DoD's $20.5M logistics consulting contract awarded via full and open competition, spanning over three years

Contract Overview

Contract Amount: $20,493,443 ($20.5M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-06-05

End Date: 2015-12-05

Contract Duration: 1,278 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDES 12 BCAT TEAMS, MOBILIZATION, AND DBA INSURANCE -

Plain-Language Summary

Department of Defense obligated $20.5 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: PROVIDES 12 BCAT TEAMS, MOBILIZATION, AND DBA INSURANCE - Key points: 1. The contract's value of $20.5 million for logistics consulting services indicates a significant investment in operational efficiency. 2. Full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The duration of 1278 days (over three years) implies a need for sustained support and complex project management. 4. The fixed-price contract type shifts performance risk to the contractor, encouraging efficient delivery. 5. The absence of specific small business set-asides warrants further investigation into subcontracting opportunities. 6. The contract's focus on logistics, mobilization, and insurance highlights critical support functions for military operations.

Value Assessment

Rating: good

The contract's total value of $20.5 million over approximately 3.5 years averages to about $5.86 million annually. Benchmarking this against similar large-scale logistics consulting contracts for the Department of Defense is challenging without more specific service details. However, the firm-fixed-price nature suggests that the government has negotiated a price for a defined scope, and the contractor bears the risk of cost overruns. The value appears reasonable for a multi-year, comprehensive logistics support requirement, assuming the scope of work is substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment. The agency sought proposals from a wide range of potential contractors, which should have allowed for price discovery and selection of the most advantageous offer based on a combination of price and technical factors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby optimizing the use of public funds.

Public Impact

The Department of Defense benefits from enhanced logistical capabilities, including improved mobilization and insurance processes. Military readiness is supported through the provision of 12 dedicated BCAT (Battlefield Coordination Assistance Team) teams. The contract ensures the availability of critical services for domestic operations and deployment readiness. Workforce implications include the potential for specialized logistics personnel to be engaged in supporting defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the awarded contractor(s) hinders a full assessment of their track record in similar large-scale logistics contracts.
The 'undisclosed' domestic awardees prevent a clear understanding of the specific expertise and capacity brought to bear.
Without knowing the number of bidders, it's difficult to definitively assess the intensity of competition and its impact on price.
The broad description of services ('Process, Physical Distribution, and Logistics Consulting Services') could encompass a wide range of activities, making precise value assessment difficult.

Positive Signals

Awarded under 'full and open competition,' suggesting a broad market engagement and potential for competitive pricing.
The contract is 'firm fixed price,' which typically aligns contractor incentives with cost control and efficient delivery.
The contract duration of over three years indicates a stable, long-term requirement for these critical logistics services.
The provision of 12 BCAT teams points to a substantial and specific operational need being met.
The inclusion of DBA (Defense Base Act) insurance coverage demonstrates a comprehensive approach to managing risks associated with deployed personnel.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics consulting. The market for defense logistics support is substantial, driven by the complex global operational requirements of the U.S. military. Comparable spending benchmarks would typically involve other large-scale support contracts for the Department of Defense, often involving multiple years and significant dollar values. The $20.5 million over 3.5 years represents a moderate investment within the broader defense logistics and consulting landscape.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests that the primary competition was open to all responsible sources, including large businesses. While there is no explicit requirement for small business subcontracting mentioned in the summary data, large prime contractors are often encouraged or required by agency policy to engage small businesses. Further review of the contract's terms and conditions would be necessary to determine specific subcontracting goals or opportunities for small businesses within this engagement.

Oversight & Accountability

The contract is a definitive contract, suggesting it has undergone a formal award process. As a Department of Defense contract, it is subject to oversight from the Department of Defense Office of Inspector General (DoD OIG), which conducts audits and investigations to ensure economy and efficiency. Transparency regarding the specific awardees and the detailed scope of work would enhance public accountability. The firm-fixed-price nature provides a degree of accountability by fixing the cost for the defined services.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Military Sealift Command (MSC) Contracts
Army Materiel Command (AMC) Logistics Services
Global Contingency Logistics Support
Supply Chain Management Consulting Services

Risk Flags

Lack of specific contractor identification
Ambiguity in service scope definition
Number of bidders not specified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to DOMESTIC AWARDEES (UNDISCLOSED). PROVIDES 12 BCAT TEAMS, MOBILIZATION, AND DBA INSURANCE -

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2012-06-05. End: 2015-12-05.

What specific types of logistics consulting services were provided under this contract, and how did they contribute to the Army's operational readiness?

The contract description indicates services related to 'Process, Physical Distribution, and Logistics Consulting Services,' including the provision of '12 BCAT TEAMS, MOBILIZATION, AND DBA INSURANCE.' BCAT teams typically provide battlefield coordination and assistance, suggesting a focus on operational planning and support during deployments or exercises. The 'mobilization' aspect likely refers to the processes and strategies for preparing and deploying forces and equipment. DBA insurance is crucial for personnel deployed in overseas locations. These services collectively aim to enhance the efficiency, effectiveness, and safety of military logistics operations, thereby directly contributing to the Army's overall operational readiness by ensuring that resources and personnel are positioned and supported correctly.

How does the $20.5 million contract value compare to similar logistics consulting services procured by the Department of Defense?

Direct comparison of the $20.5 million value is difficult without knowing the precise scope and duration of services provided by other contracts. However, this value over approximately 3.5 years (1278 days) represents an average annual expenditure of roughly $5.86 million. Large-scale logistics and consulting contracts for the Department of Defense can range from tens of millions to billions of dollars, depending on the complexity, duration, and criticality of the services. For instance, major supply chain management or strategic logistics planning contracts often exceed this amount. Given the provision of 12 BCAT teams and mobilization support, this contract appears to be of moderate to significant size within the specialized logistics support domain, likely focused on specific operational needs rather than broad enterprise-wide transformation.

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

While firm-fixed-price (FFP) contracts are generally favored for shifting cost risk to the contractor, they can introduce other risks, especially for complex services like logistics consulting. If the scope of work is not precisely defined or if unforeseen complexities arise during performance, the contractor may struggle to deliver within the fixed price. This could lead to pressure on quality, potential for contractor disputes over scope changes, or even contractor default if the project becomes unprofitable. For the government, the risk lies in potentially paying a premium for the contractor's risk assumption, and ensuring that the defined scope adequately covers all necessary services. Robust contract management and clear performance metrics are essential to mitigate these risks.

What does the 'full and open competition' award type imply about the contractor's selection and potential value for taxpayers?

Awarding this contract through 'full and open competition' signifies that the Department of the Army allowed any responsible business to submit a proposal. This broad approach maximizes the potential applicant pool, increasing the likelihood of receiving competitive bids and innovative solutions. For taxpayers, this typically translates to better value, as competition drives down prices and encourages contractors to offer the most advantageous combination of cost and performance. It suggests that the Army sought the best possible solution available in the market, rather than being limited to a pre-selected group of vendors, which is a positive indicator for efficient use of public funds.

Given the contract's duration and focus, what might historical spending patterns reveal about the Army's investment in similar logistics support?

Historical spending patterns for similar logistics support contracts by the Army would likely show a consistent need for specialized services related to mobilization, deployment, and operational readiness. The Army frequently procures contracts for supply chain management, transportation, warehousing, and consulting services to maintain its global posture. A multi-year contract like this ($20.5M over ~3.5 years) suggests a recurring or sustained requirement rather than a one-off need. Analyzing past spending on BCAT teams, mobilization planning, or related consulting could reveal trends in investment levels, the types of contractors historically used, and the average cost per unit of service, providing context for the current contract's value and necessity.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 18

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

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

Financial Breakdown

Contract Ceiling: $20,493,443

Exercised Options: $20,493,443

Current Obligation: $20,493,443

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: YES

Timeline