DoD Awards $21.5M for Transit Services to LBM INC. Amidst Full and Open Competition
Contract Overview
Contract Amount: $21,474,644 ($21.5M)
Contractor: LBM Inc.
Awarding Agency: Department of Defense
Start Date: 2004-02-10
End Date: 2008-12-31
Contract Duration: 1,786 days
Daily Burn Rate: $12.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Place of Performance
Location: FORT POLK, VERNON County, LOUISIANA, 71459
Plain-Language Summary
Department of Defense obligated $21.5 million to LBM INC. for work described as: Key points: 1. Significant contract value of $21.5 million awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration spans over 4 years, indicating a long-term service need. 4. The sector is transit and ground passenger transportation, a critical operational support area.
Value Assessment
Rating: fair
The contract value of $21.5 million for 5 task orders over nearly 5 years appears reasonable given the scope of transit and ground passenger transportation services. Benchmarking against similar DoD contracts for specialized transportation would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process where multiple bidders were considered. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best possible pricing through market forces.
Public Impact
Ensures continued operational support for personnel movement. Supports logistical needs within the Department of the Army. Potential impact on local transportation infrastructure and workforce in Louisiana.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if not closely managed.
- Dependence on a single contractor for critical transit services.
Positive Signals
- Utilized full and open competition.
- Long-term contract provides service stability.
- Firm Fixed Price contract limits cost uncertainty.
Sector Analysis
This contract falls within the transportation sector, specifically ground passenger transit. Spending in this area is crucial for military readiness and personnel support, often involving specialized vehicles and routes. Benchmarks vary widely based on service type and location.
Small Business Impact
The data indicates the contractor is LBM INC. and the contract was awarded under full and open competition. There is no specific information provided regarding small business participation or subcontracting goals within this award.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract officers, performance monitors, and potentially program managers to ensure compliance and service delivery.
Related Government Programs
- All Other Transit and Ground Passenger Transportation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is lengthy (over 4 years).
- Specific performance metrics are not detailed.
- Potential for scope creep or unaddressed needs.
- Geographic concentration in Louisiana.
- Reliance on a single awardee for essential services.
Tags
all-other-transit-and-ground-passenger-t, department-of-defense, la, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.5 million to LBM INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LBM 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 $21.5 million.
What is the period of performance?
Start: 2004-02-10. End: 2008-12-31.
What specific transit services are covered under this contract, and how do they align with the Army's operational requirements?
The contract covers 'All Other Transit and Ground Passenger Transportation.' This likely includes services such as shuttle operations, personnel transport to and from bases, and potentially specialized transport for equipment or personnel in specific scenarios. Alignment with operational requirements would depend on the Army's deployment schedules, training exercises, and daily personnel movement needs.
What were the key factors considered during the 'Full and Open Competition After Exclusion of Sources' process, and did LBM INC. offer the best value?
This procurement method implies that initial sources were excluded, possibly due to specific requirements or prior performance, and then a full and open competition was conducted among the remaining eligible bidders. Key factors likely included technical capability, past performance, and price. LBM INC. was selected, suggesting they met the criteria and offered the best value proposition based on the evaluation factors defined in the solicitation.
How does the firm fixed price structure impact the government's risk and the contractor's incentive to control costs for these transit services?
A Firm Fixed Price (FFP) contract shifts most of the cost risk to the contractor. LBM INC. is responsible for completing the work within the agreed-upon price, incentivizing them to manage costs efficiently. For the government, this provides budget certainty, but it may also mean less flexibility if unforeseen requirements arise, potentially requiring contract modifications.
Industry Classification
NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › All Other Transit and Ground Passenger Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › MOTOR POOL OR PACKING/CRATING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1106 SOUTH CLINTON AVENUE, DUNN, NC, 90
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $441,884
Exercised Options: $441,884
Current Obligation: $21,474,644
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-02-10
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2013-11-08
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