DoD's $58M Navy Ship Maintenance Contract with Patriot Contract Services Raises Questions on Value and Competition
Contract Overview
Contract Amount: $58,236,548 ($58.2M)
Contractor: Patriot Contract Services, LLC
Awarding Agency: Department of Defense
Start Date: 2012-11-07
End Date: 2017-10-12
Contract Duration: 1,800 days
Daily Burn Rate: $32.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OPERATION AND MAINTENANCE OF USNS WATERS- FIRM PERIOD PER DIEM AND REIMBURSABLES
Place of Performance
Location: CONCORD, CONTRA COSTA County, CALIFORNIA, 94520
Plain-Language Summary
Department of Defense obligated $58.2 million to PATRIOT CONTRACT SERVICES, LLC for work described as: OPERATION AND MAINTENANCE OF USNS WATERS- FIRM PERIOD PER DIEM AND REIMBURSABLES Key points: 1. The contract awarded to Patriot Contract Services for $58.2M highlights significant spending in ship maintenance. 2. Competition was limited due to 'exclusion of sources,' potentially impacting price discovery. 3. The firm fixed-price contract type suggests cost control, but the specific value for services rendered needs scrutiny. 4. The sector is dominated by a few large players, making it challenging for new entrants.
Value Assessment
Rating: questionable
The $58.2M contract value for ship maintenance over 5 years appears substantial. Benchmarking against similar 'Deep Sea Freight Transportation' contracts is difficult without more granular data on services provided, but the limited competition raises concerns about whether the government achieved optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This method, while potentially necessary for specific capabilities, inherently limits the pool of bidders and can lead to higher prices than a truly open competition.
Taxpayer Impact: The limited competition may have resulted in taxpayers paying more than necessary for these essential ship maintenance services.
Public Impact
Taxpayers may have overpaid due to restricted competition for critical Navy ship maintenance. The Department of the Navy relies on a single contractor for a significant period, raising concerns about service continuity and potential price increases. The lack of broad competition could stifle innovation in the maritime support sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpayment
- Lack of transparency in source exclusion
Positive Signals
- Firm fixed-price contract
- Long-term service provision
Sector Analysis
The maritime logistics and maintenance sector is critical for national defense, often characterized by specialized requirements and a limited number of qualified contractors. Spending in this area is substantial, driven by the need to maintain a global fleet.
Small Business Impact
The data indicates this contract was not awarded to small businesses. The nature of large-scale maritime operations and maintenance often favors larger, established companies with specialized equipment and certifications, potentially excluding smaller firms.
Oversight & Accountability
Oversight of this contract would involve monitoring service delivery, adherence to the firm fixed-price terms, and justification for the 'exclusion of sources' to ensure fair pricing and prevent contractor overreach.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition raises concerns about price fairness.
- Lack of transparency regarding 'exclusion of sources'.
- Potential for contractor lock-in and price escalation.
- Difficulty in benchmarking value due to specialized services.
Tags
deep-sea-freight-transportation, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.2 million to PATRIOT CONTRACT SERVICES, LLC. OPERATION AND MAINTENANCE OF USNS WATERS- FIRM PERIOD PER DIEM AND REIMBURSABLES
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 $58.2 million.
What is the period of performance?
Start: 2012-11-07. End: 2017-10-12.
What specific technical requirements justified excluding other potential bidders, and how was the price determined to be fair and reasonable under these conditions?
The justification for excluding other bidders and the process for determining price reasonableness are critical oversight elements. Without detailed documentation on the technical requirements and the competitive analysis performed, it's difficult to assess if the government secured the best value. The 'exclusion of sources' clause necessitates a strong rationale to ensure it wasn't used to circumvent a more competitive process.
What is the benchmark cost for similar deep-sea freight transportation maintenance services, and how does this contract's per-unit cost compare?
Establishing a precise per-unit cost benchmark for this contract is challenging due to the 'firm period per diem and reimbursables' structure and the limited competition. A thorough analysis would require comparing the specific services rendered (e.g., vessel type, maintenance scope, duration) against publicly available data for comparable contracts, which may be scarce given the specialized nature and restricted bidding.
How effectively did the limited competition ensure the Department of the Navy received high-quality maintenance services at a competitive price?
The effectiveness of the limited competition in ensuring quality and competitive pricing is questionable. While a firm fixed-price contract provides cost certainty, the 'exclusion of sources' inherently reduces competitive pressure. The Navy must have robust performance metrics and quality assurance processes in place to ensure the contractor is delivering as promised, and the pricing should be regularly reviewed against any available market data.
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: N0003312R2507
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1320 WILLOW PACA 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: $58,236,548
Exercised Options: $58,236,548
Current Obligation: $58,236,548
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-11-07
Current End Date: 2017-10-12
Potential End Date: 2017-10-12 00:00:00
Last Modified: 2017-10-16
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