DoD's $1.28B Watson Class LMSRS Contract with Patriot Contract Services Faces Scrutiny for Competition and Value
Contract Overview
Contract Amount: $1,282,089,941 ($1.3B)
Contractor: Patriot Contract Services, LLC
Awarding Agency: Department of Defense
Start Date: 2013-10-18
End Date: 2022-03-31
Contract Duration: 3,086 days
Daily Burn Rate: $415.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IGF::CT::IGF OPERATION&MAINTENANCE OF 8 WATSON CLASS LMSRS - FIRM PERIOD
Place of Performance
Location: CONCORD, CONTRA COSTA County, CALIFORNIA, 94520
Plain-Language Summary
Department of Defense obligated $1.28 billion to PATRIOT CONTRACT SERVICES, LLC for work described as: IGF::CT::IGF OPERATION&MAINTENANCE OF 8 WATSON CLASS LMSRS - FIRM PERIOD Key points: 1. Significant spending of $1.28 billion over nearly 8.5 years. 2. Competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' raises questions about true market reach. 3. Risk of inflated costs due to potential lack of robust price discovery. 4. Sector: Transportation (Deep Sea Freight).
Value Assessment
Rating: questionable
The contract's large value and extended duration suggest a need for rigorous price validation. Benchmarking against similar deep-sea freight transportation contracts is crucial to assess if the $1.28 billion represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implies that while open, certain sources were initially excluded, potentially limiting the competitive landscape and impacting price discovery.
Taxpayer Impact: The substantial expenditure raises concerns about taxpayer dollars being used efficiently if competition was not maximized.
Public Impact
Taxpayers may be overpaying for deep-sea freight transportation services. Lack of transparent and broad competition could lead to suboptimal service delivery. The long contract duration might not reflect current market rates or technological advancements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation
- Extended contract duration without clear justification
- Potential for cost overruns
- Lack of small business participation
Positive Signals
- Definitive contract provides clear framework
- Firm fixed price structure offers some cost certainty
Sector Analysis
This contract falls within the transportation sector, specifically deep-sea freight. Spending benchmarks for similar DoD logistics and transportation contracts would be essential for a comprehensive value assessment.
Small Business Impact
The data indicates no small business participation (ss: false, sb: false). This suggests a missed opportunity to leverage small business capabilities and potentially achieve cost savings through diverse sourcing.
Oversight & Accountability
Oversight is critical to ensure the 'exclusion of sources' was justified and that Patriot Contract Services is delivering services at a fair price throughout the contract's long life.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Questionable competition effectiveness
- Potential for overpayment
- Lack of small business involvement
- Long contract duration may not reflect current market value
- Limited transparency on source exclusion justification
Tags
deep-sea-freight-transportation, department-of-defense, ca, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.28 billion to PATRIOT CONTRACT SERVICES, LLC. IGF::CT::IGF OPERATION&MAINTENANCE OF 8 WATSON CLASS LMSRS - FIRM PERIOD
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 $1.28 billion.
What is the period of performance?
Start: 2013-10-18. End: 2022-03-31.
What was the specific justification for excluding certain sources in the competition process, and how did this impact the final contract price?
The justification for excluding sources needs thorough examination. If the exclusion was not based on unique capabilities or insurmountable barriers, it could have artificially limited competition, leading to higher prices than a truly open market would yield. This directly impacts the value for taxpayers.
How does the $1.28 billion cost compare to industry benchmarks for similar deep-sea freight transportation services over an 8.5-year period?
A detailed cost-benefit analysis against industry benchmarks is necessary. Without this, it's difficult to ascertain if the firm fixed price adequately reflects market rates or if potential cost efficiencies were missed. The long duration necessitates comparison with evolving market conditions and competitor pricing.
What mechanisms are in place to ensure ongoing cost-effectiveness and service quality given the contract's length and the nature of the competition?
Given the contract's duration and the competition's specific parameters, robust oversight is essential. Mechanisms like periodic performance reviews, price reasonableness checks, and potential renegotiation clauses (if applicable) are crucial to ensure continued value and quality, mitigating risks associated with long-term, potentially less competitive agreements.
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: N0003313R3210
Offers Received: 5
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: $1,282,089,941
Exercised Options: $1,282,089,941
Current Obligation: $1,282,089,941
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-10-18
Current End Date: 2022-03-31
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2022-06-29
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