Transportation awards $129M contract for ship maintenance and repair services to Crowley Government Services

Contract Overview

Contract Amount: $129,025,750 ($129.0M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2021-07-08

End Date: 2027-07-07

Contract Duration: 2,190 days

Daily Burn Rate: $58.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLIN 6 SHIP 7 PURCHASE

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 $129.0 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: CLIN 6 SHIP 7 PURCHASE Key points: 1. Contract value represents a significant investment in maintaining critical maritime assets. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. Contract duration of five years allows for sustained support and potential for economies of scale. 5. Geographic focus on Washington D.C. may indicate specialized support needs for regional assets. 6. The absence of small business set-aside flags the need to examine subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $129 million over five years for ship maintenance and repair is substantial. Benchmarking against similar large-scale maritime support contracts is necessary for a precise value-for-money assessment. However, the firm-fixed-price nature of the award indicates that the contractor bears the primary financial risk for cost overruns, which is a positive indicator for the government. The specific services rendered under CLIN 6 SHIP 7 PURCHASE will determine the true value proposition.

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 number of bidders is not specified, but the method itself suggests a deliberate effort to maximize competition and achieve favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages innovation from a wider pool of potential contractors.

Public Impact

The primary beneficiaries are the U.S. Department of Transportation and its Maritime Administration, ensuring the operational readiness of government-owned or controlled vessels. Services include maintenance, repair, and potentially logistical support for ships, crucial for national security and economic functions. The contract's geographic focus on Washington D.C. suggests it supports assets operating in or managed from that region. Workforce implications include employment opportunities for skilled maritime labor, engineers, and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the quality and timeliness of services.
Potential for scope creep if the definition of 'maintenance and repair' is not tightly controlled.
Dependence on a single contractor for a significant duration could lead to reduced leverage if performance issues arise.

Positive Signals

Firm-fixed-price contract structure transfers cost risk to the contractor.
Awarded through full and open competition, suggesting a competitive pricing environment.
Long-term contract (5 years) provides stability and predictability for service delivery.
Contractor's established presence in government services may indicate experience and reliability.

Sector Analysis

The maritime industry is a critical sector for global trade and national security, encompassing shipbuilding, repair, and operational services. This contract falls within the Ship Building and Repairing sub-sector (NAICS 336611). Spending in this area is often driven by the need to maintain aging fleets, modernize vessels, and ensure compliance with regulatory standards. Comparable spending benchmarks would involve analyzing other large government contracts for vessel maintenance and overhaul across different agencies like the Navy or Coast Guard.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no explicit mention of small business set-asides. This suggests that the primary award was not specifically targeted towards small businesses. However, the contractor, Crowley Government Services, Inc., may engage small businesses as subcontractors to fulfill portions of the contract requirements. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the broader small business ecosystem in the maritime sector.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Maritime Administration. Performance monitoring, quality assurance checks, and invoice reviews are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Ship Maintenance Contracts
U.S. Coast Guard Vessel Repair Services
Maritime Administration Vessel Operations Support
Federal Fleet Management Services

Risk Flags

Potential for cost overruns if scope is not tightly managed, despite FFP.
Risk of performance degradation over the five-year period if oversight is lax.
Dependence on a single contractor could limit flexibility in responding to unforeseen needs.
Lack of explicit small business participation targets may reduce opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $129.0 million to CROWLEY GOVERNMENT SERVICES, INC.. CLIN 6 SHIP 7 PURCHASE

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 $129.0 million.

What is the period of performance?

Start: 2021-07-08. End: 2027-07-07.

What is the historical spending pattern for ship maintenance and repair services by the Maritime Administration?

Analyzing historical spending data for the Maritime Administration (MARAD) on ship maintenance and repair is crucial for understanding trends and budget allocation. While specific figures for this contract's predecessors are not provided, MARAD's overall budget often includes significant allocations for maintaining its Ready Reserve Force (RRF) and other government-owned vessels. Past spending would likely show fluctuations based on the condition of the fleet, modernization initiatives, and overall agency priorities. Examining annual reports and budget justifications from MARAD would reveal patterns of investment in maintenance, repair, and conversion projects, providing context for the $129 million awarded here. This historical perspective helps assess whether current spending aligns with long-term strategic goals or represents a significant deviation.

How does the pricing structure of this contract compare to similar maritime repair contracts?

The contract utilizes a Firm Fixed Price (FFP) structure. FFP contracts are generally preferred by the government when the scope of work is well-defined, as they place the risk of cost overruns on the contractor. To compare pricing, one would need to benchmark the proposed rates for labor, materials, and overhead against similar FFP contracts awarded by agencies like the Navy, Military Sealift Command, or the U.S. Coast Guard for comparable vessel types and repair scopes. Factors such as vessel size, age, complexity of repairs, and geographic location of service significantly influence pricing. Without access to the specific CLINs (Contract Line Item Numbers) and their associated pricing details, a direct comparison is challenging. However, the fact that it was awarded under full and open competition suggests that the pricing achieved was deemed competitive by the agency.

What are the key performance indicators (KPIs) used to evaluate contractor performance on this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for ship maintenance and repair contracts often include metrics such as on-time delivery of services, adherence to budget (though less critical in FFP), quality of workmanship (e.g., defect rates, rework required), safety compliance, and responsiveness to urgent repair needs. The Maritime Administration's contracting officer and technical representatives would be responsible for monitoring these KPIs throughout the contract's duration. Performance evaluations are usually documented and can influence future contract awards. The effectiveness of the oversight mechanism in tracking these KPIs is vital for ensuring the government receives the expected value.

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

Crowley Government Services, Inc. has a significant track record in providing logistics, transportation, and vessel support services to various U.S. government agencies. They have historically been involved in large-scale contracts, including those related to maritime operations, fuel management, and base support. Their experience often encompasses complex logistical challenges and operating in demanding environments. A review of their past performance on contracts with agencies such as the Department of Defense (e.g., Military Sealift Command), Department of Homeland Security (e.g., U.S. Coast Guard), and other federal entities would provide insight into their capabilities, reliability, and history of meeting contractual obligations. Past performance evaluations, often available through federal procurement databases, would offer specific details on their success rates and any past issues.

What is the potential impact of this contract on the small business ecosystem within the maritime repair sector?

Given that this contract was awarded under full and open competition and does not appear to have a small business set-aside component (sb: false), its direct impact on small business prime contractors may be limited. However, the potential for small business involvement lies in subcontracting opportunities. Crowley Government Services, Inc., as a large prime contractor, may utilize small businesses for specialized repair services, component manufacturing, or logistical support. The extent to which they fulfill small business subcontracting goals (if any are mandated or voluntarily pursued) will determine the indirect impact. Agencies like the Maritime Administration often encourage prime contractors to identify and engage qualified small businesses, fostering a broader ecosystem. Without specific subcontracting plans, the net effect remains uncertain but could provide valuable opportunities for niche small businesses.

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: $129,025,750

Exercised Options: $129,025,750

Current Obligation: $129,025,750

Actual Outlays: $129,025,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693JF721D000007

IDV Type: IDC

Timeline