DoD's $405M Logistics Support Services Contract Awarded to IAP World Services Faces Scrutiny
Contract Overview
Contract Amount: $404,990,424 ($405.0M)
Contractor: IAP World Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2000-12-22
End Date: 2011-12-13
Contract Duration: 4,008 days
Daily Burn Rate: $101.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 200107!000106!2100!KF04 !DIRECTORATE OF CONTRACTING !DAKF0400C0002 !A!N!*!N!P00001 !20001222!20010930!010816486!010816486!006092860!N!JOHNSON CONTROLS WORLD SERVICE!7315 N ATLANTIC AVE !CAPE CANAVERAL !FL!32920!25114!071!06!FORT IRWIN !SAN BERNARDINO !CALIFORNIA!+000002389052!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561990!*!*!3! ! !C!*!*!*!B!*!*!N!Z!A !N!R!2!004!B! !C!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001!
Place of Performance
Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310
Plain-Language Summary
Department of Defense obligated $405.0 million to IAP WORLD SERVICES, INC. for work described as: 200107!000106!2100!KF04 !DIRECTORATE OF CONTRACTING !DAKF0400C0002 !A!N!*!N!P00001 !20001222!20010930!010816486!010816486!006092860!N!JOHNSON CONTROLS WORLD SERVICE!7315 N ATLANTIC AVE !CAPE CANAVERAL !FL!32920!25114!071!06!FORT IRWIN !SAN B… Key points: 1. The contract awarded to IAP World Services for logistics support services represents a significant expenditure of $405 million. 2. Competition for this contract was full and open, suggesting a potentially competitive bidding process. 3. The contract type is Cost Plus Award Fee (CPAF), which can incentivize contractor performance but also carries inherent cost risks. 4. The sector is primarily logistics support services, a critical but often complex area for government operations.
Value Assessment
Rating: questionable
The contract's value of $405 million for logistics support services appears high. Benchmarking against similar contracts is difficult without more specific service details, but the Cost Plus Award Fee structure warrants careful review to ensure cost efficiency and prevent overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the Cost Plus Award Fee (CPAF) structure can sometimes lead to less predictable final costs compared to fixed-price contracts.
Taxpayer Impact: The significant value of this contract means that any inefficiencies or cost overruns directly impact taxpayer funds. Robust oversight is crucial to ensure value for money.
Public Impact
Taxpayers are funding a large-scale logistics support operation critical to military readiness. The use of a Cost Plus Award Fee contract structure means contractor performance directly influences the final cost to the government. The long duration of the contract (over 11 years) suggests a sustained need for these services, impacting long-term budget planning. The specific nature of 'logistics support services' can range widely, affecting the direct impact on various industries and personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Long contract duration
- Vague service description
Positive Signals
- Full and open competition
- Awarded to a single entity (potentially indicating specialization)
Sector Analysis
This contract falls within the 'All Other Support Services' NAICS code (561990), which is broad. Government spending in this sector is substantial, covering a wide array of operational and administrative support functions essential for agency operations, particularly within the Department of Defense.
Small Business Impact
The data indicates this contract was not awarded to a small business. While large contracts often go to prime contractors capable of handling scale, it's important to ensure subcontracting opportunities are available for small businesses to participate in the supply chain.
Oversight & Accountability
The Cost Plus Award Fee (CPAF) structure necessitates strong government oversight to monitor performance, control costs, and ensure award fees are justified. The long duration of the contract also requires continuous evaluation and potential re-competition or modification.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value
- Cost Plus Award Fee structure introduces cost uncertainty
- Long contract duration may indicate lack of flexibility
- Vague service description hinders detailed analysis
- No small business participation indicated
Tags
all-other-support-services, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $405.0 million to IAP WORLD SERVICES, INC.. 200107!000106!2100!KF04 !DIRECTORATE OF CONTRACTING !DAKF0400C0002 !A!N!*!N!P00001 !20001222!20010930!010816486!010816486!006092860!N!JOHNSON CONTROLS WORLD SERVICE!7315 N ATLANTIC AVE !CAPE CANAVERAL !FL!32920!25114!071!06!FORT IRWIN !SAN BERNARDINO !CALIFORNIA!+000002389052!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561990!*!*!3! ! !C!*!*!*!B!*!*!N!
Who is the contractor on this award?
The obligated recipient is IAP WORLD 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 $405.0 million.
What is the period of performance?
Start: 2000-12-22. End: 2011-12-13.
What specific logistics support services are included under this contract, and how do they align with current operational needs?
The provided data classifies the service under 'LOGISTICS SUPPORT SERVICES' and NAICS code '561990' (All Other Support Services), which is very broad. Without a detailed statement of work, it's impossible to ascertain the specific functions performed. These could range from supply chain management and warehousing to maintenance and transportation. Understanding the precise scope is crucial for evaluating the contract's necessity and effectiveness in meeting evolving military requirements.
How effectively has the Cost Plus Award Fee (CPAF) structure managed costs and incentivized performance for this contract?
The CPAF structure allows for contractor reimbursement of costs plus a fee that can be adjusted based on performance targets. While intended to drive efficiency, it requires rigorous government oversight to prevent cost overruns and ensure award fees are earned legitimately. Without access to performance metrics and detailed cost breakdowns, it's difficult to assess if this structure has yielded optimal value or if costs have escalated beyond initial projections due to performance incentives or scope creep.
What is the long-term strategic value and potential for consolidation or re-competition of these logistics support services?
With a contract duration extending over a decade (from 2000 to 2011), this represents a significant, long-term commitment. Evaluating the strategic value involves assessing whether these services remain core functions, if market conditions have changed, and if consolidation with other contracts or a move towards fixed-price arrangements could yield better value. Planning for potential re-competition or alternative sourcing strategies is essential to ensure continued cost-effectiveness and alignment with evolving defense needs.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)
Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2000-12-22
Current End Date: 2011-12-13
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2021-02-25
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