Department of Transportation awards $12.7M contract for vessel operations, raising questions about competition and value

Contract Overview

Contract Amount: $12,732,714 ($12.7M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2024-12-27

End Date: 2026-04-30

Contract Duration: 489 days

Daily Burn Rate: $26.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE HENRY FISCAL YEAR (FY) 25 MISSION OPERATION COSTS PATHWAYS 25-1 THIS PROJECT COVERS OPERATION COSTS FOR THE VESSEL IN SUPPORT OF MISSION OPERATION PATHWAYS 25-1.

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94105

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $12.7 million to PATRIOT CONTRACT SERVICES, LLC for work described as: CAPE HENRY FISCAL YEAR (FY) 25 MISSION OPERATION COSTS PATHWAYS 25-1 THIS PROJECT COVERS OPERATION COSTS FOR THE VESSEL IN SUPPORT OF MISSION OPERATION PATHWAYS 25-1. Key points: 1. Contract awarded on a 'not available for competition' basis, limiting price discovery. 2. The contract duration of 489 days suggests a medium-term operational need. 3. The vessel operation services are critical for Mission Operation Pathways 25-1. 4. The Maritime Administration is the procuring agency for this contract. 5. The North American Industry Classification System (NAICS) code 483111 points to Deep Sea Freight Transportation. 6. The contract type is a Delivery Order, indicating it's part of a larger agreement or framework. 7. The contract value of $12.7 million is significant for specialized vessel operations.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards or detailed cost breakdowns. The 'Cost No Fee' (CNF) contract type, while common in certain government contexts, can sometimes obscure true cost efficiencies. Without competitive bidding, it's difficult to definitively assess if the $12.7 million represents a fair market price for the vessel operations. Further analysis of the contractor's cost structure and historical performance would be needed to provide a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'not available for competition' basis, indicating that a competitive solicitation process was not utilized. This typically occurs when only one responsible source is available or in cases of urgent need. The lack of competition means that potential alternative providers were not considered, which can limit opportunities for price negotiation and innovation.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the absence of a bidding process. This could potentially lead to higher costs than if multiple vendors had competed for the contract.

Public Impact

The primary beneficiaries are the Department of Transportation and its Maritime Administration, ensuring the continuation of Mission Operation Pathways 25-1. The services delivered are essential for the operational success of the specified mission. The contract is geographically focused on California, as indicated by the 'SN' field. The contract supports specialized maritime services, potentially impacting a niche workforce within the transportation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpricing and reduced value for taxpayer funds.
The 'Cost No Fee' contract type can make it difficult to assess the contractor's profit margins and overall cost-effectiveness.
Limited transparency in the sole-source justification could obscure underlying reasons for not competing the award.

Positive Signals

The contract ensures the continuity of critical vessel operations for a specific government mission.
The contractor, Patriot Contract Services, LLC, is being utilized, suggesting a pre-existing relationship or specialized capability.
The contract duration provides a degree of stability for the operational mission.

Sector Analysis

The contract falls within the Deep Sea Freight Transportation sector, a specialized segment of the broader maritime industry. This sector is characterized by high capital investment in vessels and specialized operational expertise. Comparable spending in this area can vary widely based on vessel type, duration of service, and specific mission requirements. The Maritime Administration often procures such services to support national security, economic, or logistical objectives.

Small Business Impact

The data indicates that small business participation (SS and SB fields) is not a primary focus for this specific contract award. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided information, but given the specialized nature of deep-sea vessel operations, it is possible that larger prime contractors may engage smaller, specialized service providers if needed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Office of Inspector General (OIG). The Maritime Administration is responsible for day-to-day contract administration and performance monitoring. Transparency is limited due to the sole-source nature of the award, but contract details are typically available through federal procurement databases. Accountability will be measured by the contractor's adherence to the terms of the delivery order and the successful execution of mission operations.

Related Government Programs

Maritime Operations Support
Vessel Charter and Operations
Mission Support Services
Department of Transportation Procurement
Deep Sea Freight Transportation Contracts

Risk Flags

Non-competitive award
Potential for cost overruns
Limited transparency in pricing
Lack of performance benchmarks for sole-source contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.7 million to PATRIOT CONTRACT SERVICES, LLC. CAPE HENRY FISCAL YEAR (FY) 25 MISSION OPERATION COSTS PATHWAYS 25-1 THIS PROJECT COVERS OPERATION COSTS FOR THE VESSEL IN SUPPORT OF MISSION OPERATION PATHWAYS 25-1.

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 $12.7 million.

What is the period of performance?

Start: 2024-12-27. End: 2026-04-30.

What is the track record of Patriot Contract Services, LLC with the Department of Transportation and similar agencies?

A review of federal procurement data would be necessary to fully assess Patriot Contract Services, LLC's track record. Specifically, one would look for past performance evaluations, any history of contract disputes or terminations, and the types and values of previous contracts awarded to the company. Understanding their experience with 'Cost No Fee' contracts and deep-sea vessel operations would be particularly relevant. Without this specific data, it's difficult to gauge their reliability and past success in fulfilling similar government requirements. A deeper dive into their contract history could reveal patterns of performance that inform the current award's risk assessment.

How does the $12.7 million cost compare to similar vessel operation contracts, especially those awarded non-competitively?

Comparing the $12.7 million cost is challenging without access to detailed cost breakdowns and specific operational requirements. 'Cost No Fee' contracts can obscure profit margins, making direct price comparisons difficult. To benchmark effectively, one would need to identify similar sole-source or non-competitive contracts for comparable vessel types, operational durations, and geographic areas. Analyzing the contractor's proposed costs against industry standards for vessel crewing, maintenance, fuel, and port fees would also be crucial. The absence of competition inherently limits the ability to determine if this price represents optimal value for the government.

What are the specific risks associated with awarding a contract of this magnitude on a non-competitive basis?

The primary risk of awarding a contract non-competitively is the potential for inflated costs due to a lack of market pressure. Without competition, the government may pay more than necessary, diminishing the value for taxpayer dollars. Another risk is the potential for reduced innovation, as contractors may have less incentive to propose cost-saving measures or novel solutions when they are the sole provider. Furthermore, a non-competitive award can raise concerns about fairness and equal opportunity for other qualified businesses. Ensuring robust oversight and justification for the sole-source determination is critical to mitigate these risks.

What is the expected effectiveness of the vessel operations for Mission Operation Pathways 25-1, and how will it be measured?

The effectiveness of the vessel operations for Mission Operation Pathways 25-1 will be measured against the specific objectives outlined in the mission plan. This typically involves performance metrics related to mission completion, operational uptime, adherence to schedules, safety standards, and potentially environmental compliance. The contract's success hinges on the contractor's ability to provide reliable and capable vessel services as defined in the delivery order. The Maritime Administration will likely monitor key performance indicators (KPIs) and conduct regular reviews to ensure the operations are meeting the mission's requirements and contributing to its overall success.

What has been the historical spending by the Maritime Administration on similar vessel operation contracts over the past five fiscal years?

To determine historical spending, a comprehensive analysis of the Maritime Administration's contract database over the last five fiscal years would be required. This would involve querying for contracts related to vessel operations, chartering, and deep-sea transportation, filtering by relevant NAICS codes (like 483111) and contract types. The analysis should identify trends in spending, average contract values, and the prevalence of competitive versus non-competitive awards. Understanding this historical context can help assess whether the current $12.7 million award is an outlier, consistent with past spending, or indicative of a changing market dynamic or mission requirement.

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: $12,732,714

Exercised Options: $12,732,714

Current Obligation: $12,732,714

Actual Outlays: $9,904,847

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF720G000007

IDV Type: BOA

Timeline