Maritime Administration awards $1.8M contract for drydock maintenance to Patriot Contract Services, LLC

Contract Overview

Contract Amount: $20,401,888 ($20.4M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2024-06-14

End Date: 2025-07-26

Contract Duration: 407 days

Daily Burn Rate: $50.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE VICTORY -PATRIOT CONTRACT SERVICES-VICTORY24-1006A-FY24 MAINTENANCE & REPAIRS DRYDOCK A-DECR ($1,846,427.00)

Place of Performance

Location: BEAUMONT, JEFFERSON County, TEXAS, 77705

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $20.4 million to PATRIOT CONTRACT SERVICES, LLC for work described as: CAPE VICTORY -PATRIOT CONTRACT SERVICES-VICTORY24-1006A-FY24 MAINTENANCE & REPAIRS DRYDOCK A-DECR ($1,846,427.00) Key points: 1. Contract value appears reasonable for specialized maritime maintenance services. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of over a year indicates a need for sustained services. 4. Geographic location in Texas may impact local labor and supply chains. 5. The contract type (Cost No Fee) requires careful monitoring of expenditures. 6. This award falls within the broader category of transportation infrastructure support.

Value Assessment

Rating: good

The contract value of $1.85 million for maintenance and repairs at Drydock A seems within a reasonable range for specialized maritime services. Benchmarking against similar contracts for drydocking and vessel repair would provide a more precise value-for-money assessment. The Cost No Fee contract type, while common, necessitates diligent oversight to ensure costs remain justified and do not escalate beyond the anticipated scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service quality. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought.

Taxpayer Impact: A competitive bidding process like full and open competition is beneficial for taxpayers as it typically drives down costs and encourages innovation among contractors, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Department of Transportation and its Maritime Administration, ensuring the operational readiness of maritime assets. Services delivered include essential maintenance and repairs for drydock facilities, crucial for ship upkeep. The contract has a geographic impact in Texas, potentially supporting local maritime industry jobs and businesses. Workforce implications include the need for skilled labor in specialized maritime repair and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns under the Cost No Fee structure requires vigilant oversight.
Ensuring timely completion of repairs to avoid operational delays for maritime assets.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration of over a year allows for planned and sustained maintenance.
Patriot Contract Services, LLC's specialization in maritime services aligns with the contract's needs.

Sector Analysis

This contract falls within the broader transportation and logistics sector, specifically focusing on maritime infrastructure maintenance. The market for specialized drydocking and vessel repair services is competitive, with a number of established players. Spending in this area is critical for maintaining the operational capacity of the U.S. merchant marine fleet and supporting national security interests. Comparable spending benchmarks would involve analyzing other contracts for similar drydock maintenance across different agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Patriot Contract Services, LLC actively engages small businesses as subcontractors. Further analysis would be needed to determine subcontracting plans.

Oversight & Accountability

Oversight will likely be managed by the Maritime Administration's contracting officers and program managers. Accountability measures are inherent in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Shipbuilding and Repair Services
Maritime Transportation
Naval Vessel Maintenance
Port Infrastructure Development

Risk Flags

Cost Control Risk (Cost No Fee)
Performance Timeliness Risk
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $20.4 million to PATRIOT CONTRACT SERVICES, LLC. CAPE VICTORY -PATRIOT CONTRACT SERVICES-VICTORY24-1006A-FY24 MAINTENANCE & REPAIRS DRYDOCK A-DECR ($1,846,427.00)

Who is the contractor on this award?

The obligated recipient is PATRIOT CONTRACT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2024-06-14. End: 2025-07-26.

What is the track record of Patriot Contract Services, LLC with federal contracts, particularly within the Department of Transportation?

A review of federal contract databases indicates that Patriot Contract Services, LLC has a history of receiving federal awards. While specific details on their performance across all contracts require deeper analysis, their selection for this Maritime Administration contract suggests they meet the agency's requirements. Examining past performance reviews, any contract disputes, or awards for similar services would provide a more comprehensive understanding of their track record. Their experience in maritime maintenance is a key factor in their suitability for this role.

How does the awarded amount compare to similar drydock maintenance contracts?

The awarded amount of approximately $1.85 million for maintenance and repairs at Drydock A needs to be benchmarked against similar contracts to assess value for money. Factors such as the size and type of vessel or drydock, the scope of repairs, the duration of the maintenance period, and the geographic location all influence pricing. Without specific comparable contract data, it is difficult to definitively state if this price is high or low. However, for specialized maritime maintenance, this figure appears to be within a plausible range, assuming a standard scope of work.

What are the primary risks associated with this 'Cost No Fee' contract type?

The 'Cost No Fee' (CNF) contract type presents specific risks, primarily related to cost control and contractor profit. In a CNF contract, the contractor is reimbursed for allowable costs but receives no fee or profit. This can disincentivize the contractor from efficiently managing costs, as their primary motivation is cost recovery rather than profit maximization. The government bears the risk of cost overruns. Effective oversight is crucial to scrutinize all claimed costs, ensure they are reasonable and allocable to the contract, and prevent potential waste or abuse. The government must ensure the contractor has adequate financial resources and management capability to undertake the work.

What is the expected effectiveness of the maintenance and repairs to be performed under this contract?

The effectiveness of the maintenance and repairs is expected to ensure the continued operational readiness and safety of the drydock facilities managed by the Maritime Administration. This includes preventing deterioration, addressing wear and tear, and ensuring compliance with safety and environmental regulations. The contract's success will be measured by the quality of the work performed, adherence to schedules, and the overall improvement or preservation of the drydock's functionality. A well-executed maintenance plan is critical for the long-term viability of maritime infrastructure.

What are the historical spending patterns for drydock maintenance by the Maritime Administration?

Analyzing historical spending patterns for drydock maintenance by the Maritime Administration would provide context for this $1.85 million award. This involves reviewing annual budgets allocated to maintenance and repairs, the number and value of contracts awarded over previous fiscal years, and trends in spending. Understanding these patterns can reveal whether current spending is consistent with past investments, if there are increasing or decreasing needs for such services, and how this specific contract fits into the agency's overall maintenance strategy. Significant deviations from historical norms might warrant further investigation.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1320 WILLOW PASS RD STE 485, CONCORD, CA, 94520

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,401,888

Exercised Options: $20,401,888

Current Obligation: $20,401,888

Actual Outlays: $20,080,057

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTMA98D16008

IDV Type: IDC

Timeline