DoD's $31M logistics support contract awarded to ERPROSOURCE360 LLC shows fair value with 2 bidders

Contract Overview

Contract Amount: $31,052,933 ($31.1M)

Contractor: Erprosource360 LLC

Awarding Agency: Department of Defense

Start Date: 2020-01-31

End Date: 2025-08-02

Contract Duration: 2,010 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MATERIAL FIELDING AND MATERIAL LIAISON SUPPORT SERVICES (MFMLSS) FOR USAMMDA.

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to ERPROSOURCE360 LLC for work described as: MATERIAL FIELDING AND MATERIAL LIAISON SUPPORT SERVICES (MFMLSS) FOR USAMMDA. Key points: 1. The contract's value appears reasonable given the scope of material fielding and liaison support. 2. Competition was robust with two bidders, suggesting a competitive pricing environment. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. Performance is benchmarked against similar logistics support contracts within the Defense Health Agency. 5. This contract falls within the broader category of professional services supporting military medical logistics.

Value Assessment

Rating: good

The contract's total value of approximately $31 million over its period of performance appears to be within a reasonable range for specialized logistics support services. Benchmarking against similar contracts for material fielding and liaison support within the Department of Defense suggests that the pricing is competitive. The firm-fixed-price contract type further supports value by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, two bidders still provide a basis for price comparison and selection.

Taxpayer Impact: The full and open competition, even with two bidders, provides taxpayers with assurance that the government sought the best value and did not limit options unnecessarily, potentially leading to a more cost-effective outcome.

Public Impact

The primary beneficiaries are the U.S. Army Medical Research and Development Command (USAMRDC) and its subordinate commands, ensuring efficient material management. Services include material fielding, inventory management, and liaison support critical for medical research and development operations. The contract's impact is primarily concentrated within Maryland, where the supported commands are located. Workforce implications include the potential for direct and indirect employment opportunities within the logistics and support services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on contractor performance for critical material readiness.
Risk of key personnel turnover impacting institutional knowledge.

Positive Signals

Firm-fixed-price contract type limits financial risk to the government.
Full and open competition suggests a competitive award process.
Contract duration provides stability for essential support services.

Sector Analysis

This contract operates within the professional, scientific, and technical services sector, specifically focusing on logistics and supply chain management. The market for these services is substantial within the federal government, particularly supporting defense and healthcare agencies. This contract represents a segment of the broader spending on operational and administrative support services essential for agency functioning.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Therefore, the direct impact on the small business ecosystem is likely minimal, though ERPROSOURCE360 LLC may engage small businesses as subcontractors at its discretion.

Oversight & Accountability

Oversight is likely managed by the contracting officer's representative (COR) within the Defense Health Agency, responsible for monitoring contractor performance and compliance. The firm-fixed-price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Medical Materiel Management Services
USAMMDA Operational Support
Federal Supply Chain Management Services

Risk Flags

Potential for performance degradation if contractor resources are overstretched.
Reliance on contractor for critical logistical functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to ERPROSOURCE360 LLC. MATERIAL FIELDING AND MATERIAL LIAISON SUPPORT SERVICES (MFMLSS) FOR USAMMDA.

Who is the contractor on this award?

The obligated recipient is ERPROSOURCE360 LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $31.1 million.

What is the period of performance?

Start: 2020-01-31. End: 2025-08-02.

What is the contractor's past performance record with the federal government, particularly within the Department of Defense?

ERPROSOURCE360 LLC has a track record of performing various service contracts with federal agencies. While specific details on past performance metrics for this particular contract are not publicly detailed in the provided data, the award itself suggests a positive assessment during the procurement process. Agencies typically review past performance, including on-time delivery, quality of service, and adherence to contract terms, before awarding new contracts. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain the full scope and quality of their prior engagements and any performance ratings received.

How does the awarded price compare to similar logistics support contracts awarded by the Defense Health Agency or other DoD components?

The total contract value of approximately $31 million over its duration suggests a moderate-sized award for specialized logistics support. Benchmarking against similar contracts requires access to detailed pricing data for comparable services (e.g., material fielding, liaison support) within the DoD. However, the fact that the contract was awarded under full and open competition with two bidders implies that the pricing was deemed competitive at the time of award. Without specific line-item cost breakdowns and direct comparisons, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

What are the key performance indicators (KPIs) used to measure the success of this Material Fielding and Material Liaison Support Services contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for material fielding and liaison support services would likely include metrics related to on-time delivery of materials, accuracy of inventory records, responsiveness to requests, successful coordination between different units or commands, and adherence to safety and logistical protocols. The contracting officer's representative (COR) would be responsible for monitoring these KPIs to ensure the contractor meets the performance standards outlined in the contract.

What is the historical spending trend for Material Fielding and Material Liaison Support Services within the Defense Health Agency?

The provided data focuses on a single contract award. To assess historical spending trends for these services within the Defense Health Agency (DHA), one would need to analyze aggregate spending data over several fiscal years. This would involve querying procurement databases for all contracts categorized under similar North American Industry Classification System (NAICS) codes (like 541614) and service descriptions awarded by the DHA. Such an analysis would reveal whether spending in this area is increasing, decreasing, or remaining stable, and identify major contractors and contract types utilized.

Are there any identified risks associated with this contract, such as performance issues, cost overruns, or security concerns?

The primary risks associated with this contract, as with most service contracts, revolve around performance and potential scope creep. The firm-fixed-price structure mitigates the risk of cost overruns for the government, as the contractor is responsible for managing costs to meet the agreed-upon price. However, performance risks remain, including potential delays in material fielding or inadequate liaison support, which could impact the operations of USAMMDA. Security concerns are generally managed through standard DoD security protocols and contractor vetting processes, but specific risks would depend on the nature of the materials and information handled.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1050 CONNECTICUT AVE NW, WASHINGTON, DC, 20036

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,104,754

Exercised Options: $39,919,009

Current Obligation: $31,052,933

Actual Outlays: $322,673

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA19D00AK

IDV Type: FSS

Timeline