DoD Awards $4.6M Warehousing Contract to BSH Management Services LLC for CONUS AF GOCO Storage

Contract Overview

Contract Amount: $4,655,887 ($4.7M)

Contractor: BSH Management Services LLC

Awarding Agency: Department of Defense

Start Date: 2018-07-19

End Date: 2027-07-31

Contract Duration: 3,299 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8505679249!CONUS AF GOCO STORAGE SERVICE

Place of Performance

Location: TRENTON, BURLINGTON County, NEW JERSEY, 08641

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $4.7 million to BSH MANAGEMENT SERVICES LLC for work described as: 8505679249!CONUS AF GOCO STORAGE SERVICE Key points: 1. Contract awarded to BSH Management Services LLC for warehousing and storage services. 2. The contract has a total value of $4.6 million and runs until July 2027. 3. Competition method was 'Full and Open Competition After Exclusion of Sources', suggesting a specific reason for source exclusion. 4. The sector is 'Other Warehousing and Storage', a critical component of logistics and supply chain management.

Value Assessment

Rating: fair

The contract value of $4.6 million over nearly 9 years suggests a moderate annual spend. Benchmarking against similar warehousing contracts would be needed to assess if this pricing is competitive, especially given the 'after exclusion of sources' clause.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be broad, specific sources were excluded. This could impact price discovery and potentially lead to higher costs than a truly open competition.

Taxpayer Impact: Taxpayer funds are being used for essential storage services. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.

Public Impact

Ensures critical storage and warehousing capabilities for Air Force operations within the CONUS. Supports the Department of Defense's logistical infrastructure and supply chain resilience. Potential impact on local economy in New Jersey through contract execution and associated activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition due to source exclusion
  • Long contract duration may not reflect current market rates
  • Lack of small business participation noted

Positive Signals

  • Essential service for military operations
  • Firm fixed price contract provides cost certainty
  • Long-term contract provides stability for service provision

Sector Analysis

This contract falls under the 'Other Warehousing and Storage' sector, which is crucial for maintaining the readiness and operational capabilities of military forces. Spending benchmarks in this sector vary widely based on location, type of goods stored, and security requirements.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss: false, sb: false). Further analysis is needed to determine if opportunities were missed for small business participation or if the contract requirements were not conducive to small business involvement.

Oversight & Accountability

The 'after exclusion of sources' clause warrants scrutiny to ensure the exclusion was justified and did not unduly limit competition. Oversight by the Defense Logistics Agency is critical to ensure performance and adherence to contract terms.

Related Government Programs

  • Other Warehousing and Storage
  • Department of Defense Contracting
  • Defense Logistics Agency Programs

Risk Flags

  • Limited competition due to source exclusion
  • Lack of small business participation
  • Long contract duration may not reflect current market value
  • Potential for price inefficiencies due to restricted competition

Tags

other-warehousing-and-storage, department-of-defense, nj, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.7 million to BSH MANAGEMENT SERVICES LLC. 8505679249!CONUS AF GOCO STORAGE SERVICE

Who is the contractor on this award?

The obligated recipient is BSH MANAGEMENT SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2018-07-19. End: 2027-07-31.

What was the justification for excluding specific sources in this 'full and open competition'?

The justification for excluding specific sources under a 'full and open competition after exclusion of sources' typically relates to national security concerns, proprietary technology, or unique capabilities that only certain entities possess. Without further documentation, it's difficult to ascertain the precise reason, but it implies a deliberate narrowing of the competitive pool for specific, justifiable reasons.

How does the per-unit cost of this warehousing service compare to industry benchmarks, considering the contract's duration?

Benchmarking the per-unit cost is challenging without specific details on the volume and type of goods stored. However, a contract duration of over 3200 days (approx. 9 years) for $4.6 million suggests an average annual cost of roughly $500,000. This needs to be compared against similar government or commercial warehousing contracts in the CONUS region, factoring in any specialized requirements like climate control or security.

What is the potential risk to mission effectiveness if BSH Management Services LLC fails to perform adequately?

Failure to perform by BSH Management Services LLC poses a significant risk to mission effectiveness, as it could disrupt the supply chain for CONUS Air Force operations. This could lead to delays in equipment, supplies, or personnel deployment, impacting readiness and operational capabilities. The Defense Logistics Agency would need to implement contingency plans, potentially involving contract termination and re-competition, which could incur additional costs and further delays.

Industry Classification

NAICS: Transportation and WarehousingWarehousing and StorageOther Warehousing and Storage

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SPE60318R0511

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3208 SYKESVILLE ROAD, WESTMINSTER, MD, 21157

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,309,592

Exercised Options: $4,655,887

Current Obligation: $4,655,887

Actual Outlays: $1,111,519

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2018-07-19

Current End Date: 2027-07-31

Potential End Date: 2028-01-31 00:00:00

Last Modified: 2026-01-12

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