DoD's $20.6M Defense Freight contract awarded to Crowley Government Services for 30-day express cargo movement

Contract Overview

Contract Amount: $20,591,068 ($20.6M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-01

End Date: 2025-07-31

Contract Duration: 30 days

Daily Burn Rate: $686.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

Official Description: DEFENSE FREIGHT TRANSPORTATION SERVICES (DFTS) II - EXPRESS CAR

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: DEFENSE FREIGHT TRANSPORTATION SERVICES (DFTS) II - EXPRESS CAR Key points: 1. Contract value represents a significant investment in rapid logistics capabilities. 2. Full and open competition suggests a robust market for freight services. 3. Fixed-price with economic price adjustment contract type introduces some cost variability. 4. Short 30-day duration indicates a focus on immediate, short-term operational needs. 5. Awarded by USTRANSCOM, highlighting the critical role of transportation in defense operations. 6. Geographic focus on Florida suggests specific regional deployment or support.

Value Assessment

Rating: good

The contract value of approximately $20.6 million for a 30-day express freight service appears reasonable given the specialized nature of defense logistics. Benchmarking against similar rapid deployment or express cargo contracts within the DoD would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment structure allows for some flexibility in managing fluctuating fuel and operational costs, which is common in transportation contracts. However, the potential for price increases needs to be monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This approach generally fosters a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of market interest and participation. This method is preferred for ensuring the government receives the best possible value.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified service providers. It ensures that the government isn't limited to a single source, which could lead to inflated costs.

Public Impact

Military personnel and units requiring rapid deployment of equipment and supplies will benefit from this service. The contract ensures the timely movement of critical cargo, supporting operational readiness. The primary geographic impact is within Florida, suggesting support for bases or operations in that region. The contract supports the logistics and transportation workforce, likely involving drivers, dispatchers, and freight handlers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the economic price adjustment clause, especially with volatile fuel prices.
Dependence on a single contractor for a critical 30-day period could pose a risk if performance issues arise.
Limited duration may not address long-term or recurring freight needs, requiring subsequent contract actions.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Contractor has experience in government services, implying a level of operational capability.
Short duration allows for flexibility and reassessment of needs after the period.

Sector Analysis

The defense freight transportation sector is a critical component of military logistics, ensuring the timely and efficient movement of personnel, equipment, and supplies. This contract falls within the broader logistics and transportation services market, which is substantial and highly competitive. The DoD is a major consumer of these services, often requiring specialized capabilities for rapid deployment and global reach. Comparable spending benchmarks would involve analyzing other express or expedited freight contracts awarded by military branches for similar operational tempos and cargo types.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While this specific award may not directly benefit small businesses through a set-aside, the prime contractor, Crowley Government Services, Inc., may engage small businesses as subcontractors. The extent of small business subcontracting would depend on Crowley's internal policies and the specific requirements of this express freight service. Further analysis would be needed to determine the subcontracting opportunities created.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of USTRANSCOM, the awarding agency. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Transportation Services
Expedited Freight Services
Military Logistics Support
Global Freight Management
Transportation Management Services

Risk Flags

Potential for cost escalation due to economic price adjustment.
Short contract duration may necessitate follow-on actions.
Dependence on a single provider for critical express services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to CROWLEY GOVERNMENT SERVICES, INC.. DEFENSE FREIGHT TRANSPORTATION SERVICES (DFTS) II - EXPRESS CAR

Who is the contractor on this award?

The obligated recipient is CROWLEY GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2025-07-01. End: 2025-07-31.

What is the track record of Crowley Government Services, Inc. in fulfilling similar defense transportation contracts?

Crowley Government Services, Inc. has a history of performing various logistics and transportation services for the U.S. government, including the Department of Defense. Their experience often encompasses sealift, port operations, and freight management. While specific details on past performance for 'express' or 'rapid' freight movements of this exact nature are not detailed in the provided data, their general portfolio suggests they possess the foundational capabilities. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar DoD contracts, would be necessary for a comprehensive assessment of their suitability and reliability for this specific express delivery requirement.

How does the awarded amount compare to historical spending on similar express freight services by USTRANSCOM?

The provided data does not include historical spending figures for comparable express freight services by USTRANSCOM, making a direct comparison difficult. However, the $20.6 million for a 30-day service suggests a premium is being paid for speed and specialized handling, typical of express logistics. To benchmark effectively, one would need to analyze past USTRANSCOM contracts for expedited cargo movement, considering factors like distance, cargo type, and urgency. Without this comparative data, it's challenging to definitively assess if this award represents optimal value for money relative to historical trends or market rates for similar rapid deployment logistics.

What are the primary risks associated with a fixed-price contract with economic price adjustment for freight services?

The primary risks associated with a fixed-price contract with economic price adjustment (FPEPA) for freight services revolve around cost volatility and potential for contractor claims. While the fixed-price element provides a baseline cost, the economic price adjustment clause allows for modifications based on fluctuations in specific economic factors, most commonly fuel prices. The risk for the government is that these adjustments could lead to higher-than-anticipated costs, especially during periods of significant market volatility. For the contractor, the risk lies in accurately forecasting costs and managing the administrative burden of tracking and justifying price adjustments. Effective oversight is crucial to ensure adjustments are fair and based on legitimate economic changes.

What is the expected impact of this contract on the operational readiness of the supported military units?

This contract is expected to significantly enhance the operational readiness of the supported military units by ensuring the rapid and reliable delivery of essential equipment, supplies, or personnel. The 'express' nature of the service implies a focus on time-sensitive requirements, which are critical for maintaining deployment schedules, responding to emergent needs, or supporting ongoing operations where delays are unacceptable. By securing dedicated freight transportation for a 30-day period, USTRANSCOM is mitigating potential logistical bottlenecks and ensuring that forces have the resources they need when and where they need them, thereby directly contributing to mission success and overall military effectiveness.

How does the geographic focus on Florida influence the overall strategy for defense freight transportation?

The geographic focus on Florida suggests this contract is tailored to support specific military installations, training exercises, or deployment operations concentrated in that region. Florida hosts several major naval bases, Air Force installations, and Army posts, making it a strategic hub for defense activities, particularly those involving the U.S. Central Command (CENTCOM) and U.S. Southern Command (SOUTHCOM). This localized approach allows for more efficient and potentially cost-effective transportation by minimizing transit distances and optimizing routes within a defined area. It indicates a targeted strategy to meet the immediate logistical demands of forces operating in or deploying from the southeastern United States.

What are the potential implications of the short 30-day duration for future freight needs?

The short 30-day duration of this contract implies it is intended to fulfill immediate, short-term, or surge requirements rather than ongoing, long-term transportation needs. This approach offers flexibility, allowing the Department of Defense to reassess its requirements and market conditions after the period concludes. However, it also means that if the need for express freight services persists, subsequent contract actions will be necessary. This could lead to administrative overhead and potential disruptions if new contracts are not awarded promptly. For the contractor, it signifies a project-based engagement rather than a sustained service agreement.

Industry Classification

NAICS: Transportation and Warehousing › Freight Transportation Arrangement › Freight Transportation Arrangement

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 9487 REGENCY SQUARE BLVD, JACKSONVILLE, FL, 32225

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

Financial Breakdown

Contract Ceiling: $20,591,068

Exercised Options: $20,591,068

Current Obligation: $20,591,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71124DR035

IDV Type: IDC

Timeline