DOT awards $3.6M fixed-fee contract for deep-sea freight transportation to Pacific-Gulf Marine

Contract Overview

Contract Amount: $3,642,753 ($3.6M)

Contractor: Pacific-Gulf Marine, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-18

End Date: 2026-07-26

Contract Duration: 342 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: GOPHER STATE FY25 FIXED FEES PGM-GPH25-1002C TASK ORDER TO FUND FIXED FEES.

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23607

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $3.6 million to PACIFIC-GULF MARINE, INC. for work described as: GOPHER STATE FY25 FIXED FEES PGM-GPH25-1002C TASK ORDER TO FUND FIXED FEES. Key points: 1. Contract focuses on fixed fees for deep-sea freight, indicating predictable cost structures. 2. Full and open competition suggests a robust bidding process. 3. The contract duration of 342 days aligns with typical operational needs for such services. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The award to Pacific-Gulf Marine, Inc. requires careful monitoring of performance against fixed fee deliverables. 6. This contract falls under the 'Deep Sea Freight Transportation' NAICS code, a specialized sector.

Value Assessment

Rating: good

The contract's fixed fee structure provides a clear benchmark for payment. While specific performance metrics are not detailed here, the fixed fee implies that the contractor is responsible for managing costs to achieve the agreed-upon deliverables within the set price. Benchmarking against similar fixed-fee contracts for deep-sea freight transportation would be necessary for a more precise value assessment. The awarded amount of $3.64M for a 342-day period appears reasonable for specialized maritime services, but direct comparisons are limited without more granular data on service scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This process is designed to foster a competitive environment, theoretically leading to better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation suggests a sufficient level of competition to ensure fair market price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the government's investment in deep-sea freight transportation services.

Public Impact

The primary beneficiaries are likely government agencies requiring the transport of goods via deep-sea freight. The service delivered is deep-sea freight transportation, crucial for logistical operations. Geographic impact is global, as deep-sea freight operates across international waters. Workforce implications include employment for maritime professionals, logistics personnel, and support staff involved in the operation and management of these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if fixed fee deliverables are not precisely defined.
Reliance on a single contractor for a critical service could pose supply chain risks if not managed proactively.
Ensuring adherence to environmental and safety regulations in deep-sea operations is paramount.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contract duration allows for sustained service delivery over a defined period.

Sector Analysis

The maritime transportation sector is a critical component of global commerce, facilitating the movement of goods across oceans. This contract for deep-sea freight transportation falls within the broader logistics and transportation industry. The NAICS code 483111 specifically covers deep-sea freight transportation. Spending in this sector can fluctuate based on global trade volumes, geopolitical events, and fuel costs. Comparable spending benchmarks would involve analyzing other government contracts for similar freight services, as well as private sector rates for large-scale maritime shipping.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Pacific-Gulf Marine, Inc., would be responsible for managing its own supply chain, which may or may not involve small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Transportation's Maritime Administration (MARAD). Accountability measures would be tied to the contract's performance requirements and the fixed-fee structure, ensuring that Pacific-Gulf Marine, Inc. meets its obligations. Transparency is generally facilitated through contract award databases, though specific performance details may be proprietary. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Transportation - Maritime Administration Contracts
Deep Sea Freight Transportation Services
Fixed-Price Contracts
Government Logistics and Shipping

Risk Flags

Contract Type: Firm Fixed Price
Competition Level: Full and Open
Service Type: Deep Sea Freight Transportation

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.6 million to PACIFIC-GULF MARINE, INC.. GOPHER STATE FY25 FIXED FEES PGM-GPH25-1002C TASK ORDER TO FUND FIXED FEES.

Who is the contractor on this award?

The obligated recipient is PACIFIC-GULF MARINE, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2025-08-18. End: 2026-07-26.

What is Pacific-Gulf Marine, Inc.'s track record with the federal government, particularly in fulfilling deep-sea freight transportation contracts?

Assessing Pacific-Gulf Marine, Inc.'s track record requires a review of their past federal contract performance. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A positive performance history, especially with similar fixed-fee contracts for maritime services, would indicate a lower risk for this current award. Conversely, a history of performance issues could raise concerns about the government's ability to receive the contracted services effectively and on time. Without specific past performance data, it is difficult to definitively assess their reliability for this $3.64M contract.

How does the awarded fixed fee of $3.64M for 342 days compare to market rates for similar deep-sea freight transportation services?

Benchmarking the $3.64M fixed fee against market rates for deep-sea freight transportation requires detailed analysis of service scope, vessel type, cargo capacity, routes, and duration. Given the NAICS code 483111, this contract likely involves significant logistical complexity and specialized vessels. A preliminary assessment suggests that $3.64M for approximately 11 months of service is within a plausible range for large-scale maritime operations, but a definitive comparison would necessitate access to proprietary market data or a detailed breakdown of the services provided. Factors such as fuel costs, port fees, and crew wages significantly influence market rates. The fixed-fee nature implies the contractor assumes cost variability, which could be factored into their pricing.

What are the primary risks associated with this fixed-price contract for deep-sea freight transportation, and how are they being mitigated?

The primary risks for the government in a fixed-price contract for deep-sea freight transportation include potential contractor underperformance, delivery delays, and the possibility that the fixed fee may not accurately reflect unforeseen operational challenges or market fluctuations. For the contractor, the risk lies in underestimating costs, leading to reduced profit margins or losses. Mitigation strategies for the government typically involve clearly defined performance standards, robust oversight, and penalties for non-compliance. The 'full and open competition' process itself acts as a risk mitigator by selecting a capable contractor. However, the specific mitigation measures embedded within this contract, such as liquidated damages or performance bonds, are not detailed in the provided data.

What is the historical spending pattern for deep-sea freight transportation services by the Department of Transportation or MARAD?

Analyzing historical spending patterns for deep-sea freight transportation by the Department of Transportation (DOT) and its Maritime Administration (MARAD) would provide context for the $3.64M award. This involves examining past contract awards for similar services, their values, durations, and the contractors involved. Significant year-over-year spending fluctuations could indicate changes in demand, policy priorities, or market conditions. Understanding this history helps determine if the current contract represents a typical investment, an increase, or a decrease in federal activity within this sector. It also aids in identifying key players and potential trends in government reliance on external providers for maritime logistics.

How does the contract's duration of 342 days align with the typical operational cycles for deep-sea freight transportation?

A contract duration of 342 days (approximately 11 months) for deep-sea freight transportation is a substantial period, suggesting a need for consistent and ongoing service rather than a one-off shipment. This duration aligns with the operational cycles of maritime shipping, which often involves long-term charters, regular shipping routes, or sustained logistical support for government operations. Shorter contracts might be for specific voyages, while longer ones indicate a more integrated role for the contractor in the government's supply chain. The 342-day term suggests a planned, sustained requirement for these services, allowing for efficient resource allocation by both the government and the contractor.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 VETERANS MEMORIAL BLVD STE 740, METAIRIE, LA, 70005

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,642,753

Exercised Options: $3,642,753

Current Obligation: $3,642,753

Actual Outlays: $968,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000034

IDV Type: IDC

Timeline