Transportation contract for freight services awarded to Crowley Government Services, Inc. for $3.4M

Contract Overview

Contract Amount: $3,409,418 ($3.4M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-18

End Date: 2026-04-30

Contract Duration: 255 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: MENDONCA MFY25 FIXED FEES CGS-MDC25-1002A THE PURPOSE OF THIS TASK ORDER IS TO ADD FUNDS AND ESTABLISH A PERIOD OF PERFORMANCE.

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $3.4 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: MENDONCA MFY25 FIXED FEES CGS-MDC25-1002A THE PURPOSE OF THIS TASK ORDER IS TO ADD FUNDS AND ESTABLISH A PERIOD OF PERFORMANCE. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract type aims to control costs for the government. 3. Performance period extends into FY26, indicating a medium-term need. 4. The contract is for deep-sea freight transportation services. 5. The award value is $3.4 million over a 255-day period. 6. Virginia is the listed state for this contract.

Value Assessment

Rating: good

The contract value of $3.4 million for a 255-day period appears reasonable for specialized deep-sea freight transportation services. Benchmarking against similar contracts would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns for the government, assuming the scope of work is well-defined.

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 a bid. This typically leads to a more robust price discovery process and potentially better pricing for the government. The number of bidders is not specified, but the competition type suggests multiple entities vied for the award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation from multiple providers.

Public Impact

Benefits the Department of Transportation by ensuring the availability of critical freight services. Provides essential deep-sea freight transportation, likely supporting logistical needs for government operations or deployments. The primary geographic impact is likely related to the routes and destinations served by the freight services. The contract supports the workforce employed by Crowley Government Services, Inc. in its transportation operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a healthy market.
Firm Fixed Price contract type helps control costs.
Contract duration is defined, providing clarity on the service period.

Sector Analysis

This contract falls within the transportation and logistics sector, specifically focusing on deep-sea freight. The market for government transportation services is often characterized by a mix of large established providers and specialized niche operators. Government contracts in this area are crucial for maintaining supply chains and supporting various agency missions, with spending often influenced by geopolitical events and operational requirements.

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. Large prime contractors are expected to manage their own supply chains, which may or may not involve small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver services within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and oversight reports may not be publicly detailed.

Related Government Programs

Department of Transportation Freight Services
Maritime Administration Logistics Contracts
Deep Sea Shipping Contracts
Federal Freight Transportation

Risk Flags

Potential for fuel price volatility impacting fixed-price contract costs.
Risk of geopolitical events affecting shipping routes or security.
Vulnerability to global supply chain disruptions (e.g., port congestion, labor issues).

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.4 million to CROWLEY GOVERNMENT SERVICES, INC.. MENDONCA MFY25 FIXED FEES CGS-MDC25-1002A THE PURPOSE OF THIS TASK ORDER IS TO ADD FUNDS AND ESTABLISH A PERIOD OF PERFORMANCE.

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 $3.4 million.

What is the period of performance?

Start: 2025-08-18. End: 2026-04-30.

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

Analyzing historical spending for deep-sea freight by the Maritime Administration requires access to detailed procurement data over several fiscal years. Generally, such spending can fluctuate based on national security needs, economic conditions, and specific operational requirements of the agency. For instance, periods of increased global trade or geopolitical instability might necessitate higher spending on freight services. Without specific historical data for this contract's category, it's difficult to provide precise figures. However, agencies like MARAD often procure such services to support sealift capabilities, strategic material movement, or international aid delivery, making their spending patterns responsive to broader governmental objectives and global logistics landscapes.

How does the awarded price compare to similar deep-sea freight contracts awarded by other federal agencies?

A direct comparison of the $3.4 million award for 255 days of deep-sea freight services requires access to a database of comparable federal contracts. Factors such as the specific routes, cargo types, vessel specifications, and service level agreements significantly influence pricing. Contracts awarded under full and open competition, like this one, generally provide a good basis for comparison if the scope is similar. However, variations in market conditions at the time of award, contractor overhead, and profit margins can lead to price differences. To conduct a thorough benchmark, one would need to identify contracts with similar durations, service requirements, and geographic coverage, adjusting for any known variables that might affect cost.

What are the key performance indicators (KPIs) for this contract, and how is performance monitored?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical KPIs for deep-sea freight transportation services often include on-time delivery rates, cargo condition upon arrival, fuel efficiency, adherence to safety regulations, and compliance with environmental standards. Performance monitoring is usually conducted by a Contracting Officer's Representative (COR) or a Technical Point of Contact (TPOC) within the awarding agency (Department of Transportation, Maritime Administration). They would review delivery manifests, inspection reports, and contractor performance reports to ensure services meet the contract's requirements and quality standards. Failure to meet KPIs could result in penalties or impact future contract awards.

What is the track record of Crowley Government Services, Inc. in fulfilling federal transportation contracts?

Crowley Government Services, Inc. has a significant track record in fulfilling federal transportation and logistics contracts, particularly for agencies like the Department of Defense and the Department of Transportation. They are known for providing a wide range of services, including vessel operations, cargo management, and logistical support, often in challenging environments. Their experience typically includes operating various types of vessels and managing complex supply chains. Past performance reviews and contract databases would provide more granular details on their success rates, any past performance issues, and their ability to meet delivery schedules and quality standards across their federal engagements.

Are there any potential risks associated with this contract, such as geopolitical instability or supply chain disruptions?

Yes, several risks are inherent in deep-sea freight transportation contracts. Geopolitical instability in regions where the vessels operate or transport goods can lead to delays, increased security costs, or rerouting. Global supply chain disruptions, whether due to port congestion, labor shortages, or unforeseen events like pandemics or natural disasters, can significantly impact delivery schedules and operational costs. Furthermore, fluctuations in fuel prices can affect profitability, especially under fixed-price contracts if not adequately hedged. The contractor's ability to manage these external risks, maintain vessel readiness, and ensure crew safety are critical factors for successful contract performance.

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: 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: $3,409,418

Exercised Options: $3,409,418

Current Obligation: $3,409,418

Actual Outlays: $2,091,272

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000019

IDV Type: IDC

Timeline