Transportation contract for berthage services awarded to California Sealift Terminals, Inc. for $4.8M

Contract Overview

Contract Amount: $4,810,504 ($4.8M)

Contractor: California Sealift Terminals, Inc

Awarding Agency: Department of Transportation

Start Date: 2024-10-16

End Date: 2026-07-15

Contract Duration: 637 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDING FOR BRIDGE CONTRACT FOR BERTHAGE SERVICES FOR THE CAPE H CLASS VESSELS.

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94107

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $4.8 million to CALIFORNIA SEALIFT TERMINALS, INC for work described as: FUNDING FOR BRIDGE CONTRACT FOR BERTHAGE SERVICES FOR THE CAPE H CLASS VESSELS. Key points: 1. Contract provides essential berthage services for Cape H Class vessels, ensuring operational continuity. 2. Sole-source award raises questions about potential cost efficiencies and market-based pricing. 3. The contract duration of 637 days suggests a need for sustained operational support. 4. Fixed-price contract type offers some cost certainty but may limit flexibility. 5. Geographic focus on California indicates a specific regional operational requirement. 6. The absence of small business set-aside warrants review of subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $4.8 million for berthage services appears to be within a reasonable range for specialized maritime support. However, without comparable contract data for similar services or vessel classes, a precise value-for-money assessment is challenging. The firm fixed-price structure provides a degree of cost predictability for the agency. Benchmarking against industry rates for port services would be beneficial to confirm competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one responsible source is available or in cases of urgent and compelling need. The lack of competition means that the government did not benefit from multiple bids, which could have driven down the price through market forces. This raises concerns about whether the most cost-effective solution was secured.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the price reflects the best available market value.

Public Impact

The primary beneficiaries are the Maritime Administration and potentially the Department of Transportation, ensuring the operational readiness of Cape H Class vessels. Services delivered include providing docking, mooring, and related support for vessels at port facilities. The geographic impact is concentrated in California, where the services are being rendered. Workforce implications may include direct employment by California Sealift Terminals, Inc. and indirect support roles within the maritime industry in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for overpayment without market-based price validation.
Limited opportunities for small businesses to participate in this contract.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
Contract addresses a specific need for berthage services for critical vessels.
Longer contract duration suggests a stable, ongoing requirement.

Sector Analysis

The maritime services sector is crucial for national and international trade, involving a wide range of activities from port operations to vessel support. This contract falls within the 'Other Support Activities for Water Transportation' category, which includes services like stevedoring, cargo handling, and vessel docking. The market for such services can be competitive, but specialized needs or specific geographic locations can sometimes lead to less open competition. The overall spending in this sector is significant, supporting the movement of goods and personnel globally.

Small Business Impact

This contract was not competed and did not include a small business set-aside. Consequently, there is no direct indication of subcontracting opportunities for small businesses through this specific award. The absence of a set-aside means that larger, established firms were likely the primary focus, potentially limiting the ecosystem's benefit to smaller enterprises in this particular instance.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Maritime Administration. Accountability measures are inherent in the contract terms, including performance expectations and payment schedules. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competitively bid contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Maritime Operations Support
Port Services Contracts
Vessel Berthage Agreements
Department of Transportation Procurement
Water Transportation Infrastructure

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.8 million to CALIFORNIA SEALIFT TERMINALS, INC. FUNDING FOR BRIDGE CONTRACT FOR BERTHAGE SERVICES FOR THE CAPE H CLASS VESSELS.

Who is the contractor on this award?

The obligated recipient is CALIFORNIA SEALIFT TERMINALS, INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2024-10-16. End: 2026-07-15.

What is the track record of California Sealift Terminals, Inc. with federal contracts?

California Sealift Terminals, Inc. has a history of receiving federal contracts, primarily with the Department of Transportation and its Maritime Administration. While specific details on past performance metrics are not provided in this data, the award of this contract suggests a level of capability and prior engagement with government requirements. A deeper dive into their contract history, including past performance reviews, any disputes, or contract terminations, would provide a more comprehensive understanding of their reliability and effectiveness as a federal contractor. Analyzing their financial stability and capacity to handle the scope of this particular contract would also be prudent.

How does the pricing of this contract compare to similar berthage services?

A direct comparison of the pricing for this $4.8 million contract to similar berthage services is difficult without access to a broader dataset of comparable federal or commercial contracts. Berthage costs can vary significantly based on location, duration, vessel size and type, and the specific services included (e.g., utilities, security, waste management). Given this contract was sole-sourced, there's an inherent risk that the price may not be as competitive as it could have been under a full and open competition. To benchmark effectively, one would need to identify contracts for similar vessel classes (Cape H Class) in comparable California ports, or analyze industry rate sheets for port services, adjusting for contract specifics and duration.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for non-competitive pricing, meaning the government may be paying more than necessary compared to a scenario with multiple bidders. This lack of competition reduces the incentive for the contractor to offer the lowest possible price. Another risk is the potential for reduced innovation or service quality, as the contractor faces less pressure from market alternatives. Furthermore, the justification for the sole-source award needs to be robust; if it's found to be inadequate, it could indicate poor planning or a lack of market research by the agency. Finally, there's a reputational risk if the public perceives the award as lacking fairness or transparency.

How effective is the Maritime Administration in securing value for money in its contracts?

Assessing the overall effectiveness of the Maritime Administration (MARAD) in securing value for money requires a comprehensive analysis of its entire contract portfolio, not just this single award. MARAD's mission involves supporting the U.S. merchant marine and maritime industry, which can involve complex and sometimes specialized procurements. While this specific contract's sole-source nature raises value-for-money questions, MARAD may have valid reasons for such awards in certain operational contexts. To evaluate MARAD's effectiveness, one would need to examine trends in their contract spending, the results of contract audits, the frequency of sole-source awards versus competitive ones, and performance metrics across their various programs. Benchmarking MARAD's procurement practices against other agencies with similar missions could also provide valuable insights.

What are the historical spending patterns for berthage services by the Department of Transportation?

Historical spending patterns for berthage services by the Department of Transportation (DOT) would reveal trends in contract values, durations, types of services procured, and the prevalence of competitive versus sole-source awards. Analyzing this data over several fiscal years would help identify if spending on berthage services has increased or decreased, which contractors have been awarded the most business, and whether DOT consistently utilizes competitive bidding or relies on sole-source justifications. Such analysis could highlight potential areas for cost savings, identify agencies or specific ports where spending is concentrated, and inform future procurement strategies to maximize value for taxpayers. Without access to DOT's historical procurement databases, a precise analysis is not possible.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5036 ORTEGA BLVD, JACKSONVILLE, FL, 32210

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

Financial Breakdown

Contract Ceiling: $4,810,504

Exercised Options: $4,810,504

Current Obligation: $4,810,504

Actual Outlays: $2,890,096

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000002

IDV Type: IDC

Timeline