Price matters a whole lot in contract wins — even when maybe it shouldn't
Battle Lines
Send this to a friend
- William Welch
- Partner, McMahon, Welch and Learned PLLC- Washington Business Journal
A couple months ago we learned about issues involving a vehicle shipping contract, which left thousands of military personnel in the dark about where their cars ended up. Now we learn how the contractor came to win that contract.
Protesting contractor: American Auto Logistics LP, Park Ridge, New Jersey
Contracting agency: United States Transportation Command (USTRANSCOM)
Protest issue: Whether the best value determination made by USTRANSCOM was reasonable.
Decision: Protest denied. January 30, 2014 (released by GAO in December 2014)
Post-mortem: This procurement involves a contract for global transportation of privately owned vehicles for military and civilian employees of the Department of Defense. The work included, among other things, operating multiple vehicle processing centers, preparing vehicles for shipment, ensuring that necessary agricultural and customs clearances are obtained, arranging for and/or providing ocean and ground transportation, providing intransit visibility of shipments, storing vehicles, and resolving loss and/or damage claims.
The USTRANSCOM awarded the contract to International Auto Logistics LLC (IAL) of Brunswick, Georgia in the amount of $919 million. AAL, the incumbent, proposed a price of $957 million over slightly less than five years.
The evaluation criteria established that the agency would select the overall "Best Value" for the government based on the technical acceptability of the proposal and a best value tradeoff decision between past performance and price, which were equally rated. The agency was allowed to pay more for better past performance or accept the lower price if a competitor's past performance was not worth the competitor's higher price.
Sponsored by
People on the Move
-
Business Development Specialist Every Citizen Has Opportunities, Inc. | Leesburg, VA
-
Executive-in-Residence or Associate Professor | Director of the Business of Creative Enterprises Emerson College | Boston, MA
-
FDA HL7 IDIQ/IRS - Project Manager Chickasaw Nation Industries | Rockville, MD
-
Subcontracts Administrator PAE Government Services,Inc. | Arlington, VA
-
Insurance Premium Processing Analyst Mb Staffing Services, LLC | Washington, DC
Most Popular
- Most popular
- Emailed
- Mobile
- Edens, others on Union Market-area buying spree
- CSC buyout inevitable? Hardly, one analyst says.
- Former AAMC headquarters on the West End will be converted to condos
- D.C. Council approves Stevens School deal
- Here's the deal with D.C. United: No Reeves, more debt for the city
- Loudoun public settles on Metro station names
- Robert and Mary Truland dispute items sought by their surety
- Here's the deal with Donatelli's Hill East redevelopment
- D.C. 'on a glide path toward eminent domain' at Buzzard Point
- Why you might have Warren Buffet to thank for your next home in D.C.
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.