Department of Defense awards $35.3M for stevedoring services in Oman, with 4 bidders

Contract Overview

Contract Amount: $35,348,904 ($35.3M)

Contractor: Khimji Ramdas LLC

Awarding Agency: Department of Defense

Start Date: 2012-10-01

End Date: 2013-10-31

Contract Duration: 395 days

Daily Burn Rate: $89.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STEVEDORING&RELATED TERMINAL SERVICES IN OMAN.

Plain-Language Summary

Department of Defense obligated $35.3 million to KHIMJI RAMDAS LLC for work described as: STEVEDORING&RELATED TERMINAL SERVICES IN OMAN. Key points: 1. Contract value appears reasonable given the scope of services and duration. 2. Full and open competition suggests a healthy market for these services. 3. Limited duration of the contract may indicate a need for ongoing re-competition or a specific project. 4. Fixed-price contract type shifts risk to the contractor. 5. The award to Khimji Ramdas LLC suggests established presence or capability in the region. 6. Geographic focus on Oman highlights specific logistical needs for DoD operations.

Value Assessment

Rating: good

The contract value of $35.3 million over approximately one year for stevedoring and terminal services in Oman is within a reasonable range for such specialized logistical support. Benchmarking against similar international port operations for military logistics suggests this pricing is competitive, especially considering the complexities of operating in a foreign country. The firm fixed-price nature of the contract further indicates that the government has secured a defined cost for these services, transferring performance risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With four bidders participating, the competition level suggests a reasonably active market for these specialized services in the region. The presence of multiple bidders generally contributes to price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The full and open competition and four bidders indicate that taxpayer dollars were likely used efficiently, as competitive pressures tend to drive down costs and ensure fair market value.

Public Impact

U.S. military operations in and around Oman benefit from reliable cargo handling and terminal services. Ensures efficient movement of personnel, equipment, and supplies critical for regional security objectives. Supports the logistical infrastructure necessary for sustained military presence and power projection. Indirectly supports local economies in Oman through contractor employment and port utilization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues in a remote operational environment.
Geopolitical instability in the region could impact service delivery.
Reliance on a single delivery order for a significant portion of the contract value.

Positive Signals

Firm fixed-price contract limits cost overruns for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
Contractor has experience in international logistics and terminal operations.

Sector Analysis

The contract falls within the broader logistics and transportation sector, specifically focusing on marine cargo handling and terminal services. This is a critical component of defense logistics, enabling the movement of materiel and personnel globally. The market for such services is often specialized, with a limited number of firms possessing the necessary expertise, equipment, and security clearances to operate in strategic locations like Oman. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar services in the Middle East region.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of large-scale international terminal operations often favors larger, established companies with extensive resources and global reach. Further analysis would be needed to determine if any small business participation was mandated or occurred organically.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm fixed-price contract type, which penalizes contractor underperformance through financial means. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Defense Logistics Agency (DLA) Operations
U.S. Central Command (CENTCOM) Logistics Support
Military Sealift Command (MSC) Port Operations
Global Port Operations Contracts

Risk Flags

Geographic Concentration Risk
Contractor Performance Risk
Geopolitical Instability Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 million to KHIMJI RAMDAS LLC. STEVEDORING&RELATED TERMINAL SERVICES IN OMAN.

Who is the contractor on this award?

The obligated recipient is KHIMJI RAMDAS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.3 million.

What is the period of performance?

Start: 2012-10-01. End: 2013-10-31.

What is the track record of Khimji Ramdas LLC with the Department of Defense, particularly in similar international logistics contracts?

Khimji Ramdas LLC, based in Oman, has a history of providing various services, including logistics and supply chain management, to government entities and commercial clients. While specific details on their past DoD contracts for stevedoring in Oman are not readily available in public databases, their established presence and diverse service offerings suggest a capacity to handle such requirements. Further investigation into their contract performance history with the DoD, including any past performance evaluations or awards, would provide a clearer picture of their reliability and expertise in fulfilling complex military logistical needs in the region.

How does the awarded value compare to similar stevedoring contracts awarded by the DoD in other Middle Eastern ports over the past five years?

Comparing the $35.3 million award for stevedoring and terminal services in Oman requires careful consideration of contract duration, scope, and specific location. Publicly available data indicates that the Department of Defense awards numerous contracts for port operations and logistics support across the Middle East. While exact dollar-for-dollar comparisons are difficult without identical service scopes and durations, this award appears within a reasonable range for significant logistical support in a strategic location. For instance, similar multi-year contracts for comprehensive port services in larger regional hubs might exceed this value, while smaller, shorter-term engagements could be less. The key factors influencing price are the volume of cargo, types of vessels serviced, duration of operations, and the specific security and operational environment of the port.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential geopolitical instability in the region impacting operations, contractor performance issues in a remote environment, and logistical challenges related to equipment and personnel. Mitigation strategies are embedded within the contract structure and DoD oversight. The firm fixed-price nature transfers financial risk to the contractor, incentivizing efficient performance. The limited duration (approximately one year) allows for reassessment and potential re-competition, reducing long-term exposure to underperformance. Furthermore, the DoD likely maintains robust oversight mechanisms, including regular performance reviews and contingency planning, to address operational disruptions and ensure continuity of essential services.

What is the expected effectiveness of these stevedoring services in supporting U.S. military objectives in the region?

The effectiveness of these stevedoring services is expected to be high, as they are critical for the seamless flow of military equipment, supplies, and personnel through Omani ports. Reliable cargo handling and terminal operations directly support U.S. Central Command's (CENTCOM) mission by ensuring that forces have the necessary resources deployed efficiently. This contract enables rapid deployment, sustainment of operations, and power projection capabilities in a strategically vital region. The efficiency and reliability of these services directly correlate to the operational readiness and effectiveness of U.S. military assets operating in or transiting through the area.

How has DoD spending on stevedoring and related terminal services in Oman trended over the last decade?

Analyzing DoD spending trends on stevedoring and related terminal services in Oman over the last decade reveals fluctuations tied to regional security postures and operational tempo. While specific historical data for Oman alone is not comprehensively detailed in this single award, broader trends indicate significant investment in logistical support infrastructure throughout the Middle East. Spending often increases during periods of heightened military activity or when new strategic initiatives require enhanced logistical footprints. Conversely, periods of reduced operational tempo or shifts in strategic focus may lead to decreased spending. This $35.3 million award represents a substantial, albeit potentially episodic, investment reflecting current operational needs.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Marine Cargo Handling

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: KHIMJI HOUSE MUTTRAH STREET, MUSCAT

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $35,348,904

Exercised Options: $35,348,904

Current Obligation: $35,348,904

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J09D0026

IDV Type: IDC

Timeline