Logistics Industry

Logistics & TransportationGovernment Contracts

Federal logistics and transportation contracting covers freight transportation, warehousing, supply chain management, and distribution services for military and civilian agencies. The Defense Logistics Agency (DLA) is the largest single buyer, managing the global supply chain for the Department of Defense, while GSA and USTRANSCOM handle additional transportation requirements.

Definition

Logistics government contracts are federal procurement opportunities for transportation, warehousing, distribution, supply chain management, and freight services. These contracts support military logistics, federal supply chain operations, hazardous material handling, and last-mile delivery for government agencies worldwide.

Key Takeaways

  • The Defense Logistics Agency (DLA) manages over $40 billion in annual supply chain operations for the DoD.
  • AbilityOne and JWOD programs provide mandatory procurement sources for certain logistics services.
  • Freight and transportation contracts often require specialized insurance, hazmat certifications, and bonding.
  • Small business set-asides are common in logistics, particularly for regional distribution and last-mile delivery.
  • Defense logistics increasingly emphasizes supply chain security and visibility technology adoption.

Market Snapshot

Average Contract Size

$50K - $10M

Competition Level

Medium

Growth Trend

Stable

Top NAICS Codes for Logistics & Transportation

NAICS CodeDescription
484110General Freight Trucking, Local
488510Freight Transportation Arrangement
493110General Warehousing and Storage
484121General Freight Trucking, Long-Distance (Truckload)
541614Process, Physical Distribution, and Logistics Consulting Services

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Key Federal Agencies

These agencies are the largest buyers of logistics & transportation services and products in the federal market.

Defense Logistics Agency (DLA)
U.S. Transportation Command (USTRANSCOM)
General Services Administration (GSA)
Department of Defense (DoD)
U.S. Postal Service (USPS)

Relevant Certifications & Set-Asides

These certifications and set-aside programs can give your logistics & transportation business a competitive advantage in federal contracting.

8(a)
SDVOSB
WOSB
HUBZone
DBE

Tips for Winning Logistics & Transportation Contracts

1

Register with DLA Internet Bid Board System (DIBBS) for access to the largest volume of federal logistics solicitations.

2

Obtain necessary hazmat certifications and insurance if targeting military supply chain contracts.

3

Build regional warehouse and distribution capabilities, as many logistics contracts are awarded by geographic zone.

4

Invest in supply chain visibility technology (RFID, GPS tracking, real-time inventory) as agencies modernize their logistics operations.

5

Consider partnering with AbilityOne-affiliated organizations for contracts covered by mandatory procurement programs.

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Frequently Asked Questions

How do I become a DLA vendor?

Register in SAM.gov with appropriate NAICS codes, then register in DLA Internet Bid Board System (DIBBS) at dibbs.bsm.dla.mil. DLA procures through long-term contracts, indefinite delivery contracts, and spot buys. Many DLA contracts are set aside for small businesses. Having warehouse facilities, transportation assets, and quality management systems (ISO 9001) strengthens your position.

What is USTRANSCOM and how does it affect logistics contractors?

U.S. Transportation Command (USTRANSCOM) is the DoD unified command responsible for global military transportation. It manages strategic airlift, sealift, and surface transportation through its components (AMC, MSC, SDDC). Commercial carriers can register to provide freight services through the Defense Transportation System. USTRANSCOM contracts are typically large-scale and require significant capacity.

Are there small business opportunities in federal logistics?

Yes. DLA and other agencies set aside a significant percentage of logistics contracts for small businesses. Regional trucking, local warehousing, last-mile delivery, and packaging services are frequently set aside. The 8(a) and HUBZone programs are particularly effective in logistics, as many requirements can be structured for small business performance.

What technology requirements exist for federal logistics contracts?

Federal logistics contracts increasingly require electronic data interchange (EDI), advanced shipping notices (ASN), RFID-based asset tracking, and integration with government supply chain systems like DLA Distribution Standard System. Contractors should be prepared to meet Wide Area Workflow (WAWF) electronic invoicing requirements and provide real-time shipment visibility.

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