DoD's $67.6M Logistics Consulting Contract Awarded to SRM Group, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $67,616,503 ($67.6M)
Contractor: SRM Group, LLC
Awarding Agency: Department of Defense
Start Date: 2018-08-24
End Date: 2021-09-30
Contract Duration: 1,133 days
Daily Burn Rate: $59.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EQUIPMENT FUNDING
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79906
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $67.6 million to SRM GROUP, LLC for work described as: EQUIPMENT FUNDING Key points: 1. The contract awarded to SRM Group, LLC for logistics consulting services represents a significant investment in operational efficiency. 2. Full and open competition suggests a robust market for these services, potentially driving competitive pricing. 3. The duration of the contract (1133 days) indicates a long-term need for these specialized consulting services. 4. The award value of $67.6 million highlights the importance the Department of the Army places on process and distribution improvements.
Value Assessment
Rating: good
The contract value of $67.6 million for logistics consulting appears reasonable given the 1133-day duration and the specialized nature of the services. Benchmarking against similar large-scale consulting contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method is generally expected to yield competitive pricing and ensure the government receives best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces rather than limited options.
Public Impact
Improved supply chain and distribution processes for the Department of the Army. Potential for cost savings through optimized logistics operations. Enhanced operational readiness and effectiveness through expert consulting. Support for military personnel by streamlining logistical challenges.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data.
- Potential for scope creep in long-term consulting engagements.
- Dependency on a single contractor for critical logistics advice.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type can provide cost certainty.
- Long contract duration suggests sustained need and potential for deep expertise development.
Sector Analysis
The logistics consulting sector is crucial for government operations, particularly within the Department of Defense, to ensure efficient supply chains and distribution. Spending in this area often benchmarks against industry standards for process improvement and operational efficiency.
Small Business Impact
The data indicates that the awardee is SRM GROUP, LLC, and it does not specify if this is a small business. Further investigation would be needed to determine the extent of small business participation or subcontracting.
Oversight & Accountability
The Department of Defense typically has robust oversight mechanisms for large contracts, including performance reviews and financial audits. However, specific oversight details for this contract are not provided.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of specific performance metrics.
- Potential for contractor lock-in.
- Limited visibility into specific deliverables.
- Dependency on external expertise for critical functions.
Tags
process-physical-distribution-and-logist, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $67.6 million to SRM GROUP, LLC. EQUIPMENT FUNDING
Who is the contractor on this award?
The obligated recipient is SRM GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $67.6 million.
What is the period of performance?
Start: 2018-08-24. End: 2021-09-30.
What specific improvements in process, physical distribution, and logistics were achieved as a result of this $67.6 million contract?
The provided data does not detail the specific outcomes or measurable improvements achieved. A thorough analysis would require access to performance reports, key performance indicators (KPIs), and final project assessments to quantify the impact on efficiency, cost savings, and operational readiness resulting from the consulting services.
How did the full and open competition process ensure the best possible price and quality for these logistics consulting services?
Full and open competition allows multiple qualified vendors to submit bids, fostering a competitive environment that typically drives down prices and encourages high-quality service offerings. The Department of the Army likely evaluated proposals based on a combination of technical merit, past performance, and cost to ensure the best value was obtained for the taxpayer.
What is the long-term strategy for logistics consulting within the Department of the Army, and how does this contract fit into that broader plan?
This contract's 1133-day duration suggests a significant, ongoing need for specialized logistics expertise. Understanding the Army's long-term strategic goals for supply chain modernization and operational efficiency would clarify how this engagement contributes to those objectives and whether it represents a foundational step or a standalone initiative.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DY15R0024
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6910 RICHMOND HIGHWAY, SUITE 500, ALEXANDRIA, VA, 22306
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $67,616,503
Exercised Options: $67,616,503
Current Obligation: $67,616,503
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY15D0099
IDV Type: IDC
Timeline
Start Date: 2018-08-24
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2023-04-04
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