DoD's $231M OCONUS COCO Storage Services contract awarded to Crowley Government Services, Inc

Contract Overview

Contract Amount: $23,100,000 ($23.1M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-06-24

End Date: 2029-06-23

Contract Duration: 3,286 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8507432008!OCONUS COCO STORAGE SERVICES

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: 8507432008!OCONUS COCO STORAGE SERVICES Key points: 1. Value for money assessed through benchmarking against similar storage contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and potential for cost overruns in extended services. 4. Performance context relies on successful delivery of storage and logistics in overseas locations. 5. Sector positioning within Defense Logistics Agency's broader supply chain management efforts. 6. Contract type is a firm fixed price, which helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract value of $231 million over approximately 9 years suggests a significant investment in overseas storage. Benchmarking against similar contracts for warehousing and storage services, particularly those involving logistical support in challenging environments, is crucial. While a firm fixed price offers cost control, the extended duration necessitates careful monitoring of service delivery and potential for scope creep or unforeseen operational challenges that could impact overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a reasonable level of competition for this specialized service. A competitive process generally leads to better price discovery and ensures the government receives services at a more market-aligned rate.

Taxpayer Impact: A full and open competition for this substantial contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award.

Public Impact

This contract directly benefits the Department of Defense by ensuring critical storage and logistical support for operations in overseas locations. Services delivered include warehousing, storage, and potentially related logistical functions essential for military readiness. Geographic impact is focused on OCONUS (Outside Continental United States) regions, supporting deployed forces and assets. Workforce implications may involve the creation or sustainment of jobs related to logistics, warehousing, and facility management, both domestically and potentially overseas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (approx. 9 years) increases the risk of performance degradation or evolving operational needs not being met.
Reliance on a single contractor for critical OCONUS storage could create vulnerabilities in supply chain continuity.
Potential for unforeseen geopolitical or environmental factors impacting service delivery in overseas locations.

Positive Signals

Firm fixed-price contract structure provides cost certainty and limits the government's exposure to price fluctuations.
Awarded through full and open competition, suggesting a competitive process that likely secured favorable pricing.
Contractor has experience in government contracting, implying a degree of familiarity with requirements and compliance.

Sector Analysis

This contract falls within the broader Defense Logistics Agency's mission to provide supply chain management and logistical support to the U.S. military. The market for warehousing and storage services, especially those tailored for government and defense applications in overseas theaters, is specialized. It requires adherence to strict security, operational, and regulatory standards. Comparable spending benchmarks would involve analyzing other large-scale logistics and storage contracts awarded by defense agencies for similar OCONUS requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Crowley Government Services, Inc. actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Defense Logistics Agency, likely through contracting officers and program managers. Accountability measures are embedded in the firm fixed-price structure and performance requirements. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency Warehousing Contracts
OCONUS Logistics Support
Military Supply Chain Management
Government Storage Services

Risk Flags

Long contract duration
Overseas operational complexity
Reliance on single contractor for critical function

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to CROWLEY GOVERNMENT SERVICES, INC.. 8507432008!OCONUS COCO STORAGE SERVICES

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $23.1 million.

What is the period of performance?

Start: 2020-06-24. End: 2029-06-23.

What is the historical performance record of Crowley Government Services, Inc. with the Department of Defense, particularly on similar storage and logistics contracts?

Crowley Government Services, Inc. has a history of performing contracts for the Department of Defense. Analyzing their past performance on contracts of similar scope, duration, and geographic complexity is essential. This includes reviewing past performance evaluations, any documented issues or disputes, and their track record in meeting delivery schedules and quality standards. A review of their contract history would reveal their experience in managing large-scale logistics operations, particularly in OCONUS environments, and their ability to adapt to the unique challenges presented by such operations. Understanding their prior success rates and any recurring challenges can provide valuable insight into the potential risks and benefits associated with this current contract.

How does the awarded price of $231 million compare to market rates for similar OCONUS COCO storage services?

Benchmarking the $231 million contract value against market rates for comparable OCONUS COCO (Contractor Owned, Contractor Operated) storage services is critical for assessing value for money. This comparison should consider factors such as the type and volume of goods stored, the duration of the contract, the specific geographic locations, and the level of logistical support required. Data from industry reports, commercial warehousing providers operating in similar regions, and historical government contract awards for analogous services can be used for this benchmark. A significant deviation from market rates, either higher or lower, would warrant further investigation into the underlying cost drivers and the competitive landscape.

What are the primary risks associated with a nearly 9-year firm fixed-price contract for OCONUS storage services?

A nearly 9-year firm fixed-price contract for OCONUS storage services presents several primary risks. Firstly, the extended duration increases the likelihood of unforeseen geopolitical instability, changes in host nation regulations, or environmental challenges in overseas locations that could disrupt operations or increase costs for the contractor, potentially leading to claims or performance issues. Secondly, the fixed-price nature, while offering cost certainty, could incentivize the contractor to cut corners on service quality or maintenance if cost pressures arise over such a long period. Thirdly, evolving military requirements or technological advancements might render the contracted storage solutions less optimal or even obsolete by the end of the contract term. Finally, the long commitment limits the government's flexibility to adapt to changing strategic needs or to leverage new, potentially more efficient, solutions that emerge during the contract's life.

What are the key performance indicators (KPIs) and service level agreements (SLAs) governing this contract, and how are they monitored?

While specific KPIs and SLAs are not detailed in the provided summary data, typical metrics for such a contract would likely include on-time delivery rates, inventory accuracy, facility maintenance standards, security compliance, response times for logistical requests, and potentially environmental compliance. These would be formally defined within the contract's statement of work and performance work statement. Monitoring would be conducted by the Defense Logistics Agency's contracting officer's representatives (CORs) or technical monitors, who would regularly review performance reports submitted by Crowley Government Services, Inc., conduct site visits, and analyze data against the agreed-upon KPIs and SLAs. Failure to meet these metrics could result in contractual remedies, such as performance deductions or even termination.

How does this contract fit into the broader strategic objectives of the Defense Logistics Agency and the Department of Defense regarding overseas logistics?

This contract is integral to the Defense Logistics Agency's (DLA) mission of providing comprehensive logistics support to the U.S. Armed Forces, particularly in maintaining operational readiness and supply chain resilience in overseas theaters. By securing dedicated OCONUS storage and handling capabilities, the DLA ensures that critical equipment, supplies, and materiel are accessible and properly managed in regions where forward-deployed forces operate. This contract supports broader DoD strategic objectives by enabling sustained military presence, facilitating rapid response to contingencies, and ensuring the efficient flow of resources necessary for mission accomplishment, thereby enhancing overall force projection and global reach.

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: SPE60320R0505

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9487 REGENCY SQUARE BLVD, JACKSONVILLE, FL, 32225

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

Financial Breakdown

Contract Ceiling: $62,700,000

Exercised Options: $23,100,000

Current Obligation: $23,100,000

Actual Outlays: $8,474,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline