DoD's $10.78M Specialized Freight Contract with CAE USA INC. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $10,777,710 ($10.8M)
Contractor: CAE USA Inc.
Awarding Agency: Department of Defense
Start Date: 2001-11-15
End Date: 2013-12-31
Contract Duration: 4,429 days
Daily Burn Rate: $2.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Place of Performance
Location: OAK HARBOR, ISLAND County, WASHINGTON, 98278
Plain-Language Summary
Department of Defense obligated $10.8 million to CAE USA INC. for work described as: Key points: 1. Contract Value: $10.78 million over 12 years. 2. Competition: Awarded under full and open competition. 3. Risk: Low risk indicated by firm fixed price contract. 4. Sector: Specialized Freight Trucking (NAICS 484220).
Value Assessment
Rating: good
The contract value of $10.78 million over 12 years suggests a moderate annual spend. Benchmarking against similar specialized freight contracts would be necessary for a precise value assessment, but the duration and competition method provide some confidence.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages market forces to drive down costs.
Public Impact
Ensures timely and efficient delivery of specialized freight for defense logistics. Supports critical military operations by providing essential transportation services. The long-term nature of the contract provides stability for both the government and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for price escalation over the 12-year contract term despite fixed price.
- Limited insight into the specific types of specialized freight handled.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
- Long contract duration provides stability.
Sector Analysis
This contract falls within the specialized freight trucking sector, which is crucial for logistics and supply chain management, particularly for government agencies like the Department of Defense. Spending in this sector can vary significantly based on operational tempo and specific mission requirements.
Small Business Impact
The data indicates the awardee is CAE USA INC., a significant entity. There is no explicit information provided regarding small business participation or subcontracting goals within this contract.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a component of the Department of Defense, suggesting established oversight mechanisms. Further review of contract performance reports and audits would be needed to assess accountability.
Related Government Programs
- Specialized Freight (except Used Goods) Trucking, Local
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration (12 years) may mask potential future inefficiencies or price increases.
- Lack of detail on specific performance metrics or KPIs.
- No explicit mention of small business subcontracting, potentially missing opportunities.
- Potential for scope creep or contract modifications over the extended term.
Tags
specialized-freight-except-used-goods-tr, department-of-defense, wa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.8 million to CAE USA INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is CAE USA INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $10.8 million.
What is the period of performance?
Start: 2001-11-15. End: 2013-12-31.
What specific types of specialized freight are covered under this contract, and how do they align with current DoD operational needs?
The contract covers Specialized Freight (except Used Goods) Trucking, Local (NAICS 484220). While the exact nature of the freight isn't detailed, it implies the transport of non-standard, potentially sensitive, or oversized goods within local areas. This aligns with ongoing DoD needs for logistical support, ensuring equipment and supplies reach their destinations efficiently for various operational requirements.
Given the 12-year duration, what mechanisms are in place to mitigate potential cost increases or ensure continued relevance of services?
The contract utilizes a Firm Fixed Price (FFP) structure, which generally locks in costs and shifts risk to the contractor. However, over a 12-year period, mechanisms like periodic reviews, potential for contract modifications for scope changes, or built-in price adjustment clauses (though not explicitly stated) might exist. The long duration also implies a stable, ongoing need for these specialized services.
How does the $10.78 million total award value compare to industry benchmarks for similar long-term specialized freight contracts?
Without specific details on the volume, frequency, and complexity of the freight, a direct benchmark is challenging. However, $10.78 million spread over 12 years averages approximately $898,000 annually. This figure needs to be compared against contracts for similar geographic scope, freight types, and service levels within the specialized trucking industry to determine if it represents competitive pricing.
Industry Classification
NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Local
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
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Trident Maritime Systems, Inc. (UEI: 164549151)
Address: 3320 W CAREFREE CIRCLE, COLORADO SPRINGS, CO, 05
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2001-11-15
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2012-10-31
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