Navy awards $43.7M contract for maritime support vessel services, highlighting deep sea passenger transport needs

Contract Overview

Contract Amount: $43,727,546 ($43.7M)

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

Awarding Agency: Department of Defense

Start Date: 2007-05-11

End Date: 2010-12-10

Contract Duration: 1,309 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHARTER OF MARITIME SUPPORT VESSEL

Place of Performance

Location: GALLIANO, LAFOURCHE County, LOUISIANA, 70354, UNITED STATES OF AMERICA

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $43.7 million to OFFSHORE SERVICE VESSELS, L.L.C. for work described as: CHARTER OF MARITIME SUPPORT VESSEL Key points: 1. Contract value of $43.7 million indicates significant investment in specialized maritime capabilities. 2. Full and open competition suggests a robust market for these services, potentially driving competitive pricing. 3. The duration of the contract (1309 days) points to a long-term operational requirement. 4. Fixed-price contract type shifts performance risk to the contractor, incentivizing cost control. 5. The award to Offshore Service Vessels, L.L.C. reflects a specific capability within the maritime support sector. 6. The North American Industry Classification System (NAICS) code 483112 categorizes the service as Deep Sea Passenger Transportation.

Value Assessment

Rating: good

The contract value of $43.7 million for maritime support vessel services appears reasonable given the scope and duration. Benchmarking against similar long-term charter agreements for specialized vessels would provide a more precise value assessment. The firm fixed-price structure suggests the government has secured a predictable cost for these services, assuming the contractor can manage their expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. With 9 bidders participating, the competition level was substantial, suggesting a healthy market for these specialized maritime services. This broad competition is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A high level of competition benefits taxpayers by driving down costs and ensuring the government receives the best value for its investment in maritime support.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who will receive essential transportation and support services at sea. The contract delivers critical deep sea passenger transportation, likely supporting naval operations, training, or logistical requirements. The geographic impact is centered around naval operations, potentially involving deployment or support in various maritime theaters. Workforce implications include employment opportunities for maritime professionals, vessel crew, and support staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise, despite the fixed-price nature.
Dependence on a single contractor for a critical service could pose a risk if performance issues emerge.
Ensuring consistent service quality and vessel maintenance throughout the contract's extended duration.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type provides cost certainty for the government.
Contractor has secured a significant award, suggesting established capabilities in maritime support.
The contract duration implies a stable, long-term requirement being met.

Sector Analysis

The maritime support services sector is crucial for defense and logistics, encompassing a wide range of vessel charters, maintenance, and operational support. This contract falls within the broader transportation and logistics industry, specifically focusing on specialized vessel operations. Comparable spending benchmarks would involve analyzing other long-term vessel charter contracts awarded by defense agencies for similar operational needs.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the contractor, Offshore Service Vessels, L.L.C., is not explicitly identified as a small business in this context. Subcontracting opportunities for small businesses may exist, but are not detailed in the provided information. The primary focus appears to be on larger, established maritime service providers capable of fulfilling extensive operational requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Navy program office. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Naval Vessel Charter Services
Maritime Logistics Support
Deep Sea Transportation Contracts
Defense Transportation Services

Risk Flags

Long-term contract duration may expose contractor to market volatility.
Fixed-price nature shifts cost overrun risk to contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.7 million to OFFSHORE SERVICE VESSELS, L.L.C.. CHARTER OF MARITIME SUPPORT VESSEL

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 $43.7 million.

What is the period of performance?

Start: 2007-05-11. End: 2010-12-10.

What is the historical spending pattern for maritime support vessel services by the Department of the Navy?

Historical spending on maritime support vessel services by the Department of the Navy is substantial and varies year to year based on operational tempo, fleet readiness, and specific mission requirements. The Navy frequently utilizes charter agreements for various vessel types, including those for personnel transport, cargo, and specialized support functions. Analyzing past contract awards for similar services, particularly those under NAICS code 483112 (Deep Sea Passenger Transportation) and related maritime categories, would reveal trends in contract values, durations, and competition levels. This specific $43.7 million award for a 1309-day charter is indicative of the Navy's ongoing need for reliable, long-term maritime support solutions, often procured through competitive bidding processes to ensure cost-effectiveness and operational efficiency.

How does the pricing of this contract compare to similar maritime support vessel contracts?

Directly comparing the pricing of this $43.7 million contract without detailed service specifications and market rates is challenging. However, the firm fixed-price structure suggests the government aimed for cost certainty. The presence of 9 bidders in a full and open competition indicates a competitive market, which generally leads to more favorable pricing for the government compared to sole-source or limited competition scenarios. To benchmark effectively, one would need to analyze the daily or monthly charter rates for comparable vessels (size, capacity, operational capabilities) awarded around the same period by the Navy or other Department of Defense components. Factors like vessel age, crew costs, maintenance schedules, and operational areas significantly influence pricing.

What are the key performance indicators (KPIs) typically associated with this type of maritime support contract?

Key performance indicators (KPIs) for maritime support vessel contracts typically focus on operational reliability, safety, and adherence to schedule. For deep sea passenger transportation, this would include metrics such as on-time performance for departures and arrivals, vessel availability (minimizing downtime due to maintenance or breakdowns), fuel efficiency, and compliance with all maritime safety regulations (e.g., SOLAS). Crew performance, including adherence to duty hours and professional conduct, is also critical. The contractor's ability to maintain the vessel in good operational condition throughout the contract's duration, as stipulated in the performance work statement, is paramount. The firm fixed-price nature incentivizes the contractor to meet these KPIs efficiently to maximize profit.

What is the track record of Offshore Service Vessels, L.L.C. in fulfilling government contracts?

Assessing the track record of Offshore Service Vessels, L.L.C. requires accessing historical contract data and performance reviews, which are not fully detailed in the provided summary. However, winning a $43.7 million contract through full and open competition with 9 bidders suggests the company possesses the necessary qualifications, experience, and financial stability to compete effectively for significant government procurements. Further investigation into their past performance ratings, any past performance issues or awards, and the types of services they have previously provided to the government would offer a more comprehensive understanding of their reliability and capabilities in fulfilling federal contracts.

What are the potential risks associated with a long-term (1309 days) fixed-price contract for maritime services?

A significant risk associated with a long-term, firm fixed-price contract for maritime services is the potential for the contractor to face unforeseen cost increases that erode their profit margin or lead to performance issues if they attempt to cut corners. Fluctuations in fuel prices, unexpected major maintenance requirements, or changes in regulatory compliance costs can impact the contractor's bottom line. For the government, the risk lies in the contractor potentially underperforming if they are unable to manage costs effectively, or if the fixed price becomes uncompetitive over time due to market shifts. However, the firm fixed-price structure does provide cost certainty for the government, shifting the primary financial risk of cost overruns to the contractor.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0003307R2002

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 17483 E MAIN ST, GALLIANO, LA, 70354

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,983,529

Exercised Options: $44,983,529

Current Obligation: $43,727,546

Contract Characteristics

Cost or Pricing Data: NO

Timeline