DoD's $11.8M COCO Storage Services contract awarded to foreign entities raises transparency concerns

Contract Overview

Contract Amount: $11,849,340 ($11.8M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2008-07-12

End Date: 2013-10-11

Contract Duration: 1,917 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COCO STORAGE SERVICES

Plain-Language Summary

Department of Defense obligated $11.8 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: COCO STORAGE SERVICES Key points: 1. Contract awarded to foreign entities with undisclosed locations, limiting oversight and transparency. 2. Significant duration of over 5 years for warehousing and storage services. 3. Firm Fixed Price contract type suggests clear cost expectations, but foreign awardee complicates value assessment. 4. Multiple awards under this contract indicate potential for varied performance and pricing. 5. The contract falls under 'Other Warehousing and Storage,' a broad category with diverse service needs. 6. Lack of small business participation noted, with no set-aside provisions.

Value Assessment

Rating: questionable

Benchmarking the value for this contract is challenging due to the undisclosed location of the foreign awardee. The firm fixed price structure provides some cost certainty, but without comparable domestic contract data or clear insight into the foreign awardee's operational costs, assessing true value-for-money is difficult. The significant duration suggests a need for reliable, long-term storage solutions, but the lack of transparency surrounding the provider raises questions about potential risks and overall efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were theoretically allowed to participate. However, the fact that the award went to foreign entities with undisclosed locations suggests that either the competition was not as robust as it could have been, or that these foreign entities offered a uniquely competitive bid. The limited information available on the awardee makes it difficult to ascertain the true level of competition and its impact on price discovery.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, the award to an undisclosed foreign entity limits the ability to verify competitive pressures and ensure the best possible pricing was achieved.

Public Impact

The primary beneficiaries are likely the Department of Defense units requiring secure storage solutions for materiel. Services delivered include warehousing and storage, crucial for maintaining readiness and operational capabilities. Geographic impact is unclear due to the undisclosed location of the foreign awardee, but it supports DoD operations globally. Workforce implications are minimal for the US, as the services are provided by a foreign entity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the foreign awardee's identity and location hinders oversight.
Potential national security risks associated with storing sensitive materials with an undisclosed foreign entity.
Difficulty in verifying compliance with US standards and regulations for storage facilities.
Limited recourse or accountability mechanisms in case of service failures or disputes with a foreign entity.
Uncertainty about the true cost-effectiveness due to the foreign awardee's undisclosed operational expenses.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Awarded under Full and Open Competition, suggesting an attempt to solicit competitive bids.
Long contract duration indicates a sustained need and potentially stable service provision.

Sector Analysis

The 'Other Warehousing and Storage' sector encompasses a wide range of services critical for logistics and supply chain management across various industries. In the federal context, this sector supports agencies needing to store equipment, supplies, and sensitive materials. Comparable spending benchmarks are difficult to establish without more specific service details, but the federal government relies heavily on warehousing contracts to maintain operational readiness. This contract represents a portion of the broader federal spending on logistics and support services.

Small Business Impact

This contract did not include any small business set-aside provisions, and there is no indication of subcontracting to small businesses. The award to a foreign entity further reduces the likelihood of direct small business participation within the US ecosystem for this specific contract.

Oversight & Accountability

Oversight mechanisms for this contract are potentially weakened by the foreign awardee's undisclosed location. While the Department of Defense and the Defense Logistics Agency are responsible for contract management, verifying the physical security, operational standards, and compliance of a foreign facility presents unique challenges. Transparency is limited due to the lack of public information about the awardee. Inspector General jurisdiction may be complex when dealing with foreign entities operating outside US borders.

Related Government Programs

Defense Logistics Agency Warehousing Contracts
Department of Defense Supply Chain Management
Global Logistics Support Services
Foreign Military Sales Support

Risk Flags

Lack of Transparency in Awardee Identity
Potential National Security Risks
Limited Oversight Capability
Uncertainty of Value for Money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to FOREIGN AWARDEES (UNDISCLOSED). COCO STORAGE SERVICES

Who is the contractor on this award?

The obligated recipient is FOREIGN AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2008-07-12. End: 2013-10-11.

What specific types of goods or materials were stored under this contract, and what were the security requirements?

The provided data does not specify the exact nature of the goods or materials stored under the COCO STORAGE SERVICES contract. However, given the awarding agency is the Department of Defense and the contract falls under 'Other Warehousing and Storage,' it is reasonable to infer that the stored items could range from general supplies and equipment to potentially sensitive military materiel. Security requirements would typically be dictated by the nature of the stored items, potentially including climate control, physical security measures, and access restrictions. Without further details, it's impossible to ascertain the precise security protocols implemented or the specific types of goods handled.

How does the undisclosed nature of the foreign awardee impact the DoD's ability to assess performance and ensure compliance?

The undisclosed nature of the foreign awardee significantly hampers the DoD's ability to assess performance and ensure compliance. Standard oversight practices, such as site visits, audits, and direct communication, become more challenging when the physical location and identity of the contractor are unknown. This lack of transparency can obscure potential risks related to security, operational standards, and adherence to contractual obligations. It also complicates the process of verifying the contractor's financial stability and capacity to fulfill the contract's requirements over its duration. Consequently, the DoD may have limited recourse in addressing performance issues or enforcing contractual terms effectively.

What is the typical cost range for similar warehousing and storage services procured by the federal government domestically?

Determining a precise 'typical cost range' for federal warehousing and storage services domestically is complex, as costs vary significantly based on factors like location, facility type (e.g., climate-controlled, secure), volume of goods, duration of storage, and specific services required (e.g., inventory management, transportation). However, general industry benchmarks suggest that per-square-foot storage costs can range from $0.50 to $2.00 per month, with specialized storage (like temperature-controlled or hazardous materials) being at the higher end. For a contract of this magnitude ($11.8 million over approximately 5 years), it implies a substantial volume or duration of storage. Without specific details on the services rendered and the location of domestic comparables, a direct cost comparison is speculative.

Were there any specific national security considerations that led to awarding this contract to a foreign entity?

The provided data does not offer specific details or justifications regarding national security considerations that might have led to awarding this contract to a foreign entity. Typically, contracts involving sensitive military materiel or requiring strategic positioning might involve international partnerships. However, the lack of transparency surrounding the awardee makes it impossible to confirm if such considerations were primary drivers. It is also possible that the foreign awardee presented a uniquely competitive bid in terms of price or capability that outweighed concerns about location or transparency, or that the nature of the storage did not involve highly sensitive materials requiring domestic proximity.

What are the potential risks associated with storing federal assets with an undisclosed foreign entity?

Storing federal assets with an undisclosed foreign entity presents several potential risks. These include compromised security of the assets due to unknown facility standards and access controls, potential for political or geopolitical instability affecting access or retrieval, difficulties in enforcing contractual obligations or seeking redress in case of damage or loss, and challenges in ensuring compliance with U.S. regulations and standards. Furthermore, the lack of transparency can obscure potential conflicts of interest or foreign influence, posing a broader national security concern. The inability to readily verify the contractor's operational integrity and financial stability adds another layer of risk.

Industry Classification

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

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060008R0508

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,849,340

Exercised Options: $11,849,340

Current Obligation: $11,849,340

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline