DoD's $376M Navigational Services Contract Awarded to Patriot Contract Services, LLC

Contract Overview

Contract Amount: $376,116,309 ($376.1M)

Contractor: Patriot Contract Services, LLC

Awarding Agency: Department of Defense

Start Date: 2000-05-25

End Date: 2005-09-30

Contract Duration: 1,954 days

Daily Burn Rate: $192.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: WALNUT CREEK, CONTRA COSTA County, CALIFORNIA, 94596

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $376.1 million to PATRIOT CONTRACT SERVICES, LLC for work described as: Key points: 1. Contract value represents a significant investment in maintaining critical maritime infrastructure. 2. Full and open competition suggests a robust market for these specialized services. 3. Contract duration of over 1900 days indicates a long-term need and potential for stable contractor performance. 4. Fixed-price contract type shifts performance risk to the contractor, potentially benefiting the government. 5. The award to a single entity, Patriot Contract Services, LLC, warrants scrutiny of performance and pricing over time. 6. Geographic focus on California suggests a concentration of navigational needs in that region.

Value Assessment

Rating: good

The contract's total value of $376 million over approximately five years (1954 days) averages to roughly $192,485 per day. Benchmarking this against similar large-scale navigational services contracts is challenging without more specific service details. However, the fixed-price nature of the award suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if performance is met. The relatively high number of bids (16) also suggests competitive pricing was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Sixteen bids were received, suggesting a healthy level of interest and competition within the market for these navigational services. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, increasing the likelihood of securing the best value for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive bids for essential navigational services.

Public Impact

Ensures the safety and efficiency of maritime navigation within the specified operational areas. Supports commercial shipping and naval operations by maintaining clear and accurate navigational aids. Benefits the economy of California by facilitating trade and commerce through secure waterways. Potentially supports a workforce skilled in maritime operations, surveying, and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if contract scope expands beyond initial fixed-price parameters.
Reliance on a single contractor for a critical service could pose risks if performance falters.
Ensuring ongoing technological relevance in navigational systems throughout the contract term.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a strong market and potentially competitive pricing.
Long contract duration provides stability and predictability for essential services.

Sector Analysis

The defense sector, particularly the Navy, relies heavily on accurate and reliable navigational services to support its global operations. This contract falls within the broader category of maritime support services, which includes a range of activities from charting and buoy maintenance to advanced electronic navigation systems. The market for such services is specialized, often requiring specific certifications and expertise. Comparable spending benchmarks would depend on the exact scope of navigational services provided, but large-scale contracts for maintaining critical maritime infrastructure can run into hundreds of millions of dollars.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor, Patriot Contract Services, LLC, is likely a larger entity. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large contract, which could still provide some benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Naval Oceanography Program
Maritime Domain Awareness Programs
Hydrographic Surveying Services
Aids to Navigation Maintenance

Risk Flags

Long contract duration may increase risk of performance degradation or obsolescence.
Sole awardee for critical service requires diligent oversight.
Need to verify contractor's past performance on similar scale contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $376.1 million to PATRIOT CONTRACT SERVICES, LLC. See the official description on USAspending.

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 $376.1 million.

What is the period of performance?

Start: 2000-05-25. End: 2005-09-30.

What is the specific scope of 'Navigational Services to Shipping' covered under this contract?

The provided data indicates the contract is for 'Navigational Services to Shipping' (nd). While the specific details are not fully elaborated in the abbreviated data, this typically encompasses a range of activities crucial for safe maritime passage. This can include the maintenance and operation of aids to navigation (buoys, lighthouses, electronic beacons), hydrographic surveying to ensure accurate nautical charts, and potentially the provision or maintenance of electronic navigation systems. The contract's duration and significant value suggest a comprehensive and ongoing requirement for these services, likely within a defined geographic area, in this case, California (sn).

How does the $376 million contract value compare to historical spending on similar navigational services by the Department of the Navy?

Without access to historical spending data for precisely comparable 'Navigational Services to Shipping' contracts by the Department of the Navy, a direct comparison is difficult. However, the $376 million award over approximately five years (1954 days) represents a substantial investment. The average daily cost is around $192,485. Large-scale maritime infrastructure and support contracts can easily reach these figures, especially when they involve extensive geographic coverage, specialized equipment, and long-term maintenance. The fact that it was awarded under full and open competition with 16 bidders suggests that this value is likely within the competitive market range for the services rendered.

What are the key performance indicators (KPIs) or metrics used to evaluate Patriot Contract Services, LLC's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. However, for 'Navigational Services to Shipping,' typical KPIs would likely include: timeliness and accuracy of chart updates, operational availability of navigational aids (e.g., uptime of buoys and electronic signals), successful completion of required surveys within specified tolerances, adherence to safety protocols, and responsiveness to urgent navigational issues. The fixed-price nature of the contract (pt) implies that meeting these performance standards is crucial for the contractor to achieve profitability, and failure to do so could result in penalties or contract modifications.

What is the track record of Patriot Contract Services, LLC in performing similar large-scale government contracts?

The provided data identifies Patriot Contract Services, LLC (co) as the awardee but does not offer details on their specific track record with large-scale government contracts. To assess their performance history, one would need to examine past contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Given the $376 million value and the critical nature of navigational services, the Department of the Navy would have conducted due diligence on the contractor's capabilities and past performance prior to this award.

What are the potential risks associated with a sole awardee (Patriot Contract Services, LLC) for such a critical and long-duration service?

While awarded under full and open competition, the contract is ultimately awarded to a single entity, Patriot Contract Services, LLC. Potential risks include: over-reliance on one contractor, which could lead to complacency or reduced incentive to innovate; potential for price increases in future contract renewals if competition diminishes; and vulnerability if the contractor experiences financial instability, operational failures, or significant personnel turnover. The long duration (1954 days) exacerbates these risks. Robust government oversight, clear performance standards, and contingency planning are essential to mitigate these potential issues.

How does the geographic focus on California impact the overall strategy and cost-effectiveness of these navigational services?

Focusing navigational services on California (sn) allows for a concentrated effort on a region with significant maritime traffic, including major ports and naval bases. This geographic specificity can enhance cost-effectiveness by reducing travel and logistical overhead associated with broader, multi-region contracts. It enables the contractor to optimize resource allocation, develop specialized expertise for the local environment, and potentially build stronger relationships with regional stakeholders. However, it also means that the effectiveness and cost of these services are tied to the specific needs and challenges of California's coastline and waterways.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Navigational Services to Shipping

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 2175 N CLIF BLVD STE 1000, WALNUT CREEK, CA, 10

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline