Dod Awards $3.6M for Conus Coco Storage Services to JET Epic LLC

Contract Overview

Contract Amount: $3,654,486 ($3.7M)

Contractor: JET Epic LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-31

End Date: 2027-09-30

Contract Duration: 1,583 days

Daily Burn Rate: $2.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8509898147!CONUS COCO STORAGE SERVICES

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70130

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $3.7 million to JET EPIC LLC for work described as: 8509898147!CONUS COCO STORAGE SERVICES Key points: 1. Contract awarded to JET EPIC LLC for warehousing and storage services. 2. Competition method was 'COMPETED UNDER SAP', indicating a specific procurement procedure. 3. The contract has a duration of 1583 days, spanning from May 2023 to September 2027. 4. The North American Industry Classification System (NAICS) code is 493190 (Other Warehousing and Storage). 5. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: fair

The awarded amount of $3.6M over approximately 4.3 years suggests a moderate annual spend. Benchmarking against similar warehousing contracts would be necessary to fully assess pricing fairness, as specific per-unit costs are not provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically involves a limited number of bidders compared to full and open competition. This method can impact price discovery, potentially leading to less competitive pricing.

Taxpayer Impact: The use of SAP suggests an effort to streamline procurement for smaller value contracts, but the ultimate taxpayer impact depends on whether competitive pricing was achieved within this framework.

Public Impact

Ensures critical storage and warehousing capabilities for Department of Defense operations within the CONUS. Supports logistical readiness and supply chain management for military assets. Provides employment opportunities within the warehousing and storage sector. The contract's duration ensures long-term service availability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition under SAP may not yield the best possible price.
  • Lack of detailed cost breakdown makes thorough value assessment difficult.
  • Small business participation is not explicitly stated.

Positive Signals

  • Firm Fixed Price contract provides budget predictability.
  • Long contract duration ensures continuity of essential services.
  • Awarded to a specific company, indicating a clear vendor relationship.

Sector Analysis

The warehousing and storage sector is crucial for maintaining supply chains and logistical operations across various industries, including defense. Spending benchmarks for similar services vary widely based on location, scale, and specific requirements.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false). Further analysis would be needed to determine if small business subcontracting opportunities were mandated or pursued.

Oversight & Accountability

Standard oversight mechanisms for Department of Defense contracts would apply, including performance monitoring and compliance checks by the Defense Logistics Agency. The use of SAP might involve different oversight levels compared to larger, more complex contracts.

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 under SAP.
  • Lack of transparency in cost breakdown.
  • No explicit mention of small business participation.
  • Dependence on a single contractor for a significant duration.

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.7 million to JET EPIC LLC. 8509898147!CONUS COCO STORAGE SERVICES

Who is the contractor on this award?

The obligated recipient is JET EPIC LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2023-05-31. End: 2027-09-30.

What is the average annual cost per square foot for this storage service, and how does it compare to industry benchmarks?

Without specific details on the square footage or storage volume utilized, calculating an average annual cost per square foot is not possible from the provided data. To assess value, this metric would need to be compared against regional and national benchmarks for similar CONUS COCO (Company Owned, Company Operated) storage facilities, considering factors like security, climate control, and accessibility.

What specific criteria were used to justify the use of Simplified Acquisition Procedures (SAP) for this contract, and were alternative procurement methods considered?

The justification for using SAP likely stems from the contract's value falling within the established thresholds for simplified acquisition, aiming for efficiency. However, without further documentation, it's unclear if a thorough market analysis was conducted to ensure SAP was the most advantageous method for achieving optimal price and performance, or if full and open competition was explored.

How will the performance and effectiveness of JET EPIC LLC's storage services be monitored to ensure mission requirements are met?

Performance and effectiveness will likely be monitored through standard contract management processes by the Defense Logistics Agency. This typically involves regular performance reviews, tracking key performance indicators (KPIs) related to service delivery, inventory management, and facility maintenance, as well as adherence to security protocols and reporting requirements.

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: SPE60323R0501

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 400 POYDRAS ST, NEW ORLEANS, LA, 70130

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: $8,877,462

Exercised Options: $3,654,486

Current Obligation: $3,654,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2023-05-31

Current End Date: 2027-09-30

Potential End Date: 2033-03-31 00:00:00

Last Modified: 2026-01-06

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