NASA's $471M Logistics Management Contract with TRAX International Corporation awarded under Full and Open Competition
Contract Overview
Contract Amount: $471,276,011 ($471.3M)
Contractor: Trax International Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2001-04-15
End Date: 2012-07-31
Contract Duration: 4,125 days
Daily Burn Rate: $114.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: THE LMD FUNCTIONS AND RESPONSIBILITIES INCLUDE, BUT ARE NOT LIMITED TO: LOGISTICS POLICY AND PROGRAM PLANNING REVIEW AND APPROVAL OF WORK INSTRUCTIONS APPROVAL OF MANAGEMENT SYSTEMS GOVERNMENT-TO-GOVERNMENT AGREEMENTS QUALITY MANAGEMENT/QUALITY ASSURANCE POLICY INTERAGENCY AND INTRA-AGENCY AGREEMENTS INTERPRETING FEDERAL LAWS AND REGULATIONS FREIGHT CARRIER NEGOTIATIONS AND SUSPENSION OF CARRIERS CONTRACT BUDGETING AND FUNDING AND ALLOCATION OF RESOURCES DIRECTION TO ADD NEW CUSTOMERS OR STOP SUPPORTING EXISTING CUSTOMERS MARKETING OF LOGISTICS SERVICES CONTRACTOR PERFORMANCE EVALUATION CONTRACT MANAGEMENT SYSTEM REVIEW AND OPERATIONAL AUDITS DETERMINING CUSTOMER SERVICE LEVELS
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $471.3 million to TRAX INTERNATIONAL CORPORATION for work described as: THE LMD FUNCTIONS AND RESPONSIBILITIES INCLUDE, BUT ARE NOT LIMITED TO: LOGISTICS POLICY AND PROGRAM PLANNING REVIEW AND APPROVAL OF WORK INSTRUCTIONS APPROVAL OF MANAGEMENT SYSTEMS GOVERNMENT-TO-GOVERNMENT AGREEMENTS QUALITY MANAGEMENT/QUALITY ASSURANCE POLICY INTERAGENCY AND … Key points: 1. The contract covers a broad range of logistics functions, including policy, program planning, quality management, and contractor performance evaluation. 2. TRAX International Corporation has held this contract for over a decade, suggesting a stable, long-term relationship. 3. The contract's Cost Plus Incentive Fee (CPIF) structure aims to incentivize performance and cost control. 4. While awarded under Full and Open Competition, the long duration and specific nature of services warrant scrutiny for potential future competition.
Value Assessment
Rating: good
The contract value of $471M over approximately 11 years suggests a significant investment. Benchmarking against similar large-scale logistics management contracts would be necessary for a precise value assessment, but the scope appears substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through Full and Open Competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently for essential logistics services.
Public Impact
Ensures efficient movement and management of goods and services critical for NASA's operations. Supports NASA's mission by providing essential logistical support, potentially impacting research and space exploration timelines. The long-term nature of the contract implies a consistent impact on the logistics services sector. Contractor performance evaluations are key to ensuring service quality and accountability for taxpayer money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may limit future competitive opportunities.
- CPIF structure requires careful monitoring to ensure cost efficiency.
- Scope of services is broad, potentially leading to complexity in oversight.
Positive Signals
- Awarded through Full and Open Competition.
- Clear definition of functions and responsibilities.
- Focus on quality management and contractor performance.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically logistics consulting. Spending in this area is crucial for government efficiency, with benchmarks varying widely based on the complexity and scale of services required.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or participation by small businesses. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract includes provisions for contractor performance evaluation and contract management system review, which are key oversight mechanisms. Regular audits and reviews are essential to ensure accountability and effective service delivery.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for vendor lock-in due to long contract duration.
- Risk of cost escalation if performance incentives are not optimally structured.
- Complexity of managing a contract with such a broad scope of services.
- Need for ongoing market research to ensure continued competitiveness.
Tags
process-physical-distribution-and-logist, national-aeronautics-and-space-administr, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $471.3 million to TRAX INTERNATIONAL CORPORATION. THE LMD FUNCTIONS AND RESPONSIBILITIES INCLUDE, BUT ARE NOT LIMITED TO: LOGISTICS POLICY AND PROGRAM PLANNING REVIEW AND APPROVAL OF WORK INSTRUCTIONS APPROVAL OF MANAGEMENT SYSTEMS GOVERNMENT-TO-GOVERNMENT AGREEMENTS QUALITY MANAGEMENT/QUALITY ASSURANCE POLICY INTERAGENCY AND INTRA-AGENCY AGREEMENTS INTERPRETING FEDERAL LAWS AND REGULATIONS FREIGHT CARRIER NEGOTIATIONS AND SUSPENSION OF CARRIERS CONTRACT BUDGETING AND FUNDING AND ALLOCATION OF RESOURCES DIRECTION TO ADD NEW CUSTOMERS OR STOP
Who is the contractor on this award?
The obligated recipient is TRAX INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $471.3 million.
What is the period of performance?
Start: 2001-04-15. End: 2012-07-31.
What is the cost-effectiveness of the CPIF structure in this specific contract?
The Cost Plus Incentive Fee (CPIF) structure aims to align contractor incentives with government objectives, rewarding efficiency and cost savings. However, its effectiveness hinges on well-defined performance metrics and realistic target costs. Without detailed performance data and cost breakdowns, it's difficult to definitively assess the cost-effectiveness. Continuous monitoring and comparison against industry benchmarks are crucial to ensure taxpayers are receiving optimal value.
What are the potential risks associated with the long duration of this contract?
A long contract duration, like this one spanning over a decade, can pose risks such as vendor lock-in, reduced incentive for innovation, and potential for cost overruns if market conditions change significantly. It may also stifle competition by preventing newer, potentially more efficient providers from entering the market. NASA should consider strategies for market research and potential re-competition to mitigate these risks.
How effectively does this contract support NASA's core mission objectives?
This contract's extensive scope, covering logistics policy, program planning, and contractor management, is designed to ensure the smooth operational backbone for NASA's diverse activities. By optimizing resource allocation and service delivery, it indirectly supports mission success. However, a direct link to specific mission outcomes would require analyzing how these logistics functions directly enable or accelerate NASA's scientific and exploratory endeavors.
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
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Address: 3120 E POST RD, LAS VEGAS, NV, 89120
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $529,650,737
Exercised Options: $544,337,125
Current Obligation: $471,276,011
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2001-04-15
Current End Date: 2012-07-31
Potential End Date: 2012-07-31 00:00:00
Last Modified: 2018-08-30
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