DoD's $15.6M Specialized Freight Contract with LB & B Associates Inc. Raises Questions on Value and Competition

Contract Overview

Contract Amount: $15,561,272 ($15.6M)

Contractor: LB & B Associates Inc

Awarding Agency: Department of Defense

Start Date: 2010-05-01

End Date: 2014-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: ALONGSIDE AIRCRAFT REFUELING

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to LB & B ASSOCIATES INC for work described as: ALONGSIDE AIRCRAFT REFUELING Key points: 1. The contract awarded to LB & B Associates Inc. for specialized freight services totaled $15.6 million. 2. Competition was listed as 'Full and Open,' but the specific impact on pricing is unclear. 3. The contract duration was 1460 days, suggesting a long-term need for these services. 4. The absence of small business participation warrants further investigation. 5. The PSC code is missing, hindering detailed sector analysis.

Value Assessment

Rating: questionable

The total award amount of $15.6 million for specialized freight trucking over four years needs comparison with similar contracts. Without a per-unit cost benchmark or more detailed service descriptions, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as 'Full and Open Competition,' the data does not provide details on the number of bids received or the evaluation process. This lack of transparency makes it difficult to ascertain if the competition effectively drove down prices or ensured the best value.

Taxpayer Impact: The impact on taxpayers is uncertain due to the lack of clear pricing benchmarks and competitive details. Further analysis is needed to confirm if taxpayer funds were used efficiently.

Public Impact

Citizens may question the cost-effectiveness of a $15.6 million contract for trucking services over four years. The lack of small business involvement could mean missed opportunities for smaller, local businesses. Transparency in government contracting is crucial; the absence of detailed competition data erodes public trust. The Defense Logistics Agency's reliance on a single vendor for specialized freight needs scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Specialized Freight Trucking, a critical component of logistics for the Department of Defense. Benchmarking spending in this sector is challenging without a specific PSC code, but large-scale freight contracts often involve significant sums.

Small Business Impact

The contract data indicates that no small businesses were involved in this award (ss=false, sb=false). This is a missed opportunity for economic development and could suggest barriers to entry for smaller firms in this specialized sector.

Oversight & Accountability

Oversight of this contract would involve ensuring LB & B Associates Inc. met all performance requirements and that the pricing remained competitive throughout the contract's duration. The lack of detailed competition data makes post-award oversight more challenging.

Related Government Programs

Risk Flags

Tags

specialized-freight-except-used-goods-tr, department-of-defense, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to LB & B ASSOCIATES INC. ALONGSIDE AIRCRAFT REFUELING

Who is the contractor on this award?

The obligated recipient is LB & B ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2010-05-01. End: 2014-04-30.

What was the average per-mile or per-shipment cost for the specialized freight services provided under this contract, and how does it compare to industry averages?

The provided data does not include per-unit cost details such as per-mile or per-shipment rates. To assess value, a comparison with industry benchmarks for specialized freight trucking, considering factors like cargo type, distance, and urgency, would be necessary. Without this granular data, determining if the $15.6 million award represented a fair price is difficult.

Given the 'Full and Open Competition' designation, what were the key factors that led to LB & B Associates Inc. being selected, and were there any other significant bids?

The data indicates 'Full and Open Competition' but lacks specifics on the number of bidders or the evaluation criteria. Typically, selection involves a combination of technical capability, past performance, and price. Without details on competing offers and the rationale for selecting LB & B Associates Inc., it's hard to confirm if the competition truly yielded the best possible outcome or if there were limiting factors.

How effectively did this contract support the Department of Defense's mission, and were there any performance issues or cost overruns reported during its four-year term?

The data does not provide information on the contract's performance metrics, mission support effectiveness, or any reported issues like cost overruns. A comprehensive assessment would require reviewing performance reports, delivery records, and any contract modifications or claims filed by LB & B Associates Inc. during the period of performance.

Industry Classification

NAICS: Transportation and WarehousingSpecialized Freight TruckingSpecialized Freight (except Used Goods) Trucking, Local

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060008R0536

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9891 BROKENLAND PARKWAY STE 400, COLUMBIA, MD, 21046

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,561,272

Exercised Options: $15,561,272

Current Obligation: $15,561,272

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline

Start Date: 2010-05-01

Current End Date: 2014-04-30

Potential End Date: 2018-10-30 00:00:00

Last Modified: 2018-05-10

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