Navy Awards $94.9M for Tanker Time Charter to Crowley Government Services
Contract Overview
Contract Amount: $94,909,228 ($94.9M)
Contractor: Crowley Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-12-23
End Date: 2026-03-20
Contract Duration: 1,548 days
Daily Burn Rate: $61.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: ICE CLASS TANKER TIME CHARTER AWARD ELOGAN / N103B / N321
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $94.9 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: ICE CLASS TANKER TIME CHARTER AWARD ELOGAN / N103B / N321 Key points: 1. Contract awarded to Crowley Government Services for deep sea freight transportation. 2. Full and open competition was utilized for this award. 3. The contract has a duration of 1548 days. 4. The award value is $94,909,228.33. 5. The contract is a Firm Fixed Price type.
Value Assessment
Rating: good
The contract value of $94.9M over approximately 4.25 years suggests a significant but potentially reasonable cost for specialized deep-sea tanker charter services. Benchmarking against similar long-term, high-demand vessel charters would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, fostering a competitive environment that should drive down costs and ensure fair market pricing.
Taxpayer Impact: The competitive bidding process aims to secure the best value for taxpayers by ensuring the government obtains necessary services at a reasonable price.
Public Impact
Ensures continued logistical support for naval operations. Supports critical deep-sea freight transportation capabilities. Provides economic activity for the awarded contractor and potentially related maritime industries. The long-term nature of the contract offers stability for both the government and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if fuel prices or operational demands fluctuate significantly.
- Dependence on a single contractor for a critical service.
Positive Signals
- Utilized full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Long-term award provides service continuity.
Sector Analysis
The Department of Defense, specifically the Navy, requires specialized transportation assets like tanker time charters for global operations. Spending in this area is critical for maintaining readiness and projecting power, with costs influenced by market rates for vessel operation, fuel, and crewing.
Small Business Impact
The data indicates the award went to Crowley Government Services, Inc. There is no explicit information provided regarding subcontracting opportunities for small businesses within this contract award.
Oversight & Accountability
The award is a definitive contract, suggesting it has undergone standard procurement processes. Oversight would focus on contract performance, adherence to terms, and financial management throughout the contract's duration.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for price volatility in fuel and operational costs.
- Long-term commitment may reduce flexibility for evolving needs.
- Dependence on a single contractor for critical service.
- Lack of explicit small business participation noted.
Tags
deep-sea-freight-transportation, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $94.9 million to CROWLEY GOVERNMENT SERVICES, INC.. ICE CLASS TANKER TIME CHARTER AWARD ELOGAN / N103B / N321
Who is the contractor on this award?
The obligated recipient is CROWLEY GOVERNMENT SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $94.9 million.
What is the period of performance?
Start: 2021-12-23. End: 2026-03-20.
What is the benchmark daily or monthly charter rate for similar ICE CLASS tanker vessels in the current market?
Determining the precise benchmark daily or monthly charter rate for comparable ICE CLASS tanker vessels requires access to real-time maritime market data and analysis of vessel specifications, age, and operational capabilities. Industry reports and broker assessments are typically used. Without this specific data, it's difficult to definitively state the benchmark, but the awarded contract's total value and duration can be used to derive an implied rate for comparison.
What specific risks are associated with operating ICE CLASS tankers in potentially harsh environments, and how are these mitigated?
Operating ICE CLASS tankers involves risks such as hull damage from ice, reduced maneuverability, and increased fuel consumption in icy conditions. Mitigation strategies typically include specialized vessel design, adherence to strict operational protocols, ice navigation training for crews, and potentially icebreaker escorts. The contract likely specifies requirements for vessel maintenance and operational procedures to address these environmental hazards.
How effectively does this time charter arrangement support the Navy's strategic sealift and logistical requirements compared to alternative procurement methods?
A time charter provides the Navy with dedicated vessel capacity for a set period, offering predictable availability and operational control, which is effective for sustained logistical support. Compared to spot charters, it ensures consistent deployment. However, it may be less flexible than bareboat charters or owning vessels outright if operational needs change rapidly or if utilization rates are inconsistent, potentially leading to underutilization costs.
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: N3220520R4143
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9487 REGENCY SQUARE BLVD, JACKSONVILLE, FL, 32225
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $110,232,718
Exercised Options: $94,909,228
Current Obligation: $94,909,228
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-12-23
Current End Date: 2026-03-20
Potential End Date: 2026-03-20 00:00:00
Last Modified: 2025-11-13
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