Navy Awards $42M for Offshore Service Vessels, Sole-Source Contract Awarded
Contract Overview
Contract Amount: $42,078,606 ($42.1M)
Contractor: Offshore Service Vessels, L.L.C.
Awarding Agency: Department of Defense
Start Date: 1999-10-10
End Date: 2002-09-30
Contract Duration: 1,086 days
Daily Burn Rate: $38.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: GALLIANO, LAFOURCHE County, LOUISIANA, 70354
Plain-Language Summary
Department of Defense obligated $42.1 million to OFFSHORE SERVICE VESSELS, L.L.C. for work described as: Key points: 1. The Department of the Navy awarded $42,078,606 to OFFSHORE SERVICE VESSELS, L.L.C. for offshore service vessels. 2. The contract was not competed, raising questions about potential price discovery. 3. The contract duration is 1086 days, spanning from October 1999 to September 2002. 4. The award value of $38,746,000 is a significant portion of the total contract amount.
Value Assessment
Rating: questionable
The total award amount is $42,078,606. The base contract value is $38,746,000. Without competitive bids, it's difficult to assess if this pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $42M contract could mean taxpayers paid more than necessary.
Public Impact
Taxpayers may have overpaid due to the sole-source nature of the contract. The long duration of the contract (1086 days) suggests a sustained need for these services. The specific services provided by these offshore vessels are not detailed, limiting public understanding of the expenditure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation indicated
Positive Signals
- Firm fixed price contract type
- Long-term contract duration
Sector Analysis
The Department of Defense, specifically the Navy, requires specialized vessels for various operations. Spending on such services can vary significantly based on mission requirements and market availability. This contract falls within the broader category of maritime support services.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business engagement.
Oversight & Accountability
The sole-source nature of this award warrants further scrutiny to ensure the government obtained fair value. Oversight should focus on the justification for not competing the contract.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- No small business participation
- Potential for overpayment
- Limited transparency on services provided
Tags
department-of-defense, la, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.1 million to OFFSHORE SERVICE VESSELS, L.L.C.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is OFFSHORE SERVICE VESSELS, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $42.1 million.
What is the period of performance?
Start: 1999-10-10. End: 2002-09-30.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation into the contract file would be required to determine the specific rationale.
What are the risks associated with a sole-source contract for offshore service vessels?
The primary risk of a sole-source contract is the potential for inflated pricing due to the absence of competitive pressure. It also limits opportunities for other qualified vendors to compete, potentially hindering innovation and reducing overall market efficiency. Ensuring fair and reasonable pricing requires robust negotiation and justification.
How effective was this contract in meeting the Navy's needs for offshore service vessels?
The effectiveness of this contract cannot be fully assessed without more information on the specific services rendered and the Navy's operational outcomes. However, the long duration suggests a sustained need. The lack of competition raises concerns about whether the most cost-effective and efficient solution was secured.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 16201 E MAIN ST, GALLIANO, LA, 01
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-10-10
Current End Date: 2002-09-30
Potential End Date: 2002-09-30 00:00:00
Last Modified: 2010-01-25
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