DOT awards $4.7M fixed-fee contract for deep sea freight transportation services

Contract Overview

Contract Amount: $4,668,417 ($4.7M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-07-27

End Date: 2025-09-01

Contract Duration: 401 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: WRIGHT FY 24 FIXED FEES CGS-WRT24-1002A BRIDGE CONTRACT FIXED FEES

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23505

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $4.7 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: WRIGHT FY 24 FIXED FEES CGS-WRT24-1002A BRIDGE CONTRACT FIXED FEES Key points: 1. Contract awarded on a fixed-fee basis, indicating predictable costs for the government. 2. The contract was not competed, raising questions about potential price efficiencies. 3. Duration of 401 days suggests a medium-term operational need. 4. The service falls under deep sea freight transportation, a critical logistics component. 5. Awarded by the Maritime Administration, aligning with its core mission.

Value Assessment

Rating: questionable

The fixed-fee structure provides cost certainty, but the lack of competition prevents benchmarking against market rates. Without competitive bids, it's difficult to assess if the $4.7 million represents a fair price for the deep sea freight transportation services. Further analysis would require comparing this contract's scope and duration to similar, competitively awarded contracts in the maritime sector to determine value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific reasons for not competing the contract are not detailed, which could stem from urgency, a lack of available qualified sources, or other factors. The absence of competition limits the government's ability to leverage market forces to secure the most advantageous pricing and terms.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the potentially lower prices that a competitive bidding process could have generated.

Public Impact

The primary beneficiaries are likely entities requiring deep sea freight transportation, potentially for logistical support or supply chain operations. Services delivered include the operation and management of deep sea freight transportation. The geographic impact is likely global, given the nature of deep sea freight. Workforce implications could involve maritime personnel, logistics coordinators, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Absence of a competitive process limits transparency in pricing.
Potential for contractor lock-in due to sole-source award.

Positive Signals

Fixed-fee structure provides cost predictability.
Contract aligns with the Maritime Administration's mission.

Sector Analysis

Deep sea freight transportation is a vital component of global logistics and supply chains. The market involves specialized vessels, experienced crews, and complex operational management. This contract fits within the broader transportation and logistics sector, which is characterized by significant capital investment and regulatory oversight. Benchmarking this specific contract's value is challenging without competitive data, but the overall sector is highly competitive when open to bidding.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided for this contract. As a sole-source award, the opportunities for small business participation may be limited unless specifically incorporated into the contract terms. Further investigation into subcontracting requirements would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically fall under the purview of the Department of Transportation's Maritime Administration. Accountability measures would be defined by the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award, with details on the justification for non-competition not publicly available.

Related Government Programs

Maritime Transportation Services
Freight and Logistics Contracts
Department of Transportation Procurement

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.7 million to CROWLEY GOVERNMENT SERVICES, INC.. WRIGHT FY 24 FIXED FEES CGS-WRT24-1002A BRIDGE CONTRACT FIXED FEES

Who is the contractor on this award?

The obligated recipient is CROWLEY GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2024-07-27. End: 2025-09-01.

What is the specific scope of services covered by this $4.7 million fixed-fee contract for deep sea freight transportation?

The provided data indicates the contract is for 'Deep Sea Freight Transportation' and is a 'BRIDGE CONTRACT FIXED FEES'. While the exact deliverables are not detailed, it likely encompasses the chartering, operation, and management of vessels for transporting goods across deep sea routes. This could include services such as vessel crewing, maintenance, fuel, port operations, and cargo handling coordination. The fixed-fee structure suggests a defined scope of work for which a predetermined price is paid, aiming to provide cost certainty to the government for the duration of the contract, which spans from July 27, 2024, to September 1, 2025.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract type as 'NOT COMPETED', indicating a sole-source award. The specific justification for this decision is not provided in the summary data. Common reasons for sole-source awards include situations where only one responsible source can satisfy the agency's needs, an urgent and compelling requirement exists that precludes competition, or the contract is for a specialized service or product uniquely available from a single provider. Without further documentation from the Department of Transportation, the precise rationale remains unknown, but it implies that a competitive process was deemed impractical or impossible for this particular requirement.

How does the $4.7 million fixed fee compare to similar deep sea freight transportation contracts awarded by the government?

Direct comparison of the $4.7 million fixed fee is challenging without access to a database of similar, competitively awarded contracts for deep sea freight transportation. The lack of competition for this specific award prevents a direct market-based valuation. However, the duration of the contract (401 days) suggests a significant operational period. To assess value, one would need to identify contracts with comparable vessel types, cargo capacities, operational routes, and service durations that were awarded through a competitive process. The fixed-fee nature also needs to be considered, as it shifts cost risk to the contractor, which can influence the overall price compared to cost-plus or other contract types.

What are the potential risks associated with a sole-source fixed-fee contract for deep sea freight transportation?

A primary risk of a sole-source contract is the potential for inflated pricing, as the government does not benefit from competitive pressure to drive down costs. While the fixed-fee structure offers cost certainty, the initial fee might be set higher than it would be in a competitive scenario. Another risk is contractor performance; without the threat of losing future business to competitors, the contractor might have less incentive to deliver exceptional service, although contract terms and oversight can mitigate this. Furthermore, reliance on a single source can create vulnerabilities if the contractor faces operational issues or financial instability, potentially disrupting critical transportation services.

What is the historical spending pattern for deep sea freight transportation by the Maritime Administration?

Historical spending data for deep sea freight transportation by the Maritime Administration is not provided in the current data summary. To analyze historical patterns, one would need to access procurement databases and filter for contracts awarded by the Maritime Administration (MARAD) under relevant Product Service Codes (PSCs) or North American Industry Classification System (NAICS) codes related to maritime shipping and freight. Examining past awards would reveal trends in contract values, durations, competition levels, and the types of services procured, providing context for the current $4.7 million award and its significance within MARAD's operational history.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9487 REGENCY SQUARE BLVD, JACKSONVILLE, FL, 32225

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,668,417

Exercised Options: $4,668,417

Current Obligation: $4,668,417

Actual Outlays: $4,668,417

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF724D000019

IDV Type: IDC

Timeline