Army awards $79.3M contract for logistics support services to LB&B Associates Inc

Contract Overview

Contract Amount: $48,829,608 ($48.8M)

Contractor: LB & B Associates Inc

Awarding Agency: Department of Defense

Start Date: 2002-08-29

End Date: 2005-09-30

Contract Duration: 1,128 days

Daily Burn Rate: $43.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200212!000518!2100!BT39 !U.S. ARMY FIELD ARTILLERY CENTER!DABT3902C3005 !A!N! !Y! !20020829!20020930!793374034!793374034!793374034!N!LB&B ASSOCIATES INC !9891 BROKEN LAND PARKWAY, !COLUMBIA !MD!21046!27300!031!40!FORT SILL !COMANCHE !OKLAHOMA !+000000176167!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !3! ! ! ! ! !99990909!B! ! !N!A!A!U!R!2!002!N!2A!C!N!Z! ! !N!B!Y!N! ! !A! !A!A!000!A!B!N! ! ! !Y! ! !0001!

Place of Performance

Location: LANGSTON, LOGAN County, OKLAHOMA, 73050

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $48.8 million to LB & B ASSOCIATES INC for work described as: 200212!000518!2100!BT39 !U.S. ARMY FIELD ARTILLERY CENTER!DABT3902C3005 !A!N! !Y! !20020829!20020930!793374034!793374034!793374034!N!LB&B ASSOCIATES INC !9891 BROKEN LAND PARKWAY, !COLUMBIA !MD!21046!27300!031!40!FORT SILL !COMAN… Key points: 1. Contract awarded for logistics support services, indicating a need for specialized operational assistance. 2. The contract value of $79.3 million over its period of performance suggests a significant scope of work. 3. LB&B Associates Inc. secured this award, highlighting their role in providing essential services to the U.S. Army. 4. The contract's duration of 1128 days points to a long-term requirement for these logistics functions. 5. Awarded under full and open competition, suggesting a robust bidding process. 6. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 7. The primary place of performance is Fort Sill, Oklahoma, indicating a focus on a specific military installation.

Value Assessment

Rating: fair

The total award amount is $79,337,403.40. Without specific benchmarks for logistics support services at Fort Sill or comparable contracts, it is difficult to definitively assess value for money. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, which can drive efficiency, but also carries the risk of cost overruns if not managed carefully. The contract's duration of over three years suggests a substantial and ongoing need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. While the 'full and open' aspect suggests broad solicitation, the 'exclusion of sources' clause requires further clarification to understand the specific parameters of the competition. It is noted that there were 2 bids received, indicating a moderate level of competition for this requirement.

Taxpayer Impact: A competitive process, even with a limited number of bidders, generally benefits taxpayers by encouraging more favorable pricing and service offerings compared to sole-source awards.

Public Impact

The U.S. Army Field Artillery Center at Fort Sill, Oklahoma, is the primary beneficiary of these logistics support services. Services delivered likely encompass a range of operational and logistical functions critical to military readiness. The geographic impact is concentrated at Fort Sill, Oklahoma, supporting the base's operational capabilities. The contract supports the military workforce by ensuring essential services are provided, allowing personnel to focus on core missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type warrants further investigation to ensure no eligible sources were unfairly excluded.
Cost Plus Award Fee contracts can sometimes lead to higher costs if performance metrics are not tightly controlled.
The specific nature of 'logistics support services' is broad and could encompass a wide range of activities, making detailed performance assessment challenging without further breakdown.

Positive Signals

Awarded through full and open competition, indicating an effort to solicit from a wide range of potential providers.
The Cost Plus Award Fee structure provides an incentive for the contractor to perform well and efficiently.
The contract is for a significant duration, suggesting a stable and predictable requirement for these services.

Sector Analysis

Logistics support services are a critical component of the defense sector, encompassing a wide array of functions from supply chain management to maintenance and transportation. This contract falls within the broader Facilities Support Services industry (NAICS 561210). The defense sector relies heavily on contractors to provide these specialized services, allowing military personnel to focus on combat readiness. Benchmarking this contract's value would require comparing it to similar large-scale logistics contracts awarded by the Department of Defense or other federal agencies for base support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, LB&B Associates Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, though this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Army Contracting Command and the specific program executive office responsible for logistics at Fort Sill. Inspector General (IG) investigations could be initiated if performance issues or allegations of fraud arise. Transparency is generally facilitated through contract award databases, but detailed performance reports and audits are often not publicly accessible.

Related Government Programs

Base Operations Support Services
Logistics and Supply Chain Management
Defense Readiness Support
Facilities Maintenance and Management
Military Installation Support

Risk Flags

Competition clause requires clarification on 'exclusion of sources'.
Potential for cost overruns in CPAF contracts if not managed effectively.
Lack of detailed service breakdown makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.8 million to LB & B ASSOCIATES INC. 200212!000518!2100!BT39 !U.S. ARMY FIELD ARTILLERY CENTER!DABT3902C3005 !A!N! !Y! !20020829!20020930!793374034!793374034!793374034!N!LB&B ASSOCIATES INC !9891 BROKEN LAND PARKWAY, !COLUMBIA !MD!21046!27300!031!40!FORT SILL !COMANCHE !OKLAHOMA !+000000176167!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is LB & B ASSOCIATES 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 $48.8 million.

What is the period of performance?

Start: 2002-08-29. End: 2005-09-30.

What specific logistics support services are included under this contract?

The provided data indicates the contract is for 'LOGISTICS SUPPORT SERVICES' under NAICS code 561210 (Facilities Support Services). However, the specific breakdown of services is not detailed in the provided snippet. Typically, such contracts can encompass a wide range of activities including, but not limited to, supply chain management, inventory control, equipment maintenance, transportation coordination, warehousing, and potentially personnel support related to logistics operations. A more detailed statement of work (SOW) would be required to fully understand the scope.

How does the $79.3 million award compare to similar logistics support contracts for Army bases?

Comparing the $79.3 million award requires context regarding the size and operational tempo of Fort Sill, as well as the specific services required. Large Army installations often have multi-year logistics support contracts ranging from tens to hundreds of millions of dollars. For instance, similar base operations support contracts at other major Army posts can exceed this value. Without specific data on the scope of services and duration of comparable contracts, a precise benchmark is difficult. However, the award appears to be within the expected range for comprehensive logistics support at a significant military installation over a multi-year period.

What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract for logistics support?

Cost Plus Award Fee (CPAF) contracts carry inherent risks, primarily related to cost control and performance definition. The 'cost-plus' component means the contractor is reimbursed for allowable costs plus a fee, which can lead to cost growth if not managed diligently. The 'award fee' portion is determined by the government based on performance against defined criteria. Risks include: 1) Difficulty in establishing objective and measurable performance criteria, potentially leading to disputes over award fees. 2) Contractor may focus on achieving award fee targets rather than overall cost efficiency. 3) Potential for cost overruns if the base fee and maximum award fee are substantial and performance is only marginally met. Effective oversight and clear performance metrics are crucial to mitigate these risks.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for this contract?

This contract clause, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' is somewhat contradictory and requires careful interpretation. 'Full and open competition' generally means all responsible sources are permitted to submit an offer. However, 'after exclusion of sources' suggests that certain potential offerors were intentionally excluded from the competition, possibly due to specific requirements, past performance issues, or other pre-determined criteria. This could imply that while the competition was open to a broad range of eligible firms, it was not open to *all* possible sources. The justification for excluding specific sources would typically need to be documented and defensible to ensure fairness and compliance with procurement regulations.

What is the historical spending trend for logistics support services at Fort Sill or for the U.S. Army Field Artillery Center?

The provided data snippet only contains information for this specific contract award (DABT3902C3005). To analyze historical spending trends for logistics support services at Fort Sill or the U.S. Army Field Artillery Center, one would need access to historical contract databases covering previous years. This would involve searching for contracts awarded to various vendors for similar services (e.g., logistics, base operations, facilities support) at that installation or for that specific command. Analyzing these trends would reveal patterns in spending levels, types of services procured, and the contractors historically involved.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 9891 BROKEN LAND PARKWAY,, COLUMBIA, MD, 03

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $70,233,061

Exercised Options: $70,233,061

Current Obligation: $48,829,608

Contract Characteristics

Cost or Pricing Data: NO

Timeline