DoD's $41.1M contract for offshore vessels awarded to OFFSHORE SERVICE VESSELS, L.L.C. under full and open competition

Contract Overview

Contract Amount: $41,132,410 ($41.1M)

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

Awarding Agency: Department of Defense

Start Date: 2017-04-14

End Date: 2022-09-20

Contract Duration: 1,985 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF INIITAL AWARD FIRM PERIOD N103A1 VIVETTE MOORE

Place of Performance

Location: CUT OFF, LAFOURCHE County, LOUISIANA, 70345

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $41.1 million to OFFSHORE SERVICE VESSELS, L.L.C. for work described as: IGF::CT::IGF INIITAL AWARD FIRM PERIOD N103A1 VIVETTE MOORE Key points: 1. The contract's value of $41.1 million over its period of performance suggests a significant investment in specialized maritime services. 2. Awarded under full and open competition, this contract indicates a market where multiple vendors were likely considered. 3. The firm fixed-price contract type suggests that the government has a clear understanding of the scope and cost, transferring some risk to the contractor. 4. The duration of the contract (1985 days) points to a long-term need for these services, potentially for sustained operations or a large-scale project. 5. The North American Industry Classification System (NAICS) code 483111 for Deep Sea Freight Transportation aligns with the service description. 6. The absence of small business set-aside flags suggests that the primary award was not specifically targeted towards small businesses, though subcontracting opportunities may exist.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided by the offshore vessels. However, a $41.1 million award over approximately five years for deep-sea freight transportation services indicates a substantial commitment. Without comparable contract data for similar vessel charters or deep-sea freight operations, it is difficult to definitively assess value for money. The firm fixed-price nature provides cost certainty, but the overall cost-effectiveness hinges on the operational efficiency and necessity of the services rendered.

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 offers. The presence of 5 bids suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The level of competition is a positive sign for ensuring that the selected contractor offers a competitive price and service offering.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery from multiple potential providers.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Department of the Navy, which requires these services for its operations. The services delivered include deep-sea freight transportation, crucial for logistical support, deployment of assets, or other maritime operations. The geographic impact is likely focused on areas requiring deep-sea access and transportation, potentially global in scope depending on naval deployments. Workforce implications may include employment for vessel crews, maritime support staff, and related logistics personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for unforeseen operational challenges or market fluctuations in fuel or labor costs.
Dependence on a single contractor for a significant duration could lead to reduced leverage for the government if performance issues arise.
The specific nature of 'offshore service vessels' might imply specialized equipment or capabilities that limit the pool of potential future contractors if the need changes.

Positive Signals

Awarded under full and open competition with multiple bids, indicating a robust selection process and potential for competitive pricing.
Firm fixed-price contract type provides cost certainty for the government, minimizing the risk of cost overruns due to contractor-driven changes.
The long contract duration suggests a stable, ongoing requirement, potentially indicating successful past performance or a critical, long-term need.

Sector Analysis

The contract falls within the Maritime Transportation and Logistics sector, specifically deep-sea freight. This sector is critical for global trade and military logistics. Spending in this area can fluctuate based on geopolitical events, defense budgets, and the need for strategic sealift capabilities. Comparable spending benchmarks would involve analyzing other government contracts for vessel chartering, specialized maritime transport, and logistics support services, particularly those awarded by defense agencies.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This suggests that the primary contract was likely awarded to a large business or that the nature of the requirement did not lend itself to a small business set-aside. However, the prime contractor may be required to subcontract a portion of the work to small businesses, depending on the terms of the contract and federal subcontracting regulations. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Military Sealift Command (MSC) Operations
Department of Defense Logistics and Transportation
Deep Sea Freight Services
Maritime Transportation Contracts

Risk Flags

Potential for performance issues given the long duration of the contract.
Lack of specific details on vessel type and capabilities limits full assessment.
Need for further analysis on subcontracting to small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.1 million to OFFSHORE SERVICE VESSELS, L.L.C.. IGF::CT::IGF INIITAL AWARD FIRM PERIOD N103A1 VIVETTE MOORE

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 $41.1 million.

What is the period of performance?

Start: 2017-04-14. End: 2022-09-20.

What is the specific type of 'offshore service vessel' utilized under this contract, and what are their primary functions?

The provided data does not specify the exact type of 'offshore service vessel.' However, given the NAICS code 483111 (Deep Sea Freight Transportation) and the awarding agency (Department of the Navy), these vessels are likely engaged in transporting cargo, equipment, or personnel across deep-sea routes. This could include support for naval operations, deployment of military assets, or logistical supply chains. The term 'service vessel' can be broad, encompassing vessels that provide support functions in offshore environments, such as platform supply vessels, anchor handling tugs, or specialized transport ships. Without more detailed contract documentation, the precise capabilities and roles remain inferred.

How does the $41.1 million contract value compare to historical spending on similar deep-sea freight transportation services by the Department of the Navy?

To compare the $41.1 million contract value to historical spending, one would need to access and analyze historical contract data for the Department of the Navy (DoN) related to deep-sea freight transportation and offshore service vessels. This would involve querying databases like the Federal Procurement Data System (FPDS) for contracts with similar NAICS codes (e.g., 483111) and service descriptions awarded over comparable periods. A preliminary assessment suggests that $41.1 million over approximately five years is a substantial award, indicating a significant and potentially ongoing requirement. However, without direct comparative data on the number of vessels, duration, and specific services rendered in past contracts, a definitive benchmark is challenging. The current contract's value should be evaluated against the scale and duration of previous procurements to ascertain if it represents an increase, decrease, or stable level of investment in these services.

What are the key performance indicators (KPIs) used to evaluate the performance of OFFSHORE SERVICE VESSELS, L.L.C. under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a firm fixed-price contract involving deep-sea freight transportation, typical KPIs would likely focus on on-time delivery of cargo, vessel operational availability (uptime), fuel efficiency, adherence to safety and environmental regulations, and successful completion of assigned voyages or transport missions. Performance would also be assessed based on compliance with contractual terms, reporting requirements, and any specific operational directives from the Department of the Navy. The contracting officer's representative (COR) would be responsible for monitoring these aspects throughout the contract's duration. Contractor performance evaluations, such as those recorded in the Contractor Performance Assessment Reporting System (CPARS), would document adherence to these KPIs.

Given the 'full and open competition' award, what was the estimated cost or value range considered during the solicitation process?

The provided data indicates that the contract was awarded under 'full and open competition' and lists the final award amount at $41,132,409.70. However, it does not specify the estimated cost or value range that was considered during the solicitation process. Typically, for a contract of this magnitude, the government would have developed an independent government cost estimate (IGCE) prior to issuing the solicitation. This estimate would inform the budget allocation and serve as a benchmark for evaluating the reasonableness of submitted proposals. The fact that 5 bids were received suggests that the solicitation attracted significant interest, and the final award amount reflects the negotiated price based on the competitive offers received against the government's requirements.

What is the track record of OFFSHORE SERVICE VESSELS, L.L.C. with the Department of Defense or other federal agencies prior to this award?

The provided data identifies OFFSHORE SERVICE VESSELS, L.L.C. as the contractor but does not offer details on their prior track record with the Department of Defense (DoD) or other federal agencies. To assess their track record, one would need to consult federal procurement databases (like FPDS) and performance assessment systems (like CPARS) to review their history of contract awards, performance ratings, and any past issues or commendations. A positive track record with relevant agencies, particularly in similar service areas, would generally be a factor considered during the evaluation of proposals for this $41.1 million contract. Conversely, a history of poor performance or contract disputes could raise concerns about the contractor's reliability and capability.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N3220517R3513

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16201 E MAIN ST, CUT OFF, LA, 70345

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,132,410

Exercised Options: $41,132,410

Current Obligation: $41,132,410

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline