Transportation awards $2M for FY25 ship management, with limited competition impacting price discovery

Contract Overview

Contract Amount: $2,009,735 ($2.0M)

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: $6.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: KEYSTONE STATE FY25 SHIP MANAGER FIXED FEES A PGM-KYS25-1002 A

Place of Performance

Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $2.0 million to PACIFIC-GULF MARINE, INC. for work described as: KEYSTONE STATE FY25 SHIP MANAGER FIXED FEES A PGM-KYS25-1002 A Key points: 1. The contract's firm fixed-price structure offers cost certainty for the government. 2. Limited competition raises concerns about achieving optimal value for taxpayer funds. 3. The contract duration of 309 days aligns with the specified fiscal year. 4. The service falls under the Deep Sea Freight Transportation NAICS code. 5. The award was made via a delivery order under a larger contract vehicle. 6. The contractor, Pacific-Gulf Marine, Inc., is based in California.

Value Assessment

Rating: fair

Benchmarking this specific fixed fee for ship management is challenging without more detailed service scope. However, the total value of $2,009,734.62 for approximately 10 months of service appears within a reasonable range for specialized maritime operations. The firm fixed-price nature suggests the contractor bears cost overruns, which is a positive for the government if the price was set competitively. Without a competitive process, it's difficult to definitively assess if this represents the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating it was likely awarded under an existing contract vehicle or through a sole-source justification. The absence of a full and open competition means that multiple potential bidders were not solicited, which can limit price discovery and potentially lead to higher costs for the government. The specific reasons for this limited competition are not detailed in the provided data.

Taxpayer Impact: Limited competition means taxpayers may not be benefiting from the lowest possible price that could have been achieved through a broader bidding process.

Public Impact

The primary beneficiaries are likely the U.S. Navy or other government entities requiring ship management services. The services delivered include the management of a vessel for deep sea freight transportation. The geographic impact is primarily related to maritime operations, potentially global. Workforce implications could include employment for maritime professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of full and open competition may result in suboptimal pricing.
Limited data on performance metrics makes it difficult to assess contractor efficiency.
The specific scope of 'ship manager' duties requires further clarification for full value assessment.

Positive Signals

Firm fixed-price contract provides budget certainty.
Contract duration aligns with the fiscal year, ensuring continuous service.
Awarding agency (Maritime Administration) has expertise in maritime contracts.

Sector Analysis

This contract falls within the broader transportation and logistics sector, specifically focusing on maritime operations. The market for ship management services is specialized, involving companies with expertise in vessel operations, crewing, maintenance, and regulatory compliance. Comparable spending benchmarks are difficult to establish without knowing the vessel type and specific services rendered, but government contracts for ship management can range from hundreds of thousands to millions of dollars annually, depending on the complexity and duration.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). As the contract was not competed broadly, there may have been limited opportunities for small businesses to be involved either as prime contractors or subcontractors. Further analysis would be needed to determine if subcontracting opportunities exist within the awarded contract and if small businesses are being utilized.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation's Maritime Administration. Accountability measures are usually embedded within the contract terms, including performance standards and reporting requirements. Transparency is enhanced through contract databases like FPDS, though the justification for limited competition might require further inquiry. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Security Program
Sealift Support Contracts
Government Vessel Operations
Fleet Maintenance Contracts

Risk Flags

Limited competition may lead to higher costs.
Lack of detailed performance metrics hinders value assessment.
Contract awarded via delivery order, requiring review of the parent contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.0 million to PACIFIC-GULF MARINE, INC.. KEYSTONE STATE FY25 SHIP MANAGER FIXED FEES A PGM-KYS25-1002 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 $2.0 million.

What is the period of performance?

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

What is the track record of Pacific-Gulf Marine, Inc. with federal contracts, particularly within the Department of Transportation?

Pacific-Gulf Marine, Inc. has a history of receiving federal contracts, primarily from the Department of Transportation and the Department of Defense. Analysis of their contract history reveals a pattern of awards related to vessel operations, crewing, and management services. While specific performance metrics for past contracts are not detailed here, their continued selection suggests a level of satisfactory performance in fulfilling government requirements. Further investigation into past performance reviews and any documented issues would provide a more comprehensive understanding of their track record.

How does the $2,009,734.62 fixed fee compare to similar ship management contracts awarded by the government?

Direct comparison of this fixed fee is challenging without precise details on the vessel type, size, operational tempo, and the full scope of management services included. However, for a contract spanning approximately 10 months (late 2024 to late 2025) for deep sea freight transportation management, the amount is within a plausible range. Government contracts for similar services can vary significantly. For instance, managing a large military sealift vessel might command higher fees due to complexity and security requirements, while smaller commercial-type vessels might incur lower costs. The lack of competitive bidding makes it difficult to ascertain if this fee represents optimal market value.

What are the primary risks associated with a 'NOT COMPETED' contract award for ship management services?

The primary risk associated with a 'NOT COMPETED' award is the potential for paying a higher price than necessary due to the absence of market competition. This lack of bidding can reduce the incentive for the contractor to offer their most competitive rates. Additionally, without a competitive process, there's a reduced opportunity to evaluate a wider range of technical solutions or innovative approaches from different providers. This can also limit the government's ability to assess the contractor's capabilities against a broader market landscape, potentially impacting long-term value and performance.

What is the expected effectiveness of the ship management services under this contract for FY25?

The expected effectiveness hinges on the contractor's ability to fulfill the defined scope of work, which includes managing the vessel for deep sea freight transportation. Given the firm fixed-price structure, the government anticipates a predictable cost for these services. Effectiveness will be measured by the contractor's adherence to operational schedules, maintenance standards, safety protocols, and regulatory compliance. The Maritime Administration's oversight and the contractor's experience in managing similar vessels will be key determinants of success. Without specific performance metrics defined in the award, effectiveness is broadly tied to operational continuity and meeting contractual obligations.

How does the historical spending on ship management by the Maritime Administration compare to this FY25 award?

Historical spending data for ship management by the Maritime Administration (MARAD) would provide crucial context. If MARAD has consistently awarded similar contracts in the $2 million range annually for comparable services, this FY25 award might represent a continuation of established spending patterns. Conversely, if this amount is significantly higher or lower than previous awards for similar scope, it warrants further investigation into the reasons for the deviation. Analyzing trends in contract values, durations, and competition levels over several fiscal years would reveal whether this award is an outlier or part of a consistent program.

What are the implications of the 'Deep Sea Freight Transportation' NAICS code (483111) for this contract?

The North American Industry Classification System (NAICS) code 483111, 'Deep Sea Freight Transportation,' signifies that the primary business activity related to this contract involves the transportation of freight by vessel on deep seas or oceans. This classification helps define the scope of services expected, focusing on the operational aspects of moving goods across international waters. It also indicates the type of industry and market the contractor operates within, influencing regulatory considerations, typical operational challenges, and the specialized expertise required for effective ship management in this domain.

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: $2,009,735

Exercised Options: $2,009,735

Current Obligation: $2,009,735

Actual Outlays: $2,009,735

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