Logistics consulting services contract awarded to ENGINEERING SOLUTIONS & PRODUCTS LLC for over $78.5 million

Contract Overview

Contract Amount: $78,575,835 ($78.6M)

Contractor: Engineering Solutions & Products LLC

Awarding Agency: General Services Administration

Start Date: 2010-12-18

End Date: 2014-03-17

Contract Duration: 1,185 days

Daily Burn Rate: $66.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: WIN-T SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $78.6 million to ENGINEERING SOLUTIONS & PRODUCTS LLC for work described as: WIN-T SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES Key points: 1. The contract value of $78.5 million over approximately 3.25 years suggests a significant investment in logistics support. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The contractor, ENGINEERING SOLUTIONS & PRODUCTS LLC, has secured this substantial contract, highlighting its role in providing specialized services. 4. The North American Industry Classification System (NAICS) code 541614 points to a focus on process, physical distribution, and logistics consulting. 5. The contract's duration and value warrant scrutiny for sustained performance and cost-effectiveness. 6. The absence of small business set-aside flags suggests the primary contractor is likely a larger entity.

Value Assessment

Rating: fair

The contract's total value of $78.5 million over nearly four years needs to be benchmarked against similar logistics support contracts to assess value for money. Without specific performance metrics or comparison data, it's difficult to definitively state if the pricing is competitive or if the value delivered is excellent. The contract type (Time and Materials) can sometimes lead to cost overruns if not closely managed, which is a potential risk factor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely invited to submit proposals. This method is generally preferred as it allows for the widest possible pool of potential contractors, fostering competition and potentially leading to better pricing and service offerings. The fact that it was fully competed implies that the government sought the best value through a transparent process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through competitive bidding and encourages innovation among contractors vying for the award, ultimately leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are likely federal agencies requiring specialized logistics and distribution process consulting. The services delivered are expected to improve the efficiency and effectiveness of supply chains and distribution networks. The contract's geographic impact is indicated by the state code 'MD' (Maryland), suggesting a focus on operations or personnel within that region. Workforce implications may include the employment of logistics consultants, analysts, and support staff by the prime contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation if not managed rigorously.
Lack of specific performance metrics makes it hard to gauge true value for money.
The substantial contract value over a defined period requires ongoing monitoring for efficiency.

Positive Signals

Awarded through full and open competition, indicating a potentially robust selection process.
The contractor, ENGINEERING SOLUTIONS & PRODUCTS LLC, has secured a significant contract, suggesting capability.
The focus on logistics consulting addresses a critical area for government operations.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics consulting. This sector is vital for optimizing government operations, supply chains, and distribution networks. The market for such services is competitive, with numerous firms offering specialized expertise. Benchmarking this contract's value against similar logistics support contracts awarded by agencies like GSA or DoD would provide further context on its market alignment.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. This suggests that the primary award was made to a contractor based on best value without a specific mandate to prioritize small businesses for the prime contract. However, the prime contractor may still engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA). Performance monitoring, invoice review, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract databases and reporting requirements, though specific details of day-to-day oversight are not publicly detailed.

Related Government Programs

Logistics and Supply Chain Management Services
Management and Financial Consulting, Scientific and Technical Consulting Services
Federal Supply Schedule Contracts
General Services Administration (GSA) Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust performance monitoring to ensure value for money.
Lack of specific performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $78.6 million to ENGINEERING SOLUTIONS & PRODUCTS LLC. WIN-T SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES

Who is the contractor on this award?

The obligated recipient is ENGINEERING SOLUTIONS & PRODUCTS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $78.6 million.

What is the period of performance?

Start: 2010-12-18. End: 2014-03-17.

What is the track record of ENGINEERING SOLUTIONS & PRODUCTS LLC in delivering similar logistics consulting services?

Information regarding the specific track record of ENGINEERING SOLUTIONS & PRODUCTS LLC in delivering similar logistics consulting services is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, client testimonials, and the successful completion of prior government contracts of comparable scope and complexity. Without this, it's difficult to ascertain their specific expertise and reliability in this domain. Further research into the company's history and project portfolio would be necessary to evaluate their capabilities.

How does the awarded amount compare to the estimated value or budget for this type of service?

The provided data indicates an awarded amount of $78,575,834.95. To compare this to the estimated value or budget, we would need access to the government's initial cost estimates or budget allocations for this specific contract. Without that information, it's impossible to determine if the awarded amount represents a cost saving, is in line with expectations, or exceeds the initial projections. Benchmarking against similar contracts awarded by the GSA or other agencies for logistics consulting services would also provide valuable context for assessing the reasonableness of the price.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the key performance indicators (KPIs) used to measure the success of this contract. Typically, for logistics consulting services, KPIs might include improvements in delivery times, reduction in shipping costs, optimization of inventory management, enhanced supply chain visibility, or successful implementation of new logistics strategies. The effectiveness of the contractor would be evaluated against these metrics, which are usually defined in the contract's statement of work. Without these defined KPIs, assessing performance is challenging.

What is the historical spending pattern for logistics consulting services by the General Services Administration?

Historical spending patterns for logistics consulting services by the General Services Administration (GSA) can be quite substantial, reflecting the agency's role in managing government-wide procurement and providing shared services. GSA often procures such services to optimize its own operations and to assist other federal agencies. Analyzing GSA's spending over several fiscal years, broken down by NAICS codes like 541614, would reveal trends, identify major contract vehicles, and highlight periods of increased or decreased investment in logistics support. This contract represents one component of that broader spending.

Are there any potential risks associated with the Time and Materials (T&M) contract type for this engagement?

Yes, Time and Materials (T&M) contracts carry inherent risks, primarily related to cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to cost overruns if the scope of work is not well-defined or if the project takes longer than anticipated. For the government, effective oversight is crucial to ensure that hours are reasonable and necessary, and that rates are fair. Without stringent monitoring and clear task definitions, T&M contracts can become more expensive than initially planned.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 02FM21100518

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 14566 LEE RD, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $164,066,155

Exercised Options: $85,320,193

Current Obligation: $78,575,835

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0008V

IDV Type: FSS

Timeline