Transportation contract for deep sea freight services awarded to Patriot Contract Services, LLC for over $3.4M

Contract Overview

Contract Amount: $6,318,979 ($6.3M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-12-15

End Date: 2026-11-30

Contract Duration: 350 days

Daily Burn Rate: $18.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: SODERMAN-FY26 SHORESIDE STAFF AND CREW WAGES B-PATRIOT CONTRACT SERVICES-SODERMAN26-1002B-$3,459,236.13

Place of Performance

Location: BEAUMONT, JEFFERSON County, TEXAS, 77701

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $6.3 million to PATRIOT CONTRACT SERVICES, LLC for work described as: SODERMAN-FY26 SHORESIDE STAFF AND CREW WAGES B-PATRIOT CONTRACT SERVICES-SODERMAN26-1002B-$3,459,236.13 Key points: 1. Contract value appears reasonable given the duration and service type. 2. Limited competition due to sole-source award. 3. Potential risk associated with lack of competitive bidding. 4. Performance context is critical for assessing value. 5. Contract falls within the deep sea freight transportation sector.

Value Assessment

Rating: fair

The contract value of $3,459,236.13 for a 350-day period appears within a reasonable range for specialized maritime services. However, without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The cost-plus-no-fee structure suggests that the contractor is reimbursed for allowable costs plus a fixed fee, which can sometimes lead to less incentive for cost control compared to fixed-price contracts. Benchmarking against similar sole-source awards for deep sea freight transportation would provide a clearer picture of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Patriot Contract Services, LLC, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they limit price discovery and may result in higher costs for the government compared to a fully competed contract. The absence of multiple bids means there's no direct market comparison to gauge the fairness of the negotiated price.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competition. Sole-source awards reduce the government's leverage in negotiating favorable terms and pricing, potentially leading to increased expenditure for similar services.

Public Impact

The primary beneficiaries are likely the Department of Transportation and its Maritime Administration, ensuring the availability of critical deep sea freight transportation services. The contract supports the delivery of essential maritime logistics and transportation capabilities. The geographic impact is primarily related to the operational areas for deep sea freight, likely involving international waters and U.S. ports. Workforce implications include employment for maritime professionals, crew, and support staff involved in operating and managing the contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Cost-plus-no-fee contract structure may reduce contractor incentive for aggressive cost management.
Lack of transparency in the sole-source justification process.
Limited public data on contractor performance for similar sole-source contracts.
Potential for scope creep without robust oversight in a sole-source environment.

Positive Signals

Contract award indicates a recognized need for specific maritime services.
Patriot Contract Services, LLC is being entrusted with a significant operational role.
The contract duration suggests a planned, ongoing requirement for these services.
The Department of Transportation is actively managing its maritime logistics needs.

Sector Analysis

This contract falls within the broader transportation sector, specifically focusing on deep sea freight transportation. This niche involves the movement of goods across oceans, often requiring specialized vessels, experienced crews, and adherence to international maritime regulations. The market size for such services is substantial, driven by global trade. Comparable spending benchmarks would typically involve analyzing other government contracts for similar maritime logistics or chartering services, as well as private sector rates for comparable vessel operations and freight capacity.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) or be awarded to a small business (sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a large-scale service provider. The absence of small business participation in this particular contract means no direct boost to the small business ecosystem through this procurement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation's Maritime Administration. Given it's a sole-source award, robust justification and documentation are crucial. Accountability measures would involve performance monitoring against contract requirements and delivery schedules. Transparency might be limited due to the sole-source nature, but contract 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
Strategic Sealift Capability
Department of Defense - Military Sealift Command Contracts
U.S. Maritime Administration - Vessel Operations

Risk Flags

Sole-source award lacks competitive justification.
Cost-plus-no-fee structure may lead to cost overruns.
Limited transparency on contractor's specific capabilities for this sole-source award.
Potential for reduced contractor incentive for optimal performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $6.3 million to PATRIOT CONTRACT SERVICES, LLC. SODERMAN-FY26 SHORESIDE STAFF AND CREW WAGES B-PATRIOT CONTRACT SERVICES-SODERMAN26-1002B-$3,459,236.13

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 $6.3 million.

What is the period of performance?

Start: 2025-12-15. End: 2026-11-30.

What is the specific justification for awarding this contract on a sole-source basis to Patriot Contract Services, LLC?

The provided data indicates the contract was awarded as 'NOT COMPETED' (ct: NOT COMPETED), which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided snippet. Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services, such as when there is a unique capability, a critical need that cannot be met by other sources, or in cases of urgent and compelling circumstances. Without further documentation from the agency (e.g., a Justification and Approval document), the precise reasons remain unknown. This lack of competition raises questions about potential cost efficiencies and market fairness.

How does the cost-plus-no-fee (CPNF) contract type impact the overall value and risk for the government?

A Cost-Plus-No-Fee (CPNF) contract type means the contractor is reimbursed for all allowable costs incurred during the performance of the contract, but receives no additional fee or profit. This structure is often used when the scope of work is not well-defined or when the government wants to ensure a service is performed without the contractor bearing financial risk for profit. For the government, the primary benefit is ensuring the service is rendered. However, the risk lies in potentially higher costs, as the contractor has less financial incentive to control expenses since their costs are reimbursed. Oversight is critical to ensure costs are allowable and reasonable. The 'no fee' aspect removes profit motive, which can be a double-edged sword: it might reduce the final price compared to a cost-plus-fee contract, but it also removes a key driver for efficiency and innovation that profit can provide.

What is the historical spending pattern for similar deep sea freight transportation services by the Maritime Administration?

Analyzing historical spending patterns for similar deep sea freight transportation services by the Maritime Administration (MARAD) is crucial for context. Without access to MARAD's historical contract database or specific reports, it's difficult to provide precise figures. However, MARAD historically manages a fleet and charters vessels for various purposes, including supporting national defense, maintaining the U.S. merchant marine, and facilitating trade. Spending in this area can fluctuate based on geopolitical events, trade policies, and the operational needs of the U.S. government. Comparing the current contract's value ($3.46M) against previous awards for similar durations and vessel types would reveal whether this represents an increase, decrease, or stable spending trend. A significant deviation from historical norms, especially in a sole-source context, warrants closer scrutiny.

What are the potential performance risks associated with Patriot Contract Services, LLC for this specific contract?

Potential performance risks for Patriot Contract Services, LLC on this contract, particularly given its sole-source nature, include operational failures, crew shortages, vessel maintenance issues, and non-compliance with maritime regulations. Since the contract is for deep sea freight transportation over a 350-day period, ensuring continuous and reliable service is paramount. Risks are amplified by the lack of competitive pressure, which might reduce the incentive for proactive problem-solving or exceeding basic performance standards. The government's ability to mitigate these risks relies heavily on robust contract oversight, clear performance metrics, and defined remedies for non-performance. The cost-plus-no-fee structure also means that while the government covers costs, delays or inefficiencies caused by performance issues can still lead to extended contract periods and potentially higher overall expenditure.

How does the contract's duration (350 days) and start/end dates (Dec 2025 - Nov 2026) align with typical operational cycles for deep sea freight?

The contract duration of 350 days, spanning from December 15, 2025, to November 30, 2026, aligns well with a typical operational year for maritime services, allowing for a full cycle of operations with some buffer. Deep sea freight operations are continuous, often involving multi-week voyages. A contract of this length suggests a sustained requirement for the services provided by Patriot Contract Services, LLC, rather than a short-term or ad-hoc need. This duration allows for consistent service delivery, crew scheduling, and vessel utilization. The timing, covering parts of two fiscal years (FY26 and FY27), is also common for service contracts that extend beyond a single fiscal year, requiring careful budget management across different funding periods.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1320 WILLOW PASS RD STE 485, CONCORD, CA, 94520

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

Financial Breakdown

Contract Ceiling: $6,318,979

Exercised Options: $6,318,979

Current Obligation: $6,318,979

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF720G000007

IDV Type: BOA

Timeline