Maritime Administration awards $16.6M drydocking contract for Cape Taylor, raising questions about competition and value

Contract Overview

Contract Amount: $16,604,417 ($16.6M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2024-08-15

End Date: 2025-08-31

Contract Duration: 381 days

Daily Burn Rate: $43.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: Other

Official Description: CAPE TAYLOR FISCAL YEAR 24 MAINTENANCE & REPAIRS DRYDOCK D IS AWARDED FOR THE DRYDOCKING OF THE CAPE TAYLOR.

Place of Performance

Location: BEAUMONT, JEFFERSON County, TEXAS, 77701

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $16.6 million to PATRIOT CONTRACT SERVICES, LLC for work described as: CAPE TAYLOR FISCAL YEAR 24 MAINTENANCE & REPAIRS DRYDOCK D IS AWARDED FOR THE DRYDOCKING OF THE CAPE TAYLOR. Key points: 1. The contract's value appears reasonable for specialized maritime services, though direct comparisons are limited. 2. The lack of competition suggests potential for higher costs and reduced innovation. 3. The sole-source nature of this award warrants scrutiny regarding its necessity and justification. 4. The contract duration of over a year indicates a significant operational need for the Cape Taylor. 5. The geographic focus on Texas aligns with the vessel's operational area. 6. The absence of small business set-asides or subcontracting requirements is noted.

Value Assessment

Rating: fair

The award of $16.6 million for the drydocking and maintenance of the Cape Taylor represents a significant investment. Benchmarking this specific service is challenging due to the specialized nature of maritime drydocking and the unique requirements of the vessel. However, the 'Cost No Fee' contract type, while offering flexibility, can sometimes lead to less predictable final costs compared to fixed-price contracts. Without more detailed cost breakdowns or comparable bids, assessing the precise value for money is difficult, but the amount is within a plausible range for such extensive work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, Patriot Contract Services, LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies submitting proposals. While sole-source awards can be justified in specific circumstances, such as urgent needs or unique capabilities, they generally limit price discovery and can potentially lead to higher costs for the government compared to a fully competed contract. The lack of competition here means taxpayers do not benefit from the potential cost savings and innovation that arise from a competitive environment.

Taxpayer Impact: The sole-source award means taxpayers may not have received the most cost-effective solution. Without competition, there is less pressure on the contractor to offer the lowest possible price, potentially leading to a higher expenditure of public funds than necessary.

Public Impact

The primary beneficiary is the Maritime Administration, ensuring the operational readiness of the Cape Taylor. The services delivered include essential maintenance and repairs through drydocking, crucial for vessel safety and longevity. The geographic impact is centered in Texas, where the drydocking and repair work will likely take place. The contract supports specialized maritime labor, including skilled trades involved in vessel maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in inflated costs for taxpayers.
Sole-source awards can indicate potential issues with market availability or contractor relationships.
The 'Cost No Fee' contract type introduces uncertainty in final expenditure.
Limited transparency into the justification for a sole-source award.

Positive Signals

Ensures critical maintenance for a government vessel, supporting operational readiness.
Awarded to a known entity, potentially leveraging existing expertise with the vessel.
Contract duration suggests a comprehensive approach to necessary repairs.

Sector Analysis

The maritime industry is a critical sector for global trade and national security, involving shipbuilding, repair, and operation of vessels. This contract falls within the vessel maintenance and repair sub-sector. The market for specialized drydocking services can be concentrated, with a limited number of facilities capable of handling specific vessel types and sizes. Government contracts for such services are essential for maintaining the readiness of the national fleet, but they must be procured efficiently to ensure value for taxpayer dollars. Comparable spending benchmarks are difficult to establish without detailed service scopes and vessel specifications.

Small Business Impact

This contract was not competed and did not include specific provisions for small business set-asides. The absence of subcontracting requirements also means that opportunities for small businesses to participate in this specific award are limited. Without a competitive process that encourages subcontracting, the direct economic benefit to the small business ecosystem from this particular contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Maritime Administration. As a sole-source award, the justification for bypassing competition would be subject to internal review and potentially audits by oversight bodies like the Government Accountability Office (GAO) or the Department of Transportation's Inspector General. Transparency regarding the rationale for the sole-source award and the cost controls within the 'Cost No Fee' structure are key areas for accountability.

Related Government Programs

Maritime Security Programs
National Defense Sealift Command Contracts
Vessel Maintenance and Repair Contracts
Strategic Sealift Capability Contracts

Risk Flags

Sole-source award lacks competition, potentially increasing costs.
Contract type ('Cost No Fee') introduces cost uncertainty.
Limited public information on the specific justification for sole-source procurement.
Absence of small business participation requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $16.6 million to PATRIOT CONTRACT SERVICES, LLC. CAPE TAYLOR FISCAL YEAR 24 MAINTENANCE & REPAIRS DRYDOCK D IS AWARDED FOR THE DRYDOCKING OF THE CAPE TAYLOR.

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 $16.6 million.

What is the period of performance?

Start: 2024-08-15. End: 2025-08-31.

What is the specific justification provided by the Maritime Administration for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as urgent and compelling needs, unique capabilities possessed by only one contractor, or when only one responsible source is available. The Maritime Administration would need to formally document and approve this justification, often requiring review by higher authorities or oversight bodies. Without this documentation, it is difficult to assess whether the sole-source award was appropriate and in the best interest of the government, or if it simply bypassed a potentially more competitive process.

How does the 'Cost No Fee' contract type impact the final cost and risk for the government compared to other contract types?

The 'Cost No Fee' (CNF) contract type is a cost-reimbursement contract where the contractor is reimbursed for allowable costs but receives no fee or profit. This type is typically used when the scope of work is uncertain or when the government has a strong interest in the contractor performing the work without the incentive of profit, such as in certain maintenance or repair scenarios where the primary goal is completion rather than profit maximization. For the government, the risk lies in the potential for cost overruns, as the contractor is incentivized to incur costs to complete the work, but without a profit motive, there's less incentive for efficiency beyond what's necessary to fulfill the contract. The government bears the risk of all allowable costs incurred.

What is the historical spending pattern for drydocking and maintenance services for the Cape Taylor or similar vessels within the Maritime Administration?

The provided data does not contain historical spending patterns for the Cape Taylor or similar vessels. To assess this, one would need to analyze past contracts awarded by the Maritime Administration for drydocking and maintenance. This would involve looking at the frequency of such services, the duration between them, the total costs incurred in previous periods, and the contractors involved. Understanding historical spending can help determine if the current $16.6 million award is consistent with past expenditures, if costs have escalated significantly, or if the frequency of such major maintenance aligns with the vessel's lifecycle and operational demands.

What specific maintenance and repair tasks are included under this $16.6 million contract?

The data indicates the contract is for 'DRYDOCKING & REPAIRS' for the Cape Taylor. However, the specific details of the maintenance and repair tasks are not provided. Drydocking typically involves removing a vessel from the water to allow for inspection, cleaning, and repair of the underwater hull, propellers, rudders, and other components. Repairs could range from routine hull maintenance, painting, and corrosion control to more extensive work on the propulsion system, auxiliary machinery, or structural components. A detailed statement of work (SOW) would normally accompany such a contract, outlining the precise services required.

What is the track record of Patriot Contract Services, LLC in performing similar maritime maintenance and repair contracts for the government?

The provided data does not include information on the track record of Patriot Contract Services, LLC. To assess their performance, one would need to review their past contract history, including the types of services rendered, contract values, performance ratings (if available), and any history of disputes or contract terminations. Government contract databases and performance rating systems (like the Contractor Performance Assessment Reporting System - CPARS) would be valuable resources for evaluating the company's experience and reliability in executing similar maritime maintenance and repair work.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $16,604,417

Exercised Options: $16,604,417

Current Obligation: $16,604,417

Actual Outlays: $15,647,155

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF724D000013

IDV Type: IDC

Timeline