Navy Awards $235.8M Contract for Vessel Operations and Maintenance to Crowley Government Services
Contract Overview
Contract Amount: $235,773,241 ($235.8M)
Contractor: Crowley Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-12-01
End Date: 2025-09-30
Contract Duration: 1,034 days
Daily Burn Rate: $228.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: N105C/PM2 CIELECKI CONTRACT AWARD FOR OPERATION AND MAINTENANCE OF VESSELS.
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $235.8 million to CROWLEY GOVERNMENT SERVICES, INC. for work described as: N105C/PM2 CIELECKI CONTRACT AWARD FOR OPERATION AND MAINTENANCE OF VESSELS. Key points: 1. The contract is for deep sea freight transportation services. 2. Crowley Government Services, Inc. is the sole awardee. 3. The contract duration is over 1000 days, indicating a significant operational commitment. 4. The award is a firm fixed price contract, providing cost certainty.
Value Assessment
Rating: good
The contract value of $235.8 million over approximately 3 years suggests a substantial investment. Benchmarking against similar large-scale maritime logistics contracts would be necessary for a precise value assessment, but the firm fixed price structure offers some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, there is a reduced opportunity for price discovery and potentially less incentive for the contractor to offer the lowest possible price.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures continued operation and maintenance of critical naval vessels. Supports deep sea freight transportation capabilities for the Department of the Navy. Impacts the maritime logistics sector by awarding a significant contract to a single provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration may increase risk of cost overruns if not managed effectively.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Award to an established provider may ensure reliable service delivery.
Sector Analysis
This contract falls within the maritime logistics and transportation sector, specifically deep sea freight. Spending in this area is crucial for national defense and global supply chain operations. Benchmarks for similar vessel operation and maintenance contracts would typically consider vessel type, duration, and scope of services.
Small Business Impact
The contract was awarded to Crowley Government Services, Inc. and there is no indication of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. The Department of the Navy should monitor performance closely and justify the lack of competition for future procurements.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Long contract duration increases exposure to market fluctuations and potential inefficiencies.
- Sole-source award requires strong justification and oversight.
- Potential for contractor lock-in without ongoing competitive pressure.
Tags
deep-sea-freight-transportation, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $235.8 million to CROWLEY GOVERNMENT SERVICES, INC.. N105C/PM2 CIELECKI CONTRACT AWARD FOR OPERATION AND MAINTENANCE OF VESSELS.
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 $235.8 million.
What is the period of performance?
Start: 2022-12-01. End: 2025-09-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. The Department of the Navy should have conducted a thorough market analysis to confirm no other sources could meet the requirement. Ensuring fair and reasonable pricing would involve detailed cost breakdowns, historical pricing data, and potentially independent government cost estimates.
What are the key performance indicators (KPIs) for this contract, and how will performance be measured to mitigate risks associated with a long-term, sole-source agreement?
Key performance indicators would likely include vessel availability, maintenance completion rates, response times for critical repairs, and adherence to safety and environmental standards. Regular performance reviews, milestone tracking, and clear reporting requirements are essential to mitigate risks. The government should actively monitor these KPIs to ensure the contractor is meeting all obligations and to identify any potential issues early.
How does the cost of this contract compare to similar deep sea freight transportation and vessel maintenance contracts awarded competitively?
Without access to specific competitive benchmarks for identical services, a direct comparison is difficult. However, the $235.8 million value over approximately 3.3 years suggests an average annual cost of roughly $71.5 million. This figure should be compared against industry averages for similar vessel classes and operational scopes, considering that sole-source contracts may inherently carry a price premium due to the absence of competitive pressure.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N3220523R2505
Offers Received: 1
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: $235,773,241
Exercised Options: $235,773,241
Current Obligation: $235,773,241
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $120,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-12-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-08-18
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