TW Logistics awarded $12,249 contract for dry freight transport, highlighting a niche in U.S. food donation support

Contract Overview

Contract Amount: $12,249 ($12.2K)

Contractor: TW Logistics, LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-05-16

End Date: 2026-05-31

Contract Duration: 15 days

Daily Burn Rate: $817/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: SUPPORT SERVICES FOR USG FOOD DONATIONS: /4300014897/FREIGHT DRY - 40' CONTAINER - NOT REFRIG

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96819

State: Hawaii Government Spending

Plain-Language Summary

Department of Agriculture obligated $12,249.17 to TW LOGISTICS, LLC for work described as: SUPPORT SERVICES FOR USG FOOD DONATIONS: /4300014897/FREIGHT DRY - 40' CONTAINER - NOT REFRIG Key points: 1. Contract value is modest, suggesting a focused scope for specific logistical needs. 2. Competition was open, indicating a healthy market for freight services. 3. Performance period is short, implying a need for immediate or time-sensitive delivery. 4. The service supports a critical government function: food donation logistics. 5. Fixed-price contract type helps manage cost certainty for this specific shipment. 6. Geographic focus on Hawaii suggests specialized regional logistics capabilities are required.

Value Assessment

Rating: good

The contract value of $12,249.17 for a single 40' container shipment is within a reasonable range for specialized freight, particularly for inter-island or trans-Pacific routes. Benchmarking against similar government contracts for dry freight reveals that per-container costs can vary significantly based on distance, urgency, and container type. Given the destination (Hawaii), this price appears competitive for the service provided, especially considering the complexities of logistics to remote locations.

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 that while the initial solicitation might have had some exclusions, the final award was made through a competitive process open to all eligible bidders. With 3 bidders, the competition level suggests adequate market interest and a reasonable opportunity for price discovery. This approach helps ensure that the government receives competitive pricing and services.

Taxpayer Impact: The open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible price for freight services, preventing potential overpayment.

Public Impact

Beneficiaries include recipients of U.S. government-supported food donations in Hawaii. The service delivers essential transportation for dry food goods, ensuring they reach their intended destinations. Geographic impact is focused on Hawaii, addressing specific logistical challenges in the region. Workforce implications are minimal, primarily involving logistics and transportation personnel for this single shipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance window (15 days) could pose challenges for timely execution if unforeseen delays occur.
Reliance on a single container shipment might indicate a limited scope, potentially missing opportunities for larger, more cost-effective consolidated shipments.

Positive Signals

Firm Fixed Price contract type provides cost certainty for this specific transaction.
Open competition suggests a healthy market and potential for future competitive awards.
The contract directly supports a government program aimed at food security and donation distribution.

Sector Analysis

The transportation and logistics sector is a critical component of government operations, facilitating the movement of goods and services nationwide and globally. This contract falls within the freight transportation sub-sector, specifically focusing on deep-sea freight. The market for such services is competitive, with numerous providers offering various specialized solutions. Government spending in this area often supports supply chain resilience, disaster relief, and program delivery, with costs benchmarked against commercial rates adjusted for government requirements and scale.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). While TW LOGISTICS, LLC may be a small business, the contract itself was not designated as such. There is no explicit information on subcontracting plans, but for a single container shipment, the direct service provider is likely to handle most aspects, limiting broader subcontracting opportunities within the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Agricultural Marketing Service (AMS). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is maintained through contract databases like FPDS. While specific Inspector General jurisdiction for this single, low-value freight contract might be limited, broader procurement fraud or performance issues would fall under the USDA OIG.

Related Government Programs

USG Food Donation Programs
Department of Agriculture Freight Services
Agricultural Marketing Service Logistics
Deep Sea Freight Transportation Contracts
Hawaii Regional Logistics Support

Risk Flags

Potential for transit delays due to geographic remoteness and weather.
Risk of cargo damage during deep-sea freight transport.
Limited competition pool if initial source exclusions were broad.
Short performance period may not accommodate unforeseen logistical challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $12,249.17 to TW LOGISTICS, LLC. SUPPORT SERVICES FOR USG FOOD DONATIONS: /4300014897/FREIGHT DRY - 40' CONTAINER - NOT REFRIG

Who is the contractor on this award?

The obligated recipient is TW LOGISTICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Marketing Service).

What is the total obligated amount?

The obligated amount is $12,249.17.

What is the period of performance?

Start: 2026-05-16. End: 2026-05-31.

What is the track record of TW LOGISTICS, LLC in handling government contracts, particularly for freight services?

A review of federal procurement data would be necessary to fully assess TW LOGISTICS, LLC's track record. However, the presence of this contract indicates they are an active participant in the government contracting space. Key metrics to examine would include the number of past awards, their total value, performance ratings on previous contracts (if available), and any history of contract modifications, disputes, or terminations. Understanding their experience with similar types of freight (e.g., dry vs. refrigerated, container size) and destinations (e.g., remote locations like Hawaii) would provide further insight into their capability and reliability for this specific service.

How does the awarded price compare to commercial rates for similar 40' container shipments to Hawaii?

Benchmarking this $12,249.17 contract against commercial rates requires detailed analysis of current market conditions for 40' container shipping to Hawaii. Factors influencing commercial rates include the specific port of origin, current fuel surcharges, demand for shipping space, and the carrier's service level. Generally, government contracts aim for prices at or below commercial rates. Given the destination's logistical complexity, the price appears reasonable if it aligns with or slightly under prevailing commercial spot rates for similar transit times and services. A formal comparison would involve obtaining quotes from multiple commercial carriers for identical shipping parameters.

What are the primary risks associated with this specific freight transportation contract?

The primary risks for this contract include potential delays in transit due to weather, port congestion, or unforeseen logistical issues, especially given the 15-day performance period and the destination of Hawaii. There's also a risk of damage to the cargo during transit, although the firm fixed-price nature of the contract shifts some financial liability to the contractor. Another risk is the contractor's capacity to manage the specific requirements of transporting goods for a government food donation program, which might have unique handling or documentation needs. Finally, the short duration and single-shipment nature could indicate a reactive award, potentially missing economies of scale.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for money in this case?

This procurement method, while competitive, warrants scrutiny. 'Full and Open Competition After Exclusion of Sources' implies that certain potential sources were initially excluded, but the remaining pool was competed openly. If the exclusions were justified (e.g., based on specific capabilities or past performance), and if the competition among the remaining bidders was robust (3 bidders suggest moderate competition), then it can still yield good value. However, if the exclusions were arbitrary or unnecessarily limited the bidder pool, it could potentially reduce competition and lead to less favorable pricing than true full and open competition. The key is whether the final price reflects a strong market outcome despite the initial exclusions.

What is the historical spending pattern for similar freight services by the Department of Agriculture?

Analyzing historical spending by the Department of Agriculture (USDA) for freight services, particularly for food donations and support programs, would reveal trends in contract values, types of services procured (e.g., refrigerated vs. dry, domestic vs. international), and common carriers. This specific contract's value ($12,249.17) appears relatively small compared to potentially larger, ongoing logistics contracts the USDA might manage. Understanding the historical average cost per container or per mile for similar shipments, and the frequency of such awards, would provide context for whether this contract represents a typical or outlier expenditure for the agency's logistical needs.

What are the implications of the 'DEFINITIVE CONTRACT' award type for government oversight and flexibility?

A 'Definitive Contract' is a standard, legally binding agreement that clearly outlines the terms, conditions, price, and delivery schedule. For this specific contract, it means the scope and price are fixed for the single shipment. This provides clear accountability and predictability. From an oversight perspective, it simplifies monitoring as the deliverables are well-defined. However, it also offers limited flexibility; significant changes to the scope (e.g., needing additional containers or different delivery points) would likely require a contract modification or a new contract, potentially impacting timeliness and cost.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 S ANDERSON AVE, COMPTON, CA, 90220

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,249

Exercised Options: $12,249

Current Obligation: $12,249

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline