DoD awards $24.9M for provisioning services to Versability Resources, Inc

Contract Overview

Contract Amount: $24,939,151 ($24.9M)

Contractor: Versability Resources, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-31

End Date: 2025-04-04

Contract Duration: 369 days

Daily Burn Rate: $67.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROVISIONING SERVICES

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23661

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to VERSABILITY RESOURCES, INC. for work described as: PROVISIONING SERVICES Key points: 1. Contract awarded for essential provisioning services, supporting critical military operations. 2. Analysis indicates a sole-source award, raising questions about potential price efficiencies. 3. The contract duration of 369 days suggests a need for ongoing support. 4. Performance context is tied to Marine Cargo Handling, a vital logistics function. 5. Sector positioning within Defense highlights the strategic importance of these services. 6. No small business set-aside was utilized, indicating potential missed opportunities for smaller firms.

Value Assessment

Rating: questionable

Benchmarking the value of this $24.9 million contract is challenging without comparable sole-source awards or detailed cost breakdowns. The firm fixed-price structure provides some cost certainty, but the lack of competition limits the ability to assess if the pricing reflects market rates or represents a fair value. Further analysis of the contractor's historical performance and pricing on similar tasks would be necessary to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates a rapid award. The lack of competition means that price discovery through a bidding process was bypassed, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not solicit multiple bids to secure the most cost-effective solution.

Public Impact

The Department of Defense, specifically the Department of the Navy, is the primary beneficiary of these provisioning services. Services delivered are crucial for Marine Cargo Handling, ensuring operational readiness. The geographic impact is likely concentrated around naval bases or deployment areas where cargo handling is performed. Workforce implications may include direct employment by Versability Resources, Inc. and indirect support roles within the DoD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of small business participation may exclude specialized smaller firms.
Absence of detailed performance metrics makes value assessment difficult.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contract duration suggests a recognized need for sustained provisioning support.
Award to Versability Resources, Inc. indicates confidence in their existing capabilities.

Sector Analysis

The defense sector relies heavily on specialized logistics and provisioning services to maintain operational readiness. This contract for Marine Cargo Handling falls within a critical sub-sector that ensures the efficient movement of goods and equipment. While specific market size data for this niche is not readily available, the overall defense logistics market is substantial, with significant government spending allocated to support global operations. Comparable spending benchmarks are difficult to establish due to the sole-source nature of this award.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to include subcontracting requirements for small business participation. This means that opportunities for small businesses to contribute to this specific provisioning effort were not actively pursued through this award mechanism. The impact on the small business ecosystem is neutral in terms of direct participation, but it represents a missed opportunity for smaller, potentially agile firms to gain experience and revenue within the defense supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified services. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competed contracts. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Marine Corps Logistics Support
Naval Supply Systems Command Services
Defense Logistics Agency (DLA) Contracts
Cargo and Freight Transportation Services
Military Sealift Command Support

Risk Flags

Sole-source award may limit cost savings.
Lack of competition could impact price discovery.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to VERSABILITY RESOURCES, INC.. PROVISIONING SERVICES

Who is the contractor on this award?

The obligated recipient is VERSABILITY RESOURCES, 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 $24.9 million.

What is the period of performance?

Start: 2024-03-31. End: 2025-04-04.

What is Versability Resources, Inc.'s track record with the Department of Defense for similar provisioning services?

Information regarding Versability Resources, Inc.'s specific track record with the Department of Defense for similar provisioning services is not detailed in the provided data. However, the award of this contract, particularly on a sole-source basis, suggests that the Department of the Navy has identified Versability Resources, Inc. as possessing the necessary capabilities and potentially having prior experience or a unique qualification. Further investigation into contract databases like SAM.gov or FPDS-NG would be required to ascertain the extent and nature of their past performance, including any previous awards, performance evaluations, and the value of those contracts. Understanding their history would provide context for the current award's justification and potential risks.

How does the $24.9 million contract value compare to similar provisioning services contracts awarded by the DoD?

Direct comparison of this $24.9 million contract value to similar provisioning services contracts is challenging due to its sole-source nature and the specific niche of Marine Cargo Handling. Competed contracts for provisioning services can vary widely based on scope, duration, location, and the specific items or services provided. Without access to a broader dataset of sole-source awards for comparable services or detailed breakdowns of the cost components within this contract, it is difficult to benchmark whether $24.9 million represents a competitive or inflated price. The firm fixed-price structure offers some cost control, but the absence of competitive bidding limits the ability to assess value against market rates.

What are the primary risks associated with a sole-source award for critical provisioning services?

The primary risks associated with a sole-source award for critical provisioning services include potential overpayment due to lack of price competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of market validation for the chosen solution. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, reliance on a single provider can create vulnerabilities if that provider experiences financial difficulties, operational disruptions, or fails to meet performance expectations. The government's leverage in negotiating terms or addressing issues may also be diminished compared to a situation with multiple potential providers.

What is the expected program effectiveness and impact of these provisioning services on Marine Cargo Handling operations?

The expected program effectiveness hinges on Versability Resources, Inc.'s ability to reliably and efficiently provide the contracted provisioning services, which are critical for Marine Cargo Handling. Effective provisioning ensures that necessary supplies, equipment, and support are available when and where needed for the movement of cargo. This directly impacts the operational readiness and efficiency of Marine Corps logistics. If the services are delivered successfully, it will contribute to seamless cargo operations, timely deployment of assets, and overall mission accomplishment. Conversely, any deficiencies in provisioning could lead to delays, increased costs, and potential mission impacts.

What are the historical spending patterns for Marine Cargo Handling provisioning services within the Department of the Navy?

Historical spending patterns for Marine Cargo Handling provisioning services within the Department of the Navy are not detailed in the provided data. However, the recurring need for such services suggests a consistent allocation of budget towards logistics and supply chain support. The total amount spent annually can fluctuate based on operational tempo, global deployments, and strategic priorities. Understanding past spending would require analyzing historical contract awards for similar services, potentially identifying trends in contract values, durations, and the number of awarded contracts over several fiscal years. This analysis could reveal whether this $24.9 million award represents an increase or decrease in typical spending for these functions.

Are there specific performance metrics or Key Performance Indicators (KPIs) associated with this contract to measure success?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) associated with this contract. However, for a firm fixed-price contract, especially one involving critical services like Marine Cargo Handling, it is standard practice to include performance standards within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These metrics typically measure aspects such as on-time delivery, accuracy of provisioning, responsiveness to requests, and overall service quality. The effectiveness of the program is directly tied to the contractor's adherence to these metrics, and failure to meet them could result in contractual remedies or penalties, depending on the contract's terms.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Marine Cargo Handling

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6883621R0007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2520 58TH ST, HAMPTON, VA, 23661

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: $24,939,151

Exercised Options: $24,939,151

Current Obligation: $24,939,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6883622D0002

IDV Type: IDC

Timeline