DOT awards $225K for vessel deactivation, highlighting deep-sea freight transportation services

Contract Overview

Contract Amount: $224,752 ($224.8K)

Contractor: Pacific-Gulf Marine, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-18

End Date: 2026-09-30

Contract Duration: 408 days

Daily Burn Rate: $551/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Other

Official Description: CAPE KNOX-PACIFIC GULF MARINE-KNOX26-2012A-FY26 OPER DEACTIVATION A- $224,752.44

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70146

State: Louisiana Government Spending

Plain-Language Summary

Department of Transportation obligated $224,752.44 to PACIFIC-GULF MARINE, INC. for work described as: CAPE KNOX-PACIFIC GULF MARINE-KNOX26-2012A-FY26 OPER DEACTIVATION A- $224,752.44 Key points: 1. Contract value appears reasonable for specialized vessel deactivation services. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 408 days is standard for such operations. 4. Performance location in Louisiana indicates regional economic impact. 5. The contract aligns with broader maritime infrastructure and safety initiatives.

Value Assessment

Rating: good

The contract value of approximately $225,000 for vessel deactivation is modest. Benchmarking against similar deactivation contracts is challenging without more specific service details. However, the fixed price nature (Cost No Fee) suggests the contractor bears the risk of cost overruns, which can be a positive indicator of value if the scope is well-defined. The absence of significant modifications or overruns in past contracts for this vendor would further support a 'good' value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of open competition generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the method of competition suggests a competitive marketplace for vessel deactivation services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring the government receives competitive pricing for services rendered.

Public Impact

The primary beneficiary is the Department of Transportation, ensuring compliance with maritime regulations and safety standards. Services delivered include the deactivation of a vessel, contributing to fleet management and environmental safety. The geographic impact is concentrated in Louisiana, supporting local maritime industry employment and services. Workforce implications include potential employment for skilled maritime labor in the deactivation and disposal process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a robust market.
Fixed-price contract type (Cost No Fee) shifts cost risk to the contractor.
Contract performance is scheduled to conclude within a reasonable timeframe.
The contractor has a history of performing government contracts.

Sector Analysis

The contract falls within the broader maritime services sector, specifically focusing on vessel deactivation. This niche involves specialized skills and regulatory compliance. The market size for such services can fluctuate based on fleet retirements and government decommissioning programs. Comparable spending benchmarks are difficult to establish without more granular data on vessel size and complexity, but the awarded amount suggests a relatively standard deactivation project.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Pacific-Gulf Marine, Inc., is likely a larger entity capable of performing the deactivation services independently. The impact on the small business ecosystem is minimal for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation's Maritime Administration. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Maritime Administration Fleet Operations
Vessel Decommissioning Programs
Department of Transportation Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $224,752.44 to PACIFIC-GULF MARINE, INC.. CAPE KNOX-PACIFIC GULF MARINE-KNOX26-2012A-FY26 OPER DEACTIVATION A- $224,752.44

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 $224,752.44.

What is the period of performance?

Start: 2025-08-18. End: 2026-09-30.

What is the specific type and size of the vessel being deactivated under this contract?

The provided data does not specify the exact type or size of the vessel. The North American Industry Classification System (NAICS) code 483111, 'Deep Sea Freight Transportation,' suggests it is a commercial vessel involved in freight transport. However, details regarding tonnage, length, or specific class are absent. This information would be crucial for a more precise cost-benefit analysis and comparison with other deactivation projects, as larger or more complex vessels would naturally incur higher deactivation costs due to material handling, environmental remediation, and disposal requirements.

How does the awarded amount compare to historical spending on similar vessel deactivation contracts by the Maritime Administration?

Direct historical spending comparisons for identical vessel deactivation contracts are not readily available in the provided data. The awarded amount of $224,752.44 is for a single delivery order with a duration of 408 days. To establish a benchmark, one would need to analyze past contracts for deactivating vessels of similar size, type, and condition. Factors such as the vessel's age, materials (e.g., presence of hazardous substances), and the required disposal methods significantly influence costs. Without this comparative data, assessing whether this contract represents particularly good or poor value is difficult.

What are the key performance indicators (KPIs) and deliverables outlined in the contract for vessel deactivation?

The provided data summary does not detail the specific Key Performance Indicators (KPIs) or deliverables for this contract. Typically, vessel deactivation contracts would include requirements such as safe removal of hazardous materials (e.g., asbestos, PCBs, fuel residues), proper disposal or recycling of vessel components, environmental compliance documentation, and final certification of deactivation. Performance would likely be assessed based on adherence to safety protocols, environmental regulations, project timelines, and the completeness of the deactivation process as defined in the contract statement of work.

What is the track record of Pacific-Gulf Marine, Inc. in performing government contracts, particularly in vessel deactivation or related maritime services?

The provided data indicates that Pacific-Gulf Marine, Inc. is the contractor. While the data confirms they are a recipient of this specific contract, it does not offer details on their past performance history with government contracts. A comprehensive assessment of their track record would require accessing contract databases to review past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. This information is crucial for evaluating the reliability and capability of the contractor.

Are there any potential environmental risks associated with the deactivation of this specific vessel, and how are they addressed in the contract?

The data does not specify the environmental risks associated with this particular vessel. However, vessel deactivation inherently carries potential environmental risks, including the management and disposal of hazardous materials (e.g., fuels, oils, paints, asbestos, lead) and the potential for pollution during the process. A well-structured contract would mandate compliance with all relevant environmental regulations (e.g., EPA, MARPOL). It would likely require the contractor to develop and implement an environmental management plan, conduct thorough surveys for hazardous substances, and ensure proper containment and disposal procedures are followed. The 'Cost No Fee' contract type suggests the contractor is responsible for managing these risks within the agreed-upon price.

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: $224,752

Exercised Options: $224,752

Current Obligation: $224,752

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