DOT Awards $2.17M for Ship Management Services to Patriot Contract Services, LLC

Contract Overview

Contract Amount: $2,173,449 ($2.2M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-10-01

End Date: 2026-04-30

Contract Duration: 211 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: ADMIRAL CALLAGHAN FY26 SHIP MANAGER FIXED FEES A PCS-ACL26-1002 A

Place of Performance

Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $2.2 million to PATRIOT CONTRACT SERVICES, LLC for work described as: ADMIRAL CALLAGHAN FY26 SHIP MANAGER FIXED FEES A PCS-ACL26-1002 A Key points: 1. Contract value of $2.17 million for ship management. 2. Awarded under full and open competition. 3. Potential risk associated with fixed fees in a service contract. 4. Sector is Deep Sea Freight Transportation.

Value Assessment

Rating: fair

The contract uses a Cost No Fee (CNF) pricing structure, which can be less advantageous for the government if costs are not well-controlled by the contractor. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. However, the Cost No Fee structure might limit the government's ability to directly negotiate price reductions based on contractor efficiency.

Taxpayer Impact: Taxpayer funds are being used for essential maritime services. The competitive award aims to ensure reasonable pricing, but the CNF structure warrants monitoring for cost efficiency.

Public Impact

Ensures continued operation of maritime assets critical for transportation. Supports the U.S. maritime industry and associated jobs. Potential for cost overruns if contractor expenses are not managed effectively under the CNF model.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee pricing structure
Limited visibility into contractor's cost management

Positive Signals

Full and open competition
Essential service for national transportation

Sector Analysis

This contract falls within the Deep Sea Freight Transportation sector, which is vital for global trade and national security. Spending benchmarks for ship management services can vary significantly based on vessel type, size, and operational complexity.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Maritime Administration is responsible for overseeing this contract. Standard oversight procedures should be in place to monitor performance and costs, especially given the CNF pricing.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Cost No Fee pricing structure
Potential for cost overruns
Limited contractor incentive for cost control
Need for robust government cost oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.2 million to PATRIOT CONTRACT SERVICES, LLC. ADMIRAL CALLAGHAN FY26 SHIP MANAGER FIXED FEES A PCS-ACL26-1002 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 $2.2 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-04-30.

What is the typical cost range for ship management services for vessels of similar size and type to those managed under this contract?

The typical cost range for ship management services can vary widely depending on factors such as vessel size, type (e.g., cargo, tanker, passenger), age, crew size requirements, and the specific services included (e.g., technical management, crewing, commercial management, insurance). Without specific details on the vessels managed by Patriot Contract Services, LLC, providing an exact benchmark is challenging. However, industry reports suggest that annual management fees can range from 3% to 5% of the vessel's operating expenses or a fixed daily rate.

What are the primary risks associated with the Cost No Fee (CNF) pricing structure in this contract?

The primary risk of a Cost No Fee (CNF) contract is that the government bears the full cost of the contractor's expenses, while the contractor receives a fixed fee regardless of the actual costs incurred. This can disincentivize the contractor from aggressively controlling costs, potentially leading to higher overall government expenditure than anticipated. There is also a risk of inadequate oversight if the government does not diligently audit and verify the contractor's reported costs.

How effectively does the 'Full and Open Competition' method ensure value for taxpayer money in this specific contract?

Full and Open Competition generally promotes value for taxpayer money by encouraging multiple bidders to offer competitive pricing and innovative solutions. In this case, it likely led to a reasonable initial offer. However, the effectiveness is tempered by the Cost No Fee (CNF) pricing structure. While competition may have set a baseline, the CNF model shifts the cost control burden to the government, meaning ongoing oversight is crucial to ensure the final costs align with the value expected from the competitive process.

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: $2,173,449

Exercised Options: $2,173,449

Current Obligation: $2,173,449

Actual Outlays: $927,844

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