agency of the Department of Defense. 6. The contractor, A2Z Inc., will provide warehousing support services. 7. The contract duration is 1460 days, spanning from May 28, 2022, to May 27, 2026. 8. The contract was awarded in Virginia.

Value Assessment

Rating: good

The contract value of $23.7 million over four years for warehousing support services appears reasonable given the scope. Benchmarking against similar logistics and distribution consulting contracts within the Department of Defense suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Further analysis would require detailed service delivery metrics and comparison to industry standards for specific warehousing functions.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of 8 bidders suggests a healthy level of competition for this warehousing support service. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions being considered by the agency.

Taxpayer Impact: The robust competition indicates that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best value. This competitive environment helps ensure the government secures services at a fair market price.

Public Impact

The Department of the Navy benefits from enhanced warehousing and logistics support, potentially improving operational efficiency. Military personnel and operations may see improved supply chain reliability and readiness. The contract supports logistics and distribution consulting services, crucial for defense operations. The geographic impact is primarily within Virginia, where the contract is managed and likely executed. The contract may have implications for the logistics workforce, potentially creating or sustaining jobs within A2Z Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if warehousing requirements are not clearly defined and managed.
Dependence on A2Z Inc. for critical logistics functions could pose a risk if performance falters.
Firm Fixed Price contracts can sometimes lead to reduced flexibility if unforeseen issues arise.
Ensuring consistent service quality across the 4-year duration requires diligent oversight.

Positive Signals

Awarded under full and open competition, suggesting a competitive and potentially cost-effective selection.
The firm fixed-price contract provides budget certainty for the government.
A Definitive Contract structure implies a clear scope and terms of service.
The contractor, A2Z Inc., has secured a significant contract, indicating a level of trust and capability.
The contract duration of 4 years allows for stable service provision and relationship building.

Sector Analysis

The logistics and warehousing sector is a critical component of the defense industrial base, ensuring the efficient movement and storage of goods. This contract falls under Process, Physical Distribution, and Logistics Consulting Services, a segment that supports the broader supply chain management needs of government agencies. Spending in this area is often driven by operational tempo and the need for specialized expertise in managing complex distribution networks. Comparable spending benchmarks would typically be found within the broader category of professional services for defense logistics.

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 small businesses mandated by a set-aside. The primary impact on the small business ecosystem would be indirect, through potential subcontracting opportunities offered by the prime contractor, A2Z Inc., if they choose to engage small businesses for specialized services within the scope of warehousing support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring A2Z Inc. to deliver specified warehousing support services. Transparency is facilitated through contract award databases, though detailed performance metrics and internal oversight reports may not be publicly available. The Inspector General for the Department of Defense may have jurisdiction for audits and investigations if fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Logistics Support Contracts
Warehousing and Distribution Services
Supply Chain Management Consulting
Navy Logistics Modernization Programs
Federal Professional Services Contracts

Risk Flags

Potential for performance issues impacting supply chain reliability.
Risk of cost overruns for the contractor under a Firm Fixed Price contract.
Dependence on a single contractor for critical logistics functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to A2Z INC. WAREHOUSING SUPPORT SERVICES

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 $23.7 million.

What is the period of performance?

Start: 2022-05-28. End: 2026-05-27.

What is the track record of A2Z Inc. in performing similar government contracts, particularly within the Department of Defense?

Assessing the track record of A2Z Inc. requires examining their past performance on similar government contracts. This includes reviewing past performance evaluations, any history of contract disputes or terminations, and their experience with logistics, warehousing, and distribution services. While the award of this $23.7 million contract suggests a positive assessment by the Department of the Navy, a deeper dive into their contract history would reveal their reliability, quality of service, and ability to manage complex projects. Information on past performance is often available through government databases like the Contractor Performance Assessment Reporting System (CPARS), though access may be restricted. Understanding their prior successes and challenges provides crucial context for evaluating the risk associated with this current award.

How does the pricing structure of this contract compare to industry benchmarks for similar warehousing support services?

The contract utilizes a Firm Fixed Price (FFP) structure, which establishes a set price for the defined scope of work. To benchmark the value, one would compare the proposed unit costs or overall contract price against industry standards for comparable warehousing and logistics support services. This involves analyzing market research data, consulting industry cost guides, and examining pricing on other government contracts for similar services. Factors such as the specific services offered (e.g., inventory management, storage, transportation coordination), geographic location, and required service levels will influence the benchmark. Given the competitive nature of the award (8 bidders), it is likely that the pricing is competitive, but a detailed analysis of the specific labor rates, overhead, and profit margins would be needed for a definitive value assessment.

What are the key performance indicators (KPIs) used to measure the success of A2Z Inc. under this contract, and how are they monitored?

While the provided data does not specify the exact Key Performance Indicators (KPIs), typical metrics for warehousing support contracts include on-time delivery rates, inventory accuracy, order fulfillment accuracy, response times to requests, and adherence to safety and security protocols. The Department of the Navy's contracting officer and program managers are responsible for monitoring these KPIs. Performance is usually assessed through regular reporting by the contractor and government inspections or audits. The contract likely includes clauses for performance standards and remedies for deficiencies, such as price reductions or contract termination, if performance falls below acceptable levels. Effective monitoring is crucial for ensuring the government receives the intended value and service quality.

What is the historical spending pattern for warehousing support services by the Department of the Navy or Department of Defense?

Historical spending on warehousing support services by the Department of the Navy and the broader Department of Defense can vary significantly based on operational needs, strategic priorities, and budget allocations. Analyzing past spending trends would involve reviewing federal procurement data over several fiscal years. This contract, valued at $23.7 million over four years, represents a portion of the overall defense logistics budget. Trends might show increases during periods of heightened military activity or shifts towards outsourcing logistics functions. Understanding this historical context helps in evaluating whether the current spending level is consistent, increasing, or decreasing relative to past investments in similar services, and whether it aligns with broader defense spending patterns.

Are there any identified risks associated with A2Z Inc.'s performance or the nature of the warehousing support services being provided?

Potential risks associated with this contract could include performance-related issues such as delays in service delivery, inaccuracies in inventory management, or failure to meet security requirements. Given the firm fixed-price nature, there's also a risk of the contractor cutting corners to maintain profitability if not adequately monitored. Furthermore, reliance on a single contractor for critical warehousing functions can pose a risk if the contractor experiences financial instability or operational disruptions. The Department of the Navy would typically conduct a risk assessment as part of the procurement process, identifying potential challenges and establishing mitigation strategies. The presence of 8 bidders suggests that the market perceived manageable risks relative to the potential rewards.

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: N0018922R0010

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: $33,171,712

Exercised Options: $23,703,869

Current Obligation: $23,703,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline