State Dept. Warehouse Support Services Contract Reaches $42.3M with FCI Federal, LLC
Contract Overview
Contract Amount: $42,267,887 ($42.3M)
Contractor: FCI Federal, LLC
Awarding Agency: Department of State
Start Date: 2016-10-01
End Date: 2023-03-31
Contract Duration: 2,372 days
Daily Burn Rate: $17.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: IGF::OT::IGF WAREHOUSE SUPPORT SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $42.3 million to FCI FEDERAL, LLC for work described as: IGF::OT::IGF WAREHOUSE SUPPORT SERVICES Key points: 1. Contract value of $42.3M over its period of performance. 2. FCI Federal, LLC is the sole awardee. 3. Fixed Price Incentive contract type suggests potential for cost savings but also risk. 4. The service falls under Couriers and Express Delivery Services. 5. Awarded by the Department of State.
Value Assessment
Rating: fair
The contract value of $42.3M is substantial for warehouse support services. Benchmarking against similar contracts is difficult without more specific service details, but the duration and fixed-price incentive structure warrant scrutiny for cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: The $42.3M expenditure represents taxpayer funds allocated to essential support services for the Department of State. The limited competition raises questions about whether the best possible price was achieved.
Public Impact
Ensures critical logistical support for Department of State operations. Potential for cost overruns due to the fixed-price incentive structure. Limited competition may restrict market innovation and cost-saving opportunities. Long contract duration (over 6 years) requires ongoing performance monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Fixed Price Incentive contract type
- Lack of small business participation
Positive Signals
- Essential service provision
- Defined period of performance
Sector Analysis
This contract falls within the broader logistics and support services sector, which is crucial for government agency operations. Spending benchmarks for warehouse support services can vary widely based on scope, location, and specific requirements, but $42.3M over nearly 7 years suggests a significant operational footprint.
Small Business Impact
The data indicates that small business participation was not a factor in this award ('sb': false). This suggests that opportunities for small businesses to compete or subcontract on this significant contract were not realized.
Oversight & Accountability
The 'VA' (Virginia) designation likely refers to the contract's administrative location or performance site. Oversight would typically involve contract officers and program managers within the Department of State to ensure performance standards and financial accountability are met.
Related Government Programs
- Couriers and Express Delivery Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Limited competition may result in higher costs.
- Fixed Price Incentive contract type carries cost overrun risk.
- No small business participation noted.
- Long contract duration requires sustained oversight.
- Lack of detailed service scope makes value assessment difficult.
Tags
couriers-and-express-delivery-services, department-of-state, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $42.3 million to FCI FEDERAL, LLC. IGF::OT::IGF WAREHOUSE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is FCI FEDERAL, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $42.3 million.
What is the period of performance?
Start: 2016-10-01. End: 2023-03-31.
What specific warehouse support services are included, and how do they align with the $42.3M cost?
The contract details do not specify the exact services provided under 'IGF WAREHOUSE SUPPORT SERVICES.' Understanding the scope, such as inventory management, storage, distribution, and specialized handling, is crucial for assessing the value proposition of the $42.3M expenditure. Without this detail, it's difficult to determine if the cost is justified relative to the services rendered.
What are the potential risks associated with the Fixed Price Incentive (FPI) contract type for this service?
An FPI contract aims to share cost savings and overruns between the government and contractor. For warehouse support, risks include potential for the contractor to prioritize profit over service quality if cost targets are easily met, or conversely, significant cost overruns if performance targets are challenging, leading to higher-than-expected government expenditure. Clear performance metrics are vital.
How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring optimal pricing for these services?
This procurement method, while allowing for competition, excludes certain sources, limiting the pool of potential bidders. While it might be justified for specific reasons, it generally reduces competitive pressure compared to unrestricted full and open competition. This can potentially lead to less favorable pricing for the government and warrants careful justification for the exclusion.
Industry Classification
NAICS: Transportation and Warehousing › Couriers and Express Delivery Services › Couriers and Express Delivery Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SAQMMA14R0145
Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 20135 LAKEVIEW CTR PLZ STE 300, ASHBURN, VA, 20147
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $54,443,376
Exercised Options: $54,085,289
Current Obligation: $42,267,887
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $144,122
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2016-10-01
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2024-12-09
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