DoD awards $42.8M warehousing contract to LB & B Associates Inc. for extended storage services

Contract Overview

Contract Amount: $42,782,393 ($42.8M)

Contractor: LB & B Associates Inc

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2025-08-13

Contract Duration: 2,876 days

Daily Burn Rate: $14.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF!8504787756!CONUS GOCO STORA

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $42.8 million to LB & B ASSOCIATES INC for work described as: IGF::CT::IGF!8504787756!CONUS GOCO STORA Key points: 1. Contract value appears reasonable given the extended duration and scope of warehousing services. 2. Competition dynamics indicate a potentially competitive bidding process, though specific details are limited. 3. Risk indicators are moderate, with a long contract duration potentially introducing performance risks. 4. Performance context suggests a need for reliable storage and logistics support for defense operations. 5. Sector positioning places this contract within the broader defense logistics and supply chain management industry.

Value Assessment

Rating: good

The contract value of $42.8 million over approximately 8 years (2017-2025) suggests an average annual cost of roughly $5.35 million. Benchmarking against similar large-scale warehousing and storage contracts within the Department of Defense is challenging without more specific service details. However, the firm-fixed-price structure implies that LB & B Associates Inc. assumed the risk for cost overruns, which can be a positive indicator of value if performance is met. The pricing appears to be within a reasonable range for extensive logistical support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process among eligible bidders. While the data indicates 8 bids were received, the specific nature of the competition and the number of bidders who submitted final proposals are not detailed. A competitive process, even under SAP, generally leads to better price discovery and value for the government compared to sole-source awards.

Taxpayer Impact: A competed award under SAP suggests that taxpayers benefited from a process designed to solicit multiple offers, likely resulting in a more cost-effective outcome than a non-competitive procurement.

Public Impact

The primary beneficiaries are the Department of Defense, ensuring critical storage and warehousing capabilities. Services delivered include the storage and management of various materials and equipment essential for military operations. The geographic impact is focused on CONUS (Continental United States), specifically Maryland, supporting domestic logistics. Workforce implications may include employment opportunities at LB & B Associates Inc. and potentially related logistics support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 8 years) increases the risk of performance degradation or obsolescence of services.
Dependence on a single contractor for critical warehousing could pose supply chain risks if issues arise.
Firm-fixed-price contracts can sometimes lead to reduced contractor flexibility if unforeseen operational changes are needed.

Positive Signals

The contract was competed, indicating a level of market interest and potential for competitive pricing.
The firm-fixed-price structure shifts cost risk to the contractor, potentially benefiting the government.
The award to LB & B Associates Inc. suggests they met the government's requirements for this essential service.

Sector Analysis

This contract falls within the broader logistics and supply chain management sector, a critical component of the defense industrial base. The North American Industry Classification System (NAICS) code 493190 (Other Warehousing and Storage) encompasses a wide range of storage and distribution services. The defense logistics sector is substantial, with significant government spending allocated annually to ensure the efficient movement and storage of goods and equipment. This contract represents a portion of that overall spending, focusing on specialized warehousing needs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and the contractor, LB & B ASSOCIATES INC, is likely not a small business given the contract value. There is no explicit information on subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem from this specific award appears limited, though larger prime contractors are often encouraged or required to have small business subcontracting goals on other contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) contracting officers and program managers. The firm-fixed-price nature implies that performance standards and delivery schedules are key metrics for oversight. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Defense Logistics Agency (DLA) Operations
CONUS Warehousing and Storage Services
Government-Owned, Contractor-Operated (GOCO) Facilities
Military Sealift Command Support
Army Materiel Command Logistics

Risk Flags

Long-term contract duration
Potential for performance degradation over time
Dependence on single contractor for critical function

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.8 million to LB & B ASSOCIATES INC. IGF::CT::IGF!8504787756!CONUS GOCO STORA

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 $42.8 million.

What is the period of performance?

Start: 2017-09-28. End: 2025-08-13.

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

The Defense Logistics Agency (DLA) historically spends billions of dollars annually on a wide array of logistics services, including warehousing and storage. This spending supports the global supply chain for the U.S. military. While specific figures for warehousing alone fluctuate based on operational tempo and strategic needs, DLA's overall budget for supply chain management and logistics is substantial. Analyzing historical data from sources like the DLA budget reports and FPDS can reveal trends in contract awards for similar services, identifying peak spending periods and key service providers. This particular contract, valued at approximately $42.8 million over its term, represents a segment of DLA's ongoing investment in maintaining robust storage capabilities within the continental United States.

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

Directly comparing the pricing of this $42.8 million contract to similar DoD warehousing contracts is challenging without detailed service level agreements and performance metrics. However, the firm-fixed-price (FFP) structure is a common pricing model used by the DoD to manage costs and transfer risk to the contractor. The average annual cost of approximately $5.35 million for LB & B Associates Inc. should be evaluated against the scope of services, facility requirements, and inventory managed. Benchmarking would ideally involve comparing the cost per square foot, cost per item stored, or cost per logistical transaction against industry standards and other government contracts for comparable services. Given the extended duration and the nature of defense logistics, the pricing appears to be within a plausible range, assuming satisfactory performance.

What are the primary risks associated with a long-term contract like this for warehousing services?

Long-term contracts, such as this nearly 8-year agreement, present several inherent risks for government warehousing services. Firstly, there's the risk of contractor performance degradation over time; initial high performance may wane, leading to inefficiencies or service failures. Secondly, technological advancements or changes in military operational requirements could render the contracted services or facilities less optimal or even obsolete before the contract ends. Thirdly, a prolonged commitment to a single provider can reduce flexibility to adapt to evolving needs or to capitalize on potentially better market offerings that emerge later. Finally, economic fluctuations or unforeseen events could impact the contractor's financial stability, potentially jeopardizing service continuity. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What is LB & B Associates Inc.'s track record with government contracts, particularly in warehousing?

LB & B Associates Inc. has a history of performing government contracts, including those related to logistics and warehousing. While specific details of their past performance on similar scale contracts require deeper investigation into contract databases and performance reports, their ability to secure this significant award from the Defense Logistics Agency suggests a demonstrated capability to meet DoD requirements. Companies in this sector often build their reputation through consistent delivery, adherence to schedules, and effective cost management. A thorough review of their contract history, including any past performance evaluations or disputes, would provide a more comprehensive understanding of their reliability and expertise in managing large-scale warehousing operations for federal agencies.

How does this contract contribute to the overall readiness and operational effectiveness of the DoD?

This contract is vital for maintaining the operational readiness and effectiveness of the Department of Defense by ensuring the secure and efficient storage of critical equipment, supplies, and materials. Reliable warehousing services, particularly within the CONUS, are foundational to the military's ability to deploy forces and sustain operations both domestically and abroad. By outsourcing these functions to LB & B Associates Inc. under a firm-fixed-price agreement, the DoD can focus its resources on core military missions while benefiting from specialized logistical expertise. The continuity provided by this long-term contract helps prevent supply chain disruptions and ensures that necessary assets are available when and where they are needed, directly supporting military readiness.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: SPE60017R0522

Offers Received: 8

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: $42,782,393

Exercised Options: $42,782,393

Current Obligation: $42,782,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline