DoD awards $21M logistics consulting contract to Terrestris, LLC for California-based operations

Contract Overview

Contract Amount: $21,084,463 ($21.1M)

Contractor: Terrestris, LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-16

End Date: 2026-01-15

Contract Duration: 152 days

Daily Burn Rate: $138.7K/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: JFTB LOS ALAMITOS LSA

Place of Performance

Location: LOS ALAMITOS, ORANGE County, CALIFORNIA, 90720

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to TERRESTRIS, LLC for work described as: JFTB LOS ALAMITOS LSA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 152 days indicates a focused, short-term need for services. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The specific NAICS code (541614) points to a need for specialized logistics consulting. 5. The award amount of approximately $21 million for a 5-month period warrants scrutiny for value. 6. Geographic focus on California may indicate specific regional logistical challenges or requirements.

Value Assessment

Rating: fair

The contract value of $21 million for a 152-day period averages over $138,000 per day. Benchmarking this against similar logistics consulting contracts is challenging without more specific service details. However, the daily rate appears high, suggesting a need to verify the scope and necessity of the services provided. The fixed-price nature provides some cost certainty, but the overall value proposition requires deeper analysis of the deliverables against the cost.

Cost Per Unit: Approximately $138,714 per day (based on total award and duration).

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was open, certain sources may have been excluded prior to the final bidding stage. This could potentially limit the breadth of competition. Further details on the exclusion criteria would be necessary to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: While the competition was open, the exclusion of sources might have reduced the number of competitive bids, potentially leading to a higher price than if all qualified vendors had participated.

Public Impact

The Department of the Army benefits from specialized logistics consulting services. Services are expected to be delivered in California, impacting regional operations. The contract supports the efficient movement and management of goods and resources. Potential workforce implications include the need for skilled logistics professionals to execute the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily rate requires justification for value for money.
Limited contract duration may indicate a reactive or urgent need, potentially increasing costs.
Ambiguity in 'exclusion of sources' could limit competition and impact pricing.
Lack of detailed service description makes independent value assessment difficult.

Positive Signals

Awarded through a full and open competition process.
Fixed-price contract type provides cost certainty for the government.
Specific NAICS code indicates a targeted need for expert services.
Contract duration is clearly defined, allowing for focused execution.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically logistics consulting. The market for such services is competitive, with numerous firms offering specialized expertise. Federal spending in this area often supports complex supply chain management, distribution, and operational efficiency initiatives across various agencies. Comparable spending benchmarks would depend on the specific nature of the logistics challenges being addressed.

Small Business Impact

The contract data does not indicate any small business set-aside provisions (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, Terrestris, LLC may engage small businesses as subcontractors, depending on the scope of work and their subcontracting plans. The impact on the small business ecosystem would be indirect, contingent on subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring Terrestris, LLC to deliver specified services within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and oversight reports are not publicly available.

Related Government Programs

Department of Defense Logistics Support Contracts
Military Transportation and Distribution Services
Supply Chain Management Consulting
Federal Government Consulting Services

Risk Flags

High daily rate warrants value-for-money assessment.
Ambiguity in 'exclusion of sources' requires clarification.
Short contract duration for a large sum necessitates clear deliverables.
Lack of detailed service scope limits independent analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to TERRESTRIS, LLC. JFTB LOS ALAMITOS LSA

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 $21.1 million.

What is the period of performance?

Start: 2025-08-16. End: 2026-01-15.

What specific logistics challenges is Terrestris, LLC expected to address for the Department of the Army in California?

The provided data indicates the contract is for 'Process, Physical Distribution, and Logistics Consulting Services' (NAICS 541614) awarded to Terrestris, LLC. While the geographic location is specified as California (ST: CA), the exact nature of the logistics challenges is not detailed. These could range from optimizing supply chain routes, improving warehousing and distribution efficiency, managing transportation assets, or advising on the implementation of new logistics technologies. The high daily rate suggests the issues may be complex or require highly specialized expertise. Further information from the contract's statement of work would be necessary to pinpoint the specific problems being addressed.

How does the daily rate of approximately $138,714 compare to industry benchmarks for similar logistics consulting services?

A daily rate of approximately $138,714 for logistics consulting is exceptionally high and significantly above typical industry benchmarks for standard consulting services. Standard rates for experienced logistics consultants often range from $1,000 to $3,000 per day, depending on the firm's reputation, the consultant's seniority, and the complexity of the project. A rate this high could be justified if the contract involves extremely specialized, high-level strategic advisory, crisis management, or the deployment of unique, proprietary methodologies. Without a detailed statement of work and understanding of the specific expertise required, this rate raises concerns about potential overpricing or a scope of work that extends far beyond typical consulting.

What are the potential risks associated with a firm-fixed-price contract for complex logistics consulting?

Firm-fixed-price (FFP) contracts are generally preferred for their cost certainty. However, for complex services like logistics consulting, an FFP contract carries risks. If the scope of work is not precisely defined, the contractor (Terrestris, LLC) might face unforeseen challenges, leading to either reduced profit margins or attempts to cut corners on quality. Conversely, if the government's requirements change or are underestimated, they may need to issue modifications, potentially increasing costs. The primary risk for the government is that the contractor may deliver the minimum required to meet the contract terms, potentially missing opportunities for added value or innovation if the scope is too narrowly defined. The high daily rate here might suggest the government is paying a premium for the contractor to assume these risks.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the bidding process?

This contract clause, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicates a nuanced approach to competition. It means that the solicitation was initially made available to all responsible sources (full and open competition). However, prior to the final award, certain potential offerors were excluded. The reasons for exclusion are critical and could range from failure to meet specific technical qualifications, past performance issues, or non-compliance with solicitation requirements. While it aims to ensure only capable vendors participate, the exclusion of sources can potentially limit the number of bids received, which might impact the final price compared to a scenario with broader competition. Understanding the criteria for exclusion is key to assessing the true level of competition achieved.

How does the contract's duration of 152 days (approximately 5 months) affect the assessment of its value and purpose?

The relatively short duration of 152 days suggests this contract is intended for a specific, time-bound project or a defined phase of a larger initiative, rather than ongoing operational support. This focused timeframe can be advantageous for addressing immediate needs or achieving specific milestones efficiently. However, it also raises questions about the sustainability of the solutions proposed and the potential need for follow-on contracts. For a contract valued at $21 million, a 5-month duration implies a very intensive engagement, requiring significant resources and rapid delivery. This short period necessitates a clear definition of deliverables and success criteria to ensure value is realized within the limited timeframe.

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: $25,489,002

Exercised Options: $21,084,463

Current Obligation: $21,084,463

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