DOT awards $92.35M for ship maintenance, with 56% of contract value potentially going to small businesses

Contract Overview

Contract Amount: $92,350,000 ($92.3M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-01-12

End Date: 2027-07-07

Contract Duration: 1,637 days

Daily Burn Rate: $56.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VAM CLIN 6 SHIP 4

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 $92.3 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: VAM CLIN 6 SHIP 4 Key points: 1. Contract value represents a significant investment in maintaining critical maritime assets. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. A substantial portion of the contract value is earmarked for small business participation. 4. The contract duration spans over four years, indicating a long-term need for these services. 5. The firm-fixed-price structure aims to control costs and provide predictability. 6. The specific NAICS code points to a specialized segment within the shipbuilding and repair industry.

Value Assessment

Rating: good

The contract value of $92.35 million for ship maintenance over approximately four years appears reasonable given the scope. Benchmarking against similar large-scale maritime maintenance contracts would provide further context, but the firm-fixed-price nature suggests an effort to manage costs effectively. The potential for significant small business subcontracting also indicates a strategy to leverage diverse capabilities and potentially achieve cost efficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. While the number of bidders is not specified, this approach generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The agency likely sought to maximize the pool of potential offerors to ensure the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider range of contractors to participate, potentially driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. maritime fleet, ensuring operational readiness and safety. Services delivered include essential maintenance, repair, and potentially modernization of vessels. The geographic impact is likely concentrated around the contractor's facilities and operational areas, but the services support national maritime interests. The contract has implications for the maritime repair workforce, potentially creating or sustaining jobs in skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during maintenance, despite fixed-price structure.
Dependence on a single prime contractor for critical maintenance could pose risks if performance falters.
Ensuring effective oversight of subcontracting, especially for small businesses, is crucial for successful execution.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Significant allocation for small business participation can foster economic growth and innovation.
Long-term contract duration allows for sustained support and relationship building with the contractor.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a critical component of the U.S. industrial base, supporting both commercial and defense needs. This contract falls within the government's broader spending on maintaining and modernizing its fleet, which is essential for national security and economic stability. Comparable spending benchmarks would involve analyzing other large-scale vessel maintenance contracts awarded by agencies like the Department of Defense or the U.S. Coast Guard.

Small Business Impact

While the data indicates the prime contractor is not a small business, the contract specifies that 56% of the total value is intended for small business participation. This suggests a strong emphasis on subcontracting to small businesses, which can provide significant opportunities for this sector. The agency's commitment to small business utilization will be key to ensuring these benefits are realized and that the small business ecosystem is positively impacted.

Oversight & Accountability

Oversight for this contract will likely be managed by the Maritime Administration's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible. The extent of Inspector General involvement would depend on any identified issues or audits.

Related Government Programs

National Defense Contracts
Maritime Security Programs
Government Fleet Maintenance
Shipbuilding and Repair Industry Support

Risk Flags

Potential for cost escalation over contract duration.
Ensuring effective oversight of extensive subcontracting.
Dependence on contractor performance for critical asset maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $92.3 million to CROWLEY GOVERNMENT SERVICES, INC.. VAM CLIN 6 SHIP 4

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 $92.3 million.

What is the period of performance?

Start: 2023-01-12. End: 2027-07-07.

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 requires accessing detailed budget and contract award data. Typically, agencies like MARAD allocate funds based on the operational needs of their fleet, which can fluctuate due to vessel age, deployment schedules, and maintenance requirements. Recent trends might show an increase in spending if the fleet is aging or undergoing modernization. Without specific historical data for MARAD's maintenance contracts, it's difficult to provide precise figures. However, federal agencies generally aim for stable or predictable spending in this area, often utilizing multi-year contracts to manage costs and ensure consistent support. Fluctuations can occur due to major overhauls or unexpected repairs.

How does the awarded amount compare to the estimated cost or budget for this specific maintenance requirement?

The awarded amount of $92.35 million represents the government's commitment to procure these specific ship maintenance services. To assess if this is competitive or within budget, one would need access to the agency's independent government cost estimate (IGCE) or the initial budget allocation for this requirement. The fact that it was awarded under full and open competition suggests that the bids received were evaluated against the government's estimate and found to be acceptable. If the awarded price is significantly below the IGCE, it could indicate strong competition or a favorable market. Conversely, if it's at or above the IGCE, it suggests the market price aligns with the government's expectations.

What are the specific performance metrics and key performance indicators (KPIs) associated with this contract?

Specific performance metrics and KPIs for this contract are typically detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These would likely include factors such as on-time delivery of maintenance services, adherence to quality standards (e.g., defect rates, rework required), safety compliance (e.g., incident rates), and potentially efficiency metrics related to turnaround time for repairs. For a firm-fixed-price contract, meeting these KPIs is crucial for the contractor to receive full payment and avoid penalties. The government's quality assurance personnel would monitor these metrics throughout the contract period.

What is the track record of CROWLEY GOVERNMENT SERVICES, INC. in performing similar large-scale maritime maintenance contracts for the federal government?

CROWLEY GOVERNMENT SERVICES, INC. has a significant history of performing contracts for the federal government, including extensive work in maritime logistics, transportation, and vessel operations. Their experience often includes chartering, operating, and maintaining various types of vessels for agencies such as the U.S. Navy, Military Sealift Command, and others. Assessing their specific track record for large-scale maintenance and repair contracts would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history databases, and any publicly available information on their project execution. Generally, companies with extensive government contracts have demonstrated capabilities in managing complex logistics, adhering to regulatory requirements, and delivering services under demanding conditions.

What are the potential risks associated with the long duration (over 4 years) of this contract?

The long duration of this contract, spanning from January 2023 to July 2027, presents several potential risks. Firstly, the cost of materials and labor could escalate over time, potentially impacting the contractor's profitability or leading to requests for equitable adjustments if not adequately accounted for in the fixed-price structure. Secondly, technological advancements in ship maintenance or repair could emerge, making the contracted methods or services less efficient or effective by the contract's end. Thirdly, changes in government requirements or priorities could necessitate contract modifications, which might be complex to negotiate. Finally, maintaining consistent oversight and performance management over an extended period requires sustained effort from the government's contracting team.

How will the 56% small business subcontracting goal be monitored and enforced?

The monitoring and enforcement of the 56% small business subcontracting goal are critical components of this contract's administration. The prime contractor, CROWLEY GOVERNMENT SERVICES, INC., will be required to submit regular subcontracting reports (e.g., SF294, SF295) detailing their progress towards meeting this goal. The Maritime Administration's contracting officer and Small Business Specialist will review these reports to ensure compliance. Failure to meet the subcontracting goals can result in penalties, including withholding of payments or potential termination for default, depending on the contract terms and the severity of non-compliance. The agency will likely engage in proactive communication with the contractor to facilitate small business participation and address any challenges.

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

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: $92,350,000

Exercised Options: $92,350,000

Current Obligation: $92,350,000

Actual Outlays: $92,350,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693JF721D000007

IDV Type: IDC

Timeline