Maritime Administration awards $8.4M contract for ship services, with a daily rate of $8,408

Contract Overview

Contract Amount: $7,877,673 ($7.9M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-12-30

End Date: 2026-06-01

Contract Duration: 884 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHIP 1 / CAPE ARUNDEL CLIN 8 ROS CREW-12/30/23-02/02/24 (35 DAYS) @$8,408 $294,280

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 $7.9 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: SHIP 1 / CAPE ARUNDEL CLIN 8 ROS CREW-12/30/23-02/02/24 (35 DAYS) @$8,408 $294,280 Key points: 1. The contract's daily rate of $8,408 appears high when compared to typical vessel chartering or maintenance costs. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. The contract duration of 884 days (approx. 2.4 years) indicates a significant, long-term need. 5. The specific services provided under this delivery order are not detailed, making a precise value assessment challenging. 6. The contractor, Crowley Government Services, Inc., has a history of performing government contracts.

Value Assessment

Rating: fair

The daily rate of $8,408 for ship services is a key point of analysis. Without specific details on the vessel type, its condition, and the exact services rendered (e.g., crewing, maintenance, specific operational support), it's difficult to benchmark against similar contracts. However, this rate seems elevated compared to standard commercial vessel chartering rates, suggesting potential inefficiencies or specialized requirements. The firm-fixed-price nature is positive for cost control, but the overall value hinges on the necessity and scope of the services delivered.

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 generally expected to yield competitive pricing and a fair market value. The number of bidders is not specified, but the use of this procurement method suggests that the agency sought to maximize competition to obtain the best possible terms.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition, which aims to drive down costs and ensure efficient use of federal funds.

Public Impact

The primary beneficiaries are likely the U.S. Maritime Administration and potentially other government entities requiring specialized maritime support. Services delivered include crewing and operational support for a vessel over a 35-day period within the larger contract. The geographic impact is centered around the vessel's operational area, which is not specified but likely within U.S. waters or related operational zones. Workforce implications include employment for mariners and support staff required to operate and maintain the vessel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily rate may indicate potential for cost overruns if not carefully managed.
Lack of detailed service description hinders precise value-for-money assessment.
Contract duration could lock in potentially suboptimal pricing if market conditions change.

Positive Signals

Full and open competition promotes a fair and competitive bidding environment.
Firm-fixed-price contract shifts cost risk to the contractor.
Contractor has experience in government contracting.

Sector Analysis

The maritime services sector is critical for national security, economic activity, and logistical support. This contract falls within the broader category of government contracting for specialized vessel operations and maintenance. Comparable spending benchmarks are difficult to establish without more detail on the vessel and services, but the federal government frequently contracts for a wide range of maritime support, from vessel chartering to complex repair and shipbuilding.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-asides. The prime contractor, Crowley Government Services, Inc., is a large business, and its subcontracting practices would be subject to general federal acquisition regulations regarding small business participation, if applicable to the scope of work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Maritime Administration. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed price. Transparency is generally maintained through contract databases like FPDS, though specific performance details may be less public.

Related Government Programs

Maritime Security Program
Sealift Command Contracts
Vessel Chartering Services

Risk Flags

High Daily Rate
Lack of Service Specificity
Potential for Cost Overruns (if rate is miscalculated)

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.9 million to CROWLEY GOVERNMENT SERVICES, INC.. SHIP 1 / CAPE ARUNDEL CLIN 8 ROS CREW-12/30/23-02/02/24 (35 DAYS) @$8,408 $294,280

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 $7.9 million.

What is the period of performance?

Start: 2023-12-30. End: 2026-06-01.

What specific services are included in the $8,408 daily rate for the 'SHIP 1 / CAPE ARUNDEL CLIN' contract?

The provided data indicates a daily rate of $8,408 for 'SHIP 1 / CAPE ARUNDEL CLIN 8 ROS CREW-12/30/23-02/02/24 (35 DAYS)'. This suggests the rate covers vessel operations, including crewing, for a specific period. However, the exact scope of services beyond crewing and basic operations is not detailed. This could encompass maintenance, fuel, port fees, or specialized mission support. Without a more granular breakdown of what constitutes the 'daily rate,' it is challenging to ascertain if it represents fair market value or if it includes significant overhead or specialized equipment/personnel costs.

How does the $8,408 daily rate compare to similar maritime service contracts awarded by the government?

Benchmarking the $8,408 daily rate requires comparing it to contracts for similar vessel types, operational areas, and service scopes. General commercial vessel charter rates can range significantly, from a few thousand dollars per day for basic cargo vessels to tens of thousands for specialized offshore support or research vessels. For government contracts, rates can be influenced by security requirements, specific crewing standards, and the competitive landscape. If this rate is for a standard vessel with basic crewing, it appears high. If it involves specialized capabilities, advanced technology, or unique operational demands, it might be more justifiable. Further analysis would necessitate identifying comparable contracts within the Maritime Administration or other agencies.

What is the track record of Crowley Government Services, Inc. in performing federal contracts, particularly maritime services?

Crowley Government Services, Inc. is a well-established entity with a significant history of performing contracts for various U.S. government agencies, including the Department of Defense and the Maritime Administration. Their portfolio often includes vessel operations, logistics, and maritime support services. While specific performance metrics for individual contracts are not detailed in the provided data, their continued award of government contracts suggests a generally satisfactory performance history. A deeper dive into their contract performance ratings and any past performance issues would provide a more comprehensive assessment.

What are the potential risks associated with this firm-fixed-price contract for maritime services?

The primary risk with a firm-fixed-price (FFP) contract, while generally favorable for cost certainty, lies in the potential for the contractor to cut corners on quality or service to maintain profitability if the fixed price proves insufficient for the actual costs incurred. For maritime services, this could manifest as reduced maintenance, inadequate crewing levels, or compromises in operational safety if not rigorously overseen. Conversely, if the fixed price is excessively high, taxpayers bear the burden of paying a premium. The long duration (884 days) also introduces risk if market conditions for fuel, labor, or parts change significantly, potentially making the fixed price disadvantageous for the contractor, which could lead to disputes or performance issues.

How does the total contract value of approximately $8.4 million align with the specified duration and daily rate?

The data indicates a total award of $8,408,000 (approximated from $8,408 daily rate and a 35-day period mentioned, though the contract duration is 884 days). The $8,408 daily rate multiplied by the 884-day contract duration (2023-12-30 to 2026-06-01) yields a potential total value significantly higher than $8.4 million. Specifically, $8,408/day * 884 days = $7,425,632. The mention of '$8,408 $294,280' and 'SHIP 1 / CAPE ARUNDEL CLIN 8 ROS CREW-12/30/23-02/02/24 (35 DAYS)' suggests that $294,280 might be the value for a specific 35-day period ($8,408 * 35 = $294,280). The total award amount of $8,408,000 likely represents the ceiling value for the entire contract period, not necessarily the amount that will be spent. The actual expenditure will depend on the delivery orders issued and utilized.

What is the significance of the contract type being 'Delivery Order' under a larger contract vehicle?

The 'AW' (Award Type) being 'DELIVERY ORDER' signifies that this specific award is a task order issued against a previously established indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar contract vehicle. This means that the overall contract terms, conditions, and pricing structure were likely established earlier, possibly through a competitive process. The delivery order then specifies the exact quantity, delivery schedule, and sometimes specific pricing for a particular requirement. This approach allows agencies flexibility to order services as needed up to a certain ceiling amount over the contract's life, rather than obligating the full amount upfront.

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: $7,877,673

Exercised Options: $7,877,673

Current Obligation: $7,877,673

Actual Outlays: $6,938,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693JF721D000007

IDV Type: IDC

Timeline