Transportation contract for crew costs awarded to Pasha Hawaii Holdings LLC for $556,647.43

Contract Overview

Contract Amount: $556,647 ($556.6K)

Contractor: Pasha Hawaii Holdings LLC

Awarding Agency: Department of Transportation

Start Date: 2024-07-27

End Date: 2025-03-31

Contract Duration: 247 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE WASHINGTON FY24 ROS CREW COST/WAGES PSH-WAS24-1002A ISSUED TO FUND THE CREW COST/WAGES ONBOARD THE CAPE WASHINGTON

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21230

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $556,647.43 to PASHA HAWAII HOLDINGS LLC for work described as: CAPE WASHINGTON FY24 ROS CREW COST/WAGES PSH-WAS24-1002A ISSUED TO FUND THE CREW COST/WAGES ONBOARD THE CAPE WASHINGTON Key points: 1. Contract addresses essential crew wages and costs for the Cape Washington vessel. 2. Awarded as a delivery order, indicating it's part of a larger existing agreement. 3. The contract type is 'Cost No Fee', suggesting reimbursement of costs without additional profit. 4. Duration of 247 days covers a significant operational period. 5. The North American Industry Classification System (NAICS) code 483111 points to Deep Sea Freight Transportation. 6. The contract was not competed, raising questions about potential cost efficiencies. 7. The vessel's operational location is likely within the United States, given the agency and contract details.

Value Assessment

Rating: fair

The contract value of $556,647.43 for crew costs over approximately 8 months appears reasonable for a vessel of this nature. However, without specific details on crew size, roles, and prevailing wage rates, a precise value-for-money assessment is challenging. The 'Cost No Fee' structure implies that the government reimburses the contractor for incurred costs, which can sometimes lead to less incentive for cost control compared to fixed-price contracts. Benchmarking against similar maritime crew cost contracts would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was explicitly marked as 'NOT COMPETED'. This indicates that the award was made directly to Pasha Hawaii Holdings LLC without a competitive bidding process. Such sole-source awards are typically justified when only one responsible source can provide the required goods or services, or in cases of urgent need. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that a competitive process might have yielded.

Taxpayer Impact: The absence of competition means taxpayers may not have received the lowest possible price for these crew costs. Without a bidding process, there's a reduced likelihood of achieving optimal value for taxpayer dollars.

Public Impact

The primary beneficiaries are the crew members of the Cape Washington, receiving their wages and associated costs. The contract ensures the operational continuity of the Cape Washington vessel, likely involved in maritime transportation services. The services delivered are essential for maintaining the vessel's operational readiness and crew welfare. The geographic impact is centered around the operational routes of the Cape Washington, which could be domestic or international, though the awarding agency suggests a US focus. Workforce implications include the direct employment of maritime professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
The 'Cost No Fee' contract type may reduce contractor incentives for stringent cost management.
Limited transparency on the specific breakdown of crew costs makes detailed value assessment difficult.

Positive Signals

Ensures essential crew costs are covered, maintaining vessel operational readiness.
Awarded to a known entity (Pasha Hawaii Holdings LLC), potentially indicating a pre-existing relationship or expertise.
The contract duration provides a clear timeframe for the services.

Sector Analysis

The maritime transportation sector is critical for global and domestic commerce, involving the movement of goods via sea. This contract falls under deep sea freight transportation, a segment characterized by significant capital investment in vessels and specialized labor. The market size for such services is substantial, influenced by trade volumes, fuel costs, and regulatory environments. Comparable spending benchmarks for vessel crew costs can vary widely based on vessel size, type, operational region, and crew composition. The Maritime Administration (MARAD) often awards contracts related to the U.S. merchant marine fleet, including operational support and vessel maintenance.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by the 'ss' and 'sb' fields being false. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Pasha Hawaii Holdings LLC voluntarily engages small businesses in its supply chain for other aspects of its operations.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Maritime Administration (MARAD). As a delivery order, it is likely governed by the terms of a broader contract or agreement, which would outline specific oversight mechanisms. Accountability measures would involve ensuring that the crew costs reimbursed are reasonable and directly related to the operation of the Cape Washington. Transparency is moderate; while the award is public, the detailed cost breakdown and justification for the sole-source award are not readily available in this summary. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Maritime Administration Vessel Operations
Merchant Marine Support Contracts
Deep Sea Freight Transportation Services
US Flagged Vessel Operations
Department of Transportation Operating Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Cost-reimbursement structure may reduce contractor cost-control incentives.
Limited public data on specific crew composition and wage rates hinders detailed value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $556,647.43 to PASHA HAWAII HOLDINGS LLC. CAPE WASHINGTON FY24 ROS CREW COST/WAGES PSH-WAS24-1002A ISSUED TO FUND THE CREW COST/WAGES ONBOARD THE CAPE WASHINGTON

Who is the contractor on this award?

The obligated recipient is PASHA HAWAII HOLDINGS LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $556,647.43.

What is the period of performance?

Start: 2024-07-27. End: 2025-03-31.

What is the typical cost structure for crew wages and expenses on a vessel like the Cape Washington?

The cost structure for crew wages and expenses on a vessel like the Cape Washington can be complex, encompassing base salaries, overtime pay, benefits (health insurance, retirement contributions), payroll taxes, and per diem allowances for living expenses while at sea or in port. Additional costs may include training, certifications, travel to and from the vessel, and repatriation expenses. The specific rates are influenced by the vessel's size, type, operational area (e.g., international vs. domestic routes), the number of crew members, their roles (e.g., captain, engineer, deckhand), and prevailing market wages, often dictated by union agreements or industry standards. The 'Cost No Fee' nature of this contract suggests the government is reimbursing these direct costs, plus potentially administrative overhead, but without a specific profit margin added by the contractor.

How does the 'Cost No Fee' contract type compare to other contract types in terms of value for money?

The 'Cost No Fee' (CNF) contract type is a variation of cost-reimbursement contracts where the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically used when the scope of work is uncertain or when the contractor is performing a service that is essential but not profit-generating, such as certain government-mandated operations or support functions. Compared to fixed-price contracts, CNF contracts offer less incentive for the contractor to control costs, as they are guaranteed reimbursement for incurred expenses. However, they provide greater flexibility and ensure that essential services are performed even when precise cost estimation is difficult. Value for money in CNF contracts relies heavily on robust government oversight to ensure costs are reasonable, allocable, and allowable, and that the contractor exercises due diligence in managing expenses.

What are the potential risks associated with a 'not competed' contract award for maritime services?

The primary risk associated with a 'not competed' contract award, especially for services like maritime crew costs, is the potential for inflated pricing and reduced value for taxpayer money. Without the pressure of competition, the awarded contractor may not be incentivized to offer the most cost-effective solution. This can lead to higher overall expenditures compared to what might have been achieved through a bidding process. Additionally, a lack of competition can sometimes mask inefficiencies or suboptimal performance, as there are fewer benchmarks against which to measure the contractor's effectiveness. It also raises concerns about fairness and equal opportunity for other potential providers in the market. Justification for sole-source awards must be rigorous to mitigate these risks.

What is the significance of the NAICS code 483111 (Deep Sea Freight Transportation) in understanding this contract?

The North American Industry Classification System (NAICS) code 483111, 'Deep Sea Freight Transportation,' is crucial for understanding the context of this contract. It signifies that the Cape Washington vessel is engaged in transporting freight over long distances via the sea, typically between continents or across major oceans. This classification helps categorize the economic activity and provides a basis for comparing this contract to others within the same industry. It implies that the crew's responsibilities are directly related to the safe and efficient operation of such a vessel, including navigation, cargo handling coordination, vessel maintenance, and compliance with international maritime regulations. This context is vital for assessing crew size, skill requirements, and operational demands.

How does the duration of the contract (247 days) impact the assessment of crew costs?

The contract duration of 247 days (approximately 8 months) is a significant factor in assessing the total crew costs. It allows for a more accurate projection of the total expenditure required to maintain the vessel's crew over a substantial operational period. This duration suggests that the contract is intended to cover a continuous operational phase rather than a short-term task. When evaluating the value, the daily or monthly cost can be derived from the total award ($556,647.43 / 247 days ≈ $2,254 per day). This daily rate can then be benchmarked against industry averages for similar vessels and operational scopes. A longer duration, when associated with a reasonable total cost, can sometimes indicate better value than multiple short-term, potentially more expensive, contracts.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 745 FORT ST STE 315, HONOLULU, HI, 96813

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $556,647

Exercised Options: $556,647

Current Obligation: $556,647

Actual Outlays: $556,647

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF720G000003

IDV Type: BOA

Timeline