DoD's $28.3M logistics support contract for Fort Huachuca awarded to SAWTST LLC

Contract Overview

Contract Amount: $28,300,874 ($28.3M)

Contractor: Sawtst LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-01

End Date: 2026-02-28

Contract Duration: 2,006 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EAGLE FORT HUACHUCA LOGISTICS SUPPORT SERVICES TO INCLUDE MAINTENANCE, SUPPLY AND TRANSPORTATION.

Place of Performance

Location: NEWNAN, COWETA County, GEORGIA, 30265

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to SAWTST LLC for work described as: EAGLE FORT HUACHUCA LOGISTICS SUPPORT SERVICES TO INCLUDE MAINTENANCE, SUPPLY AND TRANSPORTATION. Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risk. 3. The duration of the contract, spanning from September 2020 to February 2026, suggests a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 561210 points to Facilities Support Services, a broad category. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract. 6. The base contract value is $28.3 million, with a potential for growth through subsequent orders.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty, but the cost-reimbursement aspect requires diligent oversight to prevent overspending. Comparing this to similar logistics support contracts at other military installations would provide a clearer picture of its cost-effectiveness. The total award value of $28.3 million over its period of performance needs to be assessed against the scope and quality of services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the intent was open competition, certain sources may have been excluded for reasons not immediately apparent from the provided data. It implies a competitive process occurred, but the level of competition might have been constrained. The number of bidders (10) indicates some interest, but the 'exclusion of sources' clause warrants further investigation into the fairness and breadth of the competition.

Taxpayer Impact: Taxpayers benefit from a competitive process, which generally leads to better pricing. However, the exclusion of sources could potentially limit the most competitive offers, impacting the overall value for taxpayer dollars.

Public Impact

Military personnel and operations at Fort Huachuca benefit from reliable logistics, maintenance, supply, and transportation services. The contract supports the operational readiness and efficiency of the U.S. Army installation. The services provided are crucial for the day-to-day functioning of the base, impacting various support functions. The contract likely supports a workforce of civilian employees and potentially subcontractors involved in logistics and facility management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
The 'exclusion of sources' in the competition method raises questions about the extent of market engagement.
Lack of detailed performance metrics makes it difficult to assess the true value for money.
Potential for scope creep in Cost Plus contracts if not clearly defined and monitored.

Positive Signals

Awarded through a competitive process, indicating an effort to secure market-based pricing.
The contract duration suggests a stable and predictable service provision for the installation.
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of government operations, particularly for large military installations. The market for these services is substantial, encompassing a wide range of support functions from maintenance to transportation. This specific contract represents a significant portion of spending for logistics and facility management at Fort Huachuca, contributing to the overall defense infrastructure spending within the sector. Comparable contracts at other Army posts would likely show similar structures and values, reflecting the standardized needs of military bases.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this contract. There is no explicit mention of small business subcontracting goals. This suggests that the primary focus was on full and open competition, and the impact on the small business ecosystem may be limited unless the prime contractor, SAWTST LLC, voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be embedded in the contract's terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases, but detailed operational oversight and Inspector General (IG) jurisdiction would depend on specific contract clauses and any identified performance issues or fraud concerns.

Related Government Programs

Base Operations Support Services
Logistics and Supply Chain Management Contracts
Facilities Maintenance and Repair Contracts
Transportation Services Contracts
Department of Defense Installation Support

Risk Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure.
Limited transparency on the rationale for 'exclusion of sources' in competition.
Lack of readily available performance metrics to assess value for money.
Potential for contractor performance issues if not rigorously overseen.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to SAWTST LLC. EAGLE FORT HUACHUCA LOGISTICS SUPPORT SERVICES TO INCLUDE MAINTENANCE, SUPPLY AND TRANSPORTATION.

Who is the contractor on this award?

The obligated recipient is SAWTST LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2020-09-01. End: 2026-02-28.

What is the track record of SAWTST LLC in performing similar logistics support services for the Department of Defense?

Assessing SAWTST LLC's track record requires a review of their past performance on similar contracts. This would involve examining past performance evaluations, any documented issues or disputes, and their history with cost control and timely delivery. Information on previous contracts, including their value, duration, and scope, would be crucial. A positive track record would indicate a lower risk for this current contract, while a history of performance issues might raise concerns about SAWTST LLC's ability to meet the requirements effectively and efficiently at Fort Huachuca.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry benchmarks for similar logistics support services?

Cost Plus Fixed Fee (CPFF) contracts are common in government contracting, especially when the scope of work is not precisely defined or is subject to change. However, CPFF contracts carry inherent risks of cost overruns as the government bears the majority of the cost risk. Benchmarking this contract's fixed fee against the total contract value and comparing the overall cost structure to fixed-price or other contract types for similar services would be necessary. Industry best practices often favor performance-based contracts or firm-fixed-price where possible to incentivize efficiency and cost control, making CPFF a point of scrutiny.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate SAWTST LLC's service delivery?

The effectiveness and value of this contract are heavily reliant on the specific performance metrics and KPIs established within the contract. These metrics should objectively measure the quality, timeliness, and efficiency of maintenance, supply, and transportation services. Without access to these KPIs, it's difficult to ascertain if SAWTST LLC is meeting expectations or if the government is receiving optimal value. A robust set of KPIs, coupled with regular performance reviews, is essential for managing a CPFF contract effectively and ensuring accountability.

What is the historical spending trend for logistics support services at Fort Huachuca over the past five years?

Analyzing historical spending trends for logistics support at Fort Huachuca provides crucial context for the current $28.3 million award. Understanding whether this contract represents an increase, decrease, or stable level of spending compared to previous years helps identify potential shifts in requirements or cost efficiencies. If spending has significantly increased, it warrants an investigation into the drivers, such as expanded mission scope or rising costs. Conversely, a decrease might suggest improved efficiency or reduced needs. This historical data is vital for assessing the reasonableness of the current contract's value.

What is the potential impact of the 'exclusion of sources' clause on the overall competitiveness and cost-effectiveness of this contract?

The 'exclusion of sources' clause in a 'full and open competition after exclusion of sources' award is a critical point of analysis. While it implies a competitive process was intended, the exclusion of specific potential bidders could limit the range of offers received. This limitation might result in higher prices than could have been achieved in a truly unrestricted competition. Understanding the rationale behind the exclusion is paramount. If justified by specific technical requirements or past performance issues, it might be acceptable. However, if arbitrary, it could represent a missed opportunity for better value and raise concerns about fairness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4046 HIGHWAY 154 STE 230, NEWNAN, GA, 30265

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

Financial Breakdown

Contract Ceiling: $32,002,429

Exercised Options: $28,300,874

Current Obligation: $28,300,874

Actual Outlays: $24

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J17G0096

IDV Type: BOA

Timeline