DoD awards $227.9M contract for OCONUS COCO storage services to Crowley Energy

Contract Overview

Contract Amount: $22,793,355 ($22.8M)

Contractor: Crowley Energy Anchorage, LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-19

End Date: 2026-01-31

Contract Duration: 346 days

Daily Burn Rate: $65.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8511057962!OCONUS COCO STORAGE SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to CROWLEY ENERGY ANCHORAGE, LLC for work described as: 8511057962!OCONUS COCO STORAGE SERVICES Key points: 1. Contract value represents a significant investment in overseas logistics infrastructure. 2. Competition dynamics for this contract are not fully detailed, requiring further analysis. 3. Performance period of over one year suggests a need for sustained operational capability. 4. The contract type (Firm Fixed Price) aims to control costs and provide predictability. 5. This award falls within the broader category of warehousing and storage services. 6. Geographic focus on OCONUS locations highlights strategic importance for defense operations.

Value Assessment

Rating: fair

The contract value of $227.9 million for OCONUS COCO storage services appears substantial. Benchmarking this against similar contracts for overseas logistics and storage is crucial to assess value for money. Without specific details on the scope of services, storage capacity, and duration, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests an attempt to cap costs, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a less extensive competition process than full and open competition. The number of bidders and the specific solicitation details are not provided, making it difficult to assess the level of competition. While SAP can lead to faster awards, it may limit price discovery compared to broader solicitations.

Taxpayer Impact: The use of SAP suggests that the agency sought efficiency, but it may have resulted in less competitive pricing for taxpayers compared to a full and open competition.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel operating in OCONUS locations, ensuring essential storage and logistical support. Services delivered include warehousing and storage, critical for maintaining operational readiness and supply chains. The geographic impact is focused on overseas contingency operations (OCONUS), supporting military presence and activities abroad. Workforce implications may include the need for specialized personnel to manage and operate storage facilities in remote or challenging environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information hinders assessment of optimal taxpayer value.
Potential for higher costs due to simplified acquisition procedures limiting bidder pool.
Geographic remoteness of OCONUS locations can introduce logistical and oversight challenges.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award to an established entity suggests a degree of reliability in service provision.
Contract duration indicates a commitment to sustained support for critical operations.

Sector Analysis

This contract falls within the broader logistics and support services sector, specifically focusing on warehousing and storage. The market for OCONUS logistics is often specialized, with a limited number of providers capable of operating in challenging environments. Comparable spending benchmarks would involve analyzing other DoD contracts for similar services in overseas locations, considering factors like volume, duration, and security requirements.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not detailed in this summary, but typically, larger prime contractors are encouraged or required to engage small businesses for a portion of the work.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) and the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is facilitated through contract award databases, though detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Operations Support
OCONUS Base Operations Support
Global Supply Chain Management
Contingency Logistics Services

Risk Flags

Limited competition due to SAP procedures.
Potential for cost inefficiencies if market is not fully explored.
Oversight challenges in remote OCONUS locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to CROWLEY ENERGY ANCHORAGE, LLC. 8511057962!OCONUS COCO STORAGE SERVICES

Who is the contractor on this award?

The obligated recipient is CROWLEY ENERGY ANCHORAGE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2025-02-19. End: 2026-01-31.

What is the historical spending pattern for OCONUS COCO storage services by the Department of Defense?

Analyzing historical spending for OCONUS COCO storage services by the Department of Defense requires access to detailed procurement data over several fiscal years. This would involve identifying previous contracts for similar services, noting the awarded amounts, contract types, and durations. Trends in spending can reveal whether the DoD is increasing or decreasing its reliance on such services, potentially influenced by geopolitical events, troop deployments, or changes in logistical strategies. Comparing current spending to historical averages can help determine if the $227.9 million award is an outlier or part of a consistent investment. Without specific historical data, it's difficult to provide precise figures, but such analysis is crucial for understanding the long-term budgetary implications and strategic importance of these services.

How does the per-unit cost of this contract compare to similar warehousing contracts in other OCONUS locations?

Determining the per-unit cost for this contract requires breaking down the total award value by the quantity of units provided. For warehousing and storage, 'units' could refer to square footage, cubic feet, or standardized storage containers. The contract data does not specify these units or quantities. Therefore, a direct per-unit cost comparison is not feasible with the information provided. To perform such a comparison, one would need to obtain the detailed contract line item details, including the price per unit of service (e.g., price per square foot per month). Subsequently, this rate would be benchmarked against publicly available contract data for similar services in other OCONUS regions, considering variations in operational costs, security requirements, and market competition specific to each location.

What are the specific risks associated with providing storage services in OCONUS locations, and how are they mitigated in this contract?

Providing storage services in OCONUS locations presents several inherent risks, including geopolitical instability, logistical challenges due to remote locations, potential for natural disasters, security threats, and compliance with local regulations. For this contract, the firm fixed-price (FFP) structure inherently shifts some financial risk to the contractor, incentivizing them to manage operational costs effectively. The contract's duration (over one year) suggests a need for robust contingency planning by the contractor. Specific mitigation strategies would likely be detailed within the contract's performance work statement (PWS), outlining requirements for security protocols, inventory management systems, disaster recovery plans, and compliance with international and local laws. The Defense Logistics Agency's oversight would also play a critical role in monitoring contractor performance and ensuring risks are managed.

What is the track record of Crowley Energy Anchorage, LLC in performing similar government contracts, particularly for logistics and storage?

Crowley Energy Anchorage, LLC, as part of the broader Crowley Maritime Corporation, has a significant history of providing logistics, transportation, and energy services, often in challenging or remote environments, including Alaska and international locations. Their experience often involves complex supply chain management, vessel operations, and infrastructure support. While specific details on their past performance for OCONUS COCO storage services would require a deeper dive into contract databases like SAM.gov or FPDS, their established presence in government contracting suggests a capacity to handle such requirements. Assessing their track record would involve reviewing past contract awards, performance evaluations (if publicly available), and any history of contract disputes or terminations to gauge their reliability and expertise in fulfilling government needs.

How does the competition level under Simplified Acquisition Procedures (SAP) typically impact pricing and value for taxpayers?

Simplified Acquisition Procedures (SAP) are designed for purchases up to a certain dollar threshold (currently $250,000, but can be higher for certain agencies or circumstances) to streamline the procurement process and reduce administrative burden. While SAP can lead to faster awards and potentially lower administrative costs for the government, it often involves a more limited number of bidders compared to full and open competition. This reduced competition can sometimes lead to less aggressive pricing from contractors, as the incentive to offer the lowest possible price to win a bid is diminished. Consequently, taxpayers might not always receive the maximum value for money achievable through a broader, more competitive solicitation. The specific impact depends on the market dynamics for the goods or services being procured and the number of qualified vendors actively participating under SAP.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9487 REGENCY SQUARE BLVD, JACKSONVILLE, FL, 32225

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

Financial Breakdown

Contract Ceiling: $22,793,355

Exercised Options: $22,793,355

Current Obligation: $22,793,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline