DoD's $26.2M Marine Cargo Handling Contract Awarded to Ports America Texas, Inc

Contract Overview

Contract Amount: $26,226,037 ($26.2M)

Contractor: Ports America Texas, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-01-31

End Date: 2010-07-31

Contract Duration: 1,642 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Place of Performance

Location: BEAUMONT, JEFFERSON County, TEXAS, 77701

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to PORTS AMERICA TEXAS, INC. for work described as: Key points: 1. Significant contract value of $26.2 million for essential marine cargo handling services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risk associated with reliance on a single vendor for critical port operations. 4. Contract falls within the broad category of logistics and transportation services.

Value Assessment

Rating: good

The contract value of $26.2 million over approximately 4 years appears reasonable for specialized marine cargo handling services. Benchmarking against similar large-scale port operations contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair market value for the services rendered, minimizing potential overspending.

Public Impact

Ensures efficient movement of military equipment and supplies through Texas ports. Supports U.S. military readiness by maintaining critical logistical infrastructure. Potential impact on local employment and businesses within the Texas port region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Vendor lock-in risk if performance issues arise.
  • Geographic concentration of services in Texas.
  • Potential for scope creep or change orders impacting final cost.

Positive Signals

  • Awarded via full and open competition.
  • Firm fixed price contract limits cost uncertainty.
  • Long-term contract provides service stability.

Sector Analysis

This contract is within the logistics and transportation sector, specifically focusing on marine cargo handling. Spending in this area is crucial for military deployment and supply chain management, with benchmarks varying widely based on port size and service complexity.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard DoD oversight mechanisms would apply, including performance monitoring and financial audits.

Related Government Programs

  • Marine Cargo Handling
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for vendor dependency.
  • Geographic concentration risk.
  • Contract duration may exceed actual need.
  • Lack of specific performance metrics in provided data.

Tags

marine-cargo-handling, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to PORTS AMERICA TEXAS, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is PORTS AMERICA TEXAS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2006-01-31. End: 2010-07-31.

What specific types of cargo were handled under this contract, and how did their nature influence the contract's value and complexity?

The contract focused on general marine cargo handling. The specific types of cargo, such as vehicles, equipment, or supplies, would directly influence the handling requirements, necessary equipment, labor intensity, and associated risks, thereby impacting the overall contract value and complexity. Without detailed cargo manifests, a precise assessment is difficult.

Were there any performance issues or disputes reported during the contract's duration, and how were they resolved?

Information regarding performance issues or disputes is not provided in the data. Typically, such issues would be documented through contract modification records, performance reviews, or dispute resolution logs. The absence of this information suggests either smooth performance or that such details are not publicly accessible through this data source.

How does the per-unit cost of cargo handling compare to industry benchmarks for similar port operations?

A direct per-unit cost benchmark is not available as the contract is a firm fixed price for overall services, not itemized per unit. To assess this, one would need to analyze the total value against the volume and type of cargo handled, then compare that derived rate to industry data for similar ports and cargo types.

Industry Classification

NAICS: Transportation and WarehousingSupport Activities for Water TransportationMarine Cargo Handling

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: American International Group, Inc. (UEI: 044691103)

Address: 8222 MANCHESTER ST, HOUSTON, TX, 77012

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: W81GYE06D0025

IDV Type: IDC

Timeline

Start Date: 2006-01-31

Current End Date: 2010-07-31

Potential End Date: 2010-07-31 00:00:00

Last Modified: 2018-10-17

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