Navy awards $46M contract for offshore service vessels, highlighting deep-sea transport needs

Contract Overview

Contract Amount: $46,002,785 ($46.0M)

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

Awarding Agency: Department of Defense

Start Date: 2012-11-11

End Date: 2015-09-30

Contract Duration: 1,053 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY13 DAILY RATE (22422X324) 11 NOV 12 - 30 SEP 13

Place of Performance

Location: GALLIANO, LAFOURCHE County, LOUISIANA, 70354

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $46.0 million to OFFSHORE SERVICE VESSELS, L.L.C. for work described as: FY13 DAILY RATE (22422X324) 11 NOV 12 - 30 SEP 13 Key points: 1. Contract value of $46M for offshore service vessels indicates significant demand for specialized maritime support. 2. The firm-fixed-price structure suggests predictable costs for the Department of the Navy. 3. A single award for this contract may warrant further investigation into competition dynamics. 4. The duration of over 1000 days points to a long-term operational requirement. 5. The contract's focus on deep-sea passenger transportation underscores critical logistical capabilities.

Value Assessment

Rating: fair

The daily rate for this contract, while not explicitly provided in raw dollar terms, can be inferred to be substantial given the total award value and duration. Benchmarking against similar contracts for offshore service vessels is crucial to determine if the overall $46M award represents good value for the services rendered. Without specific per-diem rates or comparable contract data, a definitive assessment of cost-effectiveness is challenging. The firm-fixed-price nature, however, offers some cost certainty to the government.

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 bids. However, the fact that it resulted in a single award suggests that only one offeror, Offshore Service Vessels, L.L.C., was deemed suitable or submitted a competitive bid. Further analysis would be needed to understand if the competition was robust or if there were limiting factors that reduced the number of viable bidders.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it promotes a competitive environment that can lead to better pricing and service quality. A single award from such a competition, however, might suggest that the market for these specialized services is limited, potentially impacting future price negotiations.

Public Impact

The Department of the Navy benefits from secured access to essential offshore service vessels for its operations. Deep-sea passenger transportation services are delivered, likely supporting personnel movement to and from naval installations or during operational deployments. The contract's geographic impact is centered around Louisiana (LA), indicating a focus on operations or support in that region. The contract supports the maritime services industry, potentially sustaining jobs and expertise within that sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition despite 'full and open' designation, as evidenced by a single award.
Lack of detailed per-unit cost data makes value-for-money assessment difficult.
Long contract duration could lead to price escalation if market conditions change significantly.

Positive Signals

Awarded through full and open competition, suggesting an effort to maximize market participation.
Firm-fixed-price contract provides cost predictability for the government.
Contract addresses a specific, critical need for deep-sea transportation services.

Sector Analysis

The contract falls within the maritime services sector, specifically focusing on offshore support operations. This sector is critical for various government and commercial activities requiring specialized vessels for transportation, logistics, and support in deep-sea environments. The market size for such specialized services can be niche, often dominated by a few key players capable of meeting stringent government requirements. This contract represents a significant investment in maintaining essential operational capabilities within this specialized segment.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary awardee is likely a larger entity, and the contract may not significantly contribute to the small business ecosystem unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally maintained through contract award databases, though detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Maritime Transportation Services
Offshore Support Vessels
Naval Logistics Support
Deep Sea Operations
Transportation Contracts

Risk Flags

Single award from full and open competition may indicate limited market capacity.
Lack of detailed cost breakdown hinders thorough value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.0 million to OFFSHORE SERVICE VESSELS, L.L.C.. FY13 DAILY RATE (22422X324) 11 NOV 12 - 30 SEP 13

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 $46.0 million.

What is the period of performance?

Start: 2012-11-11. End: 2015-09-30.

What is the historical spending pattern for offshore service vessels by the Department of the Navy?

Analyzing historical spending for offshore service vessels by the Department of the Navy requires accessing procurement databases and contract award histories. While this specific contract is for approximately $46 million, understanding the broader trend involves looking at previous awards for similar services, their values, durations, and the contractors involved. Trends might indicate increasing or decreasing demand, shifts in competition levels, or changes in average contract values. For instance, if there has been a consistent need for such vessels over multiple fiscal years, it suggests a stable, long-term requirement. Conversely, a surge in spending could indicate new operational demands or the phasing out of older assets. Without access to a comprehensive historical database, it's difficult to provide precise figures, but such analysis is key to contextualizing the current award and forecasting future needs.

How does the competition level for this contract compare to similar maritime support contracts?

This contract was awarded under 'full and open competition,' yet resulted in a single award to Offshore Service Vessels, L.L.C. This outcome warrants a closer look at the competitive landscape. To compare, one would examine other recent Department of the Navy or Department of Defense contracts for similar offshore service vessels or maritime support. Key metrics include the number of bids received, the number of solicitations issued, and whether awards were sole-source or competed. If similar contracts typically see multiple competitive bids, then a single award here might suggest a more specialized niche, fewer capable providers, or perhaps a less attractive solicitation. Conversely, if single awards are common in this specific sub-sector, it might indicate a mature market with limited players.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical performance metrics for offshore service vessel contracts often include vessel availability and readiness, on-time performance for transportation tasks, adherence to safety and environmental regulations, fuel efficiency, and crew competency. The Department of the Navy would likely have established standards for these areas within the contract's statement of work. Performance would be monitored through regular reporting by the contractor and potentially through government oversight personnel. Failure to meet these KPIs could result in contractual remedies, including financial penalties or termination, depending on the severity and frequency of deficiencies.

What is the track record of Offshore Service Vessels, L.L.C. with federal contracts, particularly with the Department of Defense?

To assess the track record of Offshore Service Vessels, L.L.C., one would need to consult federal procurement databases like SAM.gov or FPDS. These databases would reveal the company's history of awarded contracts, their values, agencies involved, and performance history (if recorded). A review would focus on prior contracts with the Department of Defense and specifically the Department of the Navy, looking for patterns in contract types (e.g., firm-fixed-price, cost-plus), services rendered, and any documented performance issues or accolades. A history of successful, on-time, and within-budget contract completions would indicate reliability, while a pattern of disputes, overruns, or poor performance would raise concerns about their capability to execute this $46 million contract effectively.

How does the estimated value of this contract compare to the total annual budget for deep-sea passenger transportation within the Navy?

Determining how the $46 million contract value compares to the Navy's total annual budget for deep-sea passenger transportation requires access to the Navy's internal budget allocations and spending reports for this specific service category. This information is often not publicly itemized at such a granular level. However, if this contract represents a significant portion of the Navy's known or estimated spending in this area, it suggests either a substantial operational requirement or potentially a concentration of spending with a single provider. If the Navy procures similar services through multiple contracts or has a larger overall budget for maritime logistics, this single award might represent a smaller, albeit important, component of their total expenditure.

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: N0003312R2001

Offers Received: 1

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: $46,002,785

Exercised Options: $46,002,785

Current Obligation: $46,002,785

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline