DOT Awards $2.1M Fixed Fee for Ship Management Services to Pacific-Gulf Marine, Inc

Contract Overview

Contract Amount: $2,107,024 ($2.1M)

Contractor: Pacific-Gulf Marine, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-12-21

End Date: 2025-10-26

Contract Duration: 309 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: GEM STATE FY25 SHIP MANAGER FIXED FEES PGM-GEM25-1002 A

Place of Performance

Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $2.1 million to PACIFIC-GULF MARINE, INC. for work described as: GEM STATE FY25 SHIP MANAGER FIXED FEES PGM-GEM25-1002 A Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Fixed fee structure provides cost certainty but may limit incentives for efficiency. 3. The Maritime Administration is the contracting agency. 4. The contract falls under the Deep Sea Freight Transportation sector.

Value Assessment

Rating: fair

The contract is a fixed fee award, which offers predictability. However, without a competitive benchmark, assessing the pricing's value relative to market rates is difficult. The provided benchmark of $6,819 seems low for a 309-day contract, suggesting potential overpricing or a misunderstanding of the benchmark's scope.

Cost Per Unit: $6,819 (benchmark)

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively awarded contract.

Public Impact

Taxpayers may be paying more than necessary due to the sole-source nature of the award. The Maritime Administration's operational efficiency could be impacted if the fixed fee doesn't incentivize optimal performance. Ensuring the selected vendor has the necessary expertise for deep sea freight transportation is crucial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to sole-source award
Fixed fee may not incentivize efficiency

Positive Signals

Clear cost structure with fixed fee
Defined contract period

Sector Analysis

This contract is within the Deep Sea Freight Transportation sector, which is critical for national supply chains. Spending benchmarks in this area can vary significantly based on vessel type, duration, and specific services required. Fixed fee contracts are common for predictable service scopes.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the opportunity to compete.

Oversight & Accountability

Oversight will be crucial to ensure Pacific-Gulf Marine, Inc. delivers the contracted services effectively and that the fixed fee remains reasonable throughout the contract term, especially given the lack of competition.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for overpayment due to lack of competitive bidding.
Fixed fee may not incentivize cost savings or optimal performance.
Unclear if small businesses were considered.
Benchmark data appears inconsistent with contract value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.1 million to PACIFIC-GULF MARINE, INC.. GEM STATE FY25 SHIP MANAGER FIXED FEES PGM-GEM25-1002 A

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 $2.1 million.

What is the period of performance?

Start: 2024-12-21. End: 2025-10-26.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further information from the contracting agency, it's impossible to determine the specific reason. This lack of transparency raises concerns about whether all avenues for competition were explored.

How does the fixed fee of $2.1M compare to similar ship management contracts for vessels of comparable size and service scope?

A direct comparison is challenging without more detailed contract specifics and market data. However, the provided benchmark of $6,819 per period seems unusually low for a 309-day contract, suggesting the total award might be significantly higher than market norms or the benchmark is not directly comparable. Further due diligence is required.

What performance metrics are in place to ensure the effectiveness of the ship management services provided under this fixed fee contract?

The data provided does not specify performance metrics. For fixed-fee contracts, clear performance standards and key performance indicators (KPIs) are essential to ensure the contractor delivers the required services effectively and efficiently. Without these, accountability is diminished.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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: $2,107,024

Exercised Options: $2,107,024

Current Obligation: $2,107,024

Actual Outlays: $2,107,024

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF724D000018

IDV Type: IDC

Timeline