DoD awards $78.4M contract for logistics consulting, with a significant portion allocated to delivery orders
Contract Overview
Contract Amount: $78,387,428 ($78.4M)
Contractor: Terrestris, LLC
Awarding Agency: Department of Defense
Start Date: 2025-06-10
End Date: 2025-08-16
Contract Duration: 67 days
Daily Burn Rate: $1.2M/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: WRAP AROUND BLS SERVICES.
Place of Performance
Location: LOS ALAMITOS, ORANGE County, CALIFORNIA, 90720
Plain-Language Summary
Department of Defense obligated $78.4 million to TERRESTRIS, LLC for work described as: WRAP AROUND BLS SERVICES. Key points: 1. Contract value indicates substantial need for specialized logistics expertise. 2. The contract's duration and delivery order structure suggest ongoing support requirements. 3. Competition level is noted as 'full and open after exclusion of sources,' requiring careful review. 4. The fixed-price contract type aims to control costs, but performance monitoring is key. 5. The award to TERRESTRIS, LLC warrants examination of their past performance and capacity. 6. Geographic focus on California may indicate specific operational needs or infrastructure.
Value Assessment
Rating: good
The contract's total value of $78.4 million for logistics consulting services appears reasonable given the scope of support likely required by the Department of the Army. Benchmarking against similar large-scale consulting contracts for federal agencies suggests this falls within a typical range for specialized advisory services. The firm fixed-price structure provides cost certainty, but the ultimate value-for-money will depend on the quality of the services delivered and the achievement of defined performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be broad, certain sources were excluded prior to the solicitation. The specific reasons for exclusion are critical to understanding the true level of competition. A limited number of bidders resulting from such exclusions could potentially impact price discovery and lead to less competitive pricing compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayers benefit from a structured competition, but the exclusion of sources necessitates scrutiny to ensure the government did not forgo potentially more competitive bids. Transparency around the exclusion criteria is vital for accountability.
Public Impact
The Department of the Army benefits from enhanced process, physical distribution, and logistics consulting. Services delivered are expected to optimize supply chain operations and improve efficiency. The primary geographic impact is in California, suggesting support for operations or facilities in that region. Workforce implications may include the need for specialized logistics personnel within the Army or support from TERRESTRIS, LLC's team.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'exclusion of sources' in the competition method requires further investigation to ensure fair market access and optimal pricing.
- The specific nature of the 'process, physical distribution, and logistics consulting' needs to be clearly defined to assess performance effectively.
- Reliance on a single contractor for critical logistics consulting could pose a risk if performance falters or if the contractor's capacity is exceeded.
Positive Signals
- The award to TERRESTRIS, LLC, suggests they possess the required expertise and qualifications for complex logistics challenges.
- The firm fixed-price contract type indicates a commitment to cost control and predictable spending.
- The contract's duration and delivery order structure allow for phased implementation and adaptation to evolving needs.
Sector Analysis
The logistics consulting sector is a vital component of the defense industry, supporting complex global supply chains and operational readiness. Federal spending in this area often involves significant investments to ensure efficiency and effectiveness in distribution, transportation, and inventory management. This contract fits within the broader category of professional services supporting defense operations, where specialized knowledge is crucial for optimizing resource allocation and mitigating risks in dynamic environments. Comparable spending benchmarks for similar consulting services can vary widely based on scope, duration, and the specific expertise required.
Small Business Impact
This contract does not indicate any specific small business set-aside provisions. The prime contractor, TERRESTRIS, LLC, is not explicitly identified as a small business in the provided data. Therefore, the primary impact on small businesses would likely be through subcontracting opportunities, if any are planned by the prime contractor. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its potential impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures will be tied to the performance work statement and delivery schedules. Transparency can be assessed through contract award data and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Department of Defense Logistics Modernization Programs
- Army Supply Chain Management Initiatives
- Federal Supply Chain Optimization Contracts
- Transportation and Distribution Consulting Services
Risk Flags
- Potential for reduced competition due to source exclusion.
- Dependence on contractor performance for critical logistics functions.
- Need for clear performance metrics to ensure value for money.
Tags
defense, department-of-defense, department-of-the-army, consulting-services, logistics, full-and-open-competition-after-exclusion-of-sources, firm-fixed-price, delivery-order, california, professional-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.4 million to TERRESTRIS, LLC. WRAP AROUND BLS SERVICES.
Who is the contractor on this award?
The obligated recipient is TERRESTRIS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $78.4 million.
What is the period of performance?
Start: 2025-06-10. End: 2025-08-16.
What is the specific nature of the 'process, physical distribution, and logistics consulting' services being procured?
The contract specifies 'Process, Physical Distribution, and Logistics Consulting Services' under NAICS code 541614. This typically encompasses a broad range of advisory services aimed at improving the efficiency and effectiveness of an organization's supply chain. Services may include analyzing existing logistics operations, identifying bottlenecks, recommending process improvements, optimizing transportation routes, managing inventory, and implementing new distribution strategies. The exact scope will be detailed in the Performance Work Statement (PWS), which outlines the specific tasks, deliverables, and performance standards TERRESTRIS, LLC is expected to meet. Without the PWS, the precise nature of the consulting remains general, but it is clearly focused on enhancing the Army's logistical capabilities.
How does the 'full and open competition after exclusion of sources' procurement method impact potential pricing and competition?
The 'full and open competition after exclusion of sources' method is a variation of full and open competition where the agency excludes certain sources from the competition before issuing the solicitation. This exclusion must be justified, often due to reasons like national security, proprietary data, or specific capabilities not widely available. While it aims for broad competition among the remaining eligible sources, the exclusion inherently limits the pool of potential bidders. This limitation can potentially reduce competitive pressure compared to an unrestricted full and open competition, which could lead to higher prices if the excluded sources were significant competitors or if the remaining pool is small. The justification for exclusion is critical for assessing whether this method truly served the government's best interest in achieving optimal value.
What is TERRESTRIS, LLC's track record with similar federal contracts, particularly within the Department of Defense?
Assessing TERRESTRIS, LLC's track record is crucial for understanding their capability to deliver on this $78.4 million contract. A review of their past performance on federal contracts, especially those with the Department of Defense or similar agencies, would reveal their history of meeting deadlines, managing budgets, and delivering quality services. Information on contract awards, past performance evaluations (if publicly available), and any history of disputes or contract terminations would provide valuable insights. Without specific data on their prior performance, it is difficult to definitively assess their reliability and expertise in complex logistics consulting, though their selection for this significant award suggests they met initial qualification criteria.
What are the key performance indicators (KPIs) for this contract, and how will they be measured?
Key Performance Indicators (KPIs) for this logistics consulting contract would be defined within the Performance Work Statement (PWS). These KPIs are essential for measuring the success and value derived from TERRESTRIS, LLC's services. Examples of relevant KPIs could include improvements in delivery times, reductions in transportation costs, enhanced inventory accuracy, increased supply chain resilience, or successful implementation of new logistics technologies or processes. The PWS would also specify the methods for measuring these KPIs, the frequency of reporting, and the acceptable performance thresholds. Effective monitoring of these KPIs is vital for ensuring the Army receives the intended benefits and achieves value for the $78.4 million investment.
How does this contract's value compare to historical federal spending on logistics consulting services?
The $78.4 million award for logistics consulting services represents a significant investment. To benchmark this against historical spending, one would need to analyze trends in federal procurement for similar services over several fiscal years. Factors such as the specific agency (Department of Defense), the nature of the consulting (process, physical distribution, logistics), and the contract duration (67 days for this specific delivery order, but the overall contract may be longer) are important for comparison. If historical data shows a consistent or increasing trend in spending for such specialized consulting, it might indicate growing reliance on external expertise to manage complex defense logistics. Conversely, a sharp increase could warrant further investigation into the drivers behind the elevated spending.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 18027 DUMFRIES SHOPPING PLZ STE 7, DUMFRIES, VA, 22026
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $78,387,449
Exercised Options: $78,387,449
Current Obligation: $78,387,428
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002325D0082
IDV Type: IDC
Timeline
Start Date: 2025-06-10
Current End Date: 2025-08-16
Potential End Date: 2025-08-16 00:00:00
Last Modified: 2025-09-17
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