Transportation contract for ship management awarded to Patriot Contract Services, LLC for $3.9M

Contract Overview

Contract Amount: $3,895,166 ($3.9M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-08-18

End Date: 2026-07-26

Contract Duration: 342 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE VICTORY-PATRIOT CONTRACT SERVICES-VICTORY25-1002A-FY25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$11,356.17 = $851,712.75)

Place of Performance

Location: BEAUMONT, JEFFERSON County, TEXAS, 77705

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $3.9 million to PATRIOT CONTRACT SERVICES, LLC for work described as: CAPE VICTORY-PATRIOT CONTRACT SERVICES-VICTORY25-1002A-FY25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$11,356.17 = $851,712.75) Key points: 1. Contract value of $3.9M for ship management services over approximately one year. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract's duration of 342 days is standard for this type of service. 4. The primary service category is Deep Sea Freight Transportation. 5. The contractor, Patriot Contract Services, LLC, is based in Texas. 6. This award represents a portion of the Maritime Administration's overall spending.

Value Assessment

Rating: good

The contract value of $3.9 million for ship management services appears reasonable given the duration and scope. Benchmarking against similar contracts for vessel operations and management would provide a more precise value-for-money assessment. The fixed fee structure suggests a predictable cost for the government, though the absence of detailed performance metrics makes a full value assessment challenging.

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 a bid. This method typically fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The number of bidders is not specified, but the open competition suggests a healthy market for these services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are the Department of Transportation and the Maritime Administration, ensuring the operational readiness of vessels. Services delivered include ship management, crucial for the efficient and safe operation of maritime assets. The geographic impact is likely focused on operational areas of the vessels managed, potentially global. Workforce implications may include employment for maritime professionals, engineers, and support staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness beyond basic operational requirements.
The specific nature of 'ship management' can be broad; clarity on the full scope of responsibilities is needed for comprehensive oversight.
Reliance on a single contractor for this duration may pose a risk if performance issues arise and require a lengthy replacement process.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
The fixed fee structure provides cost predictability for the government over the contract period.
The contractor is established, suggesting a level of experience in providing these services.

Sector Analysis

The maritime transportation sector is a critical component of global trade and national security. This contract falls within the broader logistics and transportation services industry, which is characterized by complex supply chains and significant government oversight. Spending in this area supports the operational capacity of the U.S. merchant marine and ensures the availability of sealift capabilities when needed. Comparable spending benchmarks would involve analyzing other contracts for vessel operation and management within the Maritime Administration and other federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal. Future contracts in this category could explore opportunities for small business participation, particularly in specialized support roles.

Oversight & Accountability

Oversight for this contract would typically be managed by the Maritime Administration's contracting officers and program managers. Accountability measures are embedded in the contract terms, including the fixed fee structure and expected service delivery. Transparency is facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Security Program
Jones Act Vessels
U.S. Merchant Marine
Strategic Sealift Capability
Federal Fleet Management

Risk Flags

Performance Risk
Contractor Viability
Scope Definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.9 million to PATRIOT CONTRACT SERVICES, LLC. CAPE VICTORY-PATRIOT CONTRACT SERVICES-VICTORY25-1002A-FY25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$11,356.17 = $851,712.75)

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 $3.9 million.

What is the period of performance?

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

What is the track record of Patriot Contract Services, LLC in performing similar ship management contracts for the federal government?

Information regarding Patriot Contract Services, LLC's specific track record with similar federal ship management contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations, contract history with agencies like MARAD or the Navy, and any reported issues or commendations. Federal procurement databases and past performance questionnaires are key resources for this analysis. Without this specific data, it's assumed they were deemed capable based on the competitive award process.

How does the fixed fee of $11,356.17 per day compare to market rates for similar ship management services?

The daily fixed fee of approximately $11,356.17 for ship management services needs to be benchmarked against comparable contracts and market data. Factors influencing this rate include the size and type of vessel, the scope of management responsibilities (e.g., crewing, maintenance, navigation, compliance), and the operational region. A thorough comparison would involve analyzing recent awards for similar services, considering the specific vessel class and operational complexity. The absence of detailed service specifications in the provided data makes a precise comparison difficult, but this rate serves as a starting point for value assessment.

What are the key performance indicators (KPIs) used to measure the success of this ship management contract?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, ship management contracts include metrics related to vessel operational readiness, safety incident rates, fuel efficiency, crew retention, maintenance schedule adherence, and compliance with maritime regulations. The effectiveness of the contractor is usually assessed against these predefined KPIs, which are crucial for ensuring the government receives the expected value and service quality. The fixed fee structure implies that meeting baseline operational requirements is expected.

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) would reveal trends in contract values, durations, and the number of awards over time. Analyzing past MARAD budgets and contract awards for vessel operations and management provides context for the current $3.9 million contract. This includes understanding fluctuations in spending based on fleet size, operational tempo, and strategic priorities. Such analysis helps identify whether current spending is consistent with historical levels or represents a significant increase or decrease.

What are the potential risks associated with relying on Patriot Contract Services, LLC for these critical maritime operations?

Potential risks associated with relying on Patriot Contract Services, LLC include performance failures, such as operational disruptions, safety incidents, or failure to meet maintenance schedules. Financial instability of the contractor could also pose a risk. Furthermore, a lack of robust oversight or poorly defined contract requirements could lead to cost overruns or subpar service delivery. The government mitigates these risks through contract clauses, performance monitoring, and contingency planning, but the specific risk profile depends on the contractor's demonstrated capabilities and the contract's detailed terms.

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, CONCORD, CA, 94520

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

Financial Breakdown

Contract Ceiling: $3,895,166

Exercised Options: $3,895,166

Current Obligation: $3,895,166

Actual Outlays: $1,847,896

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000038

IDV Type: IDC

Timeline