DOT awards $92.35M for ship maintenance, highlighting long-term delivery order needs

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 5

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 5 Key points: 1. Contract value represents a significant investment in maintaining critical maritime assets. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Long-term delivery order structure indicates ongoing service requirements. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Contractor has a track record in government services, requiring further performance review. 6. Spending aligns with broader federal investments in national defense and transportation infrastructure.

Value Assessment

Rating: good

The contract value of $92.35 million for ship maintenance appears reasonable given the duration and scope. Benchmarking against similar long-term maintenance contracts for government vessels is crucial for a definitive value assessment. The firm fixed-price structure provides cost certainty for the government, but the total expenditure will depend on the actual delivery orders issued over the contract period. Without specific details on the services rendered per order, a precise per-unit cost comparison is challenging.

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, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the use of this procurement method suggests a healthy level of interest from the industry.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the potential for cost savings through a robust bidding process.

Public Impact

The primary beneficiaries are the U.S. Navy and other government agencies relying on the operational readiness of these vessels. Services delivered include essential maintenance, repair, and logistical support for ships. The geographic impact is primarily centered around the contractor's operational bases and the locations of the vessels. Workforce implications include job creation and sustainment within the maritime services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if delivery orders exceed initial estimates or if unforeseen maintenance issues arise.
Dependence on a single contractor for a significant period could limit flexibility in adapting to new technologies or requirements.
Ensuring consistent quality and performance across all delivery orders over the contract's lifespan requires diligent oversight.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Full and open competition suggests a competitive market and potential for value.
Long-term nature of the contract allows for sustained support and relationship building with the contractor.
Contractor's experience in government services may indicate a capacity to meet complex requirements.

Sector Analysis

This contract falls within the broader shipbuilding and repair industry, a critical sector for national defense and economic activity. The market is characterized by specialized firms capable of handling complex vessel maintenance and construction. Federal spending in this area often supports both military readiness and commercial maritime capabilities. Comparable spending benchmarks would involve analyzing other large-scale maintenance contracts awarded by agencies like the Department of Defense or the Coast Guard.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business. Further analysis would be needed to determine if the prime contractor intends to utilize small business subcontractors to fulfill any portion of the contract requirements, which could impact the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Maritime Administration (MARAD) through contract officers and technical representatives who will monitor performance against delivery orders. Accountability is established through the firm fixed-price contract terms, requiring the contractor to deliver services as specified. Transparency may be enhanced through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Shipbuilding and Repair Contracts
Maritime Transportation Services
Government Vessel Maintenance
Defense Logistics Support
Federal Fleet Management

Risk Flags

Long-term contract duration may increase risk of performance degradation.
Lack of specific performance metrics in provided data hinders detailed assessment.
Potential for cost escalation if unforeseen issues arise during maintenance cycles.

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 5

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 contractor's past performance record with the federal government, particularly on similar maritime maintenance contracts?

Crowley Government Services, Inc. has a history of performing various government contracts, including those related to logistics, transportation, and maritime services. While specific details on past performance for similar ship maintenance contracts are not provided in this data snippet, their general experience suggests a capability to handle federal requirements. A thorough review of their performance history, including any past issues or commendations on similar contracts, would be necessary for a comprehensive assessment. This would involve examining past contract close-outs, customer satisfaction surveys, and any documented performance deficiencies or successes to gauge their reliability and effectiveness in fulfilling complex maritime maintenance needs.

How does the awarded value of $92.35 million compare to the estimated cost or budget for this specific ship maintenance requirement?

The provided data indicates an award value of $92.35 million, but it does not include the government's estimated cost or the initial budget allocated for this requirement. To assess value for money, a comparison between the awarded price and the government's independent cost estimate is essential. If the award is significantly below the estimate, it could indicate strong competition or a favorable negotiation. Conversely, if it's close to or above the estimate, further scrutiny of the estimate's accuracy and the contractor's pricing would be warranted. Without the government's estimate, it's difficult to definitively state whether this award represents excellent or questionable value from a cost perspective.

What are the specific types of ships and the scope of maintenance services covered under this contract?

The data specifies the contract is for 'VAM CLIN 6 SHIP 5' and falls under NAICS code 336611 (Ship Building and Repairing). However, it does not detail the specific types of vessels (e.g., cargo ships, research vessels, patrol boats) or the precise scope of maintenance services (e.g., routine upkeep, major overhauls, emergency repairs, dry-docking). Understanding these specifics is crucial for evaluating the contract's complexity, risk, and the appropriateness of the fixed-price structure. A more detailed statement of work (SOW) would be required to fully comprehend the technical requirements and associated risks.

What is the historical spending trend for ship maintenance by the Maritime Administration over the past five years?

Historical spending data for ship maintenance by the Maritime Administration (MARAD) is not included in the provided contract details. To establish a trend, one would need to access MARAD's historical procurement data, potentially through sources like the Federal Procurement Data System (FPDS) or agency budget reports. Analyzing past spending would reveal whether this $92.35 million award represents an increase, decrease, or consistent level of investment in ship maintenance. It would also help identify any patterns in contract types, durations, and major contractors utilized by MARAD for similar services over time.

What are the potential risks associated with a long-term delivery order contract for ship maintenance, and how are they mitigated?

Long-term delivery order contracts for ship maintenance carry several potential risks. These include scope creep if requirements evolve significantly over the contract period, potential for cost increases if not managed tightly, and contractor performance degradation over time. Mitigation strategies often involve clearly defined ordering procedures, robust government oversight of each delivery order, performance metrics, and options for contract modification or termination if performance is unsatisfactory. The firm fixed-price nature helps mitigate cost uncertainty for the government, provided the scope is well-defined. Regular performance reviews and clear communication channels are also key to managing these risks effectively.

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: $92,350,000

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