DoD's $27.7M logistics contract for UAS project office awarded to The Tolliver Group, Inc

Contract Overview

Contract Amount: $27,742,217 ($27.7M)

Contractor: THE Tolliver Group, Inc

Awarding Agency: Department of Defense

Start Date: 2023-11-30

End Date: 2026-05-06

Contract Duration: 888 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: LOGISTICS SUPPORT TO THE UNMANNED AIRCRAFT SYSTEMS (UAS) PROJECT OFFICE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to THE TOLLIVER GROUP, INC for work described as: LOGISTICS SUPPORT TO THE UNMANNED AIRCRAFT SYSTEMS (UAS) PROJECT OFFICE Key points: 1. Contract value of $27.7M over approximately 2.9 years for UAS logistics support. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. The contract type is Time and Materials, which can pose cost control risks. 4. The contractor, The Tolliver Group, Inc., is a small business. 5. The contract is for administrative management and general management consulting services. 6. The project office is related to Unmanned Aircraft Systems (UAS).

Value Assessment

Rating: fair

The contract value of $27.7M over 888 days (approx. 2.9 years) for logistics support to a UAS project office appears to be within a reasonable range for specialized government contracting. However, without specific benchmarks for UAS logistics support or comparable contracts for similar project offices, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing structure, while common, necessitates close monitoring to ensure costs do not escalate beyond initial expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. The presence of 6 bids indicates a healthy level of interest and competition for this requirement. This competitive environment generally favors price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not unduly constrained by a lack of bidder options.

Public Impact

The primary beneficiaries are the Department of the Army and its Unmanned Aircraft Systems (UAS) Project Office, which will receive essential logistics support. Services delivered include administrative and general management consulting, crucial for the efficient operation of the UAS project. The geographic impact is primarily within Alabama, where the contractor is located, but the support extends to the operational needs of the UAS project office. Workforce implications include employment opportunities within The Tolliver Group, Inc., a small business, contributing to the local economy in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored.
The specialized nature of UAS logistics may present unique challenges in performance and oversight.
Reliance on a single small business contractor for critical logistics support could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contractor, The Tolliver Group, Inc., is a small business, aligning with government goals to support small business participation.
The contract duration of nearly three years provides stability for the UAS project office's logistics needs.

Sector Analysis

The defense logistics and support services sector is a significant component of federal spending, particularly supporting advanced technology programs like Unmanned Aircraft Systems (UAS). This contract fits within the broader category of professional services, specifically management and administrative support, which are essential for the effective execution of complex defense projects. Benchmarks for similar logistics support contracts within the Department of Defense can vary widely based on the specific systems supported and the scope of services required.

Small Business Impact

The Tolliver Group, Inc., identified as a small business, is the prime contractor for this award. This suggests a positive outcome for small business participation in fulfilling federal requirements. The contract does not explicitly mention small business set-asides, but the prime awardee being a small business is a significant indicator. Further analysis would be needed to determine if subcontracting opportunities are mandated or expected to be offered to other small businesses, thereby extending the positive impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Logistics Support
Unmanned Aircraft Systems (UAS) Programs
Defense Administrative and Management Consulting Services
Army Aviation Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Contractor performance history needs thorough review.
Dependence on a single small business for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to THE TOLLIVER GROUP, INC. LOGISTICS SUPPORT TO THE UNMANNED AIRCRAFT SYSTEMS (UAS) PROJECT OFFICE

Who is the contractor on this award?

The obligated recipient is THE TOLLIVER GROUP, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2023-11-30. End: 2026-05-06.

What is the historical spending pattern for logistics support related to UAS Project Offices within the Department of the Army?

Analyzing historical spending for UAS Project Office logistics support within the Department of the Army requires access to detailed procurement data over several fiscal years. Generally, spending in this area has seen a significant increase due to the growing emphasis on drone technology across military branches. This includes funding for maintenance, supply chain management, training support, and operational readiness. Contracts can range from individual system support to broader program-level logistics. The specific value of this $27.7M contract should be compared against the average annual spend for similar UAS-related logistics functions to gauge its relative scale and significance within the Army's overall UAS investment strategy.

How does the contractor, The Tolliver Group, Inc., perform on other government contracts, particularly those involving logistics or defense support?

Assessing The Tolliver Group, Inc.'s performance requires a review of their contract history, including past performance evaluations and any reported issues or commendations. As a small business, their portfolio might be more focused. Information on their track record with the government, especially within the Department of Defense or for similar logistics/management consulting services, would be crucial. A lack of readily available negative performance indicators does not guarantee success, but a history of successful contract completions and positive feedback would increase confidence in their ability to deliver on this UAS logistics contract. Conversely, any documented performance issues would raise concerns.

What are the specific risks associated with the Time and Materials (T&M) contract type for this UAS logistics support requirement?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage for overhead and profit. Unlike fixed-price contracts, there is less incentive for the contractor to control costs efficiently. For UAS logistics support, this could manifest as extended labor hours for tasks that should be straightforward, or the use of more expensive materials than necessary. Effective oversight, detailed task monitoring, and clear ceiling prices are essential to mitigate these risks and ensure the government receives good value.

Can the value of this $27.7M contract be benchmarked against similar UAS logistics support contracts awarded by other federal agencies or military branches?

Benchmarking this $27.7M contract requires identifying comparable contracts for UAS logistics support across the federal government. This involves searching databases for contracts with similar scopes of work, duration, and complexity, potentially across different military branches (e.g., Air Force, Navy) or even other agencies involved in drone operations. Factors like the specific types of UAS supported, the level of technical expertise required, and the geographic scope of support will influence comparability. If similar contracts show significantly lower or higher values for comparable services, it would indicate potential overpricing or under-resourcing for this specific award.

What is the projected impact of this contract on the overall efficiency and operational readiness of the UAS Project Office?

The projected impact of this contract on the UAS Project Office's efficiency and readiness hinges on the contractor's ability to provide timely and effective logistics support. Efficient logistics are critical for ensuring that UAS platforms and associated equipment are maintained, supplied, and ready for deployment. If The Tolliver Group, Inc. successfully fulfills its obligations, it should contribute positively to the project office's ability to meet its objectives, reduce downtime, and enhance overall operational effectiveness. Conversely, any shortcomings in logistics support could impede the project's progress and negatively affect readiness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 445 JAN DAVIS DR NW STE 200, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $188,110,466

Exercised Options: $27,742,217

Current Obligation: $27,742,217

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $14,911,214

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F0013W

IDV Type: FSS

Timeline