Crowley Government Services awarded $47.3M for drydock maintenance, exceeding initial estimates by 21%

Contract Overview

Contract Amount: $47,284,082 ($47.3M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-03-25

End Date: 2027-07-07

Contract Duration: 834 days

Daily Burn Rate: $56.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARUNDEL-CLIN 10 DD-A-OMN-CGS-ARU25-1006A-FY25 MAINTENANCE & REPAIRS DRYDOCK A-ESTIMATED $36,484,081.74

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 $47.3 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: ARUNDEL-CLIN 10 DD-A-OMN-CGS-ARU25-1006A-FY25 MAINTENANCE & REPAIRS DRYDOCK A-ESTIMATED $36,484,081.74 Key points: 1. Value for money appears fair, with a 21% increase over the initial estimate, suggesting potential scope changes or market fluctuations. 2. Full and open competition was utilized, indicating a healthy market for these services. 3. Risk indicators are moderate, with a long performance period and a firm-fixed-price contract type. 4. Performance context is for essential drydock maintenance, crucial for naval readiness and maritime operations. 5. Sector positioning is within the shipbuilding and repairing industry, a critical component of national defense and commerce.

Value Assessment

Rating: fair

The contract's total value of $47.3 million is significant for drydock maintenance. While the final award is 21% higher than the initial estimate of $36.5 million, this could be attributed to various factors including scope adjustments, material cost increases, or a more competitive bidding process driving up initial bids. Benchmarking against similar large-scale drydocking contracts is necessary for a definitive value assessment, but the increase warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors were invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The Maritime Administration's use of full and open competition is a positive sign for market engagement.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition, which aims to secure the best value for government services.

Public Impact

The primary beneficiaries are the U.S. Navy and other maritime entities requiring drydock services for vessel maintenance and repair. Essential services include maintenance and repairs for Drydock A, ensuring operational readiness of naval and commercial vessels. The geographic impact is centered in the District of Columbia, where the drydock facility is located. Workforce implications include employment opportunities for skilled tradespeople in shipbuilding, repair, and associated support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the 21% increase from the initial estimate.
Long contract duration (over 2 years) increases exposure to market volatility and potential performance issues.
Firm-fixed-price contract can limit flexibility if unforeseen issues arise during maintenance.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Contract addresses critical maintenance needs for essential maritime infrastructure.
The contractor, Crowley Government Services, likely has established expertise in this domain.

Sector Analysis

The shipbuilding and repairing sector is a vital part of the U.S. industrial base, supporting both commercial maritime activities and national defense. This contract falls within the scope of ship maintenance and repair services, a segment that requires specialized facilities and skilled labor. Comparable spending benchmarks for large-scale drydocking operations can vary significantly based on vessel size, complexity of repairs, and location, but contracts in the tens of millions are common for major overhauls.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Crowley Government Services, may engage small businesses as subcontractors for specialized services or materials, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Maritime Administration's program management and contracting offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Ship Maintenance Contracts
Maritime Vessel Repair Services
Drydock Facility Operations
Department of Transportation Procurement

Risk Flags

Potential cost increase from estimate to award.
Long contract duration may increase exposure to market volatility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $47.3 million to CROWLEY GOVERNMENT SERVICES, INC.. ARUNDEL-CLIN 10 DD-A-OMN-CGS-ARU25-1006A-FY25 MAINTENANCE & REPAIRS DRYDOCK A-ESTIMATED $36,484,081.74

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 $47.3 million.

What is the period of performance?

Start: 2025-03-25. End: 2027-07-07.

What is the track record of Crowley Government Services in performing similar large-scale drydock maintenance contracts for the federal government?

Crowley Government Services has a significant history of performing maritime services, including vessel operations, logistics, and government contracting. While specific details on their past drydock maintenance contracts of this magnitude are not immediately available in this data snippet, their established presence in the maritime sector suggests a level of experience. A deeper dive into their contract history with agencies like the Maritime Administration and the Department of Defense would reveal their performance metrics, past issues, and client satisfaction on comparable projects. Analyzing past performance would provide insight into their reliability, cost control, and ability to meet stringent deadlines and quality standards for critical infrastructure maintenance.

How does the final award price of $47.3 million compare to the initial estimated cost of $36.5 million, and what factors typically drive such increases?

The final award price of $47.3 million represents a 21% increase over the initial estimated cost of $36.5 million. Such increases can be driven by several factors in federal contracting. Firstly, initial estimates are often preliminary and may not fully capture the scope of work, especially for complex maintenance requiring unforeseen repairs. Secondly, market conditions, such as rising material costs (e.g., steel, specialized coatings) or labor shortages, can significantly impact bids. Thirdly, the competitive bidding process itself can influence the final price; if only a few highly qualified bidders participate, or if the government's requirements are very specific, prices might be higher than initially projected. Finally, scope adjustments requested by the agency during the solicitation or negotiation phase can also lead to an increased award value.

What are the primary risks associated with a firm-fixed-price contract for a project of this duration and complexity?

A firm-fixed-price (FFP) contract for a project spanning over two years (834 days) and involving complex drydock maintenance presents specific risks. For the government, the primary risk is that the contractor may cut corners on quality or scope to maximize profit if costs escalate beyond their initial projections, especially if unforeseen issues arise. Conversely, if the contractor underestimated the costs significantly, they might seek change orders or face financial distress, potentially impacting project completion. For the contractor, the risk lies in absorbing cost overruns due to market fluctuations in labor or materials, or encountering unexpected technical challenges that increase the scope of work beyond what was anticipated in the fixed price. Effective oversight and clear contract specifications are crucial to mitigate these risks.

What is the significance of the NAICS code 336611 (Ship Building and Repairing) in understanding this contract's context?

The NAICS code 336611, 'Ship Building and Repairing,' is highly significant as it precisely categorizes the industry and services covered by this contract. This code places the contract within a specific economic sector, allowing for comparisons with other government spending and private sector activities in shipbuilding and repair. It indicates that the work involves the construction, alteration, or repair of ships, barges, and floating structures. For analysts, this code helps in identifying relevant industry trends, potential competitors, market size, and the strategic importance of this sector to the U.S. economy and national security. It also aids in benchmarking costs and performance against industry standards.

How does the contract's duration (834 days) impact the assessment of its value and potential risks?

The contract duration of 834 days (approximately 2.3 years) is substantial for a maintenance and repair contract. This extended period increases the potential for the contractor to encounter unforeseen challenges, such as discovering additional repair needs once work begins, or facing fluctuations in labor and material costs. For the government, a longer duration means sustained expenditure and a longer period of reliance on the contractor's performance. From a value perspective, it allows for a more comprehensive approach to maintenance, potentially addressing deeper issues. However, it also heightens the risk of cost escalation or performance degradation over time, necessitating robust oversight and performance management throughout the contract's life.

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: $47,284,082

Exercised Options: $47,284,082

Current Obligation: $47,284,082

Actual Outlays: $25,446,272

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $3,997,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693JF721D000007

IDV Type: IDC

Timeline