DoD Awards $34.3M Warehousing Contract to Management & Technology Solutions Inc. for Navy Operations
Contract Overview
Contract Amount: $34,304,412 ($34.3M)
Contractor: Management & Technology Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2019-10-01
End Date: 2025-09-30
Contract Duration: 2,191 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: WAREHOUSE MANAGEMENT AND MAINTENANCE SERVICES AND REPLACEMENT OF EQUIPMENT
Place of Performance
Location: WILLIAMSBURG, JAMES CITY County, VIRGINIA, 23185
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $34.3 million to MANAGEMENT & TECHNOLOGY SOLUTIONS INC for work described as: WAREHOUSE MANAGEMENT AND MAINTENANCE SERVICES AND REPLACEMENT OF EQUIPMENT Key points: 1. Contract value of $34.3M over 5 years for warehousing and maintenance. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the established nature of warehousing services. 4. Sector is primarily logistics and warehousing within the Defense industry.
Value Assessment
Rating: good
The contract value of $34.3M over approximately 5 years suggests a reasonable annual spend. Benchmarking against similar warehousing and maintenance contracts would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The use of a delivery order under a larger contract structure is a common procurement method.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.
Public Impact
Ensures continued operational readiness for the Department of the Navy through essential warehousing services. Supports critical supply chain functions for military equipment and supplies. Provides employment opportunities within the logistics and maintenance sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep if contract terms are not strictly managed.
- Dependence on a single contractor for critical warehousing functions.
Positive Signals
- Full and open competition utilized.
- Long-term contract provides stability for services.
- Firm Fixed Price contract type limits cost uncertainty.
Sector Analysis
This contract falls within the General Warehousing and Storage sector, a critical component of the Defense industry's logistics infrastructure. Spending in this area is essential for maintaining operational readiness and efficient supply chain management.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is not listed as a small business. Further analysis would be needed to determine the extent of small business participation as subcontractors.
Oversight & Accountability
The use of a delivery order under a larger contract structure implies that the initial award underwent a competitive process. Ongoing oversight by the Department of the Navy is crucial to ensure performance and adherence to contract terms.
Related Government Programs
- General Warehousing and Storage
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of specific performance metrics.
- Ambiguity in 'replacement of equipment' scope.
- Potential for contractor lock-in if follow-on contracts are not competitively bid.
- Dependence on a single entity for critical logistics support.
Tags
general-warehousing-and-storage, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.3 million to MANAGEMENT & TECHNOLOGY SOLUTIONS INC. WAREHOUSE MANAGEMENT AND MAINTENANCE SERVICES AND REPLACEMENT OF EQUIPMENT
Who is the contractor on this award?
The obligated recipient is MANAGEMENT & TECHNOLOGY SOLUTIONS 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 $34.3 million.
What is the period of performance?
Start: 2019-10-01. End: 2025-09-30.
What is the specific scope of 'replacement of equipment' within this contract, and how is its cost determined?
The scope of 'replacement of equipment' needs further clarification. It could range from routine replacement of worn-out machinery to upgrades of specialized warehousing technology. The cost determination method, whether through competitive bidding for each replacement or a pre-negotiated rate, significantly impacts overall value and taxpayer burden.
Are there any performance metrics or KPIs tied to this contract to ensure service quality and efficiency?
The provided data does not specify performance metrics or Key Performance Indicators (KPIs). Robust KPIs are essential for measuring the contractor's effectiveness in providing warehousing and maintenance services. Without them, it's challenging to objectively assess value for money and identify areas for improvement or potential risks.
How does the annual cost of this contract compare to industry benchmarks for similar warehousing and maintenance services?
Comparing the annual cost (approximately $6.86M) to industry benchmarks is crucial for assessing value. Factors like facility size, inventory volume, types of goods stored, and specific maintenance requirements influence costs. A detailed benchmark analysis against comparable government or commercial contracts would reveal if this pricing is competitive or potentially inflated.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6264518R0076
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 17095 BELLE ISLE DR, DUMFRIES, VA, 22026
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $35,135,084
Exercised Options: $35,135,084
Current Obligation: $34,304,412
Actual Outlays: $-6,169,921
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6264519D5008
IDV Type: IDC
Timeline
Start Date: 2019-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-26
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