DoD's $18.3M GOCO Storage Contract with LB & B Associates Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $18,287,179 ($18.3M)

Contractor: LB & B Associates Inc

Awarding Agency: Department of Defense

Start Date: 2017-04-20

End Date: 2026-09-30

Contract Duration: 3,450 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF!8504240086!CONUS GOCO STORAGE SERVICES

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to LB & B ASSOCIATES INC for work described as: IGF::OT::IGF!8504240086!CONUS GOCO STORAGE SERVICES Key points: 1. Contract awarded at a price point appearing reasonable given the duration and scope. 2. Competition was full and open, but the number of bids suggests potential for enhanced price discovery. 3. Risk indicators are low, with a firm fixed-price structure and established contractor. 4. Performance context is within a critical logistics support function for the Defense Logistics Agency. 5. Sector positioning is within the essential warehousing and storage services for defense operations.

Value Assessment

Rating: good

The contract's total value of $18.3 million over approximately 9 years (2017-2026) suggests a stable, long-term arrangement. Benchmarking against similar Government Owned Contractor Operated (GOCO) storage facilities is challenging due to the specialized nature of these operations. However, the firm fixed-price contract type generally indicates that the contractor assumes the risk for cost overruns, which can be favorable for the government if managed efficiently. The price appears to be in line with the expected costs for providing secure, compliant storage services for military assets.

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. With 11 bids received, the competition level was robust, suggesting a healthy market for these specialized services. A higher number of bidders generally leads to more competitive pricing and better value for the government. The agency's decision to pursue full and open competition is a positive indicator of seeking the best possible terms.

Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. This process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The Department of Defense benefits from secure and reliable storage of its assets. Services include warehousing and storage, crucial for maintaining military readiness. The contract's geographic impact is centered in Texas (ST), supporting regional logistics. Workforce implications include employment opportunities for personnel involved in storage and logistics operations at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Reliance on a single contractor for a critical function could pose a risk if performance issues arise.
GOCO model requires careful oversight to ensure contractor efficiency and compliance.

Positive Signals

Firm fixed-price contract limits cost uncertainty for the government.
Full and open competition with multiple bidders suggests a competitive market.
Long-term contract provides stability for essential logistics support.

Sector Analysis

The contract falls within the broader "Warehousing and Storage" sector, specifically supporting government-owned, contractor-operated (GOCO) facilities. This niche within the logistics industry is critical for defense operations, ensuring the readiness and availability of equipment and supplies. The market for such specialized services is often characterized by a limited number of highly qualified providers capable of meeting stringent government requirements for security, compliance, and operational efficiency. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of GOCO contracts.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The nature of GOCO storage services often requires specialized infrastructure and expertise that may be more readily available from larger, established firms. Further analysis would be needed to determine if opportunities exist for small businesses to participate in the supply chain or provide ancillary services.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Logistics Agency (DLA), which is responsible for providing logistics support to the U.S. Armed Forces. The firm fixed-price nature of the contract shifts some performance risk to the contractor, but the government retains oversight responsibility for ensuring contract compliance, quality of service, and adherence to security protocols. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational oversight details are typically internal.

Related Government Programs

Defense Logistics Agency Warehousing Contracts
Government Owned Contractor Operated Facilities
Military Storage and Distribution Services
Department of Defense Logistics Support

Risk Flags

Contract Duration
Contract Type
Competition Level
Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to LB & B ASSOCIATES INC. IGF::OT::IGF!8504240086!CONUS GOCO STORAGE SERVICES

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 $18.3 million.

What is the period of performance?

Start: 2017-04-20. End: 2026-09-30.

What is the historical spending pattern for GOCO storage services by the Defense Logistics Agency?

Historical spending on GOCO storage services by the Defense Logistics Agency (DLA) has been substantial, reflecting the critical need for secure and efficient storage of military assets. While specific figures for GOCO storage alone are not readily available in aggregated public data, DLA's overall budget for warehousing and storage services runs into hundreds of millions of dollars annually. These services are essential for maintaining supply chain readiness and ensuring that equipment and materiel are available when and where needed. Spending patterns are influenced by factors such as geopolitical conditions, military deployment levels, and the modernization of storage infrastructure. The DLA continuously evaluates its storage needs and contract vehicles to optimize costs and performance, often through competitive solicitations for both GOCO and Government Owned Government Operated (GOGO) facilities.

How does the pricing of this LB & B Associates contract compare to other similar GOCO storage contracts?

Direct, apples-to-apples comparisons of pricing for GOCO storage contracts are challenging due to the unique specifications, geographic locations, security requirements, and service levels involved in each contract. The $18.3 million total value over approximately 9 years for LB & B Associates' contract translates to an average annual cost of roughly $2 million. This figure encompasses all aspects of operating the facility, including labor, maintenance, utilities, security, and compliance. Without detailed breakdowns of services provided and specific performance metrics for comparable contracts, it's difficult to definitively benchmark the value. However, the fact that it was awarded under full and open competition with 11 bids suggests that the pricing was deemed competitive within the market for such specialized defense logistics support.

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

The primary risks associated with this Government Owned Contractor Operated (GOCO) storage contract for the Department of Defense (DoD) revolve around contractor performance, cost control, and security. While the firm fixed-price structure mitigates cost overrun risk for the government, there's still a risk that the contractor may not perform efficiently or to the required standards, potentially impacting the availability or condition of stored assets. Security is paramount; any breach or compromise of the facility could have severe consequences for national security. Furthermore, reliance on a single contractor for a critical function creates a dependency risk. Should the contractor face financial difficulties, operational failures, or decide not to re-compete, the DoD would face disruption in its logistics chain. Robust oversight and clear performance metrics are crucial to managing these risks.

What is the track record of LB & B Associates Inc. in performing government contracts, particularly in logistics and storage?

LB & B Associates Inc. has a history of performing government contracts, including those related to logistics and operational support. Information available through federal procurement databases indicates past awards for various services, suggesting experience in managing government requirements. While specific details on the scale and nature of all past contracts require deeper investigation, their involvement in a GOCO storage services contract with the Defense Logistics Agency signifies a level of capability and trust deemed sufficient by the agency to be awarded this significant, long-term agreement. Assessing their performance on this specific contract, and potentially others, would involve reviewing past performance evaluations and any documented issues or commendations.

How does the 'Other Warehousing and Storage' NAICS code (493190) typically align with defense logistics needs?

The 'Other Warehousing and Storage' NAICS code (493190) broadly encompasses establishments primarily engaged in operating warehousing and storage facilities, excluding specific types like refrigerated storage or farm product warehousing. For defense logistics, this code is highly relevant as it covers the general need for secure, compliant storage of a wide array of military equipment, supplies, and materiel. Defense logistics often require specialized capabilities beyond basic warehousing, such as climate control, hazardous material handling, inventory management systems, and stringent security protocols, all of which can fall under the umbrella of this NAICS code when provided by a contractor operating a government-owned facility (GOCO). The flexibility of this classification allows it to encompass the diverse storage requirements of military operations.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SPE60016R0527

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $18,287,179

Exercised Options: $18,287,179

Current Obligation: $18,287,179

Actual Outlays: $1,892,578

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline