Navy awards $14.1M for Deep Sea Freight Transportation, highlighting potential value concerns
Contract Overview
Contract Amount: $14,114,875 ($14.1M)
Contractor: Offshore Service Vessels, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2004-10-01
End Date: 2005-10-24
Contract Duration: 388 days
Daily Burn Rate: $36.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH (CITY) County, VIRGINIA, 23455
State: Virginia 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. The contract value of $14.1 million for offshore service vessels suggests a significant investment. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The contract duration of 388 days for freight transportation raises questions about efficiency and cost-effectiveness. 4. The absence of small business participation warrants further investigation into market accessibility.
Value Assessment
Rating: questionable
The award amount of $14.1 million for 388 days of service needs comparison against similar contracts for offshore service vessels. Without benchmarks, it's difficult to ascertain if this represents a fair market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the final award amount relative to the initial solicitation needs to be assessed to confirm effective price discovery.
Taxpayer Impact: The effectiveness of price discovery under full and open competition will determine the ultimate taxpayer impact. A well-executed competition should yield competitive pricing, maximizing taxpayer value.
Public Impact
Essential logistical support for naval operations is ensured through this contract. The use of offshore service vessels indicates specialized maritime capabilities are being procured. Potential for cost overruns or inefficiencies exists if not closely monitored.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Potential for uncompetitive pricing despite full and open competition
- Limited duration may not reflect long-term needs
Positive Signals
- Awarded under full and open competition
- Clear contract type (Firm Fixed Price)
Sector Analysis
The procurement falls within the maritime logistics and transportation sector, specifically for specialized offshore service vessels. Spending benchmarks in this niche area are crucial for evaluating the $14.1 million award.
Small Business Impact
The data indicates no small business participation in this contract. Further analysis is needed to understand if opportunities were available and if barriers prevented small businesses from competing effectively.
Oversight & Accountability
Oversight should focus on contract performance monitoring to ensure the $14.1 million award delivers the expected value and that the firm fixed price is adhered to. Accountability for meeting service requirements is paramount.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpricing
- Lack of small business engagement
- Limited contract duration may not be optimal
- Need for detailed performance metrics
Tags
deep-sea-freight-transportation, department-of-defense, va, dca, 10m-plus
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: 2004-10-01. End: 2005-10-24.
What is the benchmark cost per day for similar offshore service vessels in the current market?
Determining the benchmark cost per day for comparable offshore service vessels requires access to market intelligence and historical contract data. Without this, assessing the $14.1 million award's value is challenging. Industry reports and government databases can provide such benchmarks, allowing for a more accurate comparison of pricing and potential savings.
What factors contributed to the lack of small business participation in this full and open competition?
The absence of small business participation in a full and open competition could stem from several factors. These might include stringent pre-qualification requirements, the specialized nature of the services demanded, or the contract size being prohibitive for smaller entities. Understanding these barriers is key to fostering future small business inclusion.
How effectively did the full and open competition process ensure competitive pricing for the Deep Sea Freight Transportation services?
While full and open competition is designed to foster competitive pricing, its effectiveness in this instance needs further scrutiny. Analyzing the number of bids received, the spread between the winning bid and others, and the final award amount relative to the government's estimate would reveal the degree of price discovery achieved.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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: 2004-10-01
Current End Date: 2005-10-24
Potential End Date: 2005-10-24 00:00:00
Last Modified: 2009-09-04
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