Maritime Administration awards $102.5M contract for ship support during maintenance, focusing on deep sea freight

Contract Overview

Contract Amount: $102,500 ($102.5K)

Contractor: Crowley Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-12-23

End Date: 2026-11-30

Contract Duration: 342 days

Daily Burn Rate: $300/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CORTES-CROWLEY GOVERNMENT SERVICES-CORTES26-1008A-FISCAL YEAR 26 MAINTENANCE & REPAIRS SHIP SUPPORT A IS ISSUED TO PROVIDE SHIP SUPPORT DURING MAINTENANCE PHASE.

Place of Performance

Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39567

State: Mississippi Government Spending

Plain-Language Summary

Department of Transportation obligated $102,500 to CROWLEY GOVERNMENT SERVICES, INC. for work described as: CORTES-CROWLEY GOVERNMENT SERVICES-CORTES26-1008A-FISCAL YEAR 26 MAINTENANCE & REPAIRS SHIP SUPPORT A IS ISSUED TO PROVIDE SHIP SUPPORT DURING MAINTENANCE PHASE. Key points: 1. Contract value of $102.5 million for a 342-day period indicates significant investment in ship maintenance. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract type (Delivery Order) implies it's part of a larger, pre-existing agreement. 4. Focus on ship support during maintenance highlights a critical, albeit specialized, segment of maritime operations. 5. The North American Industry Classification System (NAICS) code 483111 points to deep sea freight transportation services. 6. The contract's duration of approximately one year aligns with typical maintenance cycles for large vessels.

Value Assessment

Rating: good

The contract value of $102.5 million for approximately one year of service appears reasonable given the specialized nature of ship support during maintenance. Without specific benchmarks for this exact service, it's difficult to provide a precise per-unit cost comparison. However, the cost-no-fee pricing structure suggests that the contractor is expected to manage costs effectively to achieve profitability, which can be a positive indicator of value if managed well. Further analysis would require comparing this to similar contracts for comparable vessel classes and maintenance scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment, which is expected to drive down prices and improve the quality of services offered. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of innovative solutions being considered. This process helps ensure that the government is obtaining the best possible value for its investment.

Public Impact

The primary beneficiaries are likely the vessels undergoing maintenance, ensuring their operational readiness and safety. Services delivered include essential support functions required to keep ships operational during their downtime for repairs and upkeep. The geographic impact is likely concentrated around the maintenance facilities and ports where the ships are serviced. Workforce implications may include employment for skilled maritime support personnel, technicians, and logistics staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or key performance indicators (KPIs) makes it difficult to assess contractor performance objectively.
The 'Cost No Fee' (CNF) contract type can sometimes lead to cost overruns if not meticulously managed by the contractor, though it places the profit risk on them.
Limited detail on the specific types of 'ship support' could obscure the full scope and potential risks involved.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract duration of over a year provides stability for both the contractor and the agency in planning maintenance schedules.
The Maritime Administration's engagement in this contract indicates a commitment to maintaining critical maritime assets.

Sector Analysis

The maritime transportation sector is a vital component of global trade, encompassing deep sea freight, coastal shipping, and port operations. This contract falls under the deep sea freight transportation services (NAICS 483111), a segment characterized by large capital investments in vessels and complex logistical operations. Spending in this area is often driven by fleet modernization, regulatory compliance, and the need to ensure operational readiness of national maritime assets. Comparable spending benchmarks would typically involve analyzing other large-scale maintenance and support contracts for similar vessel classes within government or commercial fleets.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, CROWLEY GOVERNMENT SERVICES, INC., is likely a large entity. The absence of small business set-asides means that opportunities for small business participation would depend on the prime contractor's voluntary subcontracting efforts, which are not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and its Maritime Administration. Specific oversight mechanisms are not detailed, but typically include contract performance reviews, financial audits, and adherence to delivery schedules. Accountability measures would be tied to the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed operational oversight information may be internal.

Related Government Programs

Shipbuilding and Repair
Maritime Logistics
Naval Support Services
Fleet Maintenance
Deep Sea Freight Transportation

Risk Flags

Contract type risk (CNF)
Lack of detailed performance metrics
Potential for scope creep if 'ship support' is not clearly defined

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $102,500 to CROWLEY GOVERNMENT SERVICES, INC.. CORTES-CROWLEY GOVERNMENT SERVICES-CORTES26-1008A-FISCAL YEAR 26 MAINTENANCE & REPAIRS SHIP SUPPORT A IS ISSUED TO PROVIDE SHIP SUPPORT DURING MAINTENANCE PHASE.

Who is the contractor on this award?

The obligated recipient is CROWLEY GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $102,500.

What is the period of performance?

Start: 2025-12-23. End: 2026-11-30.

What is the track record of CROWLEY GOVERNMENT SERVICES, INC. in fulfilling similar government contracts, particularly within the maritime sector?

CROWLEY GOVERNMENT SERVICES, INC. has a significant history of performing contracts for various government agencies, including the Department of Transportation and the Department of Defense. Their experience often spans logistics, transportation, and vessel support services. Analyzing their past performance on similar contracts would involve reviewing contract databases for awards related to ship maintenance, repair, and operational support. Key indicators to examine would include on-time delivery rates, adherence to budget, quality of service, and any instances of contract disputes or terminations. A positive track record in these areas would suggest a lower risk for this current contract. Conversely, a history of performance issues could indicate potential challenges in execution.

How does the awarded amount of $102.5 million compare to historical spending on similar ship support contracts by the Maritime Administration or other agencies?

To benchmark the $102.5 million award, one would need to identify comparable contracts for ship support during maintenance phases. This involves searching contract databases for awards with similar scope, duration (approximately 342 days), and vessel types (implied by deep sea freight). Factors like the specific maintenance required (e.g., routine vs. extensive overhaul) and the size/class of the vessels are crucial. If similar contracts awarded over the past few years were in the range of $80-$120 million for comparable services, then this award would appear within a reasonable market range. Significant deviations, either higher or lower, would warrant further investigation into the specific service requirements and market conditions at the time of award.

What are the primary risks associated with this 'Cost No Fee' (CNF) contract type for the government and the contractor?

The 'Cost No Fee' (CNF) contract type places the financial risk primarily on the contractor. The government agrees to reimburse the contractor for allowable costs incurred, but the contractor earns no fee or profit. For the contractor, the risk is that actual costs may exceed the anticipated costs, leading to a financial loss. For the government, the primary risk is that the contractor, bearing all the financial risk, might cut corners on quality, safety, or timely completion to minimize their own losses. This necessitates robust government oversight to ensure that the contractor remains motivated to perform adequately despite the absence of profit incentive. Effective management and clear performance standards are critical to mitigate these risks.

What specific 'ship support' services are included under this contract, and how critical are they to the maintenance phase?

The provided data is limited in detailing the specific 'ship support' services. Generally, such support during a maintenance phase can encompass a wide range of activities, including but not limited to: logistical support (e.g., provisions, spare parts management), technical assistance, personnel support (e.g., specialized technicians), facility access, security, waste management, and potentially minor repair or diagnostic services not covered under the primary maintenance contract. The criticality of these services depends on their direct impact on the efficiency and effectiveness of the main maintenance work. If essential support functions are lacking or poorly executed, it can lead to significant delays, cost overruns, and compromise the overall maintenance outcome.

What is the historical spending pattern for ship support services by the Maritime Administration, and how does this contract fit within that trend?

Analyzing historical spending patterns for ship support services by the Maritime Administration would involve examining their budget allocations and contract awards over several fiscal years. This would reveal trends in investment in fleet maintenance and operational readiness. This $102.5 million contract, awarded for a 342-day period, represents a substantial, single-award investment. Its significance within the historical trend would depend on whether the agency typically awards such large contracts for maintenance support, or if this is an outlier. Understanding this context helps assess if this spending aligns with the agency's strategic priorities and resource allocation over time.

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: 9487 REGENCY SQUARE BLVD, JACKSONVILLE, FL, 32225

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,500

Exercised Options: $102,500

Current Obligation: $102,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000021

IDV Type: IDC

Timeline