Maritime Administration awards $92.8M contract for ship maintenance, highlighting significant investment in vessel readiness

Contract Overview

Contract Amount: $92,834,205 ($92.8M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-01-12

End Date: 2023-09-30

Contract Duration: 261 days

Daily Burn Rate: $355.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VAM CLIN 6 SHIP 3

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $92.8 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: VAM CLIN 6 SHIP 3 Key points: 1. Contract value represents a substantial commitment to maintaining critical maritime assets. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Fixed-price contract type offers cost certainty for the government. 4. Contract duration of 261 days indicates a focused effort on specific maintenance tasks. 5. The award falls within the shipbuilding and repairing sector, crucial for national maritime infrastructure. 6. Geographic location of awardee in Washington D.C. may influence local economic impact.

Value Assessment

Rating: good

The contract value of $92.8 million for ship maintenance appears reasonable given the scope of services typically involved in major vessel upkeep. Benchmarking against similar contracts for large-scale ship repair and maintenance would provide a more precise assessment of value for money. The firm fixed-price structure helps mitigate cost overrun risks for the government, suggesting a well-defined scope of work.

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 approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the designation suggests a robust competition was sought.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down prices through market forces and increases the likelihood of selecting the most cost-effective solution.

Public Impact

The primary beneficiaries are the U.S. Maritime Administration and potentially the U.S. merchant marine fleet, ensuring operational readiness. Services delivered include ship maintenance and repair, critical for the longevity and functionality of vessels. The geographic impact is primarily centered around the awardee's location and the operational areas of the serviced vessels. Workforce implications include employment opportunities for skilled trades in shipbuilding and repair sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial maintenance requirements are not precisely defined.
Dependence on the contractor's ability to meet strict timelines for vessel availability.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market was leveraged.
Award to an established entity implies a degree of reliability in execution.

Sector Analysis

The shipbuilding and repairing sector is a vital component of the U.S. industrial base, supporting both commercial and defense needs. This contract, valued at over $92 million, represents a significant investment within this sector. Comparable spending benchmarks in this industry often involve large sums due to the complexity and scale of vessel maintenance and construction projects. The Maritime Administration's role underscores the government's commitment to maintaining a capable fleet.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, the primary contractor, Crowley Government Services, Inc., is likely a large business. There is no explicit information on subcontracting plans to small businesses, which could represent a missed opportunity for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Maritime Administration's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, which incentivizes the contractor to adhere to the agreed-upon cost and scope. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

National Defense Contracts
Maritime Fleet Readiness Programs
Shipbuilding and Repair Industry Support
Federal Vessel Maintenance Services

Risk Flags

Contract Value
Contract Type
Competition Level
Performance Period

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $92.8 million to CROWLEY GOVERNMENT SERVICES, INC.. VAM CLIN 6 SHIP 3

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 $92.8 million.

What is the period of performance?

Start: 2023-01-12. End: 2023-09-30.

What is the historical spending pattern of the Maritime Administration on ship maintenance and repair over the last five fiscal years?

Analyzing the Maritime Administration's historical spending on ship maintenance and repair over the last five fiscal years would provide crucial context for the $92.8 million award. This data would reveal trends in annual expenditures, identify any significant fluctuations, and indicate whether this contract represents an increase or decrease in typical investment. Understanding past spending levels helps in assessing whether the current award is consistent with historical resource allocation or if it signifies a new strategic focus or a response to specific fleet needs. For instance, a consistent upward trend might suggest increasing maintenance requirements or fleet expansion, while a sudden spike could point to a major overhaul or the acquisition of new vessels requiring initial significant upkeep. Without this historical data, it is difficult to definitively gauge the scale and significance of the current contract within the agency's broader budgetary framework and operational priorities.

How does the per-unit cost of this contract compare to similar ship maintenance contracts awarded by other federal agencies?

Comparing the per-unit cost of this $92.8 million contract to similar ship maintenance contracts awarded by other federal agencies is essential for a robust value-for-money assessment. However, 'per-unit cost' is difficult to define without knowing the specific services rendered (e.g., number of vessels serviced, type of maintenance, duration of service per vessel). If we assume the contract covers maintenance for a specific class or number of vessels, a comparison could be made based on cost per vessel or cost per type of maintenance task. Agencies like the Navy or the Coast Guard frequently award large ship maintenance contracts. Benchmarking against these would reveal if the Maritime Administration's pricing is competitive. A higher cost per unit could indicate more complex maintenance, specialized vessels, or potentially less competitive pricing, while a lower cost might suggest efficiency or a more favorable market environment for this specific award.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this delivery order?

Key performance indicators (KPIs) for this delivery order would likely focus on ensuring the timely and effective completion of ship maintenance and repair tasks. Common KPIs in such contracts include adherence to schedule (e.g., meeting delivery dates for completed work), quality of workmanship (e.g., defect rates, rework required), cost control (especially relevant if there are any cost-reimbursable elements, though this is fixed-price), and compliance with safety and environmental regulations. For a contract like this, specific KPIs might also relate to the operational readiness of the serviced vessels post-maintenance, minimizing downtime, and ensuring all specified repairs and upgrades meet technical specifications. The Maritime Administration would establish these KPIs in the contract's performance work statement (PWS) to objectively measure Crowley Government Services, Inc.'s success and ensure taxpayer funds are delivering the expected outcomes for fleet readiness.

What is the track record of Crowley Government Services, Inc. in fulfilling similar large-scale maritime contracts for the federal government?

Crowley Government Services, Inc. has a significant track record in providing logistics, vessel operations, and government contracting services, including extensive experience with maritime operations for various federal agencies. They have historically managed complex supply chains, operated government-owned vessels, and performed maintenance and repair services. Their experience often spans diverse environments and requirements, suggesting a capacity to handle large-scale projects like the $92.8 million contract. Evaluating their past performance on similar contracts would involve reviewing past performance evaluations, any documented instances of contract disputes or successes, and their ability to meet delivery schedules and quality standards. Generally, their established presence in the government contracting space indicates a level of reliability and expertise in managing such significant maritime endeavors.

What is the potential impact of this contract on the U.S. shipbuilding and repair industry's capacity and workforce?

This $92.8 million contract for ship maintenance and repair can have a notable impact on the U.S. shipbuilding and repair industry. Such awards provide significant revenue streams for contractors like Crowley Government Services, Inc., and potentially for their subcontractors, which often include shipyards and specialized repair facilities. This influx of work can help sustain or even expand the skilled workforce required for these complex tasks, including welders, pipefitters, electricians, and engineers. It can also contribute to maintaining the operational capacity of these facilities, ensuring they remain available for future government and commercial needs. For the broader industry, consistent government investment in fleet maintenance signals stability and supports the long-term health of this critical sector, which is vital for both economic and national security.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Crowley Alaska Inc

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: $92,834,205

Exercised Options: $92,834,205

Current Obligation: $92,834,205

Actual Outlays: $92,791,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693JF721D000007

IDV Type: IDC

Timeline