DoD Awards $16.9M for Warehouse Services at Cherry Point, NC to Applied Solutions Logistics
Contract Overview
Contract Amount: $16,928,142 ($16.9M)
Contractor: Applied Solutions Logistics, LLC
Awarding Agency: Department of Defense
Start Date: 2025-08-01
End Date: 2026-04-30
Contract Duration: 272 days
Daily Burn Rate: $62.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TO FOR POP 1 FOR WAREHOUSE AND DISTRIBUTION SERVICES AT DLA DISTRIBUTION, CHERRY POINT NC.
Place of Performance
Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533
Plain-Language Summary
Department of Defense obligated $16.9 million to APPLIED SOLUTIONS LOGISTICS, LLC for work described as: TO FOR POP 1 FOR WAREHOUSE AND DISTRIBUTION SERVICES AT DLA DISTRIBUTION, CHERRY POINT NC. Key points: 1. Contract awarded for essential warehousing and distribution services. 2. Applied Solutions Logistics, LLC secured the contract. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract duration is 272 days. 5. Sector is Defense Logistics.
Value Assessment
Rating: good
The contract value of $16.9M for 272 days of service appears reasonable given the scope of warehousing and distribution. Benchmarking against similar DLA contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. The 'after exclusion of sources' clause suggests specific criteria were met, but the overall competition is positive for price.
Taxpayer Impact: The use of full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment.
Public Impact
Ensures critical supply chain operations for the Department of Defense. Supports military readiness by maintaining essential distribution capabilities. Provides employment opportunities in North Carolina.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Potential for price increases if scope expands beyond initial estimates.
- Reliance on a single awardee for critical logistics functions.
Positive Signals
- Awarded through full and open competition.
- Supports a key defense agency (DLA).
- Clear contract period and deliverables.
Sector Analysis
This contract falls within the Defense Logistics sector, specifically General Warehousing and Storage. Spending in this area is crucial for maintaining military readiness and efficient supply chain management.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Defense Logistics Agency (DLA) is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under a larger contract should apply, ensuring performance and compliance.
Related Government Programs
- General Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for sole-source dependency if follow-on contracts are awarded without competition.
- Risk of performance issues if the contractor lacks sufficient resources or experience.
- Geographic concentration of services in North Carolina could pose logistical challenges if needs shift.
- Contract value may not fully account for unforeseen operational complexities.
Tags
general-warehousing-and-storage, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.9 million to APPLIED SOLUTIONS LOGISTICS, LLC. TO FOR POP 1 FOR WAREHOUSE AND DISTRIBUTION SERVICES AT DLA DISTRIBUTION, CHERRY POINT NC.
Who is the contractor on this award?
The obligated recipient is APPLIED SOLUTIONS LOGISTICS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $16.9 million.
What is the period of performance?
Start: 2025-08-01. End: 2026-04-30.
What is the historical performance of Applied Solutions Logistics, LLC on similar DoD contracts?
Assessing the past performance of Applied Solutions Logistics, LLC is crucial for understanding their reliability and capability in fulfilling this contract. Reviewing their track record on previous DoD contracts, particularly those involving warehousing and distribution for agencies like DLA, can reveal insights into their on-time delivery rates, quality of service, and ability to manage complex logistics operations effectively.
Are there any identified risks associated with the 'after exclusion of sources' clause in the competition method?
The 'after exclusion of sources' clause implies that certain potential bidders were excluded based on specific criteria, which could limit the breadth of competition. While the overall method is 'full and open,' understanding the rationale behind the exclusions is important to ensure no viable competitors were unfairly barred, potentially impacting the final price and innovation.
How does the unit cost of this contract compare to industry benchmarks for similar warehousing and distribution services?
Benchmarking the unit cost against industry standards for comparable warehousing and distribution services is essential for evaluating value for money. Without specific unit cost data or detailed service breakdowns, a precise comparison is difficult. However, the overall contract value relative to its duration and scope provides a preliminary indicator of potential cost-effectiveness.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1329 SWIFT AVE, KANSAS CITY, MO, 64116
Business Categories: Category Business, Joint Venture Women Owned Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $16,928,142
Exercised Options: $16,928,142
Current Obligation: $16,928,142
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SP330025D5001
IDV Type: IDC
Timeline
Start Date: 2025-08-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-08
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