Maritime Administration awards $2.4M contract for fuel and lube services to Crowley Government Services

Contract Overview

Contract Amount: $2,400,000 ($2.4M)

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: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLIN 10 FUEL & LUBE 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 $2.4 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: CLIN 10 FUEL & LUBE SHIP 7 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to control costs for the government. 3. Duration of the contract is 5 years, indicating a long-term need for these services. 4. The contract is for fuel and lube services, essential for maritime operations. 5. The specific North American Industry Classification System (NAICS) code is 336611, related to shipbuilding and repairing. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

The contract value of $2.4 million over five years appears reasonable for specialized maritime fuel and lube services. Benchmarking against similar contracts for fleet maintenance or specialized vessel support would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards. The number of bidders and the specific evaluation criteria would further refine this assessment.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging innovation among service providers.

Public Impact

The primary beneficiaries are the U.S. Maritime Administration and its operational fleet, ensuring vessels are properly fueled and lubricated. Services delivered include essential fuel and lubrication for maritime vessels, critical for operational readiness. The contract's geographic impact is likely focused on areas where the Maritime Administration operates or maintains its fleet, potentially nationwide or specific ports. Workforce implications may include employment opportunities for skilled technicians and logistics personnel within Crowley Government Services and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in fuel costs over the 5-year term, despite fixed-price structure, if escalation clauses are present.
Dependence on a single contractor for critical fuel and lube services could pose a risk if performance issues arise.
Ensuring consistent quality of fuel and lubricants across all serviced vessels is crucial for operational integrity.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term contract duration suggests a stable and reliable service provision for the agency.

Sector Analysis

The maritime industry relies heavily on specialized services for vessel maintenance and operation. This contract falls within the broader shipbuilding and repairing sector (NAICS 336611), which encompasses a wide range of activities from new construction to ongoing maintenance. Spending in this sector is crucial for national security, economic trade, and the readiness of government fleets. Comparable spending benchmarks would involve analyzing other government contracts for vessel maintenance, fuel supply, and lubrication services across agencies like the Navy, Coast Guard, and commercial maritime support contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Crowley Government Services, Inc. is a large business. There is no explicit information regarding subcontracting plans for small businesses within this data. Further analysis would be needed to determine if subcontracting opportunities exist and if they are being utilized to support the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the Maritime Administration. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services. Transparency is generally facilitated through contract award databases like FPDS.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Administration Vessel Operations
Fleet Maintenance Contracts
Government Fuel Procurement
Ship Repair and Maintenance Services

Risk Flags

Potential for price volatility in fuel markets over the contract's 5-year term.
Risk of contractor performance degradation over the long contract duration.
Need for robust quality assurance to ensure proper fuel and lubricant standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.4 million to CROWLEY GOVERNMENT SERVICES, INC.. CLIN 10 FUEL & LUBE 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 $2.4 million.

What is the period of performance?

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

What is the historical spending pattern of the Maritime Administration on fuel and lube services?

Analyzing historical spending data for the Maritime Administration on fuel and lube services prior to this contract award is essential for context. This would involve examining previous contract awards for similar services, their values, durations, and the contractors involved. Understanding past spending trends can reveal whether this $2.4 million award represents an increase, decrease, or stable level of investment in these critical operational necessities. It also helps identify any recurring issues or successful strategies employed in managing such contracts over time. Without specific historical data, it's difficult to definitively assess if this award aligns with established budgetary patterns or represents a significant shift in resource allocation for fleet maintenance.

How does the pricing of this contract compare to similar fuel and lube services for other government agencies?

Benchmarking the pricing of this $2.4 million contract against similar fuel and lube services procured by other government agencies, such as the Department of Defense (Navy, Coast Guard) or other transportation-related entities, is crucial for assessing value for money. This comparison should consider the volume of services, the types of vessels supported, geographic locations, and the specific types of fuels and lubricants required. If this contract's per-unit costs or overall value are significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing. Factors like contract duration, service level agreements, and the competitive landscape in which each contract was awarded also play a role in fair price comparisons.

What are the specific risks associated with a 5-year firm-fixed-price contract for fuel and lube services?

A 5-year firm-fixed-price contract for fuel and lube services presents several risks. Firstly, the fixed price may not adequately account for potential market volatility in fuel prices over the extended period, potentially leading to reduced profit margins for the contractor or necessitating difficult renegotiations if market conditions drastically change. Secondly, the contractor might be incentivized to cut corners on quality or service to maintain profitability, especially if competition was limited or if oversight is lax. Thirdly, the long duration could lead to technological obsolescence in lubrication or fuel management practices if not actively managed. Finally, the government bears the risk of the contractor's performance declining over time without easy recourse to price adjustments, making robust performance monitoring and clear termination clauses critical.

What is Crowley Government Services, Inc.'s track record with similar maritime service contracts?

Evaluating Crowley Government Services, Inc.'s past performance on similar maritime service contracts is vital for assessing the reliability and effectiveness of this award. This includes reviewing their history with fuel and lube provision, vessel maintenance, and logistics support for government agencies. Key aspects to examine are their record of on-time delivery, quality of service, safety compliance, and any history of contract disputes, terminations, or performance issues. A strong track record suggests a lower risk of performance failure, while a history of problems would warrant closer scrutiny and potentially more stringent oversight mechanisms for this current contract.

What is the potential impact of this contract on the broader maritime logistics and repair market?

This $2.4 million contract awarded to Crowley Government Services, Inc. for fuel and lube services contributes to the overall activity within the maritime logistics and repair market. As a significant service provider, Crowley's engagement in this contract can influence market dynamics by potentially securing capacity and resources. The award, stemming from full and open competition, suggests a healthy market where multiple firms could compete, indicating a robust ecosystem capable of supporting government needs. The contract's duration and scope also signal ongoing demand for these specialized services, which can encourage investment and innovation among other players in the sector, potentially leading to improved service offerings and competitive pricing across the board.

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: $2,400,000

Exercised Options: $2,400,000

Current Obligation: $2,400,000

Actual Outlays: $1,226,253

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693JF721D000007

IDV Type: IDC

Timeline