DoD awards $23.3M for freight transport, with Crowley Government Services securing the contract

Contract Overview

Contract Amount: $23,330,434 ($23.3M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-01

End Date: 2025-09-30

Contract Duration: 29 days

Daily Burn Rate: $804.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Transportation

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 $23.3 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 logistical support for defense operations. 2. The fixed-price structure with economic price adjustment aims to mitigate inflation risks. 3. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 4. The contract duration of 29 days indicates a short-term, specific need for transportation services. 5. Performance is tied to a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting a framework for ongoing needs. 6. The award is a delivery order under a larger contract, implying a phased approach to fulfilling broader requirements.

Value Assessment

Rating: good

The contract value of $23.3 million for a 29-day period for freight transportation services appears reasonable given the scope of defense logistics. Benchmarking against similar large-scale transportation contracts is challenging without more specific service details. However, the fixed-price with economic price adjustment (FPEPA) contract type suggests an effort to control costs while accounting for market fluctuations. The award amount is a portion of a larger IDIQ, indicating it's part of a broader procurement strategy.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment. This approach allows the government to solicit proposals from a wide range of qualified vendors, increasing the likelihood of obtaining favorable pricing and innovative solutions. The competitive nature is expected to drive down costs and improve service quality.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and better service quality due to the government's ability to select from the most capable and cost-effective providers.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and its various branches, ensuring the timely movement of critical supplies and equipment. Services delivered include freight transportation arrangements, crucial for maintaining operational readiness and supporting global deployments. The geographic impact is likely national and potentially international, depending on the specific deployment needs of the DoD. Workforce implications may include support for logistics personnel and indirect employment in the transportation and freight industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if economic price adjustment clauses are heavily utilized due to unforeseen market volatility.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise.
The short duration of the delivery order might necessitate frequent re-competition or extensions, leading to administrative overhead.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely secured a fair market price.
The contractor, Crowley Government Services, Inc., has experience in government contracting, implying a degree of reliability.
The fixed-price element provides a baseline cost control mechanism, despite the economic price adjustment.

Sector Analysis

The freight transportation sector is a critical component of the defense industrial base, enabling the 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 utilizing large IDIQ contracts to manage diverse and evolving transportation needs. Spending in this area is influenced by global security postures and operational tempo.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Given the nature and potential scale of defense freight transportation, it is common for prime contractors to utilize a network of subcontractors, which may include small businesses. However, without specific details on subcontracting plans, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if small businesses are participating in fulfilling this requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. The U.S. Transportation Command (USTRanscom) is the relevant agency, responsible for overseeing the execution of transportation services. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, though detailed operational performance data may be less public.

Related Government Programs

Defense Freight Transportation Services (DFTS)
Global Household Goods Contract
Logistics and Transportation Services IDIQ
Military Sealift Command Contracts
Expeditionary Logistics Support

Risk Flags

Potential for cost escalation due to Economic Price Adjustment (EPA) clause.
Contract performance risk associated with timely delivery of critical freight.
Dependence on a single awardee for a specific delivery order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 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 $23.3 million.

What is the period of performance?

Start: 2025-09-01. End: 2025-09-30.

What is the historical spending pattern for Defense Freight Transportation Services (DFTS) II - Express Car?

The provided data indicates a single delivery order valued at $23,303,333.67 for DFTS II - Express Car, with an estimated completion date of September 30, 2025. This suggests that this specific delivery order is a recent award or a component of a larger contract vehicle. To understand the historical spending pattern, one would need to examine the overall DFTS II IDIQ contract's award history, including all previous delivery orders issued under it, their respective values, durations, and the contractors who received them. Without access to the full contract history and all associated delivery orders, a comprehensive analysis of the historical spending pattern for DFTS II - Express Car cannot be fully determined from this single data point.

How does the pricing of this contract compare to similar freight transportation contracts awarded by the DoD?

Comparing the pricing of this $23.3 million contract for a 29-day period requires detailed benchmarking against similar freight transportation services procured by the DoD. Key factors for comparison include the type of freight, distance, urgency, mode of transport (air, sea, land), and specific service requirements (e.g., specialized handling, security). The contract type, Fixed Price with Economic Price Adjustment (FPEPA), also influences pricing dynamics. Without access to a comprehensive database of comparable contracts with detailed pricing breakdowns and service scopes, a precise value-for-money assessment is difficult. However, the fact that it was awarded under full and open competition suggests that the pricing was deemed competitive at the time of award.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks associated with this contract include potential performance failures by the contractor, Crowley Government Services, Inc., which could disrupt critical supply chains and impact military operations. Another risk is the economic price adjustment (EPA) clause, which could lead to costs exceeding initial estimates if fuel prices or other economic factors escalate significantly. Given the short 29-day duration of this specific delivery order, there's also a risk of administrative burden and potential delays if follow-on requirements are not promptly defined and competed. Finally, reliance on a single contractor for a critical service, even if part of a larger IDIQ, carries inherent risks if unforeseen issues arise with the contractor's capacity or stability.

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

Crowley Government Services, Inc. has a significant track record in providing logistics and transportation services to the U.S. government, including the Department of Defense. They have been a frequent recipient of contracts for various transportation needs, including ocean transportation, freight forwarding, and port operations. Their experience often involves complex, large-scale operations supporting military deployments and sustainment. While specific performance metrics for past contracts are not detailed here, their continued success in securing government contracts suggests a generally positive performance history. However, a deeper dive into past performance evaluations and any past disputes or contract terminations would be necessary for a complete assessment.

How does this contract fit into the broader USTRANSCOM mission and strategy?

This contract for freight transportation services directly supports the mission of the U.S. Transportation Command (USTRANSCOM), which is responsible for providing "mobility, logistics, and sustainment" to the U.S. military. Specifically, this delivery order under the DFTS II IDIQ contract enables the efficient and timely movement of cargo essential for military readiness and operations. It contributes to USTRANSCOM's strategic goal of ensuring global reach and power projection capabilities. By securing necessary transportation capacity, this contract helps maintain the flow of supplies and equipment, underpinning the DoD's ability to respond to global security challenges.

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: $23,330,434

Exercised Options: $23,330,434

Current Obligation: $23,330,434

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71124DR035

IDV Type: IDC

Timeline