DoD's $24M Contract for Coastal Freight Transportation: A Look at Value and Competition
Contract Overview
Contract Amount: $23,988,849 ($24.0M)
Contractor: Offshore Service Vessels, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2003-11-25
End Date: 2008-09-18
Contract Duration: 1,759 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Place of Performance
Location: NEW LONDON, NEW LONDON County, CONNECTICUT, 06320
Plain-Language Summary
Department of Defense obligated $24.0 million to OFFSHORE SERVICE VESSELS, L.L.C. for work described as: Key points: 1. The contract awarded to OFFSHORE SERVICE VESSELS, L.L.C. for coastal and Great Lakes freight transportation represents a significant expenditure. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The duration of the contract (1759 days) indicates a long-term need for these services. 4. The absence of small business participation warrants further investigation into contracting opportunities.
Value Assessment
Rating: fair
The award amount of $23,988,849.31 for 1759 days of service suggests a daily rate of approximately $13,638. Benchmarking against similar contracts for specialized vessel services is needed to assess value.
Cost Per Unit: $13,638
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific pricing outcomes and whether multiple bids were received and evaluated are not detailed here.
Taxpayer Impact: Taxpayer funds were utilized for this contract. The effectiveness of the competition in securing the best possible price for the government is a key consideration for taxpayer impact.
Public Impact
Ensures critical transportation services for the Department of the Navy. Supports maritime logistics and supply chain operations. Potential economic impact on the maritime transportation sector. Highlights the government's reliance on specialized vessel services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Limited transparency on specific pricing details and bid evaluation
Positive Signals
- Awarded through full and open competition
- Long-term contract ensures service continuity
Sector Analysis
The contract falls within the transportation sector, specifically focusing on coastal and Great Lakes freight. Government spending in this area is crucial for national logistics and defense readiness, with benchmarks varying based on vessel type and service requirements.
Small Business Impact
The contract data indicates that small businesses were not involved in this award (ss=false, sb=false). This suggests a potential missed opportunity for small business engagement and warrants an analysis of why small businesses did not participate or were not considered.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense. Oversight would typically involve contract management by the Navy to ensure performance and adherence to terms, with potential for broader DoD review.
Related Government Programs
- Coastal and Great Lakes Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of small business participation
- Potential for cost escalation in long-term contracts
- Limited transparency on competitive pricing outcomes
- Dependence on a single contractor for critical services
Tags
coastal-and-great-lakes-freight-transpor, department-of-defense, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.0 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 $24.0 million.
What is the period of performance?
Start: 2003-11-25. End: 2008-09-18.
What was the competitive landscape like for this contract, and did the full and open competition result in a price advantage for the government?
While the contract was awarded under full and open competition, the provided data does not detail the number of bids received or the specific pricing strategies employed by bidders. A thorough review of the solicitation and award documents would be necessary to ascertain the degree of competition and whether it effectively drove down costs compared to a sole-source or limited competition scenario.
What are the primary risks associated with a long-term contract for specialized freight transportation services, and how were they mitigated?
Risks include potential cost overruns due to fluctuating fuel prices or unforeseen operational challenges, service disruptions, and the risk of vendor lock-in. Mitigation strategies might involve robust performance clauses, contingency planning, and regular performance reviews. The firm fixed-price structure aims to cap cost risks for the government, but operational risks remain.
How does the per-unit cost of $13,638 compare to industry benchmarks for similar offshore service vessel operations, and does it represent good value for the taxpayer?
Without specific details on the vessel size, type, operational scope, and duration of service, a precise benchmark is difficult. However, $13,638 per day is a substantial figure. A detailed cost-benefit analysis comparing this rate against market rates for comparable services, considering the specific requirements of the Navy's mission, is essential to determine if it represents good value.
Industry Classification
NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Coastal and Great Lakes Freight Transportation
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 16201 EAST MAIN STREET, GALLIANO, LA, 01
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-11-25
Current End Date: 2008-09-18
Potential End Date: 2008-09-18 00:00:00
Last Modified: 2010-03-10
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