DOT Awards $2.3M Fixed Fee Contract for Ship Management to Patriot Contract Services

Contract Overview

Contract Amount: $2,316,659 ($2.3M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-09-11

End Date: 2026-04-22

Contract Duration: 223 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE ORLANDO FY26 SHIP MANAGER FIXED FEES A PCS-ORL26-1002 A

Place of Performance

Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $2.3 million to PATRIOT CONTRACT SERVICES, LLC for work described as: CAPE ORLANDO FY26 SHIP MANAGER FIXED FEES A PCS-ORL26-1002 A Key points: 1. Contract value of $2.3M for ship management services. 2. Awarded to Patriot Contract Services, LLC. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. Sector is Maritime Administration within Transportation. 5. Contract duration is 223 days.

Value Assessment

Rating: good

The fixed fee structure is common for services where costs are difficult to predict. The award amount appears reasonable for the scope and duration, though a direct comparison to similar contracts is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of potential contractors to bid. This method is generally effective in achieving fair market value.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.

Public Impact

Ensures continued operation and management of maritime assets. Supports the Department of Transportation's mission in maritime services. Potential impact on the efficiency and readiness of the U.S. merchant marine fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Fixed fee without clear cost controls could lead to inefficiencies if not managed well.

Positive Signals

Awarded through full and open competition.
Clear contract type (fixed fee) for defined services.

Sector Analysis

This contract falls within the Maritime Administration sector, which is part of the broader Transportation industry. Spending in this area typically supports the operation and maintenance of government-owned or controlled vessels and related infrastructure.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will be crucial to ensure Patriot Contract Services meets all contractual obligations and performance standards. The Department of Transportation's contracting office is responsible for monitoring contract performance and financial expenditures.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Potential for contractor profit maximization due to fixed fee.
Lack of detailed performance metrics in the provided data.
Limited insight into the specific services covered by the fixed fee.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.3 million to PATRIOT CONTRACT SERVICES, LLC. CAPE ORLANDO FY26 SHIP MANAGER FIXED FEES A PCS-ORL26-1002 A

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 $2.3 million.

What is the period of performance?

Start: 2025-09-11. End: 2026-04-22.

What is the benchmark for fixed fees in ship management contracts of similar scope and duration?

Benchmarking fixed fees for ship management requires detailed analysis of comparable contracts, considering vessel type, operational complexity, duration, and specific services included. Without access to a comprehensive database of similar federal contracts, providing an exact benchmark is challenging. However, typical fixed fees aim to cover anticipated operational costs plus a reasonable profit margin, and deviations from industry norms could indicate potential overpricing or exceptional value.

What are the key performance indicators (KPIs) for this ship management contract, and how will they be monitored?

The provided data does not specify the key performance indicators (KPIs) for this contract. Effective oversight requires clearly defined KPIs related to operational efficiency, safety, maintenance, and compliance. The Department of Transportation should have established monitoring mechanisms to track Patriot Contract Services' performance against these KPIs to ensure the contractor is meeting contractual requirements and delivering value.

How does the pricing structure compare to cost-plus contracts for similar maritime services?

Fixed-fee contracts, like this one, offer price certainty compared to cost-plus contracts, where the government pays actual costs plus a fee. While fixed fees can be advantageous for predictable services, they may not be as flexible if unforeseen issues arise, potentially leading to contractor profit maximization at government expense if the fee is set too high. Cost-plus contracts offer more flexibility but carry higher cost-reimbursement risk for the government.

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: 1320 WILLOW PASS RD, CONCORD, CA, 94520

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,316,659

Exercised Options: $2,316,659

Current Obligation: $2,316,659

Actual Outlays: $1,019,311

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000010

IDV Type: IDC

Timeline