DHS CBP awards $84M vessel maintenance contract to Global Maritek Systems Inc

Contract Overview

Contract Amount: $84,024,796 ($84.0M)

Contractor: Global Maritek Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2018-05-22

End Date: 2021-03-31

Contract Duration: 1,044 days

Daily Burn Rate: $80.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: IGF::CT::IGF DHS CBP AMO NMC VESSEL MAINTENANCE&LOGISTICS CONTRACT /// CONTINUATION OF 1010C00120

Place of Performance

Location: FORT LAUDERDALE, BROWARD County, FLORIDA, 33309

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $84.0 million to GLOBAL MARITEK SYSTEMS INC for work described as: IGF::CT::IGF DHS CBP AMO NMC VESSEL MAINTENANCE&LOGISTICS CONTRACT /// CONTINUATION OF 1010C00120 Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially competitive process with specific justifications. 2. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance but requires careful monitoring of costs and award fee criteria. 3. The contract duration of 1044 days (approx. 3 years) suggests a need for sustained support for vessel maintenance and logistics. 4. The primary NAICS code (336611) points to the Ship Building and Repairing industry, aligning with the nature of vessel maintenance. 5. The contract was awarded to a single entity, Global Maritek Systems Inc., highlighting their specialized capabilities in this niche. 6. The contract's value of over $84 million indicates a significant investment in maintaining critical operational assets for CBP.

Value Assessment

Rating: fair

The contract's Cost Plus Award Fee (CPAF) structure allows for performance incentives but can lead to cost overruns if not managed tightly. Benchmarking this specific contract's value against similar vessel maintenance contracts for federal agencies is challenging due to the specialized nature of the services and the specific assets maintained. However, the significant award amount suggests a substantial scope of work. Further analysis would require detailed breakdowns of the costs incurred and the award fees paid to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be open, specific sources were excluded, likely due to specialized requirements or prior performance. The exact number of bidders and the rationale for exclusion are not detailed, making it difficult to fully assess the breadth of competition. This type of competition can sometimes lead to higher prices if the pool of eligible bidders is significantly narrowed.

Taxpayer Impact: Taxpayers may have received less competitive pricing due to the exclusion of certain sources, potentially limiting the number of viable bids and increasing the final contract cost.

Public Impact

Benefits U.S. Customs and Border Protection (CBP) by ensuring the operational readiness of their vessel fleet. Delivers essential maintenance, repair, and logistics services for maritime assets critical to border security and interdiction operations. Geographic impact is likely national, supporting CBP operations across various coastal and inland waterways. Supports a specialized workforce within the maritime maintenance and repair sector, potentially including skilled technicians and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep under the CPAF structure if award fee criteria are not rigorously defined and monitored.
Limited transparency into the specific reasons for excluding certain sources from the competition.
Dependence on a single contractor for critical vessel maintenance could pose risks if performance falters or if the contractor faces financial instability.

Positive Signals

The 'Full and Open Competition' aspect, even with exclusions, suggests an attempt to find qualified providers.
The CPAF structure, when managed effectively, can drive high performance and efficiency.
The contract addresses a clear operational need for CBP's maritime enforcement capabilities.

Sector Analysis

The maritime vessel maintenance and repair sector is a specialized segment of the broader shipbuilding and repairing industry (NAICS 336611). This sector requires specific technical expertise, certifications, and often facilities capable of handling large vessels. Federal spending in this area is crucial for agencies like CBP that rely on a robust fleet for national security and law enforcement. Comparable spending benchmarks are difficult to establish without more granular data on vessel types, maintenance scope, and geographic locations, but contracts of this magnitude are typical for maintaining significant operational fleets.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). Therefore, the primary contractor, Global Maritek Systems Inc., is likely responsible for managing subcontracting opportunities. Analysis of subcontracting plans and actual awards to small businesses would be necessary to determine the impact on the small business ecosystem. Without specific set-asides, large prime contractors may prioritize larger, established subcontractors, potentially limiting opportunities for smaller, specialized firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection (CBP) contracting officers and program managers. The Cost Plus Award Fee (CPAF) structure necessitates robust oversight to ensure that costs are reasonable and that award fees are justified based on performance metrics. Transparency is facilitated through contract award databases, but detailed performance reports and cost breakdowns are typically internal. The Department of Homeland Security's Inspector General (OIG) would have jurisdiction to investigate potential fraud, waste, or abuse related to this contract.

Related Government Programs

DHS Vessel Maintenance Contracts
CBP Maritime Operations Support
Federal Ship Repair Services
Coast Guard Vessel Maintenance
Naval Sea Systems Command Contracts

Risk Flags

Potential for cost overruns due to CPAF structure.
Limited competition due to source exclusion.
Dependence on a single contractor for critical services.
Need for robust performance monitoring and cost auditing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $84.0 million to GLOBAL MARITEK SYSTEMS INC. IGF::CT::IGF DHS CBP AMO NMC VESSEL MAINTENANCE&LOGISTICS CONTRACT /// CONTINUATION OF 1010C00120

Who is the contractor on this award?

The obligated recipient is GLOBAL MARITEK SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $84.0 million.

What is the period of performance?

Start: 2018-05-22. End: 2021-03-31.

What is the track record of Global Maritek Systems Inc. with federal contracts, particularly within the Department of Homeland Security?

Global Maritek Systems Inc. has a history of receiving federal contracts, primarily within the maritime services sector. While specific details on their performance across all contracts require deeper investigation, their award for this significant CBP vessel maintenance contract suggests a level of capability and trust from the agency. Analyzing past performance reviews, any contract disputes, or awards/penalties associated with their previous federal engagements would provide a more comprehensive understanding of their reliability and expertise. It is important to cross-reference their performance on similar contracts, especially those involving complex maintenance and logistics for operational fleets, to gauge their suitability and value proposition.

How does the $84 million contract value compare to similar vessel maintenance contracts awarded by federal agencies?

Comparing the $84 million value requires context regarding the scope, duration, and specific services rendered. Contracts for maintaining large fleets of specialized vessels, such as those operated by CBP for border security, can be substantial. For instance, contracts supporting the U.S. Coast Guard or Navy for similar maintenance and repair services often range in the tens to hundreds of millions of dollars over several years. The 'Ship Building and Repairing' NAICS code (336611) encompasses a wide array of services, from minor repairs to major overhauls. Without specific details on the types of vessels, the frequency of maintenance, and the geographic coverage, a precise benchmark is difficult. However, $84 million over approximately three years for a significant operational fleet is within the expected range for specialized federal maritime support.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for vessel maintenance?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract for vessel maintenance revolve around cost control and performance definition. CPAF contracts reimburse the contractor for allowable costs plus a fee that is composed of a fixed base fee and an award amount based on performance against pre-defined criteria. The risk for the government is that contractors may have less incentive to control costs rigorously compared to fixed-price contracts, as costs are reimbursed. Furthermore, if the award fee criteria are not clearly defined, measurable, and objectively assessed, there's a risk of paying excessive award fees for mediocre performance or, conversely, failing to adequately reward exceptional performance. Effective oversight, robust performance metrics, and diligent cost auditing are crucial to mitigate these risks and ensure value for money.

What is the historical spending pattern for vessel maintenance and logistics by U.S. Customs and Border Protection?

Historical spending patterns for vessel maintenance and logistics by U.S. Customs and Border Protection (CBP) indicate a consistent and significant investment in maintaining their maritime operational capabilities. CBP operates a large fleet of patrol boats and other vessels crucial for its law enforcement and interdiction missions. Annual spending on maintenance, repair, and logistics for these assets typically runs into the tens of millions of dollars, often awarded through a mix of contract types including time-and-materials, cost-reimbursement, and fixed-price contracts. The size and frequency of these contracts fluctuate based on fleet modernization, operational tempo, and specific maintenance needs. This $84 million award represents a substantial portion of their multi-year spending in this category, reflecting the ongoing need for robust maritime support.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact pricing and contractor availability?

The 'Full and Open Competition After Exclusion of Sources' method is a nuanced approach to procurement. It begins with the intent of full and open competition but then justifies the exclusion of specific sources. This exclusion must be based on specific regulatory criteria, such as the need for a unique capability or a sole source justification for a follow-on effort. While it aims for competition among the remaining eligible sources, the exclusion can limit the number of bidders. If the exclusion narrows the field significantly, it may reduce competitive pressure, potentially leading to higher prices than if all qualified sources were allowed to bid. Conversely, if the excluded sources were not truly capable or competitive, the remaining competition might still yield fair pricing. The transparency and justification for exclusions are key to assessing its impact.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 1903 S CONGRESS AVE STE 390, BOYNTON BEACH, FL, 33426

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $93,680,285

Exercised Options: $84,024,796

Current Obligation: $84,024,796

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline