DoD's $9.4M Logistics Support Contract Awarded to Professional Contract Services, Inc. Lacks Competition
Contract Overview
Contract Amount: $9,415,694 ($9.4M)
Contractor: Professional Contract Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-06-09
End Date: 2026-07-31
Contract Duration: 1,148 days
Daily Burn Rate: $8.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LOGISTICS SUPPORT SERVICES
Place of Performance
Location: GRANITE CITY, MADISON County, ILLINOIS, 62040
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $9.4 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: LOGISTICS SUPPORT SERVICES Key points: 1. The contract is for logistics support services valued at $9.4 million. 2. Competition is explicitly stated as 'NOT AVAILABLE FOR COMPETITION', raising concerns about price discovery. 3. The award method is a definitive contract, suggesting a single award without prior competition. 4. The sector is General Warehousing and Storage, a common area for logistics support.
Value Assessment
Rating: questionable
The contract value is $9.4 million for logistics support. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar warehousing and storage contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under a limited competition scenario, as indicated by 'NOT AVAILABLE FOR COMPETITION'. This lack of broad competition may have limited price discovery and potentially led to a higher cost for the government.
Taxpayer Impact: The absence of robust competition could result in taxpayers paying more than necessary for these essential logistics services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Department of the Navy relies on these services, impacting operational readiness. The contract duration extends over three years, representing a significant commitment of federal funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency in pricing
Positive Signals
- Essential logistics support for the Navy
- Firm fixed price contract type can provide cost certainty
Sector Analysis
This contract falls within the General Warehousing and Storage sector, which is crucial for military operations. Spending benchmarks for similar logistics support services can vary widely based on scope and location, but competitive bidding is key to ensuring value.
Small Business Impact
The data provided does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants scrutiny from oversight bodies to ensure the justification for limited competition was sound and that the government secured fair pricing.
Related Government Programs
- General Warehousing and Storage
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in cost justification
- No indication of small business participation
Tags
general-warehousing-and-storage, department-of-defense, il, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.4 million to PROFESSIONAL CONTRACT SERVICES, INC.. LOGISTICS SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is PROFESSIONAL CONTRACT SERVICES, 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 $9.4 million.
What is the period of performance?
Start: 2023-06-09. End: 2026-07-31.
What was the specific justification for awarding this contract without competition, and how was the price determined to be fair and reasonable?
The justification for awarding this contract without competition is not provided in the data. Typically, such justifications require detailed documentation outlining why full and open competition was not feasible or would not be in the government's best interest. Price reasonableness is usually determined through market research, historical pricing, or comparison to similar contracts, but this process is less rigorous without competitive bids.
What are the potential risks associated with awarding a $9.4 million contract without competition in the logistics support sector?
The primary risk is paying an inflated price due to the lack of competitive pressure. There's also a risk of reduced service quality or innovation if the contractor faces no threat of losing future business. Furthermore, it limits opportunities for other capable businesses, potentially hindering the growth of the small business industrial base.
How does the lack of competition impact the overall effectiveness and value for money of this logistics support contract?
The lack of competition significantly undermines the potential for achieving optimal value for money. Without competing offers, the government loses the benefit of market forces driving down prices and encouraging efficiency. This can lead to a contract that is less effective in terms of cost-efficiency and potentially service delivery, as the contractor may have less incentive to exceed basic requirements.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 718 W FM 1626, AUSTIN, TX, 78748
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,316,101
Exercised Options: $11,232,040
Current Obligation: $9,415,694
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-09
Current End Date: 2026-07-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2025-12-04
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