DoD's $277M contract for LMSR vessel O&M awarded to Patriot Contract Services via full and open competition

Contract Overview

Contract Amount: $277,266,486 ($277.3M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Defense

Start Date: 2010-01-27

End Date: 2018-09-30

Contract Duration: 3,168 days

Daily Burn Rate: $87.5K/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: OPERATION AND MAINTENANCE OF 4 LARGE, MEDIUM-SPEED ROLL-ON ROLL-OFF (LMSR) VESSELS.

Place of Performance

Location: QUINCY, NORFOLK County, MASSACHUSETTS, 02169

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $277.3 million to PATRIOT CONTRACT SERVICES, LLC for work described as: OPERATION AND MAINTENANCE OF 4 LARGE, MEDIUM-SPEED ROLL-ON ROLL-OFF (LMSR) VESSELS. Key points: 1. The contract covers operation and maintenance for four large, medium-speed roll-on roll-off (LMSR) vessels. 2. Awarded by the Department of the Navy, it falls under Deep Sea Freight Transportation. 3. Patriot Contract Services, LLC secured the contract through full and open competition after excluding sources. 4. The contract type is a Firm Fixed Price definitive contract, indicating price certainty. 5. The duration of the contract was 3168 days, ending in September 2018.

Value Assessment

Rating: good

The contract value of $277.27 million over approximately 8.7 years suggests a significant but potentially reasonable cost for maintaining four specialized vessels. Benchmarking against similar large-scale maritime logistics contracts would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating a competitive process was intended, though specific reasons for source exclusion are not detailed. This method aims for competitive pricing.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently by securing the best possible price for essential maritime services.

Public Impact

Ensures the operational readiness of critical strategic sealift assets for the U.S. Navy. Supports national defense by providing vital transportation capabilities for military equipment and personnel. The contract's duration and scope highlight the long-term commitment to maintaining these specialized vessels. Impacts the maritime services industry, potentially involving significant labor and resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reason for 'exclusion of sources' in competition is unclear.
Lack of specific performance metrics in provided data.
Potential for cost overruns in long-term vessel maintenance.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type provides cost certainty.
Essential service for national defense capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically related to strategic sealift and maritime transportation. Spending benchmarks for similar large-scale vessel operation and maintenance contracts are typically high due to the specialized nature and operational demands of such assets.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors. The primary contractor, Patriot Contract Services, LLC, is not specified as a small business. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms. However, the specific oversight applied to this contract and its effectiveness are not detailed in the provided data.

Related Government Programs

Deep Sea Freight Transportation
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of transparency regarding source exclusion.
Potential for cost creep in long-term maintenance contracts.
Absence of readily available performance data.
Complexity of managing and maintaining large, specialized vessels.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $277.3 million to PATRIOT CONTRACT SERVICES, LLC. OPERATION AND MAINTENANCE OF 4 LARGE, MEDIUM-SPEED ROLL-ON ROLL-OFF (LMSR) VESSELS.

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 $277.3 million.

What is the period of performance?

Start: 2010-01-27. End: 2018-09-30.

What was the justification for excluding specific sources during the 'full and open competition' process?

The justification for excluding specific sources during the 'full and open competition after exclusion of sources' process is not provided in the data. Typically, such exclusions might be based on national security concerns, proprietary technology, or specific capability requirements that only a limited number of entities possess. Without further documentation, the rationale remains unclear and warrants further investigation to ensure fair competition.

How does the per-vessel maintenance cost compare to industry benchmarks for similar LMSR vessels?

A direct per-unit cost benchmark is not available without more granular data on maintenance activities and specific vessel classes. The total contract value of $277.27 million spread over approximately 8.7 years for four vessels suggests a significant annual expenditure. Comparing this to publicly available data or industry reports on similar naval or commercial vessel maintenance costs would be necessary to assess value for money.

What performance metrics were used to evaluate Patriot Contract Services, LLC's effectiveness throughout the contract period?

The provided data does not include specific performance metrics or evaluation results for Patriot Contract Services, LLC. Effectiveness would typically be measured by vessel availability, operational readiness, safety records, and adherence to maintenance schedules. The Department of the Navy would have internal reporting mechanisms to track these aspects, but they are not detailed here.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0003308R5302

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $277,266,486

Exercised Options: $277,266,486

Current Obligation: $277,266,486

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline