DOT awards $2.5M for FY26 deep sea freight operations, highlighting mission support

Contract Overview

Contract Amount: $2,534,528 ($2.5M)

Contractor: Pacific-Gulf Marine, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-10-06

End Date: 2026-03-31

Contract Duration: 176 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: GOPHER STATE FY26 OPERATIONS PGM-GPH25-2002B TASK ORDER TO FUND MISSION OPERATIONS

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.5 million to PACIFIC-GULF MARINE, INC. for work described as: GOPHER STATE FY26 OPERATIONS PGM-GPH25-2002B TASK ORDER TO FUND MISSION OPERATIONS Key points: 1. Contract value appears reasonable for a six-month operational support task order. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Task order duration of 176 days is standard for operational support. 5. Contract supports critical maritime transportation infrastructure. 6. No small business set-aside indicates potential for larger prime contractors.

Value Assessment

Rating: good

The contract value of approximately $2.5 million for a 176-day period suggests a monthly burn rate of roughly $144,000. This appears to be in line with typical operational support costs for specialized maritime services. Without specific benchmarks for deep sea freight mission operations, a direct comparison is difficult, but the fixed-price nature provides cost certainty. The award to PACIFIC-GULF MARINE, INC. warrants review of their past performance and pricing on similar contracts.

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, potentially leading to better pricing and service quality. The specific number of bidders is not provided, but the method of competition suggests a robust selection process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting market-driven pricing and encouraging a wider pool of qualified contractors, which can lead to cost savings and improved service delivery.

Public Impact

The primary beneficiaries are the Department of Transportation and the Maritime Administration, ensuring the continuity of critical mission operations. Services delivered include support for deep sea freight transportation, vital for national logistics and economic activity. The geographic impact is likely focused on operational areas relevant to U.S. maritime interests, potentially including international waters. Workforce implications may involve skilled personnel in maritime operations, logistics, and vessel management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the services.
The duration of the task order is relatively short, which might limit the scope of deep, long-term operational improvements.
No information is available on potential environmental impacts or mitigation strategies related to deep sea freight operations.

Positive Signals

The use of a firm-fixed-price contract provides budget certainty and limits the government's exposure to cost increases.
Awarding under full and open competition suggests a commitment to leveraging the most competitive offers available.
The contract supports essential government functions within the Maritime Administration, indicating alignment with strategic objectives.

Sector Analysis

The contract falls within the broader transportation and logistics sector, specifically focusing on deep sea freight. This sector is critical for global trade and national security, involving complex operations, specialized vessels, and significant regulatory oversight. Spending in this area often supports government missions related to strategic sealift, economic development, and emergency response. Comparable spending benchmarks would typically involve analyzing other government contracts for similar operational support or vessel chartering services.

Small Business Impact

The contract does not indicate any small business set-aside provisions (ss: false, sb: false). This suggests that the primary competition was likely open to all responsible businesses, including large corporations. While this maximizes competition, it may limit direct opportunities for small businesses to act as prime contractors on this specific award. Subcontracting opportunities for small businesses may still exist, depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation's Maritime Administration. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract's award under full and open competition, with details typically available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Maritime Security Program
Sealift Support Contracts
Strategic Sealift Capability
Department of Transportation Operations Support
Federal Maritime Commission Oversight

Risk Flags

Potential for performance issues if contractor resources are strained.
Lack of detailed performance metrics in award data.
Geopolitical or operational risks inherent in deep sea operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.5 million to PACIFIC-GULF MARINE, INC.. GOPHER STATE FY26 OPERATIONS PGM-GPH25-2002B TASK ORDER TO FUND MISSION OPERATIONS

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 $2.5 million.

What is the period of performance?

Start: 2025-10-06. End: 2026-03-31.

What is the historical spending pattern for PACIFIC-GULF MARINE, INC. with the Department of Transportation or Maritime Administration?

Analyzing the historical spending with PACIFIC-GULF MARINE, INC. requires accessing federal procurement databases like FPDS or SAM.gov. A review would typically involve looking at the total value of contracts awarded to the company over several fiscal years, the types of services rendered, and the agencies involved. For instance, if the company has a strong track record of successfully performing similar deep sea freight or operational support contracts for the Maritime Administration, it suggests a lower performance risk. Conversely, a history of contract disputes, cost overruns, or performance issues would raise concerns. Understanding their past contract values and durations can also provide context for the current $2.5 million award, helping to determine if it represents a typical engagement or a significant deviation.

How does the per-day cost of this contract compare to similar maritime operational support contracts?

To benchmark the per-day cost of this contract, which is approximately $14,200 ($2,534,527.72 / 176 days), we would need to compare it against similar contracts for deep sea freight transportation or mission operations. This involves searching procurement databases for contracts with comparable North American Industry Classification System (NAICS) codes (e.g., 483111 - Deep Sea Freight Transportation) awarded by the Maritime Administration or other agencies. Key comparison points would include the contract duration, scope of services, vessel types involved, and geographic operating areas. If similar contracts typically range from $10,000 to $18,000 per day for comparable services, then this award would be considered within a reasonable range. A significantly higher or lower daily rate might indicate either exceptional value or potential risks related to pricing or performance.

What specific mission operations does this task order fund, and what is their strategic importance?

This task order funds 'MISSION OPERATIONS' for the GOPHER STATE FY26 PROGRAM. While the specific details of 'GOPHER STATE' are not provided, it is likely a government-owned or chartered vessel or a program critical to the Maritime Administration's strategic objectives. Mission operations could encompass a wide range of activities, such as maintaining operational readiness, conducting training exercises, supporting national defense sealift requirements, participating in international maritime initiatives, or providing logistical support during emergencies. The strategic importance lies in ensuring the availability and readiness of maritime assets crucial for national security, economic stability, and the projection of U.S. influence. The continuity of these operations, funded by this task order, is vital for the agency's ability to fulfill its mandate.

What are the potential risks associated with PACIFIC-GULF MARINE, INC. as the contractor for this task order?

Potential risks associated with PACIFIC-GULF MARINE, INC. would typically be assessed by reviewing their past performance record, financial stability, and any history of contract disputes or compliance issues. Without access to detailed performance evaluations or contractor profiles, it's difficult to pinpoint specific risks. However, general risks for any maritime operations contract include operational hazards (e.g., weather, equipment failure), geopolitical risks in operating areas, compliance with international maritime regulations, and potential cost fluctuations if the contract had different pricing terms. Given the firm-fixed-price nature, the primary risk shifts from cost overruns to potential performance deficiencies if the contractor struggles to meet requirements within the agreed budget. A thorough review of the contractor's CPARS (Contractor Performance Assessment Reporting System) data would be essential for a comprehensive risk assessment.

What is the expected outcome or deliverable for this task order, and how will success be measured?

The expected outcome for this task order is the successful execution of 'MISSION OPERATIONS' for the GOPHER STATE FY26 PROGRAM by PACIFIC-GULF MARINE, INC. Success will be measured against the specific requirements outlined in the task order, which are not detailed here. Typically, for operational support contracts, success metrics include maintaining vessel readiness, adhering to operational schedules, ensuring safety and environmental compliance, and fulfilling any specific mission objectives defined by the Maritime Administration. Performance will likely be evaluated through regular reporting, inspections, and potentially through formal performance reviews like CPARS. The firm-fixed-price nature implies that the contractor is responsible for delivering the defined services within budget, and failure to meet performance standards could result in contractual remedies.

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: $2,534,528

Exercised Options: $2,534,528

Current Obligation: $2,534,528

Actual Outlays: $2,496,369

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