Maritime Administration awards $368K contract for regulatory fees and support, highlighting ongoing operational needs

Contract Overview

Contract Amount: $368,114 ($368.1K)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-11-05

End Date: 2026-11-30

Contract Duration: 390 days

Daily Burn Rate: $944/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Other

Official Description: CAPE VICTORY-PATRIOT CONTRACT SERVICES-VICTORY26-1003A-FY26 M&R REGULATORY FEES & SUPPORT A-$30,000

Place of Performance

Location: BEAUMONT, JEFFERSON County, TEXAS, 77705

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $368,114 to PATRIOT CONTRACT SERVICES, LLC for work described as: CAPE VICTORY-PATRIOT CONTRACT SERVICES-VICTORY26-1003A-FY26 M&R REGULATORY FEES & SUPPORT A-$30,000 Key points: 1. Contract focuses on essential regulatory compliance and operational support, indicating a need for specialized services. 2. Awarded through full and open competition, suggesting a competitive market for these services. 3. The contract duration of approximately one year points to a need for consistent, ongoing support. 4. Geographic location in Texas may indicate regional operational focus or presence of relevant facilities. 5. The cost-plus-no-fee contract type suggests that the government will reimburse allowable costs plus a fixed fee, requiring careful cost monitoring. 6. This award represents a small portion of the Maritime Administration's overall budget, contextualizing its scale.

Value Assessment

Rating: good

The contract value of $368,114 for a period of roughly 13 months appears reasonable for specialized regulatory support services. Benchmarking against similar contracts for regulatory compliance and operational support within the Department of Transportation would provide further insight. The cost-plus-no-fee structure necessitates diligent oversight to ensure costs remain within expected parameters, but it allows for flexibility in scope if unforeseen regulatory changes occur. Without specific per-unit metrics, a direct value-for-money assessment is challenging, but the overall award size suggests a focused need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach generally fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the open competition suggests a healthy market for these services. The Maritime Administration likely sought proposals that met specific technical and cost requirements, with the lowest priced, technically acceptable offer or best value likely being the determining factor.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a level playing field, encourages efficiency among contractors, and increases the likelihood of securing services at competitive market rates, thereby maximizing the value of federal dollars.

Public Impact

The Maritime Administration benefits from this contract by ensuring compliance with regulatory requirements and maintaining smooth operational support for its maritime activities. Services delivered include support for regulatory fees and general operational assistance, crucial for the agency's mission. The contract's impact is primarily within the operational domain of the Maritime Administration, supporting its federal mandate. While not directly creating a large number of jobs, it supports specialized roles within the contracting company, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-no-fee structure requires robust oversight to manage and validate incurred costs effectively.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality of service beyond compliance.
The contract's relatively short duration might lead to potential inefficiencies if a long-term relationship is optimal for regulatory support.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded fair market pricing.
The contract addresses essential regulatory and support functions, indicating proactive management of agency operational needs.
The contractor, Patriot Contract Services, LLC, is being awarded a contract, implying they meet the necessary qualifications and capabilities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting government administration and regulatory functions within the maritime industry. The North American Industry Classification System (NAICS) code 483111 (Deep Sea Freight Transportation) is listed, though the service itself is more aligned with administrative and support functions rather than direct transportation. Spending in this area is crucial for agencies like the Maritime Administration to navigate complex regulatory landscapes and ensure efficient operations. Comparable spending benchmarks would typically involve analyzing other government contracts for similar regulatory support and administrative services across various agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Patriot Contract Services, LLC, is likely a small business itself, but without further information on its size classification, its role in the broader small business ecosystem as a prime or potential subcontractor cannot be definitively assessed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Maritime Administration's contracting officers and program managers. As a cost-plus-no-fee contract, rigorous monitoring of the contractor's incurred costs and adherence to the scope of work is essential. Transparency is facilitated through contract reporting mechanisms, and while specific Inspector General (IG) jurisdiction isn't detailed here, the DOT OIG would have oversight authority over potential fraud, waste, or abuse related to federal contracts.

Related Government Programs

Maritime Administration Operations Support
Federal Regulatory Compliance Services
Department of Transportation Administrative Contracts
Cost-Plus-No-Fee Service Contracts

Risk Flags

Cost Overruns Risk (CPNF)
Performance Monitoring Difficulty
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $368,114 to PATRIOT CONTRACT SERVICES, LLC. CAPE VICTORY-PATRIOT CONTRACT SERVICES-VICTORY26-1003A-FY26 M&R REGULATORY FEES & SUPPORT A-$30,000

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 $368,114.

What is the period of performance?

Start: 2025-11-05. End: 2026-11-30.

What is the track record of Patriot Contract Services, LLC in performing similar government contracts, particularly with the Maritime Administration or Department of Transportation?

Assessing the track record of Patriot Contract Services, LLC requires a review of their past performance on federal contracts. This would involve examining contract databases like the Federal Procurement Data System (FPDS) or SAM.gov for previous awards, contract values, and performance evaluations. Specifically, looking for prior awards from the Maritime Administration or other agencies within the Department of Transportation would be key. Understanding their history with cost-plus-no-fee contracts, regulatory support services, and their overall performance ratings (e.g., CPARS reports) would provide insight into their reliability, quality of service, and ability to manage costs effectively. Without access to specific performance data for Patriot Contract Services, LLC, it's difficult to provide a definitive assessment of their track record.

How does the awarded amount of $368,114 compare to the typical cost for similar regulatory fee and support services within the federal government?

To benchmark the $368,114 award, one would need to compare it against similar contracts for regulatory fee management and operational support services awarded by federal agencies. This involves identifying contracts with comparable scope, duration (approximately 13 months), and service requirements. Factors such as the specific regulatory bodies involved, the complexity of the support needed, and the geographic location can influence pricing. A preliminary assessment suggests that for specialized, year-long support, this amount is within a reasonable range, especially considering it's a cost-plus-no-fee contract which reimburses allowable costs. However, a more precise comparison would require analyzing data from contracts with similar NAICS codes or service descriptions, looking at both total contract values and potentially annualized costs.

What are the primary risks associated with a Cost-Plus-No-Fee (CPNF) contract structure for this type of service, and how are they mitigated?

The primary risk with a CPNF contract is the potential for cost overruns, as the government reimburses the contractor for allowable costs incurred. While the 'no fee' aspect limits the contractor's profit margin to zero, it doesn't inherently control the base costs. Mitigation strategies are crucial and typically involve robust oversight by the contracting officer and program managers. This includes detailed review and auditing of all claimed costs to ensure they are allowable, allocable, and reasonable according to the contract terms. Clear definition of the scope of work and performance standards is also vital. The Maritime Administration must actively monitor the contractor's expenditures and progress to prevent unnecessary costs and ensure the services delivered align with the agency's needs and budget.

What specific regulatory areas or functions does this contract support for the Maritime Administration?

The contract is broadly described as covering 'M&R REGULATORY FEES & SUPPORT A'. This suggests the support likely pertains to fees associated with maritime regulations, potentially including registration, licensing, inspection, or compliance fees mandated by various maritime authorities (e.g., Coast Guard, international bodies). The 'SUPPORT A' component implies general administrative or operational assistance related to managing these regulatory obligations. This could encompass tasks such as processing fee payments, maintaining compliance records, preparing necessary documentation for regulatory filings, and providing liaison services with regulatory agencies. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here.

How does this contract fit into the broader spending patterns of the Maritime Administration for operational support and regulatory compliance?

This $368,114 contract represents a specific, relatively small allocation within the Maritime Administration's overall budget for operational support and regulatory compliance. Agencies like MARAD manage extensive fleets and maritime infrastructure, necessitating significant spending on maintenance, operations, and adherence to a complex web of domestic and international regulations. Awards for regulatory fees and support are typically recurring needs, essential for maintaining legal standing and operational continuity. While this particular award is modest, it signifies the ongoing requirement for specialized services to navigate these critical functions. Understanding its place requires comparing it to larger contracts for vessel operations, infrastructure management, or broader policy development within MARAD's budget.

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: $368,114

Exercised Options: $368,114

Current Obligation: $368,114

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