DoD's Navy Awards $46.5M for Time Tanker Charter, Boosting Coastal Tanker Services
Contract Overview
Contract Amount: $46,487,007 ($46.5M)
Contractor: Patriot Contract Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-05-18
End Date: 2026-06-28
Contract Duration: 1,137 days
Daily Burn Rate: $40.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: N103B/ N321B/ S.RICKER/ TIME TANKER CHARTER - COASTAL TANKER 1
Place of Performance
Location: CONCORD, CONTRA COSTA County, CALIFORNIA, 94520
Plain-Language Summary
Department of Defense obligated $46.5 million to PATRIOT CONTRACT SERVICES, LLC for work described as: N103B/ N321B/ S.RICKER/ TIME TANKER CHARTER - COASTAL TANKER 1 Key points: 1. The contract is for deep-sea freight transportation, a critical component of naval logistics. 2. Patriot Contract Services, LLC secured the award, indicating a competitive landscape for specialized maritime services. 3. The firm-fixed-price contract type suggests predictable costs for the government. 4. The duration of over three years highlights the long-term need for these services.
Value Assessment
Rating: good
The award amount of $46.5M over approximately three years appears reasonable for specialized tanker charter services. Benchmarking against similar long-term vessel charters would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process but with specific criteria or prior exclusions. This method aims for fair pricing while ensuring specialized requirements are met.
Taxpayer Impact: The firm-fixed-price structure helps control costs, ensuring taxpayer funds are used efficiently for essential transportation services.
Public Impact
Ensures continuous supply chain operations for naval assets. Supports global maritime defense readiness. Provides essential infrastructure for fuel and cargo transport. Contributes to the operational efficiency of the U.S. Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation if fuel costs fluctuate significantly.
- Dependence on a single contractor for a critical service.
Positive Signals
- Long-term contract provides service stability.
- Firm-fixed-price contract offers cost predictability.
Sector Analysis
The Department of Defense's spending in the transportation sector, particularly for maritime logistics, is substantial. This contract aligns with the Navy's need for reliable deep-sea freight capabilities, a niche requiring specialized vessels and operational expertise.
Small Business Impact
This contract was awarded to Patriot Contract Services, LLC. Further analysis is needed to determine the extent of small business participation as subcontractors within this award.
Oversight & Accountability
The definitive contract structure and the specified award process suggest a degree of oversight. However, ongoing monitoring of performance and cost adherence will be crucial for accountability.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration exceeds three years, increasing long-term cost exposure.
- Reliance on a single provider for a critical service.
- Potential for unforeseen operational disruptions.
- Market volatility in fuel prices could impact overall cost.
Tags
deep-sea-freight-transportation, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.5 million to PATRIOT CONTRACT SERVICES, LLC. N103B/ N321B/ S.RICKER/ TIME TANKER CHARTER - COASTAL TANKER 1
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 $46.5 million.
What is the period of performance?
Start: 2023-05-18. End: 2026-06-28.
What is the historical performance record of Patriot Contract Services, LLC in fulfilling similar maritime charter contracts?
Assessing Patriot Contract Services, LLC's past performance is crucial for understanding their reliability and capability in executing this significant tanker charter contract. Reviewing their track record on previous government or commercial contracts, particularly those involving similar vessel types, durations, and operational complexities, can provide insights into their ability to meet delivery schedules, maintain vessel readiness, and adhere to safety and environmental standards. This historical data informs the risk assessment for the current contract's success.
How does the daily charter rate compare to industry benchmarks for similar coastal tanker services?
Comparing the daily charter rate to industry benchmarks is essential for evaluating the cost-effectiveness of this $46.5 million contract. Analyzing rates for comparable vessels (size, age, capabilities) in similar geographic regions and contract durations (long-term vs. spot market) will reveal whether the government is securing a competitive price. Deviations from benchmarks could indicate unique service requirements, market conditions, or potential over/underpricing that warrants further investigation.
What are the contingency plans in place should Patriot Contract Services, LLC experience operational failures or be unable to fulfill the contract?
Robust contingency plans are vital given the critical nature of deep-sea freight transportation for naval operations. The government should have pre-defined procedures for addressing potential service disruptions, including alternative sourcing strategies, penalties for non-performance, and mechanisms for contract termination and re-award. Understanding these plans helps assess the risk mitigation strategy and ensures continuity of essential services in unforeseen circumstances.
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: N3220522R5436
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1320 WILLOW PASS RD, CONCORD, CA, 94520
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,638,906
Exercised Options: $46,487,007
Current Obligation: $46,487,007
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-05-18
Current End Date: 2026-06-28
Potential End Date: 2028-05-29 00:00:00
Last Modified: 2025-08-25
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