Navy awards $54.8M contract for deep sea passenger transportation services to Patriot Contract Services, LLC

Contract Overview

Contract Amount: $54,770,059 ($54.8M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Defense

Start Date: 2008-01-30

End Date: 2012-11-06

Contract Duration: 1,742 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USNS WATERS AND USNS HAYES CONTRACT AWARD FIXED PRICE PER DIEM FY08

Place of Performance

Location: CONCORD, CONTRA COSTA County, CALIFORNIA, 94520

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $54.8 million to PATRIOT CONTRACT SERVICES, LLC for work described as: USNS WATERS AND USNS HAYES CONTRACT AWARD FIXED PRICE PER DIEM FY08 Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Fixed-price contract type suggests cost certainty for the government. 3. Contract duration of 1742 days (approx. 4.7 years) provides long-term service stability. 4. Awarded by the Department of the Navy, a major defense spending entity. 5. Service category is Deep Sea Passenger Transportation, a specialized maritime function. 6. The contract was awarded in FY08, providing historical spending context.

Value Assessment

Rating: good

The contract value of $54.8 million over nearly five years for deep sea passenger transportation is difficult to benchmark without specific per-diem rates or service level agreements. However, the fixed-price nature of the contract suggests an attempt to control costs. The number of bids received (6) indicates a degree of market interest, which can contribute to fair pricing. Further analysis would require comparing the per-diem rates to similar Navy or other DoD transportation contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, certain sources may have been excluded based on specific criteria. Six bids were received, suggesting a competitive environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The open competition likely resulted in a more favorable price for taxpayers by encouraging multiple vendors to submit bids, driving down costs through market forces.

Public Impact

Provides essential transportation services for naval personnel or related passengers during deep sea operations. Supports the operational readiness and logistical capabilities of the Department of the Navy. The service is geographically focused on deep sea routes, critical for naval deployments. Likely impacts a specialized maritime workforce involved in operating and maintaining the transport vessels.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise, despite the fixed-price structure.
Dependence on a single contractor for a critical service could pose a risk if performance issues emerge.
The exclusion of certain sources, even within full and open competition, warrants understanding the rationale to ensure no viable competitors were unfairly barred.

Positive Signals

Fixed-price contract provides budget certainty for the Navy.
Multiple bidders (6) indicate a healthy level of market interest and potential for competitive pricing.
Long contract duration (over 4 years) offers stability and predictability for service provision.
Awarded to a single contractor, potentially leading to streamlined management and consistent service delivery.

Sector Analysis

The contract falls within the broader Defense sector, specifically related to maritime logistics and transportation. The market for specialized deep sea passenger transportation is likely niche, involving companies with specific vessel capabilities and operational expertise. Comparable spending benchmarks would typically be found within the Navy's or other military branches' budgets for troop and personnel transport, though deep sea operations present unique cost factors.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. There is no explicit information regarding subcontracting plans for small businesses. This suggests the primary awardee, Patriot Contract Services, LLC, likely possesses the scale and resources to fulfill the contract requirements independently, or subcontracting opportunities for small businesses were not mandated or significant.

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, with potential penalties or remedies for non-performance. Transparency is facilitated through contract award databases, though specific performance metrics and oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Transportation Services
Military Sealift Command Contracts
Defense Transportation Services
Maritime Logistics Support
USNS Ship Operations

Risk Flags

Potential for cost overruns due to unforeseen operational complexities in deep sea environments.
Contractor performance risk over a long duration (nearly 5 years).
Dependence on a single contractor for critical transportation services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.8 million to PATRIOT CONTRACT SERVICES, LLC. USNS WATERS AND USNS HAYES CONTRACT AWARD FIXED PRICE PER DIEM FY08

Who is the contractor on this award?

The obligated recipient is PATRIOT CONTRACT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $54.8 million.

What is the period of performance?

Start: 2008-01-30. End: 2012-11-06.

What is the track record of Patriot Contract Services, LLC in fulfilling similar government contracts?

Patriot Contract Services, LLC has a history of performing maritime services for the U.S. government. While this specific contract for deep sea passenger transportation is a significant award, the company's broader portfolio likely includes various vessel operations and support services. A detailed review of their past performance, including any past performance evaluations or awards/debarments, would be necessary to fully assess their track record. Examining their contract history with the Navy and other agencies can reveal their reliability, quality of service, and adherence to contractual terms. Without access to specific performance data for this contract or others, it's difficult to provide a definitive assessment, but their ability to win this competitive bid suggests a level of established capability.

How does the awarded value compare to similar deep sea passenger transportation contracts?

Benchmarking this $54.8 million contract requires comparing it to similar deep sea passenger transportation contracts awarded by the Navy or other federal agencies. Key comparison points would include the duration of the contract (1742 days), the type of vessel, the capacity, the operational areas, and the specific services provided (e.g., per diem rates, crewing, maintenance). Without access to a database of comparable contracts with detailed service parameters and pricing, a precise value-for-money assessment is challenging. However, the fact that it was a full and open competition with six bidders suggests that the market found the terms and potential pricing to be attractive, implying a reasonable value proposition at the time of award.

What are the primary risks associated with this fixed-price contract for deep sea passenger transportation?

The primary risks associated with this fixed-price contract, despite offering cost certainty, revolve around potential scope creep or unforeseen operational challenges. If the 'deep sea' operations encounter unexpected environmental conditions, require specialized equipment not initially accounted for, or if regulatory requirements change significantly during the contract's nearly five-year duration, the contractor might face cost overruns. While the fixed price aims to mitigate this, significant deviations could lead to claims or performance issues. Another risk is the contractor's ability to maintain consistent service quality and vessel readiness over such an extended period. The government's risk is also tied to the contractor's financial stability and operational capacity throughout the contract term.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for specialized services?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. By excluding certain sources, the agency likely targeted vendors possessing highly specialized capabilities necessary for deep sea passenger transportation. This approach can ensure that only qualified bidders participate, potentially leading to more technically sound proposals. The presence of six bidders indicates that even with exclusions, sufficient competition existed. This method can be effective in achieving competitive pricing if the exclusions are narrowly defined and justified, preventing undue market restriction while ensuring the government procures a service that meets stringent technical needs. The key is that the exclusions do not unduly limit the pool of capable and competitive offerors.

What are the historical spending patterns for deep sea passenger transportation services by the Department of the Navy?

Historical spending patterns for deep sea passenger transportation by the Department of the Navy are likely tied to specific operational needs, such as troop movements for deployments, training exercises, or support for expeditionary forces in remote oceanic regions. This $54.8 million contract awarded in FY08 represents a significant investment in such services over its duration. Analyzing spending trends would involve looking at the frequency and value of similar contracts awarded in preceding and subsequent fiscal years. Factors influencing these patterns include geopolitical events, changes in naval force structure, and the availability of government-owned vessels versus contracted services. Understanding these patterns helps contextualize the FY08 award within the Navy's broader logistical and operational budget.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0003307R2503

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1320 WILLOW PASS RD STE 485, CONCORD, CA, 94520

Business Categories: Category Business, Limited Liability Corporation, Small Business

Financial Breakdown

Contract Ceiling: $69,351,786

Exercised Options: $54,770,059

Current Obligation: $54,770,059

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline