DOT Awards $4.1M for FY26 Mendonca Fuel to Crowley Government Services Under Full and Open Competition
Contract Overview
Contract Amount: $410,400 ($410.4K)
Contractor: Crowley Government Services, Inc.
Awarding Agency: Department of Transportation
Start Date: 2026-04-08
End Date: 2026-09-30
Contract Duration: 175 days
Daily Burn Rate: $2.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: MENDONCA FY26 FUEL CGS-MDC26-1009A THIS TASK ORDER ADD FUNDS TO FY26 MENDONCA FUEL.
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23607
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $410,400 to CROWLEY GOVERNMENT SERVICES, INC. for work described as: MENDONCA FY26 FUEL CGS-MDC26-1009A THIS TASK ORDER ADD FUNDS TO FY26 MENDONCA FUEL. Key points: 1. The award is a delivery order for fuel services, indicating ongoing operational needs. 2. Crowley Government Services, a known entity in maritime services, is the sole awardee. 3. The contract is Firm Fixed Price, providing cost certainty for the government. 4. The duration of 175 days suggests a short-term or specific operational requirement.
Value Assessment
Rating: good
The $4.1 million award for a 175-day period appears reasonable for fuel services. Benchmarking against similar fuel delivery contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential fuel services.
Public Impact
Ensures continued operational capability for maritime assets requiring fuel. Supports the Department of Transportation's mission in managing and operating government vessels. Provides essential resources for the Maritime Administration's fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in fuel markets impacting long-term costs if not managed.
- Dependence on a single contractor for critical fuel supply.
Positive Signals
- Firm Fixed Price contract provides budget certainty.
- Awarded under full and open competition.
- Supports critical government operations.
Sector Analysis
This award falls within the transportation sector, specifically related to maritime operations and fuel supply. Spending benchmarks for government fuel procurement vary widely based on volume and type, but this appears to be a standard operational cost.
Small Business Impact
The awardee, Crowley Government Services, Inc., is a large business. There is no indication that small businesses were involved in this specific delivery order, nor is it explicitly required by the data provided.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would focus on delivery, quality, and adherence to the firm fixed price.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Transportation Contracting
- Maritime Administration Programs
Risk Flags
- Potential for price volatility in fuel markets.
- Dependence on a single contractor.
- Short contract duration may indicate a need for frequent re-competition.
- Lack of small business participation noted.
Tags
deep-sea-freight-transportation, department-of-transportation, va, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $410,400 to CROWLEY GOVERNMENT SERVICES, INC.. MENDONCA FY26 FUEL CGS-MDC26-1009A THIS TASK ORDER ADD FUNDS TO FY26 MENDONCA FUEL.
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 $410,400.
What is the period of performance?
Start: 2026-04-08. End: 2026-09-30.
What is the historical pricing trend for similar fuel contracts awarded by the Maritime Administration?
Analyzing historical pricing for comparable fuel delivery contracts by the Maritime Administration is crucial. This would involve comparing the per-gallon cost, delivery fees, and contract duration against this $4.1 million award. Understanding past price variations due to market conditions or competition levels can help assess if the current price reflects fair market value and efficient use of taxpayer funds.
What are the specific risks associated with relying on a single vendor for critical fuel supplies, especially in potentially volatile maritime environments?
Reliance on a single vendor for critical fuel supplies introduces risks such as supply chain disruptions, potential price gouging if competition diminishes in future renewals, and reduced flexibility in responding to urgent needs. In maritime environments, disruptions could stem from geopolitical events, natural disasters, or the vendor's own operational issues, potentially impacting government vessel readiness and mission accomplishment.
How effectively does the firm fixed price structure mitigate potential cost overruns given the fluctuating nature of fuel prices?
The Firm Fixed Price (FFP) structure is designed to transfer the risk of cost overruns to the contractor. While it provides budget certainty for the government, its effectiveness in mitigating overruns for volatile commodities like fuel depends on the contractor's pricing strategy and hedging. If fuel prices rise significantly above the contractor's projections, they may absorb losses or seek efficiencies, but extreme volatility could still pose a risk if the initial price was not adequately calculated.
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: $410,400
Exercised Options: $410,400
Current Obligation: $410,400
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
Start Date: 2026-04-08
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-08
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