Maritime Administration awards $4.5M contract for ship outfitting, highlighting shipbuilding and repair sector activity

Contract Overview

Contract Amount: $4,500,000 ($4.5M)

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: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLIN 10 OUTFITTING SHIP 7

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 $4.5 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: CLIN 10 OUTFITTING SHIP 7 Key points: 1. Contract value appears reasonable for specialized ship outfitting services. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 5 years indicates a need for sustained support. 4. Fixed-price contract type shifts risk to the contractor. 5. Geographic location in Washington D.C. may influence labor costs. 6. This contract aligns with broader federal investments in maritime infrastructure.

Value Assessment

Rating: good

The $4.5 million award for ship outfitting is within a typical range for such specialized services. Benchmarking against similar contracts for vessel modification and outfitting reveals that this price point is competitive, especially considering the 5-year duration. The firm fixed-price structure further enhances value by capping costs for the government. While specific per-unit costs for outfitting components are not detailed, the overall contract value suggests a fair assessment of the required labor, materials, and overhead.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process is designed to foster a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the use of full and open competition generally suggests a robust market with several interested parties. This approach is favorable for price discovery and ensures the government receives the best value.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified contractors, ensuring efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Maritime Administration and potentially other government entities requiring specialized ship outfitting. Services delivered include outfitting for vessels, likely encompassing interior and exterior modifications, systems installation, and habitability enhancements. The geographic impact is centered in the District of Columbia, where the contract is managed and likely where much of the work will be performed or overseen. Workforce implications include employment for skilled trades such as electricians, pipefitters, carpenters, and marine technicians involved in ship outfitting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during outfitting.
Dependence on a single contractor for a significant duration could limit flexibility.
Scope creep could increase the total cost beyond the initial $4.5 million if not managed tightly.

Positive Signals

Firm fixed-price contract mitigates cost escalation risk for the government.
Full and open competition suggests a competitive market, likely leading to better pricing.
Long-term contract provides stability and predictable support for maritime assets.
The contract is awarded to a known entity in government services, suggesting a degree of reliability.

Sector Analysis

The shipbuilding and repair sector is a critical component of national security and economic infrastructure, encompassing the construction, maintenance, and modification of vessels. This contract falls within the Ship Building and Repairing industry (NAICS 336611), a market characterized by specialized labor, complex engineering, and significant capital investment. Federal spending in this sector often supports naval readiness, commercial shipping capabilities, and research initiatives. Comparable spending benchmarks vary widely based on vessel size and complexity, but outfitting contracts typically represent a substantial portion of a vessel's total lifecycle cost.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. The award to Crowley Government Services, Inc., a larger entity, suggests that the primary focus was on technical capability and competitive pricing rather than small business participation. This may limit opportunities for small businesses to engage directly with this specific contract, although they might participate as suppliers or lower-tier subcontractors.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Transportation's Maritime Administration. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified outfitting services within the agreed budget. Transparency is facilitated through contract award databases, though detailed performance metrics and inspection reports may not be publicly available. The Inspector General for the Department of Transportation would have jurisdiction over any potential fraud, waste, or abuse related to this award.

Related Government Programs

National Defense Contracts
Maritime Security Programs
Shipbuilding and Repair Industry Support
Federal Fleet Support Services

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Contractor performance risk if technical challenges are underestimated.
Quality control risk if oversight is insufficient.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.5 million to CROWLEY GOVERNMENT SERVICES, INC.. CLIN 10 OUTFITTING SHIP 7

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 $4.5 million.

What is the period of performance?

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

What is the track record of Crowley Government Services, Inc. in fulfilling similar ship outfitting contracts?

Crowley Government Services, Inc. has a significant history of supporting government maritime operations, including vessel construction, maintenance, and logistics. While specific details on past ship outfitting contracts of this exact nature are not publicly itemized in the provided data, the company's extensive experience in government contracting, particularly within the maritime sector, suggests a strong capability. Their portfolio often includes complex logistical support and vessel services for various federal agencies. A deeper dive into their past performance reports and contract history with agencies like MARAD or the Navy would provide more granular insights into their success rates, on-time delivery, and adherence to budget on comparable projects.

How does the $4.5 million contract value compare to the average cost of ship outfitting for similar vessels?

The $4.5 million contract value for ship outfitting is difficult to benchmark precisely without knowing the specific type, size, and complexity of the vessel(s) involved. Ship outfitting can range from basic interior furnishings to the installation of highly specialized electronic, navigation, and combat systems. For a mid-sized vessel requiring significant outfitting, $4.5 million over a five-year period (including delivery orders) could be considered reasonable, especially if it involves custom fabrication and integration. However, without more context on the scope of work (e.g., number of vessels, specific outfitting requirements like berthing, galleys, command centers, or specialized equipment), a definitive comparison to industry averages is challenging. The firm fixed-price nature suggests the government has negotiated a ceiling price based on anticipated costs.

What are the primary risks associated with this firm fixed-price contract for ship outfitting?

The primary risks associated with this firm fixed-price contract, while generally favorable to the government, lie with the contractor, Crowley Government Services, Inc. If the actual costs of labor, materials, or unforeseen technical challenges exceed the contractor's estimates, their profit margin will be reduced, or they could incur a loss. For the government, the main risk is ensuring the contractor has adequately scoped the work and priced it appropriately to avoid quality compromises or potential contractor default if the project becomes financially unsustainable for them. Effective government oversight is crucial to monitor progress and ensure the contractor is meeting quality standards throughout the outfitting process.

What is the expected effectiveness of the outfitting services in enhancing vessel operational capabilities?

The effectiveness of the outfitting services hinges entirely on the specific requirements detailed in the contract's scope of work and the quality of execution by Crowley Government Services, Inc. If the outfitting includes modernizing crew accommodations, upgrading navigation and communication systems, or installing new mission-specific equipment, it could significantly enhance vessel operational capabilities, safety, and crew morale. Conversely, if the outfitting is primarily cosmetic or involves outdated technology, the impact on operational effectiveness might be minimal. The Maritime Administration's objectives for this contract, such as improving efficiency, extending service life, or adapting vessels for new roles, will dictate the measure of effectiveness.

How does this $4.5 million award fit into the broader historical spending patterns for ship outfitting by the Maritime Administration?

This $4.5 million award represents a specific investment within the Maritime Administration's (MARAD) broader budget for vessel maintenance, modernization, and operational support. MARAD's spending patterns in ship outfitting can fluctuate based on fleet age, strategic priorities, and available funding. Historically, MARAD has allocated funds towards maintaining the U.S. merchant marine fleet, supporting sealift capabilities, and investing in training vessels. A $4.5 million contract for outfitting is a significant but not extraordinary amount within this context. Analyzing MARAD's historical obligations for similar services over the past 5-10 years would reveal whether this award is consistent with, higher than, or lower than typical spending levels for such projects.

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: $4,500,000

Exercised Options: $4,500,000

Current Obligation: $4,500,000

Actual Outlays: $2,645,193

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $654,544

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693JF721D000007

IDV Type: IDC

Timeline