DoD awards $21.2M storage contract to BWC Texas Terminals, LLC for over 9 years

Contract Overview

Contract Amount: $21,175,015 ($21.2M)

Contractor: BWC Texas Terminals, LLC

Awarding Agency: Department of Defense

Start Date: 2020-05-13

End Date: 2029-10-28

Contract Duration: 3,455 days

Daily Burn Rate: $6.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8507330065!CONUS COCO STORAGE SERVICES

Place of Performance

Location: TEXAS CITY, GALVESTON County, TEXAS, 77590

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to BWC TEXAS TERMINALS, LLC for work described as: 8507330065!CONUS COCO STORAGE SERVICES Key points: 1. Contract value appears reasonable given the extended duration and scope of services. 2. Competition dynamics suggest a potentially favorable pricing environment for the government. 3. Performance risk appears low due to the established nature of warehousing services. 4. This contract supports essential logistics operations for the Defense Logistics Agency. 5. The contract falls within the broader 'Other Warehousing and Storage' sector.

Value Assessment

Rating: good

The contract value of $21.2 million over approximately 9.5 years averages to about $2.23 million annually. This figure seems competitive for large-scale, long-term storage solutions, especially considering potential fluctuations in market rates for warehousing. Benchmarking against similar long-term storage contracts for the DoD would provide a more precise value-for-money assessment, but the annual cost does not immediately raise concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process was utilized. While the specific number of bidders is not provided, the 'full-and-open' competition designation suggests that multiple offerors had the opportunity to bid. This level of competition is generally expected to drive favorable pricing and ensure the government receives good value.

Taxpayer Impact: A full and open competition, even under SAP, increases the likelihood that taxpayer funds are used efficiently by fostering a competitive market for these essential storage services.

Public Impact

This contract directly benefits the Department of Defense by ensuring secure and accessible storage for critical supplies and equipment. Services provided include warehousing and storage, crucial for maintaining operational readiness. The geographic impact is centered in Texas, supporting regional logistics needs. Workforce implications may include local job creation within the warehousing and logistics sector in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess service quality over the contract's lifespan.
Potential for price escalation over the nearly decade-long duration, despite a firm fixed-price structure, if unforeseen operational costs arise.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The extended duration of the contract suggests a stable, long-term need for these services, indicating a well-planned requirement.
Competition under SAP generally leads to efficient pricing.

Sector Analysis

This contract falls under the 'Other Warehousing and Storage' industry, a critical component of the logistics and supply chain sector. The market for warehousing services is substantial, driven by the needs of various industries, including government and defense. Comparable spending benchmarks for similar long-term, large-scale storage contracts within the federal government would typically range from millions to tens of millions annually, depending on the volume, security requirements, and location.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract may not directly involve small business set-asides, the prime contractor, BWC TEXAS TERMINALS, LLC, could potentially engage small businesses for subcontracting opportunities related to specialized services or local support within Texas. Further analysis of subcontracting plans would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency (DLA), responsible for managing and monitoring contractor performance. Accountability measures are typically embedded within the contract's terms and conditions, including delivery schedules and service level agreements. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Storage Contracts
Department of Defense Warehousing Services
CONUS Storage Solutions
Federal Logistics and Supply Chain Management

Risk Flags

Extended contract duration may expose government to unfavorable market shifts.
Lack of detailed performance metrics in abstract hinders immediate assessment.
Potential for contractor viability concerns over a 9.5-year period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to BWC TEXAS TERMINALS, LLC. 8507330065!CONUS COCO STORAGE SERVICES

Who is the contractor on this award?

The obligated recipient is BWC TEXAS TERMINALS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.2 million.

What is the period of performance?

Start: 2020-05-13. End: 2029-10-28.

What is the historical spending pattern for CONUS COCO Storage Services by the Defense Logistics Agency?

Historical spending on CONUS COCO Storage Services by the Defense Logistics Agency (DLA) can be analyzed by examining past contract awards for similar services. While specific figures for this exact contract are not available prior to its award, the DLA consistently procures warehousing and storage solutions to support military operations. Trends often show a steady demand, with contract values fluctuating based on geopolitical needs, inventory levels, and the duration of awarded contracts. Analyzing prior awards for similar durations and capacities would reveal if the $21.2 million awarded to BWC TEXAS TERMINALS, LLC aligns with historical investment in this capability. Factors such as inflation, changes in operational tempo, and the consolidation or expansion of military installations can influence these spending patterns over time.

How does the per-unit cost of this storage contract compare to market rates for similar services in Texas?

Determining the precise per-unit cost requires detailed information on the volume and type of goods stored, which is not provided in the contract abstract. However, the total contract value of $21.2 million over approximately 9.5 years suggests an average annual cost of roughly $2.23 million. To benchmark this against market rates in Texas, one would need to research commercial warehousing rates per square foot or per cubic foot, factoring in any specialized requirements like climate control, security, or hazardous material handling. Given Texas's robust logistics infrastructure, market rates can vary significantly by region and service level. Without specific volume data, a direct per-unit comparison is challenging, but the overall annual expenditure appears to be within a plausible range for substantial, long-term government storage needs in a major logistical hub.

What are the key performance indicators (KPIs) associated with this contract, and how is performance monitored?

The provided contract abstract does not detail the specific Key Performance Indicators (KPIs) for this CONUS COCO Storage Services contract. However, typical KPIs for such services often include on-time delivery rates, inventory accuracy, damage rates during handling and storage, facility maintenance standards, and response times for retrieval requests. Performance monitoring is generally conducted by the Contracting Officer's Representative (COR) from the Defense Logistics Agency. This involves regular reviews of contractor reports, site visits, and audits to ensure compliance with the contract's terms and conditions, including service level agreements. Failure to meet KPIs can result in contractual remedies, such as performance deductions or termination.

What is the track record of BWC TEXAS TERMINALS, LLC in performing similar government contracts?

Assessing the track record of BWC TEXAS TERMINALS, LLC requires accessing historical contract data, such as past performance evaluations and previous awards. Information available through federal procurement databases like SAM.gov or FPDS can provide insights into their history with government agencies. Key aspects to review would include the types of contracts they have held, their performance ratings on those contracts, any instances of contract disputes or terminations, and their experience with similar storage and logistics services. A positive performance history, characterized by successful contract completion and favorable past performance reviews, would indicate a lower risk for this current $21.2 million award. Conversely, a history of issues could signal potential performance concerns.

What are the potential risks associated with a nearly decade-long firm fixed-price storage contract?

While a firm fixed-price contract offers cost certainty, a nearly decade-long duration introduces specific risks. One primary risk is market volatility; if the cost of labor, utilities, or real estate significantly increases over the contract period, the contractor may face reduced profit margins or operational challenges, potentially impacting service quality. Conversely, if market costs decrease substantially, the government might be overpaying relative to current market conditions. Another risk involves the contractor's long-term viability; ensuring the company remains financially stable and operationally capable throughout the entire contract term is crucial. Furthermore, technological advancements in warehousing could render current methods or facilities less efficient over such an extended period, requiring careful management to ensure the government continues to receive value.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: SPE60319R0514

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 DOCK RD, TEXAS CITY, TX, 77590

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,175,015

Exercised Options: $21,175,015

Current Obligation: $21,175,015

Actual Outlays: $2,249,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline