Transportation awards $16M for dry dock services, with Patriot Contract Services securing the sole-source delivery order

Contract Overview

Contract Amount: $16,056,438 ($16.1M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2024-07-31

End Date: 2025-10-26

Contract Duration: 452 days

Daily Burn Rate: $35.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: CAPE HORN FISCAL YEAR (FY) 24 DRY DOCK

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94107

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $16.1 million to PATRIOT CONTRACT SERVICES, LLC for work described as: CAPE HORN FISCAL YEAR (FY) 24 DRY DOCK Key points: 1. The contract's value appears reasonable given the specialized nature of dry dock services for maritime assets. 2. Sole-source award limits competitive pressure, potentially impacting price efficiency. 3. The duration of the contract (over a year) suggests a significant operational need. 4. Performance context is limited without details on specific services or historical performance. 5. This contract falls within the transportation and maritime logistics sector.

Value Assessment

Rating: fair

Benchmarking dry dock services is challenging due to the highly specialized and often location-specific nature of the work. The 'COST NO FEE' contract type suggests that the government will reimburse the contractor for allowable costs, with no fee. This structure requires careful monitoring of incurred costs to ensure value. Without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is difficult, but the price appears within a plausible range for such specialized maritime services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The 'NOT AVAILABLE FOR COMPETITION' (NAF) designation indicates that only one contractor was considered. This approach is typically used when only one source is capable of meeting the government's needs, often due to unique capabilities, urgent requirements, or specific technical specifications. The lack of competition means that price discovery through bidding was not utilized, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The government relies on the contractor's cost proposals and subsequent audits to ensure fair pricing.

Public Impact

The primary beneficiaries are the U.S. Navy or other government maritime assets requiring dry dock maintenance. Services delivered include essential maintenance, repair, and potentially upgrades to vessels. The geographic impact is centered in California, where the services are likely performed. Workforce implications include employment for skilled maritime tradespeople in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in cost breakdown for 'COST NO FEE' contracts can obscure true value.
Limited performance history available for this specific contract to assess contractor reliability.

Positive Signals

Contract awarded to Patriot Contract Services, LLC, a known entity in maritime services.
Delivery order structure allows for flexibility in tasking and scheduling.
Contract duration suggests a sustained need for critical maritime support.

Sector Analysis

The maritime services sector is critical for national defense and economic stability, encompassing shipbuilding, repair, and maintenance. Dry dock services are a specialized niche within this sector, requiring significant infrastructure and expertise. The market size for such services can be substantial, particularly when serving government fleets. This contract fits within the broader category of government procurement for specialized industrial services, often characterized by long lead times and high barriers to entry.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Patriot Contract Services, LLC, a likely larger entity, suggests that the primary focus was on capability rather than small business participation. This could limit opportunities for small businesses within the maritime support ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Maritime Administration (MARAD). As a 'COST NO FEE' contract, rigorous cost accounting and auditing by MARAD or its designated representatives would be crucial to ensure that only allowable costs are reimbursed. Transparency would depend on MARAD's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Administration Ship Maintenance Contracts
Department of Transportation Vessel Repair Services
Navy Dry Docking and Repair
Defense Logistics Agency Maritime Support

Risk Flags

Sole-source award
Cost-reimbursement contract type ('COST NO FEE')
Lack of detailed performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $16.1 million to PATRIOT CONTRACT SERVICES, LLC. CAPE HORN FISCAL YEAR (FY) 24 DRY DOCK

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 $16.1 million.

What is the period of performance?

Start: 2024-07-31. End: 2025-10-26.

What is the typical cost structure for 'COST NO FEE' contracts in the maritime sector, and how does it compare to fixed-price contracts?

In 'COST NO FEE' contracts, the government reimburses the contractor for all allowable costs incurred in performing the work, but the contractor does not receive a profit or fee. This structure is often used when the scope of work is difficult to define precisely upfront, such as in complex repair or maintenance projects. The government bears the risk of cost overruns. Compared to fixed-price contracts, where the price is agreed upon upfront and the contractor assumes the cost risk, 'COST NO FEE' contracts require extensive government oversight to scrutinize and approve all claimed costs. While potentially beneficial for the government if costs are managed tightly, they can also lead to higher overall expenditures if cost controls are weak, as the contractor has less incentive to minimize expenses. Benchmarking is difficult as it relies on the allowability and reasonableness of incurred costs rather than a pre-negotiated price.

What specific capabilities does Patriot Contract Services, LLC possess that would justify a sole-source award for dry dock services?

While the provided data does not detail Patriot Contract Services, LLC's specific capabilities, sole-source awards for maritime dry dock services are typically justified by unique factors. These can include specialized facilities (e.g., specific dry dock sizes or equipment), proprietary repair techniques, existing familiarity with the vessel class requiring service, or urgent operational needs where only one contractor can respond in the required timeframe. The Maritime Administration likely conducted a justification and approval (J&A) process to document why Patriot Contract Services, LLC was the only responsible source capable of meeting the requirement. This often involves assessing the contractor's technical expertise, available infrastructure, safety records, and past performance.

How does the duration of this contract (452 days) impact the assessment of its value and risk?

The contract duration of 452 days (approximately 15 months) indicates a substantial and ongoing requirement for dry dock services. For value assessment, a longer duration can sometimes allow for economies of scale or more efficient scheduling of vessel maintenance. However, it also extends the period over which costs are incurred, increasing the importance of robust cost monitoring, especially under a 'COST NO FEE' structure. From a risk perspective, a longer contract duration increases the exposure to potential performance issues, cost escalations, or changes in operational needs. It also means that the government is committed to this specific provider for an extended period, potentially limiting flexibility if better options emerge or if the contractor's performance falters.

What are the potential implications of the 'NOT AVAILABLE FOR COMPETITION' (NAF) designation for taxpayer dollars?

The NAF designation means the contract was not competed, which generally implies a higher risk of inflated costs compared to competitively awarded contracts. Without the pressure of multiple bidders vying for the work, the selected contractor may not be incentivized to offer the lowest possible price. Taxpayers could therefore be paying a premium for the services. The government's ability to mitigate this risk relies heavily on its negotiation skills, the thoroughness of its cost analysis, and its oversight mechanisms to ensure that the contractor's costs are reasonable, allocable, and allowable. The absence of competition removes a key mechanism for price discovery and efficiency.

What is the significance of the NAICS code 483111 (Deep Sea Freight Transportation) in relation to this dry dock contract?

The NAICS code 483111, 'Deep Sea Freight Transportation,' primarily describes businesses involved in the transportation of freight by water in deep-sea vessels. While this contract is for dry dock *services* (maintenance and repair), the NAICS code suggests the *type* of vessels or operations the Maritime Administration is supporting. Dry dock services are essential for maintaining the operational readiness and safety of these deep-sea freight vessels. Therefore, this contract is intrinsically linked to the broader function of deep-sea freight transportation, ensuring the assets used in this sector are properly maintained and seaworthy. It highlights that the procurement is aimed at supporting the infrastructure and operational capabilities within this specific transportation sub-sector.

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: 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: $16,056,438

Exercised Options: $16,056,438

Current Obligation: $16,056,438

Actual Outlays: $15,685,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF720G000007

IDV Type: BOA

Timeline