Transportation awards $3.5M for ship management, with a significant portion for fixed fees

Contract Overview

Contract Amount: $3,516,477 ($3.5M)

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: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE VINCENT-PATRIOT CONTRACT SERVICES-VINCENT25-1002A-FY25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$10,252.12 $768,909.00)

Place of Performance

Location: BEAUMONT, JEFFERSON County, TEXAS, 77705

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $3.5 million to PATRIOT CONTRACT SERVICES, LLC for work described as: CAPE VINCENT-PATRIOT CONTRACT SERVICES-VINCENT25-1002A-FY25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$10,252.12 $768,909.00) Key points: 1. Contract focuses on ship management services, indicating a need for specialized operational expertise. 2. The award includes a substantial fixed fee component, suggesting predictable costs for a defined scope. 3. Competition was full and open, implying a robust market and potential for competitive pricing. 4. The contract duration is over a year, pointing to a sustained requirement for these services. 5. The primary service area is Deep Sea Freight Transportation, highlighting its role in national logistics. 6. The contractor, Patriot Contract Services, LLC, is positioned to deliver critical maritime support.

Value Assessment

Rating: good

The total award value is $3,516,477.16. A significant portion of this, $768,909.00, is allocated for fixed fees over 75 days, suggesting a clear understanding of costs for a defined period. Benchmarking against similar ship management contracts is difficult without more specific service details, but the fixed fee structure indicates a degree of cost control for that portion of the work. The overall value appears reasonable for a contract supporting deep-sea freight transportation operations.

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 presence of a single delivery order under a larger contract suggests this was a competitive process. A full and open competition generally leads to better price discovery and ensures that the government receives offers from a wide range of qualified contractors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value by allowing multiple companies to bid on the service, driving down costs and ensuring quality.

Public Impact

The primary beneficiaries are likely the Department of Transportation and the Maritime Administration, ensuring the smooth operation of deep-sea freight transportation. Services delivered include ship management, crucial for the operational readiness and efficiency of vessels. The contract's geographic impact is likely broad, given the nature of deep-sea freight transportation, potentially affecting global trade routes. Workforce implications may include employment opportunities for maritime professionals, engineers, and support staff managed by Patriot Contract Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed fee scope expands or unforeseen operational issues arise.
Dependence on a single contractor for critical ship management functions could pose a risk if performance falters.
The specific details of the 'fixed fees' need careful monitoring to ensure they align with actual service delivery and market rates.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potential for good value.
The fixed fee structure for a portion of the contract provides cost certainty for that period.
The contract duration of over a year indicates a stable, ongoing need for these essential maritime services.

Sector Analysis

The maritime transportation sector is vital for global commerce, facilitating the movement of goods across oceans. This contract falls within the Deep Sea Freight Transportation sub-sector, which is characterized by large vessels, complex logistics, and significant capital investment. The market involves major shipping companies and specialized service providers. Comparable spending benchmarks are difficult to ascertain without more granular data on the specific vessels and services managed, but contracts of this nature are typically substantial given the operational demands and regulatory requirements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Patriot Contract Services, LLC chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contracts often create downstream opportunities for specialized small business suppliers and service providers.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the Maritime Administration. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to service delivery. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Maritime Security Programs
Sealift Support Contracts
Vessel Operations and Maintenance
Department of Transportation Procurement

Risk Flags

Potential for cost creep if 'COST NO FEE' elements are not tightly managed.
Performance risk associated with reliance on a single contractor for critical ship management.
Need for detailed monitoring of fixed fee deliverables to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.5 million to PATRIOT CONTRACT SERVICES, LLC. CAPE VINCENT-PATRIOT CONTRACT SERVICES-VINCENT25-1002A-FY25 SHIP MANAGER FIXED FEES A-08/18/25-10/31/25(75 DAYS @$10,252.12 $768,909.00)

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 $3.5 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 for ship management by the Maritime Administration requires access to detailed procurement data over several fiscal years. Generally, the agency procures such services to maintain and operate vessels crucial for national security and economic purposes, particularly during times of crisis or for specific strategic sealift capabilities. Spending can fluctuate based on the number of vessels under management, their operational status, and the complexity of the services required (e.g., crewing, maintenance, voyage planning). Contracts can range from short-term operational support to long-term fleet management agreements. Without specific historical data for this contract's predecessors or comparable services, it's challenging to establish a precise pattern, but the need for such services is consistent with the agency's mission.

How does the fixed fee component of $768,909.00 for 75 days compare to industry benchmarks for ship management?

The fixed fee of $768,909.00 for 75 days equates to approximately $10,252.12 per day. This daily rate for ship management services needs to be contextualized by the type and size of the vessel(s) being managed, the specific services included (e.g., crewing, technical management, commercial management, compliance), and the operational environment. For large, deep-sea vessels, this daily rate might be within a reasonable range, especially if it includes comprehensive management. However, without knowing the specifics of the vessels and the full scope of services covered by this fixed fee, a precise benchmark comparison is difficult. Industry rates can vary significantly, and this figure should be assessed against detailed service level agreements and market data for similar maritime operations.

What are the key performance indicators (KPIs) expected for Patriot Contract Services, LLC under this contract?

Key Performance Indicators (KPIs) for a ship management contract typically revolve around operational efficiency, safety, compliance, and cost control. For this specific contract, KPIs would likely include metrics such as vessel uptime and availability, adherence to maintenance schedules, fuel efficiency, crew performance and retention, compliance with maritime regulations (e.g., SOLAS, MARPOL), timely response to operational issues, and management of operational costs within budgetary limits. The fixed fee component suggests that certain aspects of performance are expected to be met consistently within that cost structure. The Maritime Administration would establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs in the contract's Statement of Work (SOW) to ensure the contractor meets the required standards for deep-sea freight transportation support.

What is the track record of Patriot Contract Services, LLC in managing similar deep-sea freight transportation contracts?

Assessing the track record of Patriot Contract Services, LLC requires a review of their past performance on similar government contracts, particularly those involving ship management for deep-sea freight transportation. Information on past performance is often available through federal procurement databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A positive performance history, characterized by successful delivery, adherence to schedules and budgets, and positive ratings from previous agencies, would indicate a lower risk for this current contract. Conversely, past issues related to performance, cost overruns, or compliance could raise concerns. Without specific CPARS data or a detailed review of their contract history, it's difficult to definitively assess their track record for this specific type of service.

What are the potential risks associated with the 'COST NO FEE' pricing structure mentioned in the data?

The 'COST NO FEE' (CNF) pricing structure, often seen in cost-plus-no-fee contracts, means the contractor is reimbursed for allowable costs incurred but does not receive any additional fee or profit. This structure is typically used when the scope of work is uncertain, or the government wants to minimize contractor profit motive, focusing solely on cost recovery. For the government, the primary risk is that the contractor might not be as motivated to control costs as they would be in a fixed-price or cost-plus-award-fee contract, as their profit is not directly tied to efficiency. However, the presence of a significant 'FIXED FEES' component ($768,909.00) alongside this suggests that the CNF might apply to specific, less defined aspects of the overall $3.5M award, while other parts have a defined cost. Careful monitoring of allowable costs is crucial to mitigate financial risks.

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: $3,516,477

Exercised Options: $3,516,477

Current Obligation: $3,516,477

Actual Outlays: $1,678,799

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