MARAD awards $3.4M for vessel layberthing, with Dixie Marine Inc. securing the contract

Contract Overview

Contract Amount: $3,446,633 ($3.4M)

Contractor: Dixie Marine Inc

Awarding Agency: Department of Transportation

Start Date: 2024-09-10

End Date: 2026-09-09

Contract Duration: 729 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPT 6 FUNDING FOR LAYBERTHING OF TWO MARAD VESSELS, ALTAIR AND BELLATRIX

Place of Performance

Location: MARRERO, JEFFERSON County, LOUISIANA, 70072

State: Louisiana Government Spending

Plain-Language Summary

Department of Transportation obligated $3.4 million to DIXIE MARINE INC for work described as: OPT 6 FUNDING FOR LAYBERTHING OF TWO MARAD VESSELS, ALTAIR AND BELLATRIX Key points: 1. Contract value appears reasonable for specialized maritime support services. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Potential risks include performance continuity and adherence to layberthing standards. 4. Contract duration of 729 days provides a stable period for service delivery. 5. This contract supports MARAD's mission to maintain and operate government-owned vessels. 6. The fixed-price nature of the contract shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of $3.45 million for 729 days of layberthing services for two MARAD vessels (Altair and Bellatrix) seems within a reasonable range for specialized maritime support. Benchmarking against similar contracts for vessel layberthing is challenging without more specific service details, but the duration and scope suggest a fair price. The firm fixed-price structure indicates that the contractor, Dixie Marine Inc., bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources were excluded, possibly due to specialized capabilities or prior performance. The number of bidders is not specified, but the exclusion of sources suggests a potentially narrower competitive pool than a standard full and open competition. This approach can sometimes lead to higher prices if the excluded sources represent significant competition.

Taxpayer Impact: The exclusion of certain sources, even with an intent for open competition, may limit the potential for the most competitive pricing. Taxpayers benefit when a broad range of qualified vendors can participate, driving down costs through robust bidding.

Public Impact

The primary beneficiaries are the MARAD vessels Altair and Bellatrix, ensuring their proper maintenance and storage. Services delivered include layberthing, which is crucial for preserving vessel integrity during periods of inactivity. The geographic impact is localized to Louisiana, where the layberthing services will be performed. Workforce implications include employment opportunities for maritime personnel in the Louisiana region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if unforeseen maintenance issues arise during layberthing.
Risk of delays in vessel readiness if layberthing standards are not strictly met.
Dependence on a single contractor for critical vessel preservation services.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Contract duration provides stability for service provision and vessel planning.
Award to Dixie Marine Inc. suggests they possess the necessary specialized capabilities.

Sector Analysis

This contract falls within the Maritime Transportation sector, specifically focusing on vessel support services. The market for specialized layberthing and vessel maintenance is niche, often requiring specific port facilities and expertise. Comparable spending benchmarks are difficult to establish without detailed service scope, but MARAD's role in maintaining a reserve fleet means such contracts are essential for operational readiness and asset preservation. The total contract value is modest within the broader federal contracting landscape.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While Dixie Marine Inc. may be a small business, the procurement strategy did not explicitly prioritize small business set-asides. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is likely minimal unless Dixie Marine Inc. actively engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically reside with the Maritime Administration (MARAD) within the Department of Transportation. Accountability measures would be embedded in the contract's performance work statement, delivery schedules, and payment terms. Transparency is facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

MARAD Vessel Operations
Maritime Security Programs
National Defense Reserve Fleet Maintenance
Water Transportation Services
Government Vessel Layberthing

Risk Flags

Potential for limited competition due to source exclusion.
Dependence on contractor performance for vessel preservation.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.4 million to DIXIE MARINE INC. OPT 6 FUNDING FOR LAYBERTHING OF TWO MARAD VESSELS, ALTAIR AND BELLATRIX

Who is the contractor on this award?

The obligated recipient is DIXIE MARINE INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2024-09-10. End: 2026-09-09.

What is the track record of Dixie Marine Inc. in performing similar vessel layberthing contracts for MARAD or other federal agencies?

Information regarding Dixie Marine Inc.'s specific track record on similar MARAD layberthing contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations from previous engagements. Federal procurement databases and agency performance records would be the primary sources for this analysis. Understanding their experience with vessels of similar size and type, as well as their adherence to safety and environmental regulations during layberthing, is crucial for evaluating future performance risk.

How does the awarded price compare to market rates for similar layberthing services in the Louisiana region?

Direct comparison of the awarded price ($3.45 million over 729 days) to specific market rates for layberthing services in Louisiana is challenging without a detailed breakdown of services rendered (e.g., security, environmental monitoring, basic maintenance) and the specific facilities required. However, the firm fixed-price nature suggests that Dixie Marine Inc. has factored in their costs and a profit margin based on their understanding of market conditions and their operational capabilities. A thorough benchmark would involve surveying other providers in the region for comparable services, considering factors like port access, security, and specialized equipment.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, such contracts would include metrics related to the condition of the vessels during layberthing, adherence to environmental regulations, security protocols, and timely reporting. Performance would likely be evaluated against a Performance Work Statement (PWS) that outlines the specific requirements and standards. MARAD would monitor these KPIs to ensure the vessels are maintained appropriately and that the contractor meets all contractual obligations throughout the 729-day period.

What is the historical spending pattern for vessel layberthing services by MARAD over the past five years?

Historical spending data for MARAD's vessel layberthing services over the past five years is not included in the provided information. To analyze this, one would need to access federal procurement databases (like FPDS) and filter for contracts awarded by MARAD with keywords related to 'layberthing,' 'vessel storage,' or 'maritime support.' Examining this data would reveal trends in contract values, durations, number of awards, and the primary contractors utilized, providing context for the current $3.45 million award.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The 'Full and Open Competition After Exclusion of Sources' method, while aiming for competition, introduces specific risks. The primary risk is a potentially reduced competitive pool if the excluded sources represent a significant portion of capable vendors. This could lead to less aggressive pricing than a truly open competition. Additionally, the justification for excluding sources must be robust to ensure fairness and prevent potential protests. If the exclusion was based on overly narrow criteria, it might inadvertently limit innovation or the selection of the most cost-effective solution available in the broader market.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Other Support Activities for Water Transportation

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5801 CITRUS BLVD, HARAHAN, LA, 70123

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,446,633

Exercised Options: $3,446,633

Current Obligation: $3,446,633

Actual Outlays: $2,033,347

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF718D000009

IDV Type: IDC

Timeline