NOAA awards $3.8M for Caribbean vessel support, highlighting a need for specialized marine services

Contract Overview

Contract Amount: $3,818,500 ($3.8M)

Contractor: SEA Ventures Inc

Awarding Agency: Department of Commerce

Start Date: 2021-09-16

End Date: 2025-03-15

Contract Duration: 1,276 days

Daily Burn Rate: $3.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CARIBBEAN VESSEL, DIVE AND SCIENTIFIC SUPPORT SERVICES FOR NOAA FISHERIES, OFFICE OF HABITAT CONSERVATION, RESTORATION CENTER

Place of Performance

Location: FAJARDO, FAJARDO County, PUERTO RICO, 00738

Plain-Language Summary

Department of Commerce obligated $3.8 million to SEA VENTURES INC for work described as: CARIBBEAN VESSEL, DIVE AND SCIENTIFIC SUPPORT SERVICES FOR NOAA FISHERIES, OFFICE OF HABITAT CONSERVATION, RESTORATION CENTER Key points: 1. Contract addresses critical scientific and operational needs for NOAA Fisheries in the Caribbean. 2. SEA VENTURES INC, a new entrant to federal contracting, secured this award. 3. The contract is a Time and Materials type, which can pose cost control challenges. 4. Performance is geographically focused on Puerto Rico, indicating regional service delivery. 5. This award represents a small portion of NOAA's overall operational budget. 6. The contract's duration extends over multiple fiscal years, suggesting ongoing requirements.

Value Assessment

Rating: fair

The contract value of $3.8 million over approximately 3.5 years suggests an annual spend of roughly $1.1 million. Benchmarking this against similar vessel support contracts is difficult without more specific service details. However, Time and Materials contracts inherently carry a higher risk of cost overruns compared to fixed-price agreements. The lack of a pre-defined ceiling or detailed task orders at the outset makes a direct value-for-money assessment challenging at this stage. Further analysis would require comparing actual expenditures against detailed task requirements and market rates for comparable vessel services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating an expectation of a relatively straightforward procurement process. While the specific number of bidders is not detailed, SAP is designed to encourage broad competition for acquisitions below certain thresholds. The fact that it was competed suggests that multiple vendors were likely aware of and capable of bidding on the requirement, which generally aids in price discovery and achieving a fair market price.

Taxpayer Impact: Competition under SAP generally leads to better pricing for taxpayers by allowing multiple vendors to offer their services, preventing single-source price inflation.

Public Impact

NOAA Fisheries gains essential vessel and dive support for its habitat conservation and restoration efforts in the Caribbean. Scientific research and data collection related to marine ecosystems will be facilitated. The services directly support NOAA's mission to understand and conserve marine life and habitats. Geographic impact is concentrated in Puerto Rico, supporting local operational needs. Potential for local employment and utilization of regional maritime resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type introduces potential for cost escalation if not closely managed.
SEA VENTURES INC is a new contractor, raising questions about their experience with federal requirements and performance history.
Limited public information on the specific scientific and operational tasks to be performed makes it difficult to assess performance metrics.
Geographic concentration in Puerto Rico may limit broader applicability of lessons learned to other NOAA regions.

Positive Signals

The contract was competed, indicating an effort to secure competitive pricing.
The award supports NOAA's critical mission objectives in marine conservation and research.
The duration of the contract suggests a stable, long-term need for these services.
Focus on a specific region allows for tailored support to local NOAA operations.

Sector Analysis

This contract falls within the 'Other Support Activities for Water Transportation' category, a niche within the broader maritime services sector. The market for specialized scientific and dive support vessels is often characterized by a limited number of highly capable providers. NOAA's spending in this area is crucial for its research and operational mandates, particularly in ecologically sensitive regions like the Caribbean. Comparable spending benchmarks are difficult to establish without detailed service scope, but NOAA's consistent need for such support suggests an ongoing market demand.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award went to SEA VENTURES INC, which, based on its federal contracting history, appears to be a small business. However, the primary focus of this analysis is on the contract's structure and performance, not its small business set-aside status.

Oversight & Accountability

Oversight for this contract will primarily reside with the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of labor hours, material costs, and task completion will be essential to ensure value for money and prevent cost overruns. Transparency will depend on NOAA's reporting practices and the public availability of contract performance data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NOAA Fisheries Research Contracts
Marine Science Vessel Support
Oceanographic Research Services
Habitat Restoration Support

Risk Flags

Potential for cost overruns due to T&M contract type.
Contractor performance risk given limited federal contracting history.
Scope definition and management for T&M task orders.
Geographic concentration may limit broader applicability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.8 million to SEA VENTURES INC. CARIBBEAN VESSEL, DIVE AND SCIENTIFIC SUPPORT SERVICES FOR NOAA FISHERIES, OFFICE OF HABITAT CONSERVATION, RESTORATION CENTER

Who is the contractor on this award?

The obligated recipient is SEA VENTURES INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2021-09-16. End: 2025-03-15.

What is the track record of SEA VENTURES INC with federal contracts, particularly regarding performance and compliance?

Based on available federal procurement data, SEA VENTURES INC appears to be a relatively new entrant to federal contracting. Information regarding their past performance on federal contracts, including adherence to schedules, quality of deliverables, and overall client satisfaction, is limited. As this is one of their initial awards, establishing a robust performance history will be crucial. NOAA will likely rely on performance metrics outlined in the contract and regular progress reports to monitor their execution. Future awards may be influenced by their success on this contract. It is recommended to closely track their performance and any reported issues or successes.

How does the pricing structure of this Time and Materials contract compare to market rates for similar vessel and dive support services?

Assessing the precise value-for-money of this Time and Materials (T&M) contract requires detailed comparison against market rates for specific services (e.g., vessel day rates, dive team hours, equipment rental). T&M contracts are inherently flexible but carry a higher risk of cost escalation than fixed-price contracts. Without specific task orders and detailed labor categories/rates, a direct benchmark is challenging. However, agencies typically establish ceiling rates or negotiate rates based on industry standards. NOAA's contracting officers would have conducted some level of price analysis to ensure the proposed rates were fair and reasonable. Continued monitoring of actual costs against estimated effort will be key to evaluating value over the contract's life.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, performance issues from a potentially less experienced contractor (SEA VENTURES INC), and scope creep if task orders are not clearly defined. Mitigation strategies should include rigorous oversight by NOAA, detailed task order definitions with clear deliverables and milestones, regular performance reviews, and close monitoring of labor hours and material costs. Establishing clear communication channels and performance metrics from the outset is crucial. The contract's duration also presents a risk of changing requirements or technological obsolescence, necessitating flexibility and adaptive management.

How effective is this contract in supporting NOAA's mission for habitat conservation and restoration in the Caribbean?

The effectiveness of this contract in supporting NOAA's mission hinges on the successful execution of the specific scientific and operational tasks outlined in the task orders. The provision of specialized vessel and dive support is critical for activities such as marine ecosystem surveys, data collection, and potentially assisting in restoration projects. If SEA VENTURES INC delivers reliable and high-quality services as per the contract requirements, it will directly contribute to NOAA's ability to understand, monitor, and protect Caribbean marine habitats. The long-term effectiveness will be measured by the quality and utility of the scientific data gathered and the successful implementation of restoration support activities.

What are the historical spending patterns for similar vessel and dive support services by NOAA or other agencies?

Historical spending patterns for similar vessel and dive support services by NOAA and other agencies within the scientific research and maritime support sectors can vary significantly based on agency mission, geographic focus, and the specific nature of the required services. NOAA, in particular, frequently procures such services for its various research arms, including fisheries management, oceanographic studies, and climate monitoring. Awards can range from small, specialized task orders to multi-year, multi-million dollar contracts. Agencies often utilize competitive bidding processes, including full and open competition and set-asides, to procure these services. Analyzing past awards can provide benchmarks for pricing, contract types, and typical durations for comparable requirements.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Other Support Activities for Water Transportation

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1305M2-21-Q-NFFK-0099

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4900 STATE RD 3 STE 108 MARINA WEST CENTER MARINA PUERTO DEL REY, FAJARDO, PR, 00738

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,500,000

Exercised Options: $6,500,000

Current Obligation: $3,818,500

Actual Outlays: $1,076,175

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline