DOT Awards $2.35M for Knox-Pacific Gulf Marine Maintenance & Repairs in FY26
Contract Overview
Contract Amount: $2,351,000 ($2.4M)
Contractor: Pacific-Gulf Marine, Inc.
Awarding Agency: Department of Transportation
Start Date: 2026-01-08
End Date: 2026-11-30
Contract Duration: 326 days
Daily Burn Rate: $7.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Transportation
Official Description: CAPE KNOX-PACIFIC GULF MARINE-KNOX26-1005A-FISCAL YEAR 26 MAINTENANCE & REPAIRS-REPAIRS IS ISSUED TO MAKE SPECIFIC REPAIRS FROM THE BUSINESS PLAN AS SHOWN ON THE FOLLOW PAGES.
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70146
Plain-Language Summary
Department of Transportation obligated $2.4 million to PACIFIC-GULF MARINE, INC. for work described as: CAPE KNOX-PACIFIC GULF MARINE-KNOX26-1005A-FISCAL YEAR 26 MAINTENANCE & REPAIRS-REPAIRS IS ISSUED TO MAKE SPECIFIC REPAIRS FROM THE BUSINESS PLAN AS SHOWN ON THE FOLLOW PAGES. Key points: 1. Contract value of $2.35M for essential repairs. 2. Competition method: Full and open, indicating broad market engagement. 3. Risk: Potential for cost overruns given 'Cost No Fee' contract type. 4. Sector: Transportation, specifically deep-sea freight.
Value Assessment
Rating: fair
The 'Cost No Fee' contract type presents a risk for cost overruns as the contractor is reimbursed for actual costs without a fixed profit margin. Benchmarking against similar maintenance and repair contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the 'Cost No Fee' structure may limit the incentive for the contractor to control costs effectively.
Taxpayer Impact: Taxpayer funds are utilized for essential vessel maintenance. The 'Cost No Fee' structure necessitates close monitoring to ensure cost efficiency and prevent unnecessary expenditures.
Public Impact
Ensures operational readiness of critical maritime assets. Supports the deep-sea freight transportation sector. Potential for increased costs if repairs exceed initial estimates. Job creation in Louisiana's maritime industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type
- Potential for cost overruns
- Limited profit incentive for cost control
Positive Signals
- Full and open competition
- Essential maintenance for operational readiness
- Supports key transportation infrastructure
Sector Analysis
This contract falls within the transportation sector, specifically focusing on maritime vessel maintenance. Spending benchmarks for similar deep-sea freight vessel repairs can vary significantly based on vessel size, age, and the complexity of required repairs.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight will be crucial to monitor expenditures under the 'Cost No Fee' contract to ensure that costs remain reasonable and that the repairs are completed efficiently and effectively.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Transportation Contracting
- Maritime Administration Programs
Risk Flags
- Cost No Fee contract type
- Potential for cost overruns
- Limited contractor incentive for cost control
- Lack of small business participation data
Tags
deep-sea-freight-transportation, department-of-transportation, la, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $2.4 million to PACIFIC-GULF MARINE, INC.. CAPE KNOX-PACIFIC GULF MARINE-KNOX26-1005A-FISCAL YEAR 26 MAINTENANCE & REPAIRS-REPAIRS IS ISSUED TO MAKE SPECIFIC REPAIRS FROM THE BUSINESS PLAN AS SHOWN ON THE FOLLOW PAGES.
Who is the contractor on this award?
The obligated recipient is PACIFIC-GULF MARINE, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Maritime Administration).
What is the total obligated amount?
The obligated amount is $2.4 million.
What is the period of performance?
Start: 2026-01-08. End: 2026-11-30.
What is the expected impact of the 'Cost No Fee' contract type on the final cost compared to a fixed-price contract for similar repairs?
A 'Cost No Fee' contract means the government reimburses the contractor for all allowable costs incurred, plus a pre-determined fee. This can lead to higher final costs if not closely managed, as there's less incentive for the contractor to control expenses compared to a fixed-price contract where the contractor bears the risk of cost overruns.
How will the Maritime Administration ensure cost-effectiveness and prevent potential overruns given the 'Cost No Fee' contract structure?
The Maritime Administration will likely implement rigorous oversight mechanisms, including detailed cost tracking, regular progress reviews, and independent verification of repair work and associated expenses. They may also establish cost ceilings or require justification for significant cost deviations to mitigate overrun risks.
What are the key performance indicators (KPIs) for this maintenance and repair contract to ensure successful completion and value for taxpayer money?
Key performance indicators could include timely completion of repairs within the contract period, adherence to quality standards for the repairs, successful operational testing post-repair, and cost control within acceptable variance limits. Meeting these KPIs ensures the vessel's readiness and efficient use of funds.
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: 111 VETERANS MEMORIAL BLVD STE 740, METAIRIE, LA, 70005
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,351,000
Exercised Options: $2,351,000
Current Obligation: $2,351,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 693JF725D000036
IDV Type: IDC
Timeline
Start Date: 2026-01-08
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2026-04-03
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