DOT awards $3.2M for ship management, with a per-day cost of $9,391.55 for a 75-day period

Contract Overview

Contract Amount: $3,221,302 ($3.2M)

Contractor: Pacific-Gulf Marine, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-18

End Date: 2026-07-26

Contract Duration: 342 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE KNOX-PACIFIC GULF MARINE-KNOX25-1002A-FY25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$9,391.55 =$704,366.25)

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70146

State: Louisiana Government Spending

Plain-Language Summary

Department of Transportation obligated $3.2 million to PACIFIC-GULF MARINE, INC. for work described as: CAPE KNOX-PACIFIC GULF MARINE-KNOX25-1002A-FY25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$9,391.55 =$704,366.25) Key points: 1. The contract's fixed fee structure for ship management provides cost certainty for the government. 2. Competition dynamics for this contract are favorable, indicating potential for competitive pricing. 3. The duration of the contract is relatively short, suggesting a specific, time-bound operational need. 4. Performance context is crucial, as effective ship management directly impacts operational efficiency and safety. 5. This contract falls within the broader category of transportation and logistics services for the federal government.

Value Assessment

Rating: good

The daily rate of $9,391.55 for ship management appears within a reasonable range for specialized maritime services, considering the complexity and responsibilities involved. Benchmarking against similar contracts for vessel operation and management would provide a more precise value assessment. The fixed fee structure helps control costs, but the overall value is contingent on the successful execution of services and the avoidance of unforeseen issues.

Cost Per Unit: $9,391.55 per day for ship management services.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This competitive process is expected to drive down prices and ensure the government receives the best value. The number of bidders, if available, would further clarify the intensity of the competition and its impact on pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where providers compete on price and quality, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Transportation and its Maritime Administration, ensuring the operational readiness of vessels. Services delivered include comprehensive ship management, encompassing crewing, maintenance, and operational oversight. The geographic impact is likely focused on the operational areas of the managed vessel, potentially domestic or international waters. Workforce implications may include the employment of maritime professionals, such as captains, engineers, and crew members, through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if fixed fees do not adequately cover unforeseen operational challenges.
Dependence on contractor's expertise for critical safety and operational decisions.
Risk of service disruptions if contractor faces financial or operational difficulties.

Positive Signals

Fixed fee structure provides budget predictability.
Full and open competition suggests a competitive pricing environment.
Contractor's performance history (if available) would be a key positive indicator.

Sector Analysis

The maritime transportation sector is a critical component of global and national logistics, involving the operation and management of various types of vessels. Federal spending in this area supports national security, economic activity, and the maintenance of essential shipping capabilities. Comparable spending benchmarks would involve analyzing other contracts for vessel charter, operation, and management services across different government agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Analysis of small business participation would require further investigation into the contract's specific clauses and the contractor's subcontracting practices.

Oversight & Accountability

Oversight is likely managed by the Department of Transportation's Maritime Administration, with potential involvement from agency contracting officers and program managers. Accountability measures would be tied to the contract's performance standards and delivery requirements. Transparency is facilitated through contract award databases, though detailed operational oversight specifics are typically internal.

Related Government Programs

Maritime Security Program
Jones Act Vessels
Vessel Operations Contracts
Ship Maintenance and Repair

Risk Flags

Potential for cost overruns if fixed fees are insufficient for unforeseen issues.
Dependence on contractor's expertise for critical operational and safety decisions.
Need for robust oversight to ensure performance standards are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.2 million to PACIFIC-GULF MARINE, INC.. CAPE KNOX-PACIFIC GULF MARINE-KNOX25-1002A-FY25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$9,391.55 =$704,366.25)

Who is the contractor on this award?

The obligated recipient is PACIFIC-GULF MARINE, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

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

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

Analyzing historical spending patterns for ship management services by the Maritime Administration is crucial for understanding trends, identifying potential cost efficiencies, and setting realistic budget expectations. Without specific historical data for this agency, a general approach would involve examining contract awards for similar services over the past 5-10 fiscal years. Key metrics to track would include the total annual expenditure on ship management, the average contract value, the number of contracts awarded, and the primary contractors. This analysis could reveal whether spending has been increasing or decreasing, if certain types of vessels or services are more frequently contracted, and if there are significant fluctuations year-over-year. Understanding these patterns helps in assessing whether the current award of $3.2 million is consistent with past investments or represents a significant deviation, potentially indicating a change in operational needs or market conditions.

How does the daily rate of $9,391.55 compare to market rates for similar ship management services?

The daily rate of $9,391.55 for ship management services needs to be benchmarked against current market rates for comparable vessels and service scopes. Factors influencing this rate include the size and type of the vessel, its operational complexity, the required crew size and qualifications, the extent of maintenance and repair services included, and the geographic operating area. For instance, managing a large, specialized cargo ship or a government-specific vessel will command a higher rate than a smaller, simpler vessel. Market research reports, industry surveys, and analysis of recent commercial charter agreements for similar vessels can provide valuable comparison points. If this rate is significantly higher than market averages, it could indicate a need for further justification or negotiation. Conversely, if it aligns with or is below market rates, it suggests a potentially good value, especially given the competitive award process.

What are the specific performance metrics and deliverables outlined in this contract?

The specific performance metrics and deliverables are critical for assessing the contractor's accountability and the overall success of the ship management services. While the provided data indicates a fixed fee structure, the contract likely details key performance indicators (KPIs) related to vessel operational readiness, safety compliance, fuel efficiency, crew management, maintenance schedules, and timely reporting. Deliverables would include operational logs, maintenance reports, financial statements, and compliance documentation. The government's ability to monitor and enforce these metrics is paramount. A robust set of KPIs, coupled with clear penalties for non-performance and incentives for exceeding expectations, ensures that the contractor meets the required standards and that taxpayer funds are used effectively to maintain the vessel's operational integrity and safety.

What is the track record of Pacific-Gulf Marine, Inc. in managing similar federal contracts?

Evaluating the track record of Pacific-Gulf Marine, Inc. in managing similar federal contracts is essential for assessing their capability and reliability. This involves reviewing their past performance on government contracts, particularly those involving ship management, vessel operations, and maritime logistics. Key aspects to examine include their history of on-time delivery, adherence to budget, quality of service, safety record, and any instances of contract disputes or terminations. Information on past performance can often be found in federal procurement databases, past performance questionnaires, and agency evaluation reports. A history of successful contract execution suggests a lower risk for this current award. Conversely, any significant past performance issues would warrant closer scrutiny of this new contract's oversight and risk mitigation strategies.

What is the potential impact of this contract on the overall operational readiness of the Maritime Administration's fleet?

This contract directly impacts the operational readiness of the Maritime Administration's fleet by ensuring that at least one vessel receives professional management services. Effective ship management encompasses a wide range of activities, including maintaining the vessel in seaworthy condition, ensuring compliance with maritime regulations, managing crew effectively, and overseeing routine and emergency repairs. The successful execution of these duties by Pacific-Gulf Marine, Inc. will contribute to the vessel's availability for its intended purpose, whether that be training, strategic sealift, or other government missions. Conversely, any deficiencies in management could lead to decreased operational availability, increased maintenance costs, or safety concerns, thereby diminishing the fleet's overall readiness. The duration and scope of the contract are key factors in determining the extent of this impact.

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: 111 VETERANS MEMORIAL BLVD STE 740, METAIRIE, LA, 70005

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,221,302

Exercised Options: $3,221,302

Current Obligation: $3,221,302

Actual Outlays: $1,469,444

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000036

IDV Type: IDC

Timeline