DoD awards $172M for OCONUS COCO Storage Services to IES Downstream LLC, with 2 years remaining

Contract Overview

Contract Amount: $172,206,114 ($172.2M)

Contractor: IES Downstream LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-26

End Date: 2027-10-25

Contract Duration: 1,825 days

Daily Burn Rate: $94.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8509452729!OCONUS COCO STORAGE SERVICES

Place of Performance

Location: KAPOLEI, HONOLULU County, HAWAII, 96707

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $172.2 million to IES DOWNSTREAM LLC for work described as: 8509452729!OCONUS COCO STORAGE SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of OCONUS storage services. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The contract is a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor. 4. Performance is in Hawaii, a high-cost geographic area, potentially influencing overall pricing. 5. The contractor, IES Downstream LLC, is relatively new to large federal contracts based on available data. 6. The contract duration of 5 years (1825 days) is standard for logistics support services.

Value Assessment

Rating: good

The total contract value of $172.2 million over five years averages to approximately $34.4 million per year. This figure needs to be benchmarked against similar OCONUS storage contracts, which can vary significantly based on location, security requirements, and specific services. Without direct comparable data for 'OCONUS COCO Storage Services' in Hawaii, a precise value-for-money assessment is challenging. However, the firm fixed-price nature provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which are typically used for purchases below the threshold for full and open competition (currently $250,000, but can be higher for certain categories). This suggests that the procurement likely involved a limited number of bidders, possibly through GSA Schedules or other pre-negotiated agreements, rather than a broad solicitation. The number of bids received (2) further indicates limited competition.

Taxpayer Impact: Limited competition under SAP may result in less aggressive pricing compared to full and open competition, potentially leading to higher costs for taxpayers. However, SAP is designed for efficiency in acquiring goods and services below certain thresholds.

Public Impact

This contract directly supports the Department of Defense's logistical operations in overseas locations (OCONUS). It ensures the availability of critical storage facilities, likely for equipment, supplies, and materials. The services provided are essential for maintaining military readiness and operational capabilities. The geographic impact is primarily focused on supporting U.S. military presence and operations in the Pacific region, specifically Hawaii. While not directly creating a large number of new jobs, it sustains existing roles within the logistics and warehousing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Contractor's track record on similar large-scale federal contracts is not extensively documented.
Potential for cost overruns if unforeseen logistical challenges arise in OCONUS locations.

Positive Signals

Firm Fixed Price contract structure limits government cost exposure.
Contract duration provides stability for essential logistics support.
Awarded by the Defense Logistics Agency, an agency focused on efficient supply chain management.

Sector Analysis

The contract falls within the Warehousing and Storage sector, specifically 'Other Warehousing and Storage' (NAICS 493190). This sector is crucial for supply chain management across various industries, including government logistics. Federal spending in this area supports the infrastructure necessary for storing and managing vast quantities of goods, from military equipment to disaster relief supplies. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per cubic foot for similar storage solutions in different geographic regions, considering factors like climate control, security, and accessibility.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses within the provided data. The award to IES Downstream LLC, a company whose size is not specified but likely capable of handling a contract of this magnitude, suggests it may not be a small business itself. This means the direct economic impact on the small business ecosystem for this specific contract is likely minimal, unless IES Downstream LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency (DLA), which is responsible for managing and executing logistics support for the DoD. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to successful delivery of services. Transparency is facilitated through contract databases like FPDS-NG, where award details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency (DLA) Operations
OCONUS Base Support Contracts
Global Logistics and Supply Chain Management
Military Equipment Storage
Contingency Operations Support

Risk Flags

Limited Competition
Contractor Performance History Unknown
OCONUS Operations Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $172.2 million to IES DOWNSTREAM LLC. 8509452729!OCONUS COCO STORAGE SERVICES

Who is the contractor on this award?

The obligated recipient is IES DOWNSTREAM LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $172.2 million.

What is the period of performance?

Start: 2022-10-26. End: 2027-10-25.

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

Analyzing historical spending for 'OCONUS COCO Storage Services' by the Defense Logistics Agency (DLA) requires accessing detailed contract databases over several fiscal years. DLA manages a vast array of logistics contracts globally, and storage services are a critical component. Spending patterns can fluctuate based on geopolitical conditions, troop deployments, and changes in operational requirements. Without specific historical data for this precise service category and location, it's difficult to provide exact figures. However, DLA's overall budget for logistics and supply chain support runs into billions of dollars annually, with a significant portion allocated to infrastructure and services like warehousing and storage in critical overseas locations to ensure operational readiness and efficiency.

How does the pricing of this contract compare to similar OCONUS storage contracts awarded by other DoD agencies?

A direct comparison of pricing for this $172.2 million contract for OCONUS COCO Storage Services requires access to detailed pricing structures of comparable contracts. Factors such as the specific OCONUS location (e.g., cost of living, security), the type of storage required (e.g., climate-controlled, hazardous materials), the duration of the contract, and the level of service (e.g., inventory management, transportation) significantly influence pricing. Contracts awarded under Simplified Acquisition Procedures (SAP) may not always be directly comparable to those procured through full and open competition, which often yields more competitive bids. Benchmarking would involve analyzing cost per square foot, per cubic foot, or per unit stored, adjusted for regional economic factors and specific service requirements.

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

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this 'OCONUS COCO Storage Services' contract are typically detailed within the contract's Performance Work Statement (PWS). Common KPIs for storage services include on-time delivery rates, accuracy of inventory management, facility maintenance standards (e.g., temperature, humidity control), security compliance, and response times to service requests. SLAs define the acceptable performance thresholds for these KPIs, often with associated remedies or incentives for meeting or exceeding them. For a contract of this nature supporting the Department of Defense, stringent performance standards are expected to ensure the readiness and availability of stored assets.

What is the track record of IES Downstream LLC in performing large-scale federal logistics and storage contracts?

Assessing the track record of IES Downstream LLC requires a review of their past performance on federal contracts, particularly those involving logistics and storage services of a similar scale and complexity. Publicly available data, such as the Federal Procurement Data System (FPDS), can provide insights into their contract history, including award values, agencies served, and contract types. Information on past performance evaluations, if available, would offer a more qualitative assessment of their reliability, quality of service, and adherence to contract terms. Given this is a significant award, further due diligence on the contractor's experience and capacity to execute OCONUS operations is warranted.

What are the potential risks associated with performing storage services in overseas (OCONUS) locations, and how are they mitigated in this contract?

Performing storage services in overseas (OCONUS) locations presents several unique risks, including geopolitical instability, logistical challenges in transportation and access, varying regulatory environments, potential for natural disasters, and difficulties in personnel management and security. Mitigation strategies within this contract likely include robust security protocols, contingency planning for disruptions, adherence to local laws and customs, and potentially higher pricing to account for inherent risks. The firm fixed-price nature of the contract shifts some financial risk to the contractor, incentivizing them to manage these OCONUS-specific challenges effectively. The Defense Logistics Agency's expertise in managing global supply chains also plays a crucial role in oversight and risk mitigation.

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: SPE60322R0511

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 91 480 MALAKOLE ST, KAPOLEI, HI, 96707

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: $172,206,114

Exercised Options: $172,206,114

Current Obligation: $172,206,114

Actual Outlays: $2,155,249

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline