Navy awards $112.8M for offshore service vessels, citing no competition
Contract Overview
Contract Amount: $11,279,150 ($11.3M)
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: $10.4K/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 $11.3 million to OFFSHORE SERVICE VESSELS, L.L.C. for work described as: Key points: 1. Significant contract value of $112.8 million awarded. 2. Sole-source award indicates limited competition. 3. Long contract duration of 1086 days. 4. Firm fixed-price contract type.
Value Assessment
Rating: questionable
The contract value of $112.8 million for offshore service vessels over three years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition procurement. This approach may lead to higher prices and reduced innovation compared to an open competition.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may not have secured the best possible price or terms.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Limited transparency in the procurement process. Potential for reduced service quality or innovation without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Firm fixed-price contract
Sector Analysis
This contract falls within the maritime services sector, specifically for specialized vessels supporting naval operations. Benchmarks for similar vessel charters can vary widely based on vessel type, duration, and operational requirements.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of the Navy adequately justified the lack of competition and obtained the best value for the government.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of documented justification for non-competition
- High contract value
- Long contract duration
Tags
department-of-defense, la, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.3 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 $11.3 million.
What is the period of performance?
Start: 1999-10-10. End: 2002-09-30.
What was the justification for not competing this contract, and was it adequately documented?
The provided data states the contract was 'NOT COMPETED' but lacks the specific justification. A thorough review would require accessing the contract file to understand the rationale, such as urgency, unique capabilities, or sole-source provider status, and to verify its adequacy according to federal procurement regulations.
How does the $112.8 million award compare to market rates for similar offshore service vessels?
Without specific details on the vessel types, capabilities, and service periods, a direct comparison is challenging. However, a $112.8 million award over approximately three years suggests a significant operational requirement. Benchmarking against industry databases or previous similar contracts would be necessary to assess cost-effectiveness.
What are the potential risks associated with a sole-source award for essential maritime services?
Sole-source awards carry risks of inflated pricing, reduced service quality due to lack of competitive pressure, and limited opportunities for innovation. There's also a risk that the government may not have access to the most suitable or cost-effective solutions available in the market.
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: 2010-01-14
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