DoD's $14.1M Deep Sea Freight Transportation Contract Awarded to Offshore Service Vessels, LLC

Contract Overview

Contract Amount: $14,125,734 ($14.1M)

Contractor: Offshore Service Vessels, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2000-04-01

End Date: 2009-02-06

Contract Duration: 3,233 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: GALLIANO, LAFOURCHE County, LOUISIANA, 70354

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to OFFSHORE SERVICE VESSELS, L.L.C. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 3233 days (approx. 9 years) indicates a long-term need for these services. 3. The fixed-price contract type aims to control costs by establishing a set price upfront. 4. The North American Industry Classification System (NAICS) code 483111 points to specialized deep-sea freight services. 5. Awarded by the Department of the Navy, highlighting a specific military operational requirement. 6. The contract was awarded in Louisiana, potentially indicating regional economic impact.

Value Assessment

Rating: fair

The total award amount of $14.1 million over approximately nine years suggests a significant but not exceptionally large contract for deep-sea freight services. Without specific performance metrics or detailed cost breakdowns, it is difficult to definitively benchmark the value for money. However, the fixed-price nature of the contract provides some cost certainty for the government. Comparisons to similar long-term deep-sea transportation contracts would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 9 bids suggests a reasonably competitive environment for this specific service. A higher number of bidders generally correlates with better price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. The multiple bids received suggest that the government secured a competitive rate for these essential deep-sea freight services.

Public Impact

The Department of the Navy benefits from reliable deep-sea freight transportation services, crucial for logistical operations. The contract supports the movement of goods and potentially equipment necessary for naval missions. The geographic impact is likely concentrated around naval bases and operational areas requiring deep-sea transport. The contract supports jobs within the maritime transportation sector, particularly in Louisiana where it was awarded.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (9 years) may lead to potential price escalation risks if market conditions change significantly.
Reliance on a single contractor for a prolonged period could reduce flexibility in adapting to evolving logistical needs.
The specific nature of 'deep sea freight transportation' might involve specialized equipment and expertise, limiting alternative providers in the short term.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost certainty for the government.
The contract duration suggests a stable and predictable requirement, allowing for efficient resource planning by the contractor.

Sector Analysis

The maritime transportation sector, particularly deep-sea freight, is a critical component of global and national logistics. This contract falls within the freight transportation services sub-sector, which is characterized by significant capital investment in vessels and infrastructure. The market size for such specialized services can be substantial, driven by defense, commerce, and resource extraction industries. Benchmarking this contract against other government or commercial deep-sea freight agreements would provide context on pricing and service scope.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the contract was not specifically targeted towards small businesses. While the prime contractor, Offshore Service Vessels, LLC, may be a small business itself, the absence of set-aside provisions means that larger companies likely participated in the competition. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Military Sealift Command Contracts
Ocean Transportation Services
Defense Logistics Agency Contracts
Maritime Freight Services
Deep Sea Shipping Contracts

Risk Flags

Long contract duration may increase exposure to market fluctuations.
Potential for reduced flexibility due to long-term commitment.
Need for ongoing performance monitoring to ensure sustained quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 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 $14.1 million.

What is the period of performance?

Start: 2000-04-01. End: 2009-02-06.

What is the historical spending pattern for deep sea freight transportation by the Department of the Navy?

Analyzing historical spending for deep sea freight transportation by the Department of the Navy requires access to comprehensive federal procurement databases. Typically, such spending fluctuates based on geopolitical events, operational tempo, and strategic priorities. The Navy relies on these services for global logistics, troop movement, and equipment deployment. A review of past contracts, including their values, durations, and awarded contractors, would reveal trends in demand and pricing. For instance, periods of increased military engagement often correlate with higher spending on transportation services. Understanding these patterns helps in forecasting future needs and budgeting effectively. The $14.1 million awarded to Offshore Service Vessels, LLC represents a specific investment within this broader context, and its significance can only be fully appreciated by comparing it to the Navy's overall expenditure in this category over time.

How does the pricing of this contract compare to similar deep-sea freight transportation contracts awarded by other federal agencies?

Benchmarking the pricing of this $14.1 million contract against similar deep-sea freight transportation contracts requires a detailed analysis of contract terms, service scope, duration, and market conditions at the time of award. Factors such as vessel type, capacity, routes, and service level agreements significantly influence per-unit costs. Without access to comparable contract data, a precise comparison is challenging. However, the fixed-price nature of this award provides a degree of cost certainty. If this contract was awarded under full and open competition with multiple bids, it suggests the pricing is likely competitive within the market. Further investigation into contracts with similar NAICS codes (e.g., 483111) awarded by agencies like the Military Sealift Command or the Defense Logistics Agency would be necessary to establish a robust benchmark and assess whether the pricing is favorable for the government.

What are the key performance indicators (KPIs) used to evaluate the performance of Offshore Service Vessels, LLC under this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) for this contract. However, for deep-sea freight transportation services, typical KPIs would likely include on-time delivery rates, cargo condition upon arrival, vessel operational readiness and availability, fuel efficiency, adherence to safety and environmental regulations, and response times for service requests. The Department of the Navy would establish these metrics in the contract's Performance Work Statement (PWS). Performance evaluations would assess the contractor's ability to meet or exceed these standards throughout the contract's duration. Failure to meet critical KPIs could result in penalties, reduced payments, or even contract termination, depending on the severity and contractual clauses.

What is the track record of Offshore Service Vessels, LLC in performing similar government contracts?

Assessing the track record of Offshore Service Vessels, LLC requires examining their past performance on government contracts, particularly those involving deep-sea freight transportation. Information on previous awards, contract values, durations, and performance reviews (such as Contractor Performance Assessment Reporting System - CPARS) would be crucial. A history of successful contract completion, adherence to schedules, quality service delivery, and compliance with regulations would indicate a strong track record. Conversely, past issues such as contract disputes, performance deficiencies, or late deliveries would raise concerns. Without specific data on Offshore Service Vessels, LLC's prior government contract history, it is difficult to definitively assess their reliability and capability for this significant award.

What are the potential risks associated with a long-term (9-year) contract for deep-sea freight transportation?

Long-term contracts, such as this 9-year agreement, present several potential risks. Firstly, market volatility in fuel prices, vessel availability, and labor costs can significantly impact the contractor's profitability and potentially lead to requests for equitable adjustments or claims, even under a fixed-price contract, if unforeseen circumstances arise. Secondly, technological advancements in vessel design or logistics management could render the contracted services or equipment less efficient over time. Thirdly, changes in the government's operational requirements or strategic priorities might necessitate modifications to the service scope, which could be complex and costly to implement within a long-standing contract. Finally, there's a risk of contractor complacency or reduced innovation due to the long-term nature of the agreement, potentially impacting service quality or efficiency.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

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