DoD Awards $29.3M for Army National Guard Logistics Support to IAP Worldwide Services

Contract Overview

Contract Amount: $29,260,777 ($29.3M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-03-15

End Date: 2023-08-24

Contract Duration: 1,623 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Other

Official Description: PROVIDED PERFORMANCE BASED LOGISTICS/ CONTRACTOR LOGISTICS SUPPORT SERVICES FOR THE FIELDED ARMY NATIONAL GUARD AND ARMY

Place of Performance

Location: GUNPOWDER, HARFORD County, MARYLAND, 21010

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to IAP WORLDWIDE SERVICES, INC. for work described as: PROVIDED PERFORMANCE BASED LOGISTICS/ CONTRACTOR LOGISTICS SUPPORT SERVICES FOR THE FIELDED ARMY NATIONAL GUARD AND ARMY Key points: 1. Contract awarded via full and open competition, suggesting market availability. 2. Significant contract value of $29.3M over 4.5 years. 3. Focus on contractor logistics support for fielded equipment. 4. Potential for cost savings through performance-based logistics.

Value Assessment

Rating: good

The contract type is Cost No Fee, which typically means the contractor is reimbursed for allowable costs but does not receive a fee. This structure can incentivize cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Competitive bidding in this full and open process is expected to yield a fair market price, maximizing taxpayer value.

Public Impact

Ensures operational readiness of Army National Guard equipment. Supports critical logistics functions for deployed and garrisoned forces. Provides specialized maintenance and repair services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if costs exceed estimates under Cost No Fee.
Dependence on a single contractor for critical logistics functions.
Scope creep could increase the total contract value beyond initial estimates.

Positive Signals

Performance-based approach can drive efficiency.
Full and open competition promotes market-driven pricing.
Long-term contract provides stability for logistics support.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics and maintenance. Benchmarks for similar contracts would depend on the specific equipment and services provided.

Small Business Impact

The provided data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the Department of Defense. Standard DoD oversight mechanisms would apply, including contract performance monitoring and financial audits.

Related Government Programs

Other Electronic and Precision Equipment Repair and Maintenance
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract duration is substantial (over 4 years).
Cost No Fee contract type requires careful monitoring of allowable costs.
Reliance on a single awardee for critical support.
Potential for scope creep impacting total cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to IAP WORLDWIDE SERVICES, INC.. PROVIDED PERFORMANCE BASED LOGISTICS/ CONTRACTOR LOGISTICS SUPPORT SERVICES FOR THE FIELDED ARMY NATIONAL GUARD AND ARMY

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, 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 $29.3 million.

What is the period of performance?

Start: 2019-03-15. End: 2023-08-24.

What is the expected impact of the Cost No Fee structure on contractor performance and cost management?

The Cost No Fee (CNF) structure means the contractor is reimbursed for all allowable costs but receives no profit. This incentivizes the contractor to manage costs diligently to avoid incurring unrecoverable expenses. However, it might also reduce the contractor's motivation to innovate or go above and beyond standard service levels, as there's no direct financial reward for exceeding expectations.

How does the full and open competition process ensure optimal value for taxpayer dollars in this logistics contract?

Full and open competition allows any qualified vendor to bid, fostering a competitive environment. This typically drives down prices and encourages vendors to offer the best possible services and terms to win the contract. The government can then select the offer that provides the best overall value, considering price, technical capabilities, and past performance, thereby maximizing the efficient use of taxpayer funds.

What are the primary risks associated with relying on a single contractor for extensive logistics support for the Army National Guard?

The primary risks include potential disruptions to service if the contractor faces financial difficulties, operational issues, or decides to exit the market. There's also a risk of reduced leverage for the government in future negotiations or contract modifications. Furthermore, a lack of ongoing competition could lead to complacency or less incentive for the contractor to continuously improve services and cost-effectiveness.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911SR15R0002

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 7315, NORTH ATLANTIC AVENUE, CAPE CANAVERAL, FL, 32920

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

Financial Breakdown

Contract Ceiling: $31,274,499

Exercised Options: $30,968,680

Current Obligation: $29,260,777

Actual Outlays: $807,667

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $3,148,779

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR16D0013

IDV Type: IDC

Timeline