DoD Awards $18.5M Contract to Action Logistics for Iraq Freight Services Under Full and Open Competition

Contract Overview

Contract Amount: $18,537,980 ($18.5M)

Contractor: Action Logistics Company

Awarding Agency: Department of Defense

Start Date: 2024-06-01

End Date: 2026-05-31

Contract Duration: 729 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HL9 TASK ORDER AWARD OF TOC 07 TO KGL FOR PERFORMANCE IN IRAQ.

Plain-Language Summary

Department of Defense obligated $18.5 million to ACTION LOGISTICS COMPANY for work described as: HL9 TASK ORDER AWARD OF TOC 07 TO KGL FOR PERFORMANCE IN IRAQ. Key points: 1. Contract awarded to Action Logistics Company for specialized freight trucking in Iraq. 2. The contract value is $18,537,980 over 729 days. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is Transportation, specifically long-distance trucking services.

Value Assessment

Rating: fair

The contract value of $18.5M for 729 days of specialized freight services in Iraq appears reasonable given the operational complexities and risks associated with the region. Benchmarking against similar long-distance, specialized freight contracts in austere environments is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of a Firm Fixed Price contract further incentivizes the contractor to manage costs effectively.

Taxpayer Impact: Full and open competition is expected to yield a fair price, maximizing taxpayer value for essential logistics support in a challenging operational theater.

Public Impact

Ensures critical supply chain operations for U.S. forces in Iraq. Supports military readiness and operational effectiveness through reliable transportation. Potential for economic impact in the region through local subcontracting or employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical risks in Iraq impacting delivery timelines and costs.
Potential for unforeseen operational challenges in a high-risk environment.
Dependence on a single awardee for critical logistics.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type.
Clear performance period and defined scope.

Sector Analysis

This contract falls within the Transportation sector, specifically long-distance specialized freight trucking. Spending in this area is crucial for military operations, especially in overseas deployments. Benchmarks for similar services in austere environments are highly variable due to unique logistical challenges and risk premiums.

Small Business Impact

The data provided does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of the Army's contracting process, including the use of full and open competition and a firm fixed price contract, suggests a degree of oversight. However, ongoing monitoring of performance and cost control in Iraq will be critical for accountability.

Related Government Programs

Specialized Freight (except Used Goods) Trucking, Long-Distance
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Operational risks in Iraq (security, political instability).
Potential for cost overruns due to unforeseen circumstances.
Logistical complexities of specialized freight in a non-permissive environment.
Dependence on contractor performance for critical military support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to ACTION LOGISTICS COMPANY. HL9 TASK ORDER AWARD OF TOC 07 TO KGL FOR PERFORMANCE IN IRAQ.

Who is the contractor on this award?

The obligated recipient is ACTION LOGISTICS COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-05-31.

What is the historical performance of Action Logistics Company on similar DoD contracts, particularly in high-risk environments?

Assessing Action Logistics Company's past performance is crucial for understanding their capability to execute this contract successfully. Reviewing their track record on similar DoD contracts, especially those involving specialized freight in challenging or high-risk environments like Iraq, will provide insights into their reliability, efficiency, and ability to manage unforeseen issues. This historical data can inform the current risk assessment and validate the selection of this contractor.

How does the per-mile or per-ton cost compare to industry benchmarks for similar long-distance, specialized freight services in comparable operational theaters?

Benchmarking the cost against industry standards for similar long-distance, specialized freight services in comparable operational theaters is essential for validating value for money. Factors such as security, fuel, maintenance, and regulatory compliance in regions like Iraq significantly influence pricing. A detailed cost-benefit analysis comparing this contract's rates to established benchmarks will reveal if the $18.5M award represents a competitive and efficient use of taxpayer funds.

What are the specific contingency plans and risk mitigation strategies Action Logistics Company has in place to address potential disruptions in Iraq?

Given the inherent risks associated with operating in Iraq, understanding Action Logistics Company's contingency plans and risk mitigation strategies is paramount. This includes their protocols for security threats, supply chain disruptions, vehicle maintenance, personnel safety, and adherence to local regulations. Robust plans demonstrate preparedness and contribute to the overall effectiveness and reliability of the contracted services, ensuring mission continuity.

Industry Classification

NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Long-Distance

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BLOCK 4, MANSOUR SAAD ALBANAQ STR PLOT 9334, JAHRA

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,537,980

Exercised Options: $18,537,980

Current Obligation: $18,537,980

Actual Outlays: $2,374,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W519TC23D0033

IDV Type: IDC

Timeline