DOT Awards $3.8M Fixed Fee for Ship Manager Operations to Patriot Contract Services
Contract Overview
Contract Amount: $3,815,626 ($3.8M)
Contractor: Patriot Contract Services, LLC
Awarding Agency: Department of Transportation
Start Date: 2024-07-27
End Date: 2025-09-01
Contract Duration: 401 days
Daily Burn Rate: $9.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: CAPE TRINITY FISCAL YEAR 24 SHIP MANAGER FIXED FEES A-PHASE "O" - OPERATION FOR A PERIOD OF 66 DAYS (07/27/2024-09/30/2024) IS FUNDED TO COVER CREW WAGES.
Place of Performance
Location: BEAUMONT, JEFFERSON County, TEXAS, 77701
State: Texas Government Spending
Plain-Language Summary
Department of Transportation obligated $3.8 million to PATRIOT CONTRACT SERVICES, LLC for work described as: CAPE TRINITY FISCAL YEAR 24 SHIP MANAGER FIXED FEES A-PHASE "O" - OPERATION FOR A PERIOD OF 66 DAYS (07/27/2024-09/30/2024) IS FUNDED TO COVER CREW WAGES. Key points: 1. Awarded to Patriot Contract Services, LLC for ship manager fixed fees. 2. Funding covers crew wages for a 66-day operational period. 3. The contract was not competed, raising potential value concerns. 4. Sector: Transportation (Deep Sea Freight).
Value Assessment
Rating: questionable
The $3.8M fixed fee for 66 days of operation appears high without a competitive benchmark. The lack of competition makes it difficult to assess if this price is reasonable compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and may result in a higher cost to taxpayers.
Taxpayer Impact: The lack of competition for this $3.8M contract means taxpayers may not be receiving the best possible price for these essential ship management services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Ensuring adequate oversight is crucial for non-competed contracts. The operational efficiency and effectiveness of the ship management are key concerns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency on pricing justification
Positive Signals
- Clear funding allocation for crew wages
- Defined operational period
Sector Analysis
This contract falls within the Transportation sector, specifically Deep Sea Freight Transportation. Benchmarks for ship management fixed fees can vary significantly based on vessel type, operational complexity, and duration.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Given the sole-source nature of this award, robust oversight is essential to ensure the funds are used appropriately and that the services provided are effective and necessary.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Transportation Contracting
- Maritime Administration Programs
Risk Flags
- Sole-source award
- Lack of documented justification for non-competition
- Potential for cost overruns
- Limited transparency in pricing
- Difficulty in assessing value for money
Tags
deep-sea-freight-transportation, department-of-transportation, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $3.8 million to PATRIOT CONTRACT SERVICES, LLC. CAPE TRINITY FISCAL YEAR 24 SHIP MANAGER FIXED FEES A-PHASE "O" - OPERATION FOR A PERIOD OF 66 DAYS (07/27/2024-09/30/2024) IS FUNDED TO COVER CREW WAGES.
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 $3.8 million.
What is the period of performance?
Start: 2024-07-27. End: 2025-09-01.
What is the justification for not competing this contract, and how was the fixed fee determined to be fair and reasonable?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as a lack of qualified sources or an urgent need. The method for determining the fixed fee's fairness and reasonableness is also absent, making it difficult to assess value for money without further documentation or competitive analysis.
What are the specific risks associated with a sole-source award for ship management services, particularly concerning crew wages?
The primary risk of a sole-source award is the potential for inflated costs due to the absence of competitive pressure. For crew wages, this could mean paying above-market rates. Other risks include reduced incentive for the contractor to optimize efficiency or provide superior service, and a lack of transparency in cost justification, potentially leading to taxpayer overspending.
How can the effectiveness of the ship management services funded by this contract be independently verified?
Effectiveness can be verified through performance metrics outlined in the contract, such as on-time operations, adherence to safety standards, and crew satisfaction surveys. Independent audits of operational logs, financial records, and potentially site visits to the managed vessels would provide further assurance. Comparing outcomes against industry best practices also aids in assessing effectiveness.
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: FIRM FIXED PRICE (J)
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: $3,815,626
Exercised Options: $3,815,626
Current Obligation: $3,815,626
Actual Outlays: $3,815,626
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
Start Date: 2024-07-27
Current End Date: 2025-09-01
Potential End Date: 2025-09-01 00:00:00
Last Modified: 2026-03-10
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