DoD Awards $29.5M for CONUS COCO Storage Services to Nustar Terminals Operations Partnership L.P

Contract Overview

Contract Amount: $29,492,061 ($29.5M)

Contractor: Nustar Terminals Operations Partnership L.P.

Awarding Agency: Department of Defense

Start Date: 2023-05-01

End Date: 2027-07-11

Contract Duration: 1,532 days

Daily Burn Rate: $19.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8509827602!CONUS COCO STORAGE SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78257

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to NUSTAR TERMINALS OPERATIONS PARTNERSHIP L.P. for work described as: 8509827602!CONUS COCO STORAGE SERVICES Key points: 1. Contract awarded to Nustar Terminals Operations Partnership L.P. for storage services. 2. The contract is valued at $29.5 million over its period of performance. 3. Awarded by the Defense Logistics Agency, supporting Department of Defense operations. 4. The service falls under 'Other Warehousing and Storage' (NAICS 493190).

Value Assessment

Rating: fair

The contract value of $29.5 million over approximately 4 years suggests a moderate annual spend. Benchmarking against similar warehousing and storage contracts would be necessary to fully assess pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (System for Award Management), indicating a limited competition approach. This method may not always yield the most competitive pricing compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential storage services, with the effectiveness of competition impacting the overall value for money.

Public Impact

Ensures critical storage and handling capabilities for Department of Defense assets. Supports logistical readiness and supply chain management within the continental U.S. Provides employment opportunities within the warehousing and logistics sector in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may impact price competitiveness.
  • Contract duration extends over several years, requiring ongoing monitoring.

Positive Signals

  • Supports essential DoD logistics functions.
  • Awarded to an established entity in the terminal operations sector.

Sector Analysis

This contract falls within the broader logistics and warehousing sector, which is crucial for national defense. Spending benchmarks for similar services can vary significantly based on location, specific requirements, and contract type.

Small Business Impact

The contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses within this large contract would be beneficial.

Oversight & Accountability

The Defense Logistics Agency is responsible for overseeing this contract. Standard oversight procedures for definitive contracts should be in place to ensure performance and accountability.

Related Government Programs

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

Risk Flags

  • Potential for higher costs due to limited competition.
  • Long contract duration requires sustained oversight.
  • Lack of small business participation noted.
  • Specific service details not fully elaborated in the provided data.

Tags

other-warehousing-and-storage, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to NUSTAR TERMINALS OPERATIONS PARTNERSHIP L.P.. 8509827602!CONUS COCO STORAGE SERVICES

Who is the contractor on this award?

The obligated recipient is NUSTAR TERMINALS OPERATIONS PARTNERSHIP L.P..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2023-05-01. End: 2027-07-11.

What is the specific nature of the 'CONUS COCO Storage Services' and how does it align with current DoD logistical needs?

CONUS COCO likely refers to Continental United States, Contractor Owned, Contractor Operated storage services. These services are vital for maintaining readiness by providing secure and accessible storage for various DoD assets, including equipment, supplies, and munitions, ensuring they are available when and where needed for operational missions.

How does the pricing of this contract compare to industry benchmarks for similar warehousing and storage services, considering the limited competition?

Without specific details on the services provided and market rates in Texas, a direct comparison is difficult. However, limited competition under SAP often results in prices that are fair but potentially not the lowest achievable. Further analysis of the contract's unit rates against market data is recommended to confirm value for money.

What are the key performance indicators (KPIs) for this contract, and how will Nustar Terminal Operations Partnership L.P.'s performance be measured to ensure effectiveness?

Key performance indicators would likely include on-time delivery, inventory accuracy, facility maintenance, security compliance, and response times to service requests. The Defense Logistics Agency would monitor these KPIs through regular reporting, site visits, and performance reviews to ensure the contractor meets contractual obligations effectively.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: SPE60323R0500

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nustar Energy L.P.

Address: 19003 IH 10 W, SAN ANTONIO, TX, 78257

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,492,061

Exercised Options: $29,492,061

Current Obligation: $29,492,061

Actual Outlays: $404,384

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2023-05-01

Current End Date: 2027-07-11

Potential End Date: 2027-07-11 00:00:00

Last Modified: 2025-08-26

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