Michigan Awards $3.4M for Vessel State Room Fabrication and Installation to Central Marine Logistics Inc
Contract Overview
Contract Amount: $3,443,458 ($3.4M)
Contractor: Central Marine Logistics Inc
Awarding Agency: Department of Transportation
Start Date: 2026-01-06
End Date: 2027-05-01
Contract Duration: 480 days
Daily Burn Rate: $7.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Transportation
Official Description: STATE OF MICHIGAN-FY26 GENERAL AGENT SUPPORT SERVICES COST REIMBURSABLE ITEMS PROVIDED BY THE GENERAL AGENT FOR THE FABRICATION AND INSTALLATION OF THE VESSEL'S STATE ROOMS.
Place of Performance
Location: TRAVERSE CITY, GRAND TRAVERSE County, MICHIGAN, 49684
State: Michigan Government Spending
Plain-Language Summary
Department of Transportation obligated $3.4 million to CENTRAL MARINE LOGISTICS INC for work described as: STATE OF MICHIGAN-FY26 GENERAL AGENT SUPPORT SERVICES COST REIMBURSABLE ITEMS PROVIDED BY THE GENERAL AGENT FOR THE FABRICATION AND INSTALLATION OF THE VESSEL'S STATE ROOMS. Key points: 1. Contract awarded for state room fabrication and installation on vessels. 2. Central Marine Logistics Inc. is the sole provider for this service. 3. The contract duration is 480 days, ending May 1, 2027. 4. This falls under the Deep Sea Freight Transportation sector.
Value Assessment
Rating: fair
The contract is cost-reimbursable with no fee, making direct price comparison difficult. The provided benchmark of $7,174 for a similar contract suggests potential for cost overruns if not managed closely.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: Taxpayers may bear higher costs due to the lack of competition and the cost-reimbursable nature of the contract.
Public Impact
Enhances maritime infrastructure by improving vessel accommodations. Supports the state's transportation and logistics capabilities. Ensures operational readiness for state-owned vessels.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-reimbursable contract increases risk of overspending.
- Lack of detailed cost breakdown.
Positive Signals
- Addresses a specific need for vessel upgrades.
- Supports state transportation infrastructure.
Sector Analysis
This contract is within the Deep Sea Freight Transportation sector, which is critical for state commerce and logistics. Spending benchmarks for similar fabrication and installation services can vary widely based on complexity and materials.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded directly to Central Marine Logistics Inc. without a competitive bidding process.
Oversight & Accountability
Oversight will be crucial to monitor the cost-reimbursable aspects of this contract, ensuring that expenditures are reasonable and directly related to the fabrication and installation of vessel state rooms.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Transportation Contracting
- Maritime Administration Programs
Risk Flags
- Sole-source award
- Cost-reimbursable contract
- Lack of competition
- Potential for cost overruns
- No fee structure
Tags
deep-sea-freight-transportation, department-of-transportation, mi, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $3.4 million to CENTRAL MARINE LOGISTICS INC. STATE OF MICHIGAN-FY26 GENERAL AGENT SUPPORT SERVICES COST REIMBURSABLE ITEMS PROVIDED BY THE GENERAL AGENT FOR THE FABRICATION AND INSTALLATION OF THE VESSEL'S STATE ROOMS.
Who is the contractor on this award?
The obligated recipient is CENTRAL MARINE LOGISTICS INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Maritime Administration).
What is the total obligated amount?
The obligated amount is $3.4 million.
What is the period of performance?
Start: 2026-01-06. End: 2027-05-01.
What specific factors justify the sole-source award for vessel state room fabrication and installation?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without further documentation, it's difficult to ascertain the precise reasons, but it suggests Central Marine Logistics Inc. possesses specialized expertise or holds exclusive rights essential for this project.
How will the state ensure cost control and prevent overruns in this cost-reimbursable contract?
Effective cost control will rely on robust oversight mechanisms, including detailed review of all reimbursable expenses, regular progress audits, and clear performance metrics. Establishing a not-to-exceed limit, even within a cost-reimbursable framework, and requiring detailed justifications for all costs will be essential to mitigate financial risks.
What is the expected impact of these state room upgrades on vessel operational efficiency and crew morale?
Upgraded state rooms are expected to positively impact operational efficiency by providing improved living and working conditions for vessel crews, potentially leading to increased morale and reduced crew turnover. This can indirectly contribute to better vessel performance and reliability in deep-sea freight transportation operations.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 445 N BROAD ST, GRIFFITH, IN, 46319
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,443,458
Exercised Options: $3,443,458
Current Obligation: $3,443,458
Actual Outlays: $172,429
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 693JF723G000005
IDV Type: BOA
Timeline
Start Date: 2026-01-06
Current End Date: 2027-05-01
Potential End Date: 2027-05-01 00:00:00
Last Modified: 2026-01-07
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