DoD's $16.7M logistics consulting contract awarded to SAVI TECHNOLOGY, INC. for firm-fixed-price services

Contract Overview

Contract Amount: $16,771,505 ($16.8M)

Contractor: Savi Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-01-29

End Date: 2011-01-31

Contract Duration: 1,098 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LABOR

Place of Performance

Location: ROCK ISLAND, ROCK ISLAND County, ILLINOIS, 61299, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to SAVI TECHNOLOGY, INC. for work described as: LABOR Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty for the government. 2. The contract duration of 1098 days suggests a significant, ongoing need for logistics consulting. 3. Awarded under full and open competition, indicating a broad market search. 4. The North American Industry Classification System (NAICS) code 541614 points to specialized consulting in process and logistics. 5. The contract was awarded to SAVI TECHNOLOGY, INC., a single entity. 6. The contract was awarded in Illinois, potentially indicating a specific operational focus or regional requirement.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed service descriptions and comparable contract data. The firm-fixed-price structure is generally favorable for cost control. However, the raw dollar amount of $16.7 million over nearly three years for consulting services requires scrutiny to ensure it aligns with the scope and deliverables. Without specific performance metrics or comparisons to similar engagements, assessing the true value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and encourage competitive pricing. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive environment was sought.

Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting a more competitive bidding process, which can lead to lower prices and better overall value for the government's investment.

Public Impact

The Department of the Army benefits from enhanced process, physical distribution, and logistics consulting services. This contract supports the operational efficiency and effectiveness of military logistics. The services delivered are expected to improve supply chain management and resource allocation within the Army. The geographic impact is likely centered around the Department of the Army's operational areas, with potential implications for national defense readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness and impact on logistics improvements.
The broad nature of 'Process, Physical Distribution, and Logistics Consulting Services' could lead to scope creep if not tightly managed.
Reliance on a single contractor for a significant duration may pose a risk if service quality degrades or if the contractor faces financial instability.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield fair pricing.
Firm-fixed-price contract type provides cost certainty for the government, mitigating budget risks.
The contract's duration suggests a sustained need and potential for long-term partnership in improving logistics capabilities.

Sector Analysis

The logistics consulting sector is a critical component of the defense industry, focusing on optimizing supply chains, transportation, and distribution networks. This contract falls within the professional services segment of the defense market. Spending in this area is driven by the need for efficiency, cost reduction, and enhanced operational readiness. Comparable spending benchmarks would typically involve analyzing other large-scale consulting contracts awarded by defense agencies for similar services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, SAVI TECHNOLOGY, INC., is likely a larger entity, and opportunities for small businesses would depend on their subcontracting plans, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program 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 award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Military Transportation and Distribution Services
Supply Chain Management Consulting
Department of Defense IT and Professional Services

Risk Flags

Potential for scope creep due to broad service description.
Lack of specific performance metrics makes value assessment difficult.
Reliance on a single contractor for a long duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to SAVI TECHNOLOGY, INC.. LABOR

Who is the contractor on this award?

The obligated recipient is SAVI TECHNOLOGY, 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 $16.8 million.

What is the period of performance?

Start: 2008-01-29. End: 2011-01-31.

What specific logistics challenges was SAVI TECHNOLOGY, INC. contracted to address for the Department of the Army?

The contract's NAICS code (541614) indicates services related to 'Process, Physical Distribution, and Logistics Consulting.' This broad category suggests SAVI TECHNOLOGY, INC. was likely engaged to analyze, optimize, and provide recommendations for the Army's supply chain, transportation networks, warehousing, inventory management, and distribution processes. Specific challenges could range from improving the efficiency of troop deployment logistics, optimizing the flow of equipment and supplies, reducing transportation costs, enhancing inventory accuracy, or implementing new logistics technologies and methodologies. Without the detailed statement of work, the precise nature of the problems being solved remains general, but the focus is clearly on enhancing the operational effectiveness and efficiency of the Army's logistical functions.

How does the $16.7 million contract value compare to typical spending on similar logistics consulting services within the Department of Defense?

Comparing the $16.7 million value requires context regarding the contract's duration and scope. This contract spans approximately three years (1098 days), making the annual value around $5.5 million. For large-scale consulting engagements within the Department of Defense, this figure is within a reasonable range, especially for specialized services like logistics optimization. However, 'typical' spending can vary significantly based on the complexity of the issues addressed, the level of expertise required, and the specific branch of service. Larger, more complex transformation initiatives or technology integration projects could easily exceed this amount. Conversely, smaller, more focused consulting tasks would be significantly less. Without specific benchmarks for 'Process, Physical Distribution, and Logistics Consulting Services' across the DoD, a definitive comparison is difficult, but it represents a substantial investment in improving logistical capabilities.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of SAVI TECHNOLOGY, INC.'s consulting services under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate SAVI TECHNOLOGY, INC.'s performance. Typically, for logistics consulting contracts, success metrics would be tied to improvements in efficiency, cost savings, delivery times, inventory accuracy, reduction in waste, or successful implementation of recommended process changes. These KPIs would be detailed in the contract's Statement of Work (SOW) and Quality Assurance Surveillance Plan (QASP). For example, metrics might include a target percentage reduction in transportation costs, a decrease in order fulfillment time, or an increase in inventory visibility. The absence of this information in the summary data limits a thorough assessment of the contractor's effectiveness and the tangible benefits delivered to the Department of the Army.

What is SAVI TECHNOLOGY, INC.'s track record with the Department of Defense and other federal agencies for similar consulting services?

Information on SAVI TECHNOLOGY, INC.'s specific track record with the Department of Defense (DoD) and other federal agencies for similar consulting services is not detailed in the provided data. To assess their track record, one would typically look at past performance evaluations, contract history, and any awards or debarments. A review of federal procurement databases (like SAM.gov or FPDS) would reveal other contracts awarded to SAVI TECHNOLOGY, INC., their values, durations, and the agencies they served. Positive past performance on similar logistics consulting contracts, especially within the DoD, would indicate a lower risk and a higher likelihood of successful contract execution. Conversely, a history of performance issues or disputes would raise concerns.

What is the potential risk associated with a firm-fixed-price contract for complex logistics consulting services?

The primary risk with a firm-fixed-price (FFP) contract for complex consulting services like logistics lies in the potential for an incomplete or poorly defined scope of work. If the consulting requirements are not meticulously detailed and understood upfront, the contractor may deliver services that do not fully meet the government's evolving needs, or the government may realize too late that the fixed price does not adequately cover the true complexity. This can lead to disputes, change orders, or a perception of poor value. While FFP provides cost certainty, it places a greater burden on the government to accurately define requirements and on the contractor to manage their internal costs effectively. For complex, knowledge-based services, there's a risk that the fixed price might not accommodate unforeseen challenges or the need for extensive research and analysis, potentially leading to compromises in quality or depth if not managed carefully.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3601 EISENHOWER AVE STE 280, ALEXANDRIA, VA, 22304

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,771,505

Exercised Options: $16,771,505

Current Obligation: $16,771,505

Parent Contract

Parent Award PIID: GS10F0404M

IDV Type: FSS

Timeline