EPA awards $15.7M for vessel operations, with Cardinal Point Captains securing the contract

Contract Overview

Contract Amount: $15,723,197 ($15.7M)

Contractor: Cardinal Point Captains, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2024-02-14

End Date: 2029-02-13

Contract Duration: 1,826 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OPERATION AND MAINTENANCE SUPPORT SERVICES FOR EPA GLNPO RESEARCH VESSELS

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53204

State: Wisconsin Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $15.7 million to CARDINAL POINT CAPTAINS, INC. for work described as: OPERATION AND MAINTENANCE SUPPORT SERVICES FOR EPA GLNPO RESEARCH VESSELS Key points: 1. The contract value of $15.7 million over five years suggests a significant investment in maintaining critical EPA research capabilities. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though the specific exclusion warrants further examination. 3. The use of a Time and Materials (T&M) contract type can introduce cost uncertainty if not closely managed. 4. The award to Cardinal Point Captains, Inc. represents a key partnership for the EPA's Great Lakes National Program Office (GLNPO). 5. The North American Industry Classification System (NAICS) code 483114 points to specialized transportation services, highlighting the niche nature of this requirement. 6. The contract duration of 1826 days (5 years) allows for long-term planning and operational stability for the research vessels.

Value Assessment

Rating: fair

Benchmarking the $15.7 million value requires more granular data on the specific services provided and the operational tempo of the EPA's research vessels. However, the duration of the contract (5 years) suggests a substantial commitment. The Time and Materials pricing structure, while common for services with variable needs, carries inherent risks of cost overruns if not meticulously monitored and controlled by the agency. Without comparable contract data for similar vessel operations, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the competition was intended to be broad, certain sources were excluded for specific reasons. The presence of 3 bidders suggests a degree of competition, but the exclusion of other potential bidders may have limited the overall competitive landscape and potentially impacted price discovery.

Taxpayer Impact: The limited competition, even after an initial open process, could mean that taxpayers did not benefit from the lowest possible prices that a fully open and unrestricted competition might have yielded.

Public Impact

The primary beneficiaries are the EPA's Great Lakes National Program Office (GLNPO), which will receive essential operational support for its research vessels. The services delivered include operation and maintenance, ensuring the readiness and functionality of vessels crucial for environmental research and monitoring in the Great Lakes region. The geographic impact is focused on the Great Lakes, a vital ecosystem for environmental protection and scientific study. The contract supports a specialized maritime workforce, including captains and crew, contributing to employment in the maritime transportation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost increases if not managed effectively, potentially exceeding initial budget expectations.
The 'exclusion of sources' in the competition process raises questions about whether the full breadth of potential competition was realized, possibly impacting cost savings.
Reliance on a single contractor for critical vessel operations over a five-year period could create vendor lock-in and reduce flexibility.

Positive Signals

The award to a single, presumably qualified, vendor provides continuity and stability for essential EPA research operations.
The five-year contract duration allows for long-term planning and investment in maintaining the research fleet's operational capacity.
The competition, even with exclusions, indicates an effort to secure services through a structured procurement process.

Sector Analysis

This contract falls within the maritime transportation and support services sector, specifically catering to specialized research vessel operations. The market for such services is relatively niche, requiring specific expertise in vessel management, crewing, and maintenance. Comparable spending benchmarks would likely be found within other federal agencies or state/local entities operating research fleets, though direct comparisons are difficult without detailed service scope.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary contractor, Cardinal Point Captains, Inc., is likely not a small business, and the contract's value and nature may not lend themselves to significant subcontracting opportunities for smaller firms within this specialized maritime support domain.

Oversight & Accountability

Oversight for this contract will primarily reside with the Environmental Protection Agency (EPA), specifically the Great Lakes National Program Office (GLNPO). The contract type (Time and Materials) necessitates robust oversight to ensure that costs are reasonable and directly related to the work performed. Accountability measures will likely involve performance reviews, adherence to service level agreements, and financial audits. Transparency will be facilitated through standard federal procurement reporting mechanisms.

Related Government Programs

NOAA Vessel Operations
US Coast Guard Vessel Support
Army Corps of Engineers Marine Operations
National Science Foundation Research Vessel Support

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition due to 'exclusion of sources' may impact price.
Dependence on a single contractor for critical infrastructure.
Need for robust oversight to manage T&M costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $15.7 million to CARDINAL POINT CAPTAINS, INC.. OPERATION AND MAINTENANCE SUPPORT SERVICES FOR EPA GLNPO RESEARCH VESSELS

Who is the contractor on this award?

The obligated recipient is CARDINAL POINT CAPTAINS, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2024-02-14. End: 2029-02-13.

What is the specific nature of the 'exclusion of sources' in this full and open competition, and what impact did it have on the number of bids received?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the solicitation was broadly advertised, certain potential offerors were intentionally excluded from participating. The specific reasons for exclusion are not detailed in the provided data but could range from past performance issues, failure to meet specific pre-qualification criteria, or proprietary technology limitations. With 3 bidders submitting proposals, it indicates that the exclusion did not entirely stifle competition, but it is plausible that more bidders might have participated had the exclusion not been in place. This could have implications for price competitiveness, as a larger pool of bidders often drives prices down.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar vessel operation and maintenance services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change significantly during performance. For vessel operation and maintenance, T&M can be suitable for unpredictable repair needs or variable operational demands. However, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is reimbursed for actual labor hours and material costs, plus a markup. Effective oversight, detailed record-keeping, and strong negotiation skills by the contracting officer are crucial to mitigate these risks and ensure fair pricing. Other contract types, like Firm-Fixed-Price (FFP) or Cost-Plus-Fixed-Fee (CPFF), might offer more cost certainty but could be less adaptable to the dynamic nature of research vessel operations.

What is Cardinal Point Captains, Inc.'s track record with federal contracts, particularly those involving vessel operations and maintenance?

To assess Cardinal Point Captains, Inc.'s track record, a review of their past federal contract awards and performance history would be necessary. This would involve searching databases like SAM.gov or FPDS for previous contracts awarded to the company, noting the agencies involved, contract values, and types. Performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide insights into their reliability, quality of service, and adherence to contract terms. Experience with similar vessel types, operational complexities, and geographic areas (like the Great Lakes) would be particularly relevant indicators of their capability to successfully execute this EPA contract.

What are the key performance indicators (KPIs) likely to be used to measure the success of this contract, and how will vessel availability and research support be evaluated?

Key performance indicators for this contract would likely focus on ensuring the operational readiness and effective utilization of the EPA's research vessels. This could include metrics such as vessel uptime/availability percentage, response time for maintenance requests, fuel efficiency, crew safety incident rates, and successful completion of scheduled research missions. The EPA's GLNPO would establish specific targets for these KPIs. Performance evaluations would likely involve regular reporting from Cardinal Point Captains, Inc., site visits, and potentially independent assessments of vessel condition and operational effectiveness to ensure the contractor is meeting the required standards for supporting critical environmental research.

How does the historical spending by the EPA on vessel operations and maintenance compare to this $15.7 million award, and are there trends in contract types or competition levels?

Analyzing historical spending requires access to detailed procurement data over several fiscal years. Without that, a direct comparison is difficult. However, a $15.7 million award over five years averages approximately $3.14 million annually. This figure should be compared against previous EPA contracts for similar services to identify trends. For instance, has the EPA historically used T&M contracts for vessel support, or have fixed-price arrangements been more common? Has the level of competition generally increased or decreased for these types of services? Understanding these historical patterns can provide context for the current award's value, structure, and competitive landscape.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Coastal and Great Lakes Passenger Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 68HE0523R0030

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cardinal Point Captains Inc.

Address: 5005 TEXAS ST, SAN DIEGO, CA, 92108

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $37,251,184

Exercised Options: $22,294,024

Current Obligation: $15,723,197

Actual Outlays: $10,893,282

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline