DoD's $17.7M logistics consulting contract awarded to TSICORP shows fair value with 4 bidders

Contract Overview

Contract Amount: $17,751,526 ($17.8M)

Contractor: Tsicorp

Awarding Agency: Department of Defense

Start Date: 2010-12-01

End Date: 2015-09-30

Contract Duration: 1,764 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MATERIAL PHYSICAL DISTRIBUTION SUPPORT

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to TSICORP for work described as: MATERIAL PHYSICAL DISTRIBUTION SUPPORT Key points: 1. The contract achieved a competitive outcome with four bids, suggesting a reasonable price discovery process. 2. While specific performance metrics are not detailed, the firm fixed-price structure incentivizes efficient delivery. 3. The duration of the contract (1764 days) indicates a significant, long-term need for these services. 4. The award to TSICORP, a single contractor, highlights the importance of specialized expertise in this niche. 5. The contract's focus on process, physical distribution, and logistics consulting aligns with critical defense operational needs. 6. The fixed-price nature of the contract helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract's firm fixed-price structure suggests a commitment to predictable costs. With four bids received, the pricing is likely competitive within the market for logistics consulting services. Benchmarking against similar contracts for process, physical distribution, and logistics consulting would provide a more precise value assessment, but the competitive award suggests a reasonable price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The receipt of four bids suggests a healthy level of interest and competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government can select from a range of qualified offerors.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by driving down prices and ensuring the government receives the best value for its investment in logistics consulting services.

Public Impact

The Department of Defense benefits through improved efficiency and effectiveness in its material physical distribution processes. Services delivered include expert consulting on logistics, physical distribution, and process optimization. The contract's impact is primarily within the defense sector's operational and supply chain management. Workforce implications may include the engagement of specialized logistics consultants, potentially augmenting internal capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to specialized nature of services and long contract duration.
Reliance on a single contractor for critical logistics consulting could pose a risk if performance falters.
Limited transparency into the specific performance metrics and outcomes achieved during the contract period.

Positive Signals

Full and open competition suggests a robust selection process and potential for best value.
Firm fixed-price contract type provides cost certainty and incentivizes contractor efficiency.
Award to a single entity implies specialized expertise relevant to the complex needs of DoD logistics.

Sector Analysis

The market for logistics consulting services is substantial, driven by the need for efficiency and cost savings across various sectors, particularly in complex supply chains like those of the Department of Defense. This contract falls within the professional services category, specifically focusing on process, physical distribution, and logistics. Comparable spending benchmarks in this area are often tied to the scale and complexity of the client's operations, with defense logistics being a significant segment.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The primary contractor, TSICORP, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor's own supply chain might involve smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Navy. The firm fixed-price contract type provides a degree of accountability by linking payment to delivery. Transparency is generally maintained through contract reporting mechanisms, though detailed performance reviews are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Support Services
Military Sealift Command (MSC) Operations Support
Department of Defense Supply Chain Management Initiatives
Naval Supply Systems Command (NAVSUP) Consulting Services

Risk Flags

Contract Duration
Sole Contractor Reliance
Performance Metrics Unclear

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to TSICORP. MATERIAL PHYSICAL DISTRIBUTION SUPPORT

Who is the contractor on this award?

The obligated recipient is TSICORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2010-12-01. End: 2015-09-30.

What is TSICORP's track record with similar government contracts, particularly in logistics consulting?

TSICORP has a history of performing services for the U.S. government, including contracts related to logistics and consulting. While this specific contract with the Department of the Navy for Material Physical Distribution Support was a significant award, their broader portfolio often includes support services across various agencies. A detailed review of their contract history would reveal the number and value of similar engagements, their performance ratings (if publicly available), and any past issues or commendations. Understanding their experience with firm fixed-price contracts and the specific domain of physical distribution is crucial for assessing their capability to deliver on this requirement effectively.

How does the awarded price of approximately $17.7 million compare to market rates for similar logistics consulting services?

Benchmarking the $17.7 million award requires comparing it against contracts for similar scope, duration, and complexity within the logistics consulting sector. Factors such as the specific services rendered (process optimization, physical distribution strategy, etc.), the level of expertise required, and the geographic scope of support influence market rates. Given that this was a full and open competition with four bidders, the price achieved suggests it was competitive. However, without access to detailed market research or a database of comparable contract values, a precise comparison is difficult. Generally, firm fixed-price contracts awarded through competitive processes are considered to represent fair market value at the time of award.

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

Key risks for this contract include potential performance deficiencies by the contractor (TSICORP), cost overruns if the fixed-price structure is not managed effectively, and the risk of contractor lock-in due to the specialized nature of logistics consulting. Mitigation strategies likely included a thorough pre-award evaluation of TSICORP's capabilities and past performance, clear performance work statement (PWS) requirements, and robust oversight by the contracting officer's representative (COR). The firm fixed-price contract type itself mitigates cost overrun risk for the government, placing that burden on the contractor. The competitive award process also helps mitigate the risk of selecting a non-optimal provider.

How effective was this contract in improving the Department of Defense's material physical distribution processes?

Assessing the effectiveness of this contract requires examining performance metrics and outcomes defined in the contract's Statement of Work (SOW) and comparing them against the stated objectives. Since this data is not provided, a definitive judgment on effectiveness cannot be made. However, the contract's duration (nearly five years) and its focus on core logistics functions suggest an intent to achieve significant improvements. The Department of Defense's continued reliance on such services, as evidenced by multiple awards over time, implies a perceived value and benefit derived from these consulting engagements, likely related to enhanced efficiency, cost savings, or risk reduction in distribution.

What has been the historical spending trend for similar logistics consulting services within the Department of Defense?

The Department of Defense historically spends significant amounts on logistics and supply chain management consulting services due to the immense scale and complexity of its global operations. Spending trends in this area are influenced by evolving geopolitical landscapes, technological advancements in logistics, and ongoing efforts to optimize efficiency and reduce costs. While specific historical data for 'Process, Physical Distribution, and Logistics Consulting Services' under NAICS code 541614 is not detailed here, the DoD consistently ranks as a major purchaser of professional services, including those aimed at improving its vast and intricate supply chains. Budgetary priorities and strategic shifts within the DoD would directly impact these spending patterns.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6883610T0191

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1640 ALTA DR STE 12, LAS VEGAS, NV, 89106

Business Categories: Category Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,411,806

Exercised Options: $19,062,107

Current Obligation: $17,751,526

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0251V

IDV Type: FSS

Timeline