Executive Summary

Chesapeake Logistics LLC, based in Elkridge, Maryland, is a woman-owned regional transportation and logistics company specializing in document, large and small parcel, and retail furnishings delivery services. While a substantial volume of our work is concentrated in Metropolitan Washington, Virginia and Maryland; we routinely extend into Pennsylvania, West Virginia, Delaware, New Jersey and New York. We are centrally located between Dulles, BWI and Reagan National Airports. Our clients include public and private sector companies, agencies and organizations.

Chesapeake Logistics’ operations include its courier division, DBA US Couriers, which has been operating as a courier and messenger service in the Washington DC Metro area for over 25 years. This experience in providing dependable, same-day deliveries has allowed US Couriers to establish over 100 customers, with several government agencies including the Food & Drug Administration, the National Institutes of Health and the National Institute of Standards & Technology.

In addition to providing messenger and courier services, Chesapeake Logistics has expanded into freight deliveries and warehousing, obtaining its motor carrier authority and establishing safety practices and truck driver training to ensure the safe, efficient delivery and care of customers’ merchandise. In addition to instituting a hiring and monitoring process to ensure compliance with Department of Transportation regulations, Chesapeake Logistics has partnered with JJ Keller for in-house safety and compliance education. Chesapeake Logistics has also established a partnership with Ryder Transportation Services for truck leasing, rental and maintenance organization to allow for immediate response to vehicle problems, scheduled maintenance to ensure that drivers are always operating with safe equipment, and the ability to add vehicles when needed.

An experienced network of independent contractors and employee drivers gives Chesapeake Logistics the capability to respond immediately to requests for deliveries, ranging from envelopes to palletized freight. US Couriers has an experienced staff of government service couriers and dispatchers with extensive knowledge of the logistics network in the Mid-Atlantic region. A fully-automated dispatch software program called Mercury, on new Dell computer hardware, runs on a highly reliable Linux operating system. The software is integrated with pagers and two-way Nextel radios, which allows for real-time communications with all drivers.

Plan of Accomplishment

In order to deliver a high quality of logistics services, a provider must have the following:

Chesapeake Logistics has the capabilities to deliver high-quality logistics solutions, and its plan to accomplish these capabilities through its business practices starts with these attributes:

Logistics Expertise & Experience

US Couriers has been servicing the Washington DC Metro area for over 25 years, with over 100 clients from multiple industries and government agencies. US Couriers has been able to retain the majority of these clients as a result of consistent, dependable services at a reasonable price. The staff includes personnel experienced in driving, dispatching, warehousing, customer service and distribution management. The owners of Chesapeake Logistics, Regina and Brian Flood, have both been in senior executive positions in the logistics industry for several years, developing quality and accounting processes that have contributed to the success of several logistics organizations.

In addition to her experience as the CEO of Chesapeake Logistics, Regina spent several years in leadership roles for PriceWaterhouseCoopers, and was responsible for very large-scale supply chain software implementations and logistics process improvement projects. She has been very instrumental in establishing specific policies and procedures to facilitate a quality process in the operations of Chesapeake Logistics. Regina has an MBA in Operations Research from Loyola University of Chicago and a BS from the University of Notre Dame.

Prior to starting Chesapeake Logistics with Regina, Brian was formerly the Senior VP and General Manager for the United States division of TNT Logistics, a worldwide third party logistics organization. A CPA, Brian was also the CFO for this organization. He developed a methodology for measuring the financial impact of logistics improvements, trademarked by Chesapeake Logistics as LVAÒ (Logistics Value Added). Brian has an MBA in Finance from the University of Chicago and a BBA from the University of Notre Dame.

Chesapeake Logistics has additional experienced staff to manage and operate the business. This expertise and experience contributes greatly to ensuring that the business follows a quality process with an accounting system that maintains excellent controls and safeguards.

Compliance with Laws & Regulations

A great deal of emphasis has been placed on security associated with the transportation industry, especially since September 11, 2001. The Department of Transportation (DOT) has very specific requirements associated with the operation of commercial motor vehicles, for both the drivers of these vehicles and the companies they work for. Chesapeake Logistics LLC is a registered Motor Carrier, partners with JJ Keller for driver education and DOT compliance, and utilizes the expertise of Metro Truck Leasing for motor vehicle compliance. Chesapeake monitors DOT compliance, as well as other legal requirements including payroll taxes, workers’ compensation, liability insurance, unemployment and sales tax, and other taxes to ensure that the company is operating in good-standing with governmental regulations.

Well-Defined Process with Controls & Measurements

Controls are established and monitored both within the Mercury Dispatch System and the Quickbooks Accounting System. The Mercury system allows Chesapeake Logistics’ personnel to enter all delivery orders, match the jobs with a price table, assign each job to a driver, monitor the job’s performance and log a proof of delivery. Each job can then be tied to a customer billing receivable and a cash receipt to fully account for the business cycle of each transaction.

Drivers receive training on delivery requirements, including the requirements specific to a customer in addition to dispatch communication and safety rules. An inventory control log is maintained to ensure that the movement of merchandise into and out of the warehouse is documented. These documented processes contribute greatly towards a dependable, high quality operation.

Equipment and Access to Resources

Chesapeake Logistics needs safe, reliable equipment and quick response to ensure the successful fulfillment of customer requirements. This is achieved through a combination of the following: Ownership of small trucks, vans and warehouse equipment; lease and rental of large straight trucks; and outsourcing to independent contractors. This approach allows Chesapeake Logistics to utilize owned and leased equipment for regularly occurring retail work, the expertise and economics of independent contractors and the flexibility with short-term vehicle rentals. This approach ensures a high quality service, while minimizing financial obligations.

Technology

Chesapeake Logistics is strongly committed to an investment in technology to improve the ability to provide efficient customer solutions. This includes the use of Mercury, an automated dispatch software that runs reliably on a Linux operating system. This software allows Chesapeake Logistics to automate permanent bookings, post and dispatch new orders quickly, invoice only those orders that have been properly completed, and reconcile cash receipts to these invoices. A comprehensive reporting system allows for the timely measurement of performance. With a November 2002 investment in new Dell computer hardware, Chesapeake Logistics has sufficient computer hardware capacity for the next five years. In addition to Mercury, Chesapeake Logistics also utilizes Microsoft Office for word processing, financial analysis and spreadsheets, and Quickbooks Accounting software for accounting controls, payroll, payables and financial statements.

Means to Manage Risks

In addition to its management controls and processes, Chesapeake Logistics has made a substantial investment in a risk management program to ensure that its operations, drivers and customers are adequately saeguarded, with insurance to cover vehicle liability, property and general liability, cargo damage and loss, workers’ compensation, hired and non-owned services liability and umbrella coverage that exceeds the protection of most logistics providers. Most importantly, Chesapeake Logistics provides safety training to prevent accidents from happening in the first place.

Conclusion

The above demonstrate the ability of Chesapeake Logistics to provide a high-quality solution under this contract for both SIN 874-501 and 874-503. For individual task orders, Chesapeake Logistics will first work with the customer to define the scope of the task order, and then apply the appropriate elements from the experience, expertise and resources noted above, and then monitor the delivery of each task order to ensure compliance with the overall contract.

PRICING

SIN 874-503: DISTRIBUTION & TRANSPORTATION LOGISTICS

COURIER SERVICES

YEAR 4

1/17/06 - 1/16/07

STANDARD PICKUP & DELIVERY (WITHIN 4 HRS)

0-5 MILES

$10.87

5-60 MILES

$10.87 + $1.08/MI

>60 MILES

$70.92 + $1.74/MI

SCHEDULED ROUTE PICKUP (ROUTE = 5 OR MORE STOPS)

AVERAGE DISTANCE TO STOP = 0-5 MILES

$ 8.08

AVERAGE DISTANCE TO STOP = 5-15 MILES

$ 10.32

AVERAGE DISTANCE TO STOP = 15-25 MILES

$ 12.56

AVERAGE DISTANCE TO STOP > 25 MILES

$12.56 + $1.08/MI

RUSH SERVICE (DOWNTOWN DC 2 HRS, OTHER METRO AREA 3 HRS)

1.75X STANDARD

EXTRA WEIGHT (IF > 10 LBS)

$2.29/LB > 10 LBS.

EXTRA ROOMS

$2.29/ROOM

DELAY TIME

$0.55/MIN

WRONG ADDRESS

100% OF GSA STD

ATTEMPT - NO RECIPIENT

100% OF GSA STD

ROUND TRIP

1.9X STANDARD

AFTER HOURS (BEFORE 7 AM OR AFTER 5 PM)

1.9X STANDARD

INCLEMENT WEATHER

1.5X STANDARD

TRUCK/VAN DELIVERY SERVICES

SCHEDULED PICKUP & DELIVERY

0-15 MILES

$41.50

> 15 MILES

$41.50 + $1.09/MI

> 50 MILES

$79.80 + $1.75/MI

EXTRA PERSON (> 70 LBS.)

$21.80

SAME-DAY SERVICE

1.8X GSA STANDARD

EXTRA ITEMS (> 4)

$4.80/ITEM

ASSEMBLY

$9.90/ITEM

DELAY TIME

$0.87/MIN

CHARGE PER FLIGHT OF STAIRS

$9.90/FLIGHT

ATTEMPT - NO RECIPIENT

100% OF GSA STD

ROUND TRIP

2X GSA STANDARD

AFTER HOURS (BEFORE 7 AM OR AFTER 5 PM)

1.9X GSA STANDARD

INCLEMENT WEATHER

2X GSA STANDARD

SUNDAY DELIVERY

1.5X GSA STANDARD

 

 

 

 

 

PRICING

SIN 874-501: SUPPLY AND VALUE CHAIN MANAGEMENT

CONSULTING SERVICES (Rate per Hour)

YEAR 4

1/17/06 - 1/16/07

Logistics Operations Specialist

$76

Logistics Consultant

$109

Senior Logistics Consultant

$148

Logistics Director

$197