DoD Awards $27M Logistics Contract to LMR Inc. for Office Admin Services
Contract Overview
Contract Amount: $27,020,788 ($27.0M)
Contractor: Logistics Management Resources Inc.
Awarding Agency: Department of Defense
Start Date: 2007-06-14
End Date: 2013-08-15
Contract Duration: 2,254 days
Daily Burn Rate: $12.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BASE PERIOD: LABOR TAS::21 2020::TAS
Place of Performance
Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.0 million to LOGISTICS MANAGEMENT RESOURCES INC. for work described as: BASE PERIOD: LABOR TAS::21 2020::TAS Key points: 1. Contract awarded to Logistics Management Resources Inc. (LMR) for office administrative services. 2. The contract has a base period value of $27,020,787.55. 3. Awarded by the Department of the Army, part of the Department of Defense. 4. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 5. This contract was awarded under full and open competition.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for reimbursement of costs plus a fixed fee. This can lead to higher overall costs compared to fixed-price contracts if not managed carefully. Benchmarking CPFF contracts for similar administrative services is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government. The presence of multiple bidders would have further supported this.
Taxpayer Impact: Taxpayer funds are used for this contract. While competition is a positive sign for cost efficiency, the CPFF structure requires diligent oversight to ensure value for money.
Public Impact
Ensures continued administrative support for Department of the Army operations. Supports a private sector company, Logistics Management Resources Inc., and its employees. The CPFF structure necessitates robust government oversight to control costs. Competition in awarding the contract suggests an effort to secure fair pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher spending.
- Long contract duration (over 6 years) may not reflect current market needs.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Contract provides essential administrative services.
- Established contract with a defined base period.
Sector Analysis
This contract falls under general administrative and support services. Benchmarking for office administrative services can vary widely based on scope and complexity. The $27 million value over the base period is significant for this category.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the prime contractor is expected to subcontract.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires strong government oversight to manage costs and ensure that the fixed fee remains appropriate. Regular performance reviews and cost audits are crucial for accountability.
Related Government Programs
- Office Administrative Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee structure
- Lack of small business participation noted
- Long contract duration may not be optimal
- Potential for cost overruns without strict oversight
Tags
office-administrative-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.0 million to LOGISTICS MANAGEMENT RESOURCES INC.. BASE PERIOD: LABOR TAS::21 2020::TAS
Who is the contractor on this award?
The obligated recipient is LOGISTICS MANAGEMENT RESOURCES 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 $27.0 million.
What is the period of performance?
Start: 2007-06-14. End: 2013-08-15.
What was the total value of the contract including all options, and how does this compare to similar administrative service contracts awarded by the DoD?
The provided data only specifies the base period value of $27,020,787.55. The total value including all options is not detailed. A comprehensive comparison would require access to the full contract details and a database of similar contracts, considering factors like service scope, duration, and geographic location to assess if the pricing is competitive.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context, and what mitigation strategies are in place?
The primary risk of CPFF is that the contractor may have less incentive to control costs since costs are reimbursed. This can lead to cost overruns. Mitigation strategies typically include robust government oversight, detailed cost reporting requirements, negotiation of a fair fixed fee, and clear performance metrics to ensure value is delivered.
How effectively does this contract support the Department of the Army's mission, and what metrics are used to measure its success?
The effectiveness of this contract hinges on the reliable and efficient delivery of office administrative services, which are crucial for operational support. Specific success metrics are not provided in the data. Typically, such contracts would be evaluated based on timeliness, accuracy, responsiveness, and overall user satisfaction within the supported Army units.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911S007R0003
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4300 CROSSINGS BLVD, PRINCE GEORGE, VA, 23875
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,228,366
Exercised Options: $29,228,366
Current Obligation: $27,020,788
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-14
Current End Date: 2013-08-15
Potential End Date: 2013-08-15 00:00:00
Last Modified: 2024-09-27
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