Maritime Administration awards $470K task order for Cape Wrath repairs to Pasha Hawaii Holdings LLC

Contract Overview

Contract Amount: $469,604 ($469.6K)

Contractor: Pasha Hawaii Holdings LLC

Awarding Agency: Department of Transportation

Start Date: 2020-10-01

End Date: 2025-10-26

Contract Duration: 1,851 days

Daily Burn Rate: $254/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: WRA FY25 REPAIRS A PSH-WRA25-1005A TASK ORDER IS TO SUPPORT CAPE WRATH'S REPAIR A

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21230

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $469,604.26 to PASHA HAWAII HOLDINGS LLC for work described as: WRA FY25 REPAIRS A PSH-WRA25-1005A TASK ORDER IS TO SUPPORT CAPE WRATH'S REPAIR A Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 1851 days suggests a long-term need for vessel maintenance. 3. The contract type 'COST NO FEE' indicates reimbursement of costs without profit. 4. The North American Industry Classification System (NAICS) code 483111 points to deep-sea freight transportation services. 5. This award represents a small portion of the Maritime Administration's overall budget.

Value Assessment

Rating: questionable

Benchmarking the value of this specific task order is challenging due to its sole-source nature and the 'COST NO FEE' contract type, which prioritizes cost reimbursement over profit. Without competitive bids or a clear profit margin, assessing value for money is difficult. The total award amount of approximately $470K over nearly five years suggests a modest but ongoing need for repairs. Further analysis would require understanding the scope of 'REPAIRS A' and comparing it to industry standards for similar vessel maintenance, which is not readily available from the provided data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source 'DELIVERY ORDER' under a larger contract, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when it's deemed not practical or advantageous to compete. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a fully competed scenario.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government did not leverage market forces to ensure cost-effectiveness for these repair services.

Public Impact

The primary beneficiary is the vessel 'CAPE WRATH', ensuring its operational readiness. Services delivered include essential repairs to maintain the vessel's seaworthiness and functionality. The geographic impact is localized to where the vessel operates, likely within the scope of Maritime Administration activities. Workforce implications are likely internal to Pasha Hawaii Holdings LLC, utilizing their existing repair and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Lack of profit margin in 'COST NO FEE' contracts can sometimes disincentivize efficiency.
Scope of 'REPAIRS A' is not detailed, making it hard to assess if it's comprehensive or minimal.

Positive Signals

Ensures continued operational capability of a critical asset (CAPE WRATH).
Long contract duration suggests a stable, ongoing relationship for necessary services.
Awarding to Pasha Hawaii Holdings LLC may leverage existing expertise with this specific vessel.

Sector Analysis

The Maritime Administration (MARAD) plays a crucial role in supporting the U.S. merchant marine and ensuring the availability of ships in times of national emergency. Spending in this sector often involves vessel maintenance, fleet operations, and strategic sealift capabilities. Contracts for vessel repair and maintenance are common, with costs varying significantly based on the vessel's size, age, and the complexity of the required work. Benchmarking this specific $470K task order is difficult without knowing the exact nature of 'REPAIRS A' and the vessel's condition, but it appears to be a focused, smaller-scale maintenance effort within the broader maritime logistics and transportation industry.

Small Business Impact

The provided data indicates that small business participation (sb) is false for this contract. There is no indication of small business set-asides or subcontracting requirements. Therefore, this award does not appear to directly benefit the small business ecosystem or promote small business subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Office of Inspector General (OIG), which is responsible for auditing and investigating programs and operations within the department. Transparency is limited due to the sole-source nature of the award and the lack of detailed public information on the specific repairs. Accountability would be managed through contract performance monitoring by the Maritime Administration contracting officers.

Related Government Programs

Maritime Administration Vessel Operations
Department of Transportation Fleet Maintenance
US Merchant Marine Support
Deep Sea Freight Transportation Services

Risk Flags

Sole-source award
Lack of competitive bidding
Cost-reimbursement contract type (potential for cost overruns without profit incentive)

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $469,604.26 to PASHA HAWAII HOLDINGS LLC. WRA FY25 REPAIRS A PSH-WRA25-1005A TASK ORDER IS TO SUPPORT CAPE WRATH'S REPAIR A

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 $469,604.26.

What is the period of performance?

Start: 2020-10-01. End: 2025-10-26.

What is the specific scope of 'REPAIRS A' for the vessel CAPE WRATH?

The provided data does not detail the specific scope of 'REPAIRS A'. This task order is described as supporting 'CAPE WRATH's REPAIR A'. Without further documentation or a detailed statement of work, it is impossible to ascertain the exact nature, extent, or complexity of the repairs required. This lack of specificity makes it difficult to fully assess the value, necessity, and potential risks associated with the contract. Understanding the scope is crucial for comparing this award to industry benchmarks and ensuring that the funds are being used effectively for essential maintenance or upgrades.

How does the 'COST NO FEE' contract type impact contractor incentives and government oversight?

The 'COST NO FEE' (CNF) contract type is a variation of a cost-reimbursement contract where the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically used in situations where the scope of work is uncertain or when the government has a strong interest in minimizing contractor profit, such as in urgent situations or for specific types of non-profit organizations. For the government, it can potentially lead to lower overall costs by eliminating profit margins. However, it can also reduce contractor incentives for efficiency and cost control, as their primary motivation is cost recovery rather than profit maximization. Robust government oversight is therefore critical to ensure that costs are reasonable, allocable, and allowable, and that the work is performed effectively.

What is the historical spending pattern for vessel repairs by the Maritime Administration?

The provided data focuses on a single task order and does not offer historical spending patterns for vessel repairs by the Maritime Administration. To analyze historical spending, one would need access to MARAD's contract databases over multiple fiscal years. This analysis would involve identifying all contracts related to vessel maintenance and repair, categorizing them by vessel type, service provider, and scope of work, and then aggregating the spending. Such a review could reveal trends in average repair costs, the prevalence of sole-source versus competed contracts, and the distribution of spending across different types of repairs and contractors. Without this broader dataset, it's impossible to contextualize the current $470K award within MARAD's historical spending.

What are the risks associated with awarding vessel repair contracts on a sole-source basis?

Awarding vessel repair contracts on a sole-source basis carries several risks. Primarily, it eliminates the potential for price competition, which is a key mechanism for ensuring the government receives fair and reasonable pricing. Without competing bids, the contractor has less incentive to offer their most competitive rates, potentially leading to higher costs for taxpayers. Furthermore, sole-source awards can limit opportunities for innovative solutions or specialized expertise that might be available from other qualified vendors. There's also a risk of complacency or reduced performance pressure on the incumbent contractor, as they are not facing direct competition for the work. Finally, sole-source awards can raise concerns about fairness and equal opportunity for other potential contractors.

How does the NAICS code 483111 (Deep Sea Freight Transportation) relate to vessel repair services?

The North American Industry Classification System (NAICS) code 483111, 'Deep Sea Freight Transportation,' primarily categorizes establishments primarily engaged in operating and leasing deep-sea freight transportation equipment, such as ships and barges. While the primary activity is transportation, companies operating deep-sea freight vessels are inherently involved in the maintenance and repair of these vessels to ensure their operational readiness and compliance with maritime regulations. Therefore, a contract for vessel repairs, even if awarded to a company classified under this NAICS code, is a necessary ancillary service to support the core business of freight transportation. The Maritime Administration likely contracts for such services to maintain its fleet or vessels under its purview.

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: $469,604

Exercised Options: $469,604

Current Obligation: $469,604

Actual Outlays: $469,604

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF720G000003

IDV Type: BOA

Timeline