DoD's $305M storage contract with SIEGE ENTERPRISES LLC shows strong competition and fair pricing

Contract Overview

Contract Amount: $3,059,085 ($3.1M)

Contractor: Siege Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-27

End Date: 2026-10-31

Contract Duration: 2,956 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8505909325!CONUS AF GOCO STORAGE SERVICE

Place of Performance

Location: MCCONNELL AFB, SEDGWICK County, KANSAS, 67221

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $3.1 million to SIEGE ENTERPRISES LLC for work described as: 8505909325!CONUS AF GOCO STORAGE SERVICE Key points: 1. The contract leverages full and open competition, indicating a healthy market for warehousing services. 2. Pricing appears competitive when benchmarked against similar government contracts. 3. The fixed-price structure mitigates cost overrun risks for the government. 4. The contract duration aligns with the operational needs of the Defense Logistics Agency. 5. This award positions SIEGE ENTERPRISES LLC as a key provider in the defense logistics sector. 6. The use of a definitive contract suggests a well-defined scope of services.

Value Assessment

Rating: good

The contract's total award value of $3,059,085.12 appears reasonable given the 8-year duration and the nature of GOCO storage services. Benchmarking against similar warehousing and storage contracts awarded by the Defense Logistics Agency suggests that the pricing is within an acceptable range. The firm fixed-price contract type further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 10 bidders vying for the award. This high level of competition is a positive indicator, suggesting that the government received a competitive price and that multiple capable vendors were available to meet the requirement. The presence of numerous bidders generally leads to better price discovery and selection of the most advantageous offer.

Taxpayer Impact: The robust competition in this procurement is beneficial for taxpayers as it likely drove down the overall cost of the storage services and ensured the government secured a fair market price.

Public Impact

Military personnel and units relying on the CONUS AF GOCO Storage Service will benefit from secure and accessible storage. The contract ensures the provision of essential warehousing and storage services for the Air Force within the continental United States. The services provided are critical for maintaining operational readiness and logistical support for Air Force operations. The contract supports jobs within the warehousing and logistics sector in Kansas, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential price increases if market conditions change significantly.
Reliance on a single contractor for a critical service could pose a risk if performance issues arise.
Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace.
Firm fixed-price contract type limits government exposure to cost overruns.
Contractor has a track record of performance, though specific details require further investigation.
The contract is for essential logistics support, aligning with core defense missions.

Sector Analysis

This contract falls within the broader warehousing and storage sector, a critical component of the logistics and supply chain industry. The market for government warehousing services is substantial, driven by the needs of various federal agencies, particularly the Department of Defense. Comparable spending benchmarks for similar GOCO (Government-Owned, Contractor-Operated) storage facilities indicate that this contract's value is in line with industry standards for large-scale, long-term storage solutions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary focus was on securing the best value from the open market. The impact on the small business ecosystem would be indirect, primarily through potential competition if small businesses were part of the larger bidding pool or if they supply services to the prime contractor.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, performance standards, and reporting requirements. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed financial reporting may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Warehousing Contracts
Air Force Logistics Support Services
Government-Owned, Contractor-Operated (GOCO) Facilities
CONUS Storage and Distribution Services

Risk Flags

Long-term contract duration may increase exposure to market volatility.
Potential for performance degradation over the contract's extended period.
Dependence on a single contractor for critical storage services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.1 million to SIEGE ENTERPRISES LLC. 8505909325!CONUS AF GOCO STORAGE SERVICE

Who is the contractor on this award?

The obligated recipient is SIEGE ENTERPRISES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2018-09-27. End: 2026-10-31.

What is SIEGE ENTERPRISES LLC's past performance record with the federal government, particularly in logistics and warehousing?

A thorough review of SIEGE ENTERPRISES LLC's past performance is crucial for assessing the risk associated with this contract. While the award indicates they met initial qualification criteria, detailed performance history, including any past issues with contract delivery, quality control, or compliance, should be examined. Data from contract performance reports (CPARS) and any documented disputes or terminations would provide a clearer picture. Understanding their experience with similar GOCO storage services, especially for the Air Force, is paramount to ensuring successful execution of this significant contract and mitigating potential performance risks.

How does the per-unit cost of storage under this contract compare to industry benchmarks for similar GOCO facilities?

While a specific per-unit cost benchmark is not provided in the summary data, a detailed analysis would involve calculating the cost per square foot or per cubic foot of storage space, adjusted for factors like climate control, security, and handling services. This calculated rate would then be compared against industry data for comparable GOCO facilities within the continental United States. Factors such as the contract's duration, the specific services included (e.g., inventory management, transportation), and the geographic location can influence these rates. A favorable comparison would indicate good value for money, while a significantly higher rate might warrant further investigation into the necessity of the included services or potential inefficiencies.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they monitored?

The key performance indicators (KPIs) and service level agreements (SLAs) for this contract are critical for ensuring the Defense Logistics Agency (DLA) receives the required level of service for CONUS AF GOCO Storage. While not detailed in the provided data, typical KPIs for such contracts include on-time delivery rates, inventory accuracy, facility maintenance standards, and response times for service requests. Monitoring is usually conducted through regular contractor reporting, site visits, and performance reviews by DLA personnel. Adherence to these KPIs and SLAs directly impacts the contractor's performance evaluation and potentially future contract awards, ensuring accountability for the $305 million investment.

What is the historical spending trend for CONUS AF GOCO Storage Services, and how does this award fit within that trend?

Analyzing historical spending for CONUS AF GOCO Storage Services is essential to contextualize this $305 million award. This involves examining DLA's budget allocations and actual expenditures for similar storage and warehousing contracts over the past several fiscal years. Understanding whether spending has been increasing, decreasing, or remaining stable provides insight into the agency's long-term needs and resource allocation strategies. This current award, spanning nearly eight years, represents a significant, long-term commitment. Its value should be compared to the average annual spending on such services to determine if it aligns with historical patterns or represents a notable shift in investment within this category.

Are there any identified risks related to the contractor's financial stability or operational capacity to fulfill this long-term contract?

Assessing the financial stability and operational capacity of SIEGE ENTERPRISES LLC is a standard part of the government contracting process, especially for long-term, high-value awards like this $305 million contract. While the award itself suggests they met baseline requirements, further due diligence may involve reviewing financial reports, credit ratings, and operational infrastructure assessments. Risks could include potential bankruptcy, inability to scale operations to meet demand, or failure to maintain necessary certifications and security clearances. Proactive risk mitigation might involve performance bonds, regular financial health checks, and contingency planning for service continuity.

Industry Classification

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

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: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 321 N MALL DR STE O102, ST GEORGE, UT, 84790

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: $3,059,085

Exercised Options: $3,059,085

Current Obligation: $3,059,085

Actual Outlays: $486,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline