DOT awards $3.8M for VAM SHIP 6, a delivery order for ship repair services

Contract Overview

Contract Amount: $3,815,684 ($3.8M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-07-01

End Date: 2027-07-07

Contract Duration: 1,101 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VAM SHIP 6 CLIN 05

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 $3.8 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: VAM SHIP 6 CLIN 05 Key points: 1. Contract value appears reasonable for specialized ship repair, but detailed benchmarking is needed. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include schedule delays and cost overruns common in complex repair projects. 4. This contract supports critical maritime infrastructure maintenance. 5. The award falls within the broader shipbuilding and repair sector. 6. No small business set-aside was utilized, indicating larger prime contractors are expected to perform.

Value Assessment

Rating: fair

The contract value of $3.8 million for VAM SHIP 6 is a delivery order under a larger contract, making direct comparison difficult without knowing the base contract's scope and pricing. Benchmarking against similar ship repair contracts for vessels of comparable size and complexity would be necessary to fully assess value for money. The firm-fixed-price structure provides some cost certainty, but the duration of the contract (over 3 years) introduces potential for unforeseen issues impacting overall cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This suggests a competitive market for the required ship repair services. The specific number of bidders is not provided, but the method of competition implies that the Maritime Administration sought the best value from a range of qualified contractors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality.

Public Impact

The primary beneficiaries are the U.S. maritime industry and national security through the maintenance of essential vessels. Services delivered include ship repair and maintenance, ensuring operational readiness. The geographic impact is likely centered around the vessel's location and the contractor's facilities, potentially in the District of Columbia. Workforce implications include employment for skilled tradespeople in shipbuilding and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex repair projects.
Risk of schedule delays impacting vessel availability.
Dependence on specialized labor and materials.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests market availability of services.
Long-term contract allows for planned maintenance and budgeting.

Sector Analysis

The shipbuilding and repair sector is a critical component of the U.S. industrial base, supporting both commercial and defense maritime needs. This contract, valued at $3.8 million, falls within the typical range for specialized repair and maintenance services for vessels. Comparable spending benchmarks would depend heavily on the specific type and size of the vessel undergoing repair, but this award appears to be a moderate-sized contract within the broader industry.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses in the provided data. This suggests that the prime contractor, Crowley Government Services, Inc., is expected to perform the majority of the work, potentially utilizing its own resources or larger subcontractors. The absence of set-asides may limit direct opportunities for small businesses on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Maritime Administration's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed-upon price. Transparency is facilitated by the contract award being publicly available, though detailed performance metrics and inspection reports may not be readily accessible. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Vessel Maintenance and Repair Contracts
Shipbuilding and Repair Services
Maritime Administration Contracts
Department of Transportation Procurement

Risk Flags

Potential for cost overruns due to extended duration.
Risk of schedule delays impacting vessel operational readiness.
Need for detailed benchmarking to confirm value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.8 million to CROWLEY GOVERNMENT SERVICES, INC.. VAM SHIP 6 CLIN 05

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 $3.8 million.

What is the period of performance?

Start: 2024-07-01. End: 2027-07-07.

What is the specific type and size of the vessel being repaired under VAM SHIP 6?

The provided data does not specify the exact type or size of the vessel designated as 'VAM SHIP 6'. This information is crucial for accurately benchmarking the contract's value against industry standards. Without knowing if it's a small patrol boat, a medium-sized cargo vessel, or a large ferry, it's difficult to determine if the $3.8 million price is competitive for the scope of work. Further details on the vessel's class, dimensions, and operational history would be needed for a precise assessment of value.

How does the $3.8 million award compare to historical spending on similar ship repair contracts by the Maritime Administration?

To compare this $3.8 million award to historical spending, we would need to analyze past Maritime Administration contracts for similar vessel types and repair scopes. The provided data indicates this is a delivery order under a larger contract, making direct historical comparison challenging without understanding the base contract's total value and duration. However, a review of previous repair contracts for vessels of comparable size and complexity would reveal if this price point is within the expected range or if it represents an outlier, potentially due to market conditions, specific repair needs, or competitive factors.

What are the key performance indicators (KPIs) and deliverables associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or deliverables for the VAM SHIP 6 contract. As a firm-fixed-price contract for ship repair, key deliverables would likely include the completion of specified repair tasks, adherence to technical specifications, and timely redelivery of the vessel. Performance would be measured against these deliverables and potentially against metrics such as quality of work, adherence to safety standards, and meeting the contract schedule. Detailed KPIs would typically be outlined in the contract's statement of work.

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

Crowley Government Services, Inc. has a significant track record in providing logistics, vessel management, and government contracting services, which often include ship repair and maintenance. While specific details on their performance for 'VAM SHIP 6' are not yet available as it's a new award, their history with the Department of Transportation and other federal agencies suggests experience in this domain. A deeper analysis would involve reviewing past performance evaluations, contract completion records, and any reported issues or successes on similar projects to gauge their reliability and capability for this specific contract.

What are the potential risks associated with the 1101-day duration of this contract?

The 1101-day duration (approximately 3 years) of this contract introduces several potential risks. Firstly, the extended timeline increases the likelihood of unforeseen technical challenges or discoveries during the repair process, which could lead to scope creep and cost overruns, despite the firm-fixed-price structure. Secondly, market fluctuations in the cost of specialized parts, materials, or labor over three years could impact the contractor's profitability and potentially lead to claims or requests for equitable adjustments. Lastly, maintaining consistent quality and oversight over such a long period requires robust program management from the agency to ensure the work remains on track and meets all specifications.

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: $3,815,684

Exercised Options: $3,815,684

Current Obligation: $3,815,684

Actual Outlays: $1,816,399

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $218,399

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693JF721D000007

IDV Type: IDC

Timeline