DoD's $18.6M logistics consulting contract with Hurricane Consulting, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $18,595,464 ($18.6M)

Contractor: Hurricane Consulting, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AMCOM FLEET MAINTENANCE CENTER

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33647

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to HURRICANE CONSULTING, INC. for work described as: AMCOM FLEET MAINTENANCE CENTER Key points: 1. Contract awarded for logistics consulting services, indicating a need for specialized expertise in supply chain and operational efficiency. 2. The contract's duration of 5 years suggests a long-term strategic requirement for these services. 3. Awarded under 'full and open competition after exclusion of sources,' this implies a competitive process with specific justifications for excluding certain sources. 4. The 'Cost Plus Fixed Fee' pricing structure can incentivize cost control by the contractor while ensuring a defined profit margin. 5. The contract's value of $18.6 million over five years requires careful monitoring to ensure value for money. 6. The specific NAICS code 541614 points to a focus on process, physical distribution, and logistics consulting.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar logistics consulting engagements within the Department of Defense. The 'Cost Plus Fixed Fee' structure, while common, can sometimes lead to higher costs if not managed diligently. Without specific performance metrics or comparisons to industry standards for similar services, it's difficult to definitively assess value for money. The contract's value of approximately $3.7 million per year for logistics consulting is substantial and warrants close scrutiny of deliverables and outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This designation suggests that while the competition was intended to be broad, specific sources may have been excluded for documented reasons. The number of bidders is not provided, which limits the assessment of the true level of competition. A limited competition, even if initially open, may not yield the most competitive pricing compared to a truly unrestricted full and open process.

Taxpayer Impact: Taxpayers benefit from a competitive process, but the exclusion of sources warrants scrutiny to ensure that the most advantageous offers were considered and that the exclusion did not unduly limit price discovery.

Public Impact

The primary beneficiaries are the Department of the Army's logistics operations, which will receive enhanced process and distribution consulting. Services delivered will focus on improving the efficiency and effectiveness of physical distribution and logistics processes. The geographic impact is likely concentrated within the operational areas supported by the AMCOM Fleet Maintenance Center, primarily Florida. Workforce implications may include the need for internal staff to collaborate with the contractor and potentially adopt new processes or technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee structure if not rigorously managed.
The 'exclusion of sources' in the competition raises questions about whether the most competitive pricing was achieved.
Lack of specific performance metrics makes it challenging to assess the true value and effectiveness of the consulting services.
The long duration of the contract could lead to vendor lock-in or a decrease in contractor urgency over time.

Positive Signals

Awarded through a competitive process, indicating an effort to secure qualified services.
The contract addresses a critical need for logistics optimization within the Department of Defense.
The fixed fee component provides a degree of predictability in contractor profit.
The contractor, Hurricane Consulting, Inc., is being engaged for specialized logistics consulting expertise.

Sector Analysis

The logistics consulting sector within government contracting is vital for optimizing supply chains and operational efficiencies. This contract falls under professional services, specifically management and financial consulting, with a focus on logistics. The market for such services is competitive, with numerous firms offering expertise in process improvement, distribution, and supply chain management. The Department of Defense is a significant client in this sector, often awarding large, long-term contracts to address complex operational needs. Benchmarking would involve comparing this contract's value and scope to similar engagements for logistics optimization within other federal agencies or large private sector organizations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. The primary contractor, Hurricane Consulting, Inc., is likely a larger entity if it was not subject to small business size standards for this particular award. Analysis of subcontracting opportunities would require further investigation into the prime contractor's practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Department of Defense Logistics Modernization Programs
Army Supply Chain Management Initiatives
Fleet Maintenance and Readiness Contracts
Professional Services Contracts for Government Operations

Risk Flags

Potential for cost overruns in CPFF contract.
Limited competition due to source exclusion.
Lack of detailed performance metrics.
Long contract duration may reduce urgency.
Effectiveness dependent on contractor expertise and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to HURRICANE CONSULTING, INC.. AMCOM FLEET MAINTENANCE CENTER

Who is the contractor on this award?

The obligated recipient is HURRICANE CONSULTING, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

What is the track record of Hurricane Consulting, Inc. with federal contracts, particularly in logistics consulting?

A review of federal procurement data would be necessary to fully assess Hurricane Consulting, Inc.'s track record. This would involve examining past contract awards, performance evaluations (if available), and any history of contract disputes or terminations. Understanding their experience with similar-sized contracts, specific logistics challenges, and their performance in Cost Plus Fixed Fee arrangements would provide crucial context. Without this specific data, it's difficult to gauge their reliability and expertise beyond the current award. A deeper dive into their contract history would reveal their success in delivering services within budget and schedule on previous government engagements.

How does the $18.6 million contract value compare to similar logistics consulting services procured by the DoD or other federal agencies?

Benchmarking this $18.6 million contract requires comparing it against contracts for similar logistics consulting services, considering factors like duration, scope of work, and the specific expertise required. For a 5-year engagement, this averages approximately $3.7 million annually. Similar large-scale logistics optimization projects within the DoD or other agencies can range significantly, from a few million to tens of millions of dollars, depending on complexity and scale. Without a detailed breakdown of the services provided and the specific challenges addressed, a precise comparison is difficult. However, the value suggests a significant undertaking, likely involving comprehensive analysis and implementation support for complex logistical operations.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for logistics consulting?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee provides a defined profit margin. While the government pays the allowable costs, the contractor has less incentive to aggressively control costs compared to fixed-price contracts. For logistics consulting, risks include scope creep, where the project expands beyond its original definition, leading to increased costs and potentially delayed timelines. Contractor performance is also a risk; if the consultant provides suboptimal advice or fails to deliver expected efficiencies, the investment may not yield the desired return. Effective oversight and clear performance metrics are crucial to mitigate these risks.

What specific performance metrics or deliverables are expected under this contract to ensure program effectiveness?

The provided data does not detail the specific performance metrics or deliverables for this contract. Typically, a contract of this nature would include requirements for detailed operational analyses, process improvement recommendations, implementation plans, and potentially quantifiable targets for efficiency gains (e.g., reduced transit times, lower inventory costs, improved delivery accuracy). The effectiveness of the program hinges on the clarity and measurability of these metrics and the contractor's ability to meet them. Without this information, assessing program effectiveness is speculative. The contracting officer's representative (COR) would be responsible for monitoring adherence to the statement of work and evaluating the quality of deliverables.

How has the Department of the Army's spending on logistics consulting services evolved over the past five years?

Analyzing the Department of the Army's spending on logistics consulting services over the past five years would require accessing historical procurement data. This would involve filtering federal spending databases for contracts awarded by the Army with NAICS codes related to logistics consulting (e.g., 541614). Trends could reveal an increase or decrease in reliance on external consultants, shifts in the types of services procured, or changes in average contract values. Such an analysis could indicate whether this $18.6 million contract represents a continuation of existing spending patterns, a significant increase, or a response to specific evolving logistical challenges within the Army.

What is the significance of the 'Process, Physical Distribution, and Logistics Consulting Services' NAICS code (541614) in the context of this contract?

The NAICS code 541614 specifically identifies the industry sector for 'Process, Physical Distribution, and Logistics Consulting Services.' This designation clarifies that the contract's primary purpose is to engage external expertise for optimizing how goods and materials are moved, stored, and managed throughout a supply chain. It encompasses a broad range of activities, including supply chain strategy, network design, inventory management, transportation management, warehousing, and order fulfillment. For the Department of the Army, this means the contractor is expected to provide advice and solutions aimed at making these critical functions more efficient, cost-effective, and responsive to operational needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W31P4Q21R0029

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 15310 AMBERLY DR STE 250, TAMPA, FL, 33647

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $34,864,219

Exercised Options: $18,595,464

Current Obligation: $18,595,464

Actual Outlays: $2,104,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline