DoD awards $25.6M for Marine Cargo Handling to Versability Resources, Inc
Contract Overview
Contract Amount: $25,604,440 ($25.6M)
Contractor: Versability Resources, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $70.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
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 $25.6 million to VERSABILITY RESOURCES, INC. for work described as: PROVISIONING SERVICES Key points: 1. Contract awarded for essential Marine Cargo Handling services. 2. Versability Resources, Inc. is the sole awardee. 3. The contract duration is 364 days. 4. Pricing is Firm Fixed Price.
Value Assessment
Rating: fair
The awarded amount is $25.6 million. Without specific details on the scope of services or comparable contracts, a precise value assessment is difficult. The provided benchmark of $7,034,200 for similar services suggests this contract may be significantly higher, warranting further investigation.
Cost Per Unit: $7,034,200 (benchmark)
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers. The justification for the sole-source award is not provided.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers than if full and open competition had been utilized.
Public Impact
Ensures continued operational readiness for Marine Corps logistics. Supports critical cargo movement and handling functions. Impact on small businesses is not immediately clear due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for overpayment given the benchmark data.
- Lack of transparency regarding the justification for sole-source.
Positive Signals
- Ensures critical cargo handling services are provisioned.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls under general logistics and support services, a common area of government spending. Benchmarks for similar services can vary widely based on location, scope, and specific requirements. The awarded amount appears high relative to the provided benchmark.
Small Business Impact
The contract was awarded sole-source, and there is no indication of subcontracting opportunities for small businesses. Further analysis would be needed to determine if small businesses were considered or could have participated.
Oversight & Accountability
The sole-source nature of this award raises questions about the effectiveness of oversight in ensuring competitive pricing. A review of the justification for the sole-source award is recommended.
Related Government Programs
- Marine Cargo Handling
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing compared to benchmark.
- Lack of transparency on justification for sole-source.
- Limited visibility into small business participation.
Tags
marine-cargo-handling, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.6 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 $25.6 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
What is the specific justification for awarding this contract sole-source, and were alternative competitive strategies considered?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Agencies must document this justification thoroughly. Without this documentation, it's impossible to assess if alternative competitive strategies were adequately explored or if this was the only viable option.
How does the awarded price compare to the market rate for similar cargo handling services, considering the contract's scope and duration?
The awarded amount of $25.6 million for a 364-day contract is significantly higher than the provided benchmark of $7,034,200 for similar services. While benchmarks are not perfect comparisons, this substantial difference suggests a potential overpayment. A detailed analysis of the contract's specific deliverables and service levels is needed to understand this variance.
What mechanisms are in place to ensure the quality and efficiency of services provided by Versability Resources, Inc. under this contract?
As this is a Firm Fixed Price contract, the contractor bears the risk of cost overruns, incentivizing efficiency. However, oversight is still crucial to ensure service quality and adherence to contract terms. The Department of the Navy should have performance metrics and quality assurance surveillance plans in place to monitor the contractor's performance throughout the contract period.
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: $25,604,440
Exercised Options: $25,604,440
Current Obligation: $25,604,440
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6883622D0002
IDV Type: IDC
Timeline
Start Date: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-07-10
More Contracts from Versability Resources, Inc.
- N102/N1 a. Bricker Command Wide Administrative and HR Support Services — $25.6M (Department of Defense)
- Provisioning Services — $24.9M (Department of Defense)
- Official Mail Center/Postal Service Center Contract Award for 11 AIR Combat Command Bases — $21.5M (Department of Defense)
- Ophthalmic Support Services — $6.2M (Department of Defense)
- Jrrf: Janitorial Services Base +4 Issued to Fund the Base Year of Janitorial Services AT the Fleet — $59.6K (Department of Transportation)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)