Department of Defense awarded $27.6M for offshore service vessels, with 3 bidders competing

Contract Overview

Contract Amount: $27,660,178 ($27.7M)

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

Awarding Agency: Department of Defense

Start Date: 2010-01-01

End Date: 2014-11-30

Contract Duration: 1,794 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: FULL OPERATIONAL STATUS (FIRM PERIOD)

Place of Performance

Location: AIEA, HONOLULU County, HAWAII, 96701, UNITED STATES OF AMERICA

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to OFFSHORE SERVICE VESSELS, L.L.C. for work described as: FULL OPERATIONAL STATUS (FIRM PERIOD) Key points: 1. The contract utilized a firm fixed-price structure, indicating a defined cost for services. 2. Competition was robust, with three bidders vying for the contract, suggesting potential for competitive pricing. 3. The contract duration of 1794 days (approx. 5 years) suggests a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 483113 points to specialized freight transportation services. 5. The award was made by the Department of the Navy, a major component of the Department of Defense. 6. The contract was awarded under full and open competition, maximizing the pool of potential offerors.

Value Assessment

Rating: good

The total award amount of $27.6 million for approximately five years of service suggests a significant but potentially reasonable investment for specialized maritime support. Benchmarking against similar contracts for offshore service vessels is challenging without more specific details on vessel type, capacity, and operational scope. However, the firm fixed-price nature of the contract implies that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the price was competitive.

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 offers. With three bidders participating, the competition level appears moderate. This suggests that while there was some choice, the market might not have been saturated with potential providers, which could influence price negotiation. The agency likely benefited from a competitive process, but further analysis would be needed to determine if the pricing reflects the best possible value achievable in a more intensely competitive scenario.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The presence of three bidders suggests that the government received multiple proposals, increasing the likelihood of a fair market price being established.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring specialized offshore vessel services. The services delivered likely include transportation, logistical support, and potentially specialized maritime operations in coastal and Great Lakes regions. The geographic impact is focused on areas accessible by coastal and Great Lakes waterways, as indicated by the NAICS code. The contract supports the maritime industry workforce, including vessel operators, crew, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract did not adequately account for unforeseen operational challenges.
Dependence on a limited number of bidders could reduce future competitive pressure if market dynamics shift.
The specific operational scope and performance metrics are not detailed, making it difficult to fully assess performance risk.
Geographic limitations to coastal and Great Lakes regions may not cover all potential operational needs.

Positive Signals

Firm fixed-price contract structure shifts cost risk to the contractor.
Full and open competition ensures a broad range of potential providers can bid.
Multiple bidders (three) indicate a degree of market interest and competition.
Long contract duration suggests a stable, ongoing requirement met by this award.
Award by the Department of the Navy indicates a critical operational need being addressed.

Sector Analysis

The contract falls within the Transportation and Logistics sector, specifically focusing on maritime freight and service vessel operations. The NAICS code 483113 points to a niche within this sector. The overall market for offshore service vessels is driven by demand from energy exploration, construction, and government operations. Comparable spending benchmarks would depend heavily on the specific types of vessels and services procured, but this $27.6 million award over five years represents a substantial commitment for specialized maritime support.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss) for this contract. This suggests that the procurement was not specifically targeted towards small businesses, and larger, established companies likely dominated the bidding pool. Consequently, the direct impact on the small business ecosystem may be minimal unless these larger contractors engage in subcontracting opportunities with small businesses, which is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. Accountability measures are typically embedded within the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is facilitated through contract award databases like FPDS, which provide basic details of the procurement. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Maritime Transportation Services
Naval Support Contracts
Offshore Logistics
Coastal Freight Services
Department of Defense Vessel Procurement

Risk Flags

Limited detail on vessel specifications
Lack of specific performance metrics
Unclear evaluation criteria for bids
No data on contractor past performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to OFFSHORE SERVICE VESSELS, L.L.C.. FULL OPERATIONAL STATUS (FIRM PERIOD)

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 $27.7 million.

What is the period of performance?

Start: 2010-01-01. End: 2014-11-30.

What is the specific type and capacity of the offshore service vessels procured under this contract?

The provided data does not specify the exact type or capacity of the offshore service vessels. The NAICS code 483113, 'Coastal and Great Lakes Freight Transportation,' indicates a focus on freight movement within these specific waterways. However, 'service vessels' can encompass a wide range of capabilities, from crew transport and supply to specialized support for offshore operations. Without further details on the Statement of Work (SOW) or vessel specifications, it is difficult to ascertain the precise nature of the services and the capabilities of the assets acquired. This lack of specificity limits a granular assessment of the contract's operational effectiveness and value.

How does the per-day or per-hour cost of these vessels compare to market rates for similar services?

Calculating a precise per-unit cost (e.g., per-day or per-hour) is not feasible with the current data. The total award amount is $27,660,178.10 over a duration of 1794 days. This yields an approximate daily rate of $15,423.68 ($27,660,178.10 / 1794 days). However, this figure represents the total contract value and does not account for potential variations in service levels, vessel types, or operational tempo throughout the contract period. To benchmark this against market rates, one would need to compare it with publicly available data for similar vessel charters in the specified geographic regions (coastal and Great Lakes) and for comparable service types. Without such detailed market data, a definitive comparison of value for money on a per-unit basis cannot be made.

What was the evaluation process for the three bids received, and what factors determined the award?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' with '3' bidders. While the specific evaluation criteria are not detailed, standard federal procurement practices for firm fixed-price contracts typically involve evaluating proposals based on a combination of factors, which may include technical approach, past performance, management capability, and price. For a firm fixed-price contract, price is often a significant, if not the most important, factor, especially when technical requirements are clearly defined. The award likely went to the responsible bidder whose proposal offered the best value to the government, considering both technical merit and cost. The 'DCA' award code might provide further insight into the specific type of award action, but without its definition, the exact evaluation nuances remain unclear.

What is the historical spending pattern for similar offshore service vessel contracts by the Department of the Navy?

Historical spending data for similar offshore service vessel contracts by the Department of the Navy is not provided in the current dataset. To establish a historical spending pattern, one would need to query federal procurement databases (like FPDS or USASpending.gov) for contracts with similar NAICS codes (e.g., 483113) and service descriptions (offshore service vessels, maritime transportation) awarded by the Navy over several fiscal years. Analyzing this historical data would reveal trends in contract values, durations, competition levels, and pricing, allowing for a comparison of the $27.6 million award against past expenditures. This context is crucial for assessing whether current spending is consistent with historical norms or represents a significant deviation.

Are there any performance concerns or contractor issues associated with OFFSHORE SERVICE VESSELS, L.L.C. on previous contracts?

The provided data does not contain information regarding the performance history or any specific concerns associated with the contractor, OFFSHORE SERVICE VESSELS, L.L.C. Assessing contractor track record typically requires reviewing past performance evaluations, contract administration records, and any documented disputes or issues. Without access to these records or a broader contract history for this specific entity, it is impossible to determine if there are any performance concerns. Federal procurement regulations often mandate consideration of past performance as part of the source selection process, but this information is not made available in the summary data provided.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Coastal and Great Lakes Freight 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: N0003309R2001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16201 E MAIN ST, GALLIANO, LA, 70354

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

Financial Breakdown

Contract Ceiling: $27,660,178

Exercised Options: $27,660,178

Current Obligation: $27,660,178

Contract Characteristics

Cost or Pricing Data: NO

Timeline