NOAA Spends $10.6M on Antarctic Vessel Charter, Awarded to C G G E INTERNATIONAL LLC
Contract Overview
Contract Amount: $10,589,212 ($10.6M)
Contractor: C G G E International LLC
Awarding Agency: Department of Commerce
Start Date: 2004-08-31
End Date: 2010-05-01
Contract Duration: 2,069 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: VESSEL CHARTER TO ANTARCTIC REGION
Place of Performance
Location: REDMOND, KING County, WASHINGTON, 98073
Plain-Language Summary
Department of Commerce obligated $10.6 million to C G G E INTERNATIONAL LLC for work described as: VESSEL CHARTER TO ANTARCTIC REGION Key points: 1. The contract value of $10.6 million for vessel charter services is significant. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The long duration of the contract (2004-2010) raises questions about long-term cost-effectiveness. 4. The sector is Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing.
Value Assessment
Rating: fair
The contract value of $10.6 million over approximately 6 years for specialized vessel charter is difficult to benchmark without more specific details on vessel type and services. However, the duration suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes price discovery and can lead to more favorable pricing. The specific number of bids received and the final negotiated price would provide further insight into the effectiveness of this competition.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in essential services like Antarctic research support.
Public Impact
Ensures critical research and operational support in the remote Antarctic region. Supports scientific endeavors and logistical needs for NOAA's missions. The long-term nature of the contract implies a sustained need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (6 years) may not reflect current market rates.
- Lack of small business participation noted.
- Firm Fixed Price contract offers limited flexibility for scope changes.
Positive Signals
- Awarded under full and open competition.
- Supports critical scientific research.
Sector Analysis
This contract falls within the transportation equipment rental and leasing sector, specifically for water transportation. Spending in this sector can vary widely based on the specialized nature of vessels and operational requirements, such as those needed for polar expeditions.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small business participation were overlooked or if the nature of the requirement precluded their involvement.
Oversight & Accountability
Oversight would involve monitoring the contractor's performance against the contract terms, ensuring timely delivery of services, and verifying that the vessel meets all specified requirements for Antarctic operations. The agency's contract management practices are key to accountability.
Related Government Programs
- Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Long contract duration may not reflect current market value.
- No small business participation.
- Potential for contractor financial strain or unmet needs due to fixed price over extended period.
- Specialized nature of service may limit competitive landscape.
Tags
commercial-air-rail-and-water-transporta, department-of-commerce, wa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $10.6 million to C G G E INTERNATIONAL LLC. VESSEL CHARTER TO ANTARCTIC REGION
Who is the contractor on this award?
The obligated recipient is C G G E INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 2004-08-31. End: 2010-05-01.
What was the average annual cost of the vessel charter, and how does it compare to similar charters for Antarctic operations?
The average annual cost of the vessel charter was approximately $1.76 million ($10.6M / 6 years). Benchmarking this against similar Antarctic vessel charters is challenging without specific details on vessel size, capabilities, and duration of service. However, polar-class vessel charters are known to be exceptionally expensive due to specialized construction, ice-strengthening, and operational support required for harsh environments.
Given the firm fixed price and long duration, what are the potential risks associated with cost overruns or unmet performance expectations?
A firm fixed price contract for a long duration carries risks if market conditions change significantly, potentially leading to the contractor seeking modifications or facing financial strain if costs escalate beyond projections. For the government, the risk lies in the vessel not meeting evolving operational needs or performance standards over the six years, with limited recourse to adjust the price or scope without potential disputes or additional costs.
How effectively did the full and open competition process ensure the best value for taxpayer dollars for this specialized service?
Full and open competition is designed to maximize value by encouraging multiple bids. However, the effectiveness in this case depends on the number of qualified bidders for such a specialized Antarctic charter and the rigor of the evaluation process. Without knowing the bid landscape and evaluation criteria, it's difficult to definitively assess if the 'best' value was achieved, though the process itself is a positive indicator.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 17455 NE 67TH CT SUITE 120, REDMOND, WA, 01
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,589,212
Exercised Options: $10,589,212
Current Obligation: $10,589,212
Timeline
Start Date: 2004-08-31
Current End Date: 2010-05-01
Potential End Date: 2010-05-01 00:00:00
Last Modified: 2011-04-18
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