DOT Awards $3.4M Fixed-Price Order to Crowley for Deep Sea Freight Transportation

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: BENAVIDEZ FY25 FIXED FEES CGS-BEN25-1002A THE PURPOSE OF THE TASK ORDER IS TO ESTABLISH THE PERIOD OF PERFORMANCE AND ADD FUNDING.

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: BENAVIDEZ FY25 FIXED FEES CGS-BEN25-1002A THE PURPOSE OF THE TASK ORDER IS TO ESTABLISH THE PERIOD OF PERFORMANCE AND ADD FUNDING. Key points: 1. This $3.4M order for deep sea freight transportation is awarded to Crowley Government Services, Inc. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs for the Department of Transportation. 4. The duration of the task order is 255 days, ending April 30, 2026.

Value Assessment

Rating: good

The firm fixed-price contract type is appropriate for well-defined services like freight transportation, aiming to provide cost certainty. The award amount appears reasonable for the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive award process is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for essential transportation services.

Public Impact

Ensures continued operation of critical deep sea freight services for the Maritime Administration. Supports the Department of Transportation's mission to maintain national transportation infrastructure. Provides economic activity through a contract with a private sector provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen logistical challenges arise.
Dependence on a single vendor for a critical service during the performance period.

Positive Signals

Fixed-price contract limits cost uncertainty.
Full and open competition suggests a competitive market.
Clear period of performance and funding established.

Sector Analysis

This contract falls within the transportation sector, specifically deep sea freight. Spending benchmarks for similar services can vary widely based on cargo type, volume, and route. The Maritime Administration's reliance on such contracts is typical for maintaining logistical capabilities.

Small Business Impact

The data indicates this contract was awarded to Crowley Government Services, Inc., a large business. There is no indication of small business participation in this specific task order, which is common for large-scale transportation contracts.

Oversight & Accountability

The award is a delivery order under an existing contract structure. Oversight would focus on performance monitoring, adherence to delivery schedules, and financial management to ensure the fixed-price terms are met and taxpayer funds are used efficiently.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Potential for schedule delays due to external factors (weather, port congestion).
Reliance on a single contractor for a critical service.
Fluctuations in fuel prices could impact contractor's profitability, though fixed-price mitigates direct government cost impact.
Ensuring compliance with all maritime regulations and security protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.4 million to CROWLEY GOVERNMENT SERVICES, INC.. BENAVIDEZ FY25 FIXED FEES CGS-BEN25-1002A THE PURPOSE OF THE TASK ORDER IS TO ESTABLISH THE PERIOD OF PERFORMANCE AND ADD FUNDING.

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 cost performance of Crowley Government Services, Inc. on similar transportation contracts with the government?

Analyzing Crowley's past performance on comparable government contracts would provide insight into their ability to manage costs effectively and deliver services within budget. This historical data can help assess the reasonableness of the current $3.4M award and identify any recurring issues or successes that might inform future contracting decisions.

What specific risks were identified during the full and open competition process that might impact service delivery or cost?

Understanding the risks identified during the competitive bidding phase is crucial. This could include potential logistical challenges, geopolitical factors affecting shipping routes, or vendor-specific operational risks. Assessing these risks helps determine the adequacy of mitigation strategies outlined in the contract and the government's preparedness for potential disruptions.

How does the effectiveness of this fixed-price contract compare to other pricing structures for similar maritime transportation services?

Evaluating the effectiveness of the firm fixed-price model requires comparing outcomes against alternative contract types like cost-plus or time-and-materials for similar services. This analysis should consider factors such as cost savings, schedule adherence, and service quality achieved under different pricing structures to determine if the chosen method best serves the government's objectives.

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: $2,132,282

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