DoD's $30.7M storage contract with Crowley Government Services shows fair value despite limited competition

Contract Overview

Contract Amount: $30,967,208 ($31.0M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-13

End Date: 2026-09-30

Contract Duration: 1,843 days

Daily Burn Rate: $16.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8508479011!CONUS COCO STORAGE SERVICES

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: 8508479011!CONUS COCO STORAGE SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition was limited, raising questions about optimal price discovery. 3. Performance risk seems manageable with a firm fixed-price structure. 4. This contract supports critical logistics operations for the Defense Logistics Agency. 5. The services fall within the broader warehousing and storage sector. 6. Contract duration is substantial, spanning over five years.

Value Assessment

Rating: good

The contract's total value of $30.7 million over approximately five years suggests a moderate annual spend. Benchmarking against similar CONUS COCO (Contractor Owned, Contractor Operated) storage facilities is challenging without more granular data on facility size, location-specific costs, and service level agreements. However, the firm fixed-price nature of the contract provides cost certainty for the government. Given the duration and the nature of the services, the pricing appears to be within a reasonable range, though a more direct comparison to market rates for comparable facilities in Florida would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer than the full complement of bidders expected in a full and open competition. While the data indicates 5 bids were received, the specific details of the solicitation and the number of interested parties are not fully detailed. Limited competition under SAP can sometimes lead to less aggressive pricing compared to broader solicitations, as the pool of potential offerors is smaller and the process is streamlined.

Taxpayer Impact: Limited competition may mean taxpayers did not benefit from the most aggressive pricing achievable through a wider bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and its various components, ensuring critical storage and logistical support. Services delivered include warehousing and storage, essential for maintaining readiness and operational capabilities. The geographic impact is focused on Florida, supporting military operations within the CONUS. Workforce implications are primarily for the contractor, Crowley Government Services, and potentially local support staff in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than could have been achieved through a broader solicitation.
The long contract duration could expose the government to risks if market conditions or service needs change significantly.
Reliance on a single contractor for critical storage services could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
The contractor, Crowley Government Services, likely has established expertise in logistics and storage.
The contract supports essential defense logistics, contributing to national security.

Sector Analysis

This contract falls within the broader warehousing and storage sector, specifically supporting government logistics. The North American Industry Classification System (NAICS) code 493190, 'Other Warehousing and Storage,' encompasses a wide range of storage facilities. The market for government logistics services is substantial, with significant spending allocated annually to ensure the efficient movement and storage of goods. This contract represents a portion of that spending, focused on providing contractor-owned, contractor-operated facilities.

Small Business Impact

The provided data indicates that small business participation was not a stated requirement or a significant factor in this contract (ss: false, sb: false). There is no explicit mention of small business set-asides or subcontracting goals. Therefore, this contract does not appear to directly benefit small businesses through set-aside provisions. The impact on the broader small business ecosystem is likely minimal unless Crowley Government Services engages small businesses as subcontractors, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent within the Defense Logistics Agency. Accountability measures are inherent in the firm fixed-price contract, with penalties or remedies for non-performance. Transparency is facilitated through contract databases like FPDS, where basic contract information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency Warehousing Contracts
CONUS Storage Services
Contractor Owned Contractor Operated Facilities
Military Logistics Support

Risk Flags

Limited Competition
Long Contract Duration
Potential for Price Escalation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to CROWLEY GOVERNMENT SERVICES, INC.. 8508479011!CONUS 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 $31.0 million.

What is the period of performance?

Start: 2021-09-13. End: 2026-09-30.

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

Analyzing historical spending for CONUS COCO storage services by the Defense Logistics Agency (DLA) requires examining contract awards over several fiscal years. DLA consistently procures warehousing and storage solutions to support its global mission. Spending in this category can fluctuate based on operational tempo, inventory levels, and strategic shifts in logistics posture. While specific aggregate figures for CONUS COCO storage are not readily available in this dataset, DLA's overall budget for logistics and supply chain management runs into billions of dollars annually. Trends may show increased reliance on contractor-operated facilities for flexibility and cost-efficiency compared to government-owned facilities, particularly in high-demand or geographically dispersed areas. Further analysis would involve querying contract databases for similar NAICS codes and contract types awarded by DLA over time to identify spending trends and potential increases or decreases in the utilization of COCO storage.

How does the per-unit cost of this contract compare to similar storage contracts in Florida?

Determining the precise per-unit cost for this contract is challenging without specific details on the volume of goods stored, the square footage utilized, or the specific services rendered per unit. The contract value of $30.7 million is for a comprehensive storage solution over approximately five years. To benchmark per-unit costs against similar contracts in Florida, one would need to identify comparable DLA or other federal agency contracts for warehousing and storage services within the same geographic region. Key metrics for comparison would include cost per square foot per month, cost per cubic foot, or cost per pallet stored. Without access to such granular data for comparable contracts, a direct per-unit cost comparison is not feasible. However, the overall contract value suggests a significant operational scale, and market rates for commercial warehousing in Florida would serve as a general reference point.

What is Crowley Government Services' track record with similar federal contracts?

Crowley Government Services, a division of Crowley Maritime Corporation, has a substantial track record of performing logistics and transportation services for the U.S. government, including the Department of Defense. They are known for operating a large fleet of vessels and providing supply chain management solutions. Their experience often includes managing complex logistical challenges in various operational environments. While specific performance details for every contract are not publicly detailed, their long-standing relationship with government agencies suggests a history of successful contract execution. For this particular CONUS COCO storage contract, the firm fixed-price structure and the duration indicate a level of confidence from the Defense Logistics Agency in Crowley's capabilities to manage such operations effectively and within budget over the contract term.

What are the potential risks associated with the long duration of this contract?

The contract's duration of over five years (1843 days) presents several potential risks. Firstly, market conditions for warehousing and storage services can change significantly over such a period. Rental rates, labor costs, and operational expenses might increase, potentially making the fixed price less favorable to the contractor over time, or conversely, if rates decrease significantly, the government might be locked into a suboptimal price. Secondly, the government's requirements for storage might evolve due to changes in military strategy, inventory management policies, or technological advancements in logistics. A long-term contract might lack the flexibility to adapt to these evolving needs without costly modifications or renegotiations. Lastly, there's the risk of contractor performance degradation over an extended period; maintaining consistent service quality and responsiveness can be challenging. Robust oversight and performance management are crucial to mitigate these risks.

How does the limited competition impact the government's ability to secure competitive pricing?

Limited competition, as indicated by the contract being competed under Simplified Acquisition Procedures (SAP) and receiving 5 bids, can indeed impact the government's ability to secure the most competitive pricing. SAP is designed for efficiency and speed, often involving a smaller pool of potential bidders compared to full and open competition. While 5 bids suggest some level of interest, it is fewer than what might be expected in a broader solicitation. This smaller pool might reduce the pressure on bidders to offer their lowest possible prices, as they may face less intense rivalry. Consequently, the government might not achieve the full benefit of price discovery that arises from a highly competitive environment where numerous firms vie for the contract. The firm fixed-price nature helps contain costs, but the initial price level could be higher than if more bidders had participated.

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: SPE60321R0504

Offers Received: 5

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $172,042,208

Exercised Options: $30,967,208

Current Obligation: $30,967,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline