Department of Transportation awards $4.2M fixed-price order for ship management services to Crowley Government Services

Contract Overview

Contract Amount: $4,195,247 ($4.2M)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-18

End Date: 2026-07-26

Contract Duration: 342 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CORTES-CROWLEY GOVERNMENT SERVICES-CORTES25-1002A-FISCAL YEAR 25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$12,231.04 =$917,328.00). THE FIXED FEES COVER THE DAILY CREWING COSTS FOR THE VESSEL DURING THE PERIOD OF PERFORMANCE STATED.

Place of Performance

Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39567

State: Mississippi Government Spending

Plain-Language Summary

Department of Transportation obligated $4.2 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: CORTES-CROWLEY GOVERNMENT SERVICES-CORTES25-1002A-FISCAL YEAR 25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$12,231.04 =$917,328.00). THE FIXED FEES COVER THE DAILY CREWING COSTS FOR THE VESSEL DURING THE PERIOD OF PERFORMANCE STATED. Key points: 1. The contract's fixed fee structure for daily crewing costs provides cost predictability. 2. The award was made under a full and open competition, suggesting a competitive bidding process. 3. The contract duration of 342 days indicates a significant operational requirement. 4. The service falls under Deep Sea Freight Transportation, a critical component of maritime logistics. 5. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The fixed fee of approximately $12,231.04 per day for ship manager fixed fees appears reasonable for specialized maritime services. Benchmarking against similar contracts for vessel crewing and management would provide a more precise value assessment. However, the fixed-price nature of the contract shifts risk to the contractor, which can be advantageous for the government if costs are well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the most advantageous offer based on price and other factors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down costs through market forces and ensure the government receives competitive pricing for essential services.

Public Impact

The primary beneficiaries are the Department of Transportation and potentially other government agencies requiring deep-sea freight transportation services. The services delivered include daily crewing and management of a vessel, ensuring operational readiness. The geographic impact is likely global, given the nature of deep-sea freight transportation. Workforce implications include employment for maritime professionals such as captains, engineers, and crew members.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition.
The fixed fee amount, while appearing reasonable, lacks direct comparative data for precise value-for-money assessment.
Potential for scope creep or unforeseen operational challenges not fully captured by the fixed fee.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Fixed-price contract type provides cost certainty for the government.
The contract supports critical maritime transportation infrastructure.

Sector Analysis

The maritime transportation sector is vital for global trade and national security. This contract for ship management and crewing falls within the broader Deep Sea Freight Transportation industry. Spending in this sector can fluctuate based on geopolitical events, trade policies, and the need for strategic sealift capabilities. Comparable spending benchmarks would typically involve analyzing other government contracts for vessel operation and maintenance, as well as commercial charter rates for similar tonnage and service levels.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Crowley Government Services, Inc. is a large business. There is no information on subcontracting plans to small businesses. The impact on the small business ecosystem is therefore likely minimal unless the prime contractor actively engages small businesses for support services not covered by the fixed fee.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Transportation's Maritime Administration. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver services as specified. Transparency is facilitated by contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Maritime Administration Vessel Operations
Department of Defense Sealift Command Contracts
US Navy Ship Maintenance and Repair
Commercial Vessel Charter Agreements

Risk Flags

Potential for cost overruns if fixed fees do not adequately cover unforeseen operational expenses.
Dependence on contractor's operational efficiency and maintenance practices.
Risk of service disruption due to contractor performance issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.2 million to CROWLEY GOVERNMENT SERVICES, INC.. CORTES-CROWLEY GOVERNMENT SERVICES-CORTES25-1002A-FISCAL YEAR 25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$12,231.04 =$917,328.00). THE FIXED FEES COVER THE DAILY CREWING COSTS FOR THE VESSEL DURING THE PERIOD OF PERFORMANCE STATED.

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 $4.2 million.

What is the period of performance?

Start: 2025-08-18. End: 2026-07-26.

What is the track record of Crowley Government Services, Inc. in performing similar ship management contracts for the federal government?

Crowley Government Services, Inc. has a significant history of performing maritime services for the U.S. government, including vessel operations, logistics, and transportation. They are a well-established entity in the maritime industry. While specific details on past performance for identical ship management fixed-fee contracts are not provided in this data snippet, their extensive experience suggests a capability to meet the requirements. A deeper dive into their contract history with agencies like MARAD, Military Sealift Command, and others would reveal their performance metrics, any past issues, and their overall reliability in fulfilling complex maritime support roles. This would include examining past delivery orders under similar IDIQ vehicles and their adherence to schedules and budgets.

How does the daily fixed fee of $12,231.04 compare to market rates for similar ship management services?

The daily fixed fee of approximately $12,231.04 for ship manager fixed fees needs to be benchmarked against current market rates for comparable services. Factors influencing this rate include vessel size, type, operational complexity, crew size and qualifications, and the specific geographic areas of operation. Without knowing these specifics for the vessel in question, a direct comparison is difficult. However, this rate should be evaluated against commercial charter rates for similar vessels and the cost of manning and managing such vessels independently. Given that this is a government contract awarded under full and open competition, it is presumed that the rate represents a competitive market price, but a detailed analysis would require access to commercial market data and potentially other government contract awards for similar services.

What are the primary risks associated with this firm fixed-price contract for ship management?

The primary risks associated with this firm fixed-price contract, while generally favorable to the government by capping costs, lie in potential contractor underperformance or unforeseen cost escalations that are not covered by the fixed fee. If Crowley Government Services, Inc. underestimates the daily crewing costs or encounters unexpected operational challenges (e.g., severe weather delays, equipment failures requiring extensive repairs beyond normal maintenance), they may incur losses. This could potentially lead to a decline in service quality or contractor default if the financial strain is significant. The government's risk is mitigated by the contractor's incentive to manage costs efficiently to maintain profitability, but vigilance is required to ensure contract compliance and service delivery standards are met throughout the performance period.

What is the historical spending pattern for ship management services by the Maritime Administration?

Historical spending patterns for ship management services by the Maritime Administration (MARAD) are crucial for understanding the context of this $4.2 million delivery order. MARAD's mission involves maintaining and operating government-owned reserve fleets and supporting U.S. maritime industries. Their spending typically includes vessel maintenance, crewing, operational support, and chartering services. Analyzing MARAD's budget allocations and contract awards over the past several fiscal years would reveal trends in their reliance on contracted services versus in-house capabilities, the average cost of similar contracts, and the types of vessels most frequently managed. This data would help determine if this current award is consistent with historical spending levels or represents a significant deviation.

How does the duration of the contract (342 days) align with typical operational needs for deep-sea freight transportation?

The contract duration of 342 days (approximately 11 months) suggests a sustained operational requirement for the vessel's services. This aligns well with the typical needs for deep-sea freight transportation, which often involves long-haul routes and continuous operations to support supply chains or strategic objectives. Short-term contracts might be suitable for specific, time-bound missions, but a duration of nearly a year indicates a more consistent demand for the vessel's capacity and management. This extended period allows for efficient planning, crew rotation, and maintenance scheduling, contributing to operational stability and potentially better cost-effectiveness compared to multiple short-term engagements.

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: 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: $4,195,247

Exercised Options: $4,195,247

Current Obligation: $4,195,247

Actual Outlays: $2,023,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000021

IDV Type: IDC

Timeline