DoD's $27.7M Afghanistan Warehousing Contract Awarded via Full and Open Competition

Contract Overview

Contract Amount: $27,713,688 ($27.7M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2010-10-12

End Date: 2014-10-11

Contract Duration: 1,460 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DISTRIBUTION AND WAREHOUSE SUPPORT SERVICES FOR AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $27.7 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: DISTRIBUTION AND WAREHOUSE SUPPORT SERVICES FOR AFGHANISTAN Key points: 1. Contract awarded for essential distribution and warehouse support in Afghanistan. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. No small business participation was noted. 5. The contract duration was 1460 days.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee, which can incentivize contractors to increase costs. Without specific cost breakdowns or benchmarks, it's difficult to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. However, the Cost Plus Fixed Fee structure may mitigate some of the cost savings typically associated with competitive bidding.

Taxpayer Impact: Taxpayer funds were used for essential logistics support. The effectiveness of competition in controlling costs is somewhat diminished by the contract type.

Public Impact

Ensured critical supply chain operations for military forces in Afghanistan. Supported logistical needs over a four-year period. Potential for cost inefficiencies due to the CPFF contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
No small business participation

Positive Signals

Full and open competition utilized
Essential support services provided

Sector Analysis

This contract falls under general warehousing and storage services, crucial for military operations. Spending in this sector can vary widely based on geopolitical factors and operational tempo.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the prime contractor may not have subcontracted with small businesses, or the contract was not structured to encourage their involvement.

Oversight & Accountability

The contract was awarded through full and open competition, implying a degree of oversight in the solicitation process. However, the CPFF structure warrants close monitoring of expenditures to ensure accountability.

Related Government Programs

General Warehousing and Storage
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type may lead to higher costs.
Lack of transparency on fixed fee percentage.
No indication of performance metrics or cost controls.
No small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to DOMESTIC AWARDEES (UNDISCLOSED). DISTRIBUTION AND WAREHOUSE SUPPORT SERVICES FOR AFGHANISTAN

Who is the contractor on this award?

The obligated recipient is DOMESTIC 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 $27.7 million.

What is the period of performance?

Start: 2010-10-12. End: 2014-10-11.

What was the fixed fee percentage and how did it compare to industry standards for similar services?

The provided data does not specify the fixed fee percentage. To assess value, this information is crucial. Comparing it to industry benchmarks for Cost Plus Fixed Fee contracts in logistics support would reveal if the fee was reasonable or excessive, directly impacting taxpayer cost.

Were there any performance metrics or cost controls in place to mitigate risks associated with the Cost Plus Fixed Fee structure?

The data does not detail specific performance metrics or cost control mechanisms within the contract. For a CPFF contract, robust oversight, clear performance standards, and regular audits are essential to manage risks and ensure efficient use of funds. Without this information, the risk of cost overruns remains elevated.

How effectively did the full and open competition translate into cost savings given the CPFF contract type?

While full and open competition is designed to drive down costs, the CPFF structure can offset these benefits by reimbursing costs plus a fee. The actual cost savings would depend on the contractor's efficiency and the government's oversight in managing the cost-reimbursable aspects of the contract.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $34,974,827

Exercised Options: $27,713,688

Current Obligation: $27,713,688

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline