State Department's $24.6M warehouse operations contract awarded to Reema Consulting Services, Inc

Contract Overview

Contract Amount: $24,574,805 ($24.6M)

Contractor: Reema Consulting Services, Inc.

Awarding Agency: Department of State

Start Date: 2012-09-30

End Date: 2017-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ATA WAREHOUSE OPERATIONS SERVICES

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $24.6 million to REEMA CONSULTING SERVICES, INC. for work described as: ATA WAREHOUSE OPERATIONS SERVICES Key points: 1. Contract value represents a significant investment in logistics support for the State Department. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of five years indicates a long-term need for these services. 4. The firm-fixed-price structure aims to control costs and provide predictability. 5. The North American Industry Classification System (NAICS) code 493190 points to specialized warehousing services. 6. The contract was awarded as a definitive contract, often used for ongoing or indefinite requirements.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total value of $24.6 million over five years averages to approximately $4.9 million annually. This figure needs to be assessed against the scope and complexity of the warehouse operations provided. Without detailed service level agreements or performance reports, it's difficult to definitively assess value for money. However, the firm-fixed-price nature suggests an attempt to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This typically means that proposals were solicited from all eligible responsible sources, but specific sources may have been excluded for defined reasons. The presence of 5 bidders indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. The exclusion of sources, however, warrants further investigation to understand its impact on the competitive landscape.

Taxpayer Impact: The competitive nature of this award suggests that taxpayers likely benefited from a more competitive pricing environment, as multiple firms vied for the contract. The exclusion of certain sources, if not fully justified, could potentially limit the breadth of competition and its downward pressure on prices.

Public Impact

The primary beneficiary is the Department of State, which receives essential warehouse and storage services. These services likely support the logistical needs of diplomatic missions and personnel. The contract ensures the efficient management of stored goods, potentially including sensitive or critical items. The geographic impact is centered in Virginia, where the contractor is based and services are likely performed. Workforce implications include job creation within the warehousing and logistics sector, primarily in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause requires scrutiny to ensure it did not unduly limit competition.
Lack of detailed performance metrics makes it difficult to assess the true value for money.
The contract's duration could lead to vendor lock-in if not managed carefully.
The specific nature of 'Other Warehousing and Storage' could encompass a wide range of services, making precise benchmarking difficult.

Positive Signals

Awarded under full and open competition, indicating a broad solicitation process.
The firm-fixed-price contract type helps control costs and provides budget certainty.
The contractor, Reema Consulting Services, Inc., has secured a significant federal contract, suggesting established capabilities.
The contract duration of five years implies a stable, long-term requirement met by this award.

Sector Analysis

The warehousing and storage sector is a critical component of the broader logistics and supply chain industry. This contract falls under NAICS code 493190, 'Other Warehousing and Storage,' which covers establishments primarily engaged in operating warehousing and storage facilities, except refrigerated, farm product, mini-warehouse, and general merchandise warehouses. The federal government is a significant consumer of warehousing services, supporting various agencies' operational needs, from inventory management to the storage of sensitive materials. Comparable spending benchmarks would typically involve analyzing other government contracts for similar warehousing services, considering factors like facility size, inventory volume, security requirements, and geographic location.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. The prime contractor, Reema Consulting Services, Inc., is not explicitly identified as a small business in the provided data. Therefore, there are no direct small business set-aside benefits associated with this award. However, the potential for subcontracting opportunities for small businesses exists, depending on the prime contractor's strategy and the specific requirements of the warehousing services. The impact on the small business ecosystem would be indirect, primarily through any subcontracting awards made by Reema Consulting Services, Inc.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated by the public nature of federal contract awards, allowing for analysis. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule (FSS) contracts for logistics and supply chain services
Department of Defense (DoD) logistics and warehousing contracts
Other agency-specific warehousing and storage contracts

Risk Flags

Competition Limitation: 'Exclusion of sources' requires justification to ensure maximum competitive benefit.
Performance Monitoring: Lack of detailed performance metrics makes value-for-money assessment difficult.
Contract Duration: Five-year term necessitates ongoing oversight to prevent complacency or service degradation.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $24.6 million to REEMA CONSULTING SERVICES, INC.. ATA WAREHOUSE OPERATIONS SERVICES

Who is the contractor on this award?

The obligated recipient is REEMA CONSULTING SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2012-09-30. End: 2017-09-29.

What is the track record of Reema Consulting Services, Inc. in performing federal warehousing contracts?

Reema Consulting Services, Inc. has been awarded this definitive contract for ATA Warehouse Operations Services by the Department of State, valued at approximately $24.6 million over five years. The award was made under full and open competition. To assess their track record thoroughly, one would need to examine past performance evaluations, any prior contracts of similar scope and value awarded to the company, and any documented instances of performance issues or successes. Without access to these specific performance details, it's difficult to provide a comprehensive assessment beyond the fact that they were selected through a competitive process for this significant contract.

How does the $24.6 million contract value compare to similar federal warehousing contracts?

Comparing the $24.6 million value requires context regarding the scope, duration, and specific services rendered. This contract spans five years, averaging roughly $4.9 million annually. Federal warehousing contracts can vary widely in cost based on factors such as the size and type of facilities managed, the volume and nature of goods stored, security requirements, and geographic location. To benchmark effectively, one would need to identify contracts with similar operational complexities and durations awarded by agencies like the Department of Defense or GSA. The 'Other Warehousing and Storage' NAICS code suggests a broad category, making direct comparisons challenging without more granular service details.

What are the primary risks associated with this ATA Warehouse Operations Services contract?

Key risks include potential performance deficiencies by the contractor, leading to disruptions in the State Department's supply chain or operations. Cost overruns, although mitigated by the firm-fixed-price structure, could still occur if unforeseen issues arise that are not adequately covered by contract contingencies. There's also a risk related to the 'after exclusion of sources' aspect of the competition; if the exclusions were not fully justified or transparent, it could indicate a suboptimal competitive environment. Furthermore, the long-term nature of the contract (five years) carries a risk of vendor lock-in or a decline in service quality over time if oversight is not rigorous.

How effective is the firm-fixed-price contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally considered effective in controlling costs and providing budget certainty for the government, as the price is set and not subject to adjustment based on the contractor's cost experience. For warehousing services, where the scope of work can be relatively well-defined, FFP is often a suitable choice. It incentivizes the contractor to manage their own costs efficiently to maximize profit. However, the effectiveness in ensuring value for money also depends heavily on the clarity of the performance work statement and the robustness of the government's oversight to ensure the contractor meets all specified service levels and quality standards.

What is the historical spending pattern for ATA Warehouse Operations Services at the Department of State?

The provided data indicates this specific contract (ID 493190) for ATA Warehouse Operations Services was awarded in September 2012 and ends in September 2017, with a total value of $24,574,804.56. This suggests a significant, multi-year commitment to these services. To understand historical patterns, one would need to look at spending prior to this award for similar services, or subsequent awards if this contract was renewed or replaced. Without that broader historical context, we can only analyze this single, substantial award as representing a consistent need for these operations over the five-year period.

What does the 'full and open competition after exclusion of sources' designation imply for taxpayer value?

This designation implies that while the contract was broadly solicited, certain potential bidders were intentionally excluded. Ideally, 'full and open competition' maximizes the number of bidders, driving down prices through market forces. The 'exclusion of sources' clause means this ideal was modified. If the exclusions were based on legitimate, well-documented reasons (e.g., security clearances, specific technical capabilities not widely available), then the competition that did occur might still yield good value. However, if the exclusions were arbitrary or poorly justified, it could have limited the competitive pool, potentially leading to higher prices for taxpayers than might have been achieved with broader participation.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8106 HALLMARK PL, GAITHERSBURG, MD, 20879

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,574,805

Exercised Options: $24,574,805

Current Obligation: $24,574,805

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline