DOT Awards $12.6M Drydock Contract to Give Ga for Naval Support

Contract Overview

Contract Amount: $12,575,174 ($12.6M)

Contractor: Ocean Shipholdings, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-04-03

End Date: 2024-05-31

Contract Duration: 424 days

Daily Burn Rate: $29.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: BENAVIDEZ FY23 M&R DRYDOCK ODI-BEN23-1006A TASK ORDER ISSUED TO GIVE GA CONSENT TO SOLICIT FOR DD SUBJECT TO THE AVAILABILITY OF FUNDS.

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23607

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $12.6 million to OCEAN SHIPHOLDINGS, INC. for work described as: BENAVIDEZ FY23 M&R DRYDOCK ODI-BEN23-1006A TASK ORDER ISSUED TO GIVE GA CONSENT TO SOLICIT FOR DD SUBJECT TO THE AVAILABILITY OF FUNDS. Key points: 1. Contract awarded for drydocking services, a critical component of naval readiness. 2. Limited competition raises questions about price discovery and potential cost efficiencies. 3. The sector relies on specialized facilities, potentially limiting competitive options. 4. Ensuring value for taxpayer funds requires careful monitoring of costs and performance.

Value Assessment

Rating: fair

The contract's cost-plus-no-fee structure requires close monitoring to ensure cost control. Benchmarking against similar drydocking contracts is essential to validate the $12.6 million award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited solicitation approach. This limits the government's ability to leverage competitive bidding to secure the best price.

Taxpayer Impact: The lack of full and open competition may result in higher costs for taxpayers compared to a more competitive process.

Public Impact

Ensures operational readiness of naval vessels through essential maintenance. Supports the maritime industry and specialized shipbuilding/repair capabilities. Potential for cost overruns due to limited competition needs public scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost-plus-no-fee structure
Potential for price escalation

Positive Signals

Supports critical maritime infrastructure
Ensures vessel readiness

Sector Analysis

The Maritime Administration (MARAD) operates within the broader transportation sector, focusing on maintaining and supporting the U.S. merchant marine and shipbuilding capabilities. Spending in this area is crucial for national security and economic stability, often involving specialized and high-cost services like drydocking.

Small Business Impact

Analysis of small business participation is not available for this contract. Further investigation is needed to determine if small businesses were considered or had opportunities to participate in this procurement.

Oversight & Accountability

Oversight will be critical to manage the cost-plus-no-fee structure and ensure the contractor delivers services within budget and to required specifications. The Department of Transportation's contracting office is responsible for monitoring performance and costs.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Lack of full and open competition
Cost-plus-no-fee contract type
Potential for cost escalation
Limited transparency on justification for sole-sourcing

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.6 million to OCEAN SHIPHOLDINGS, INC.. BENAVIDEZ FY23 M&R DRYDOCK ODI-BEN23-1006A TASK ORDER ISSUED TO GIVE GA CONSENT TO SOLICIT FOR DD SUBJECT TO THE AVAILABILITY OF FUNDS.

Who is the contractor on this award?

The obligated recipient is OCEAN SHIPHOLDINGS, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2023-04-03. End: 2024-05-31.

What specific factors justified the limited competition for this drydocking contract, and how were these factors documented?

The justification for limited competition needs to be thoroughly reviewed. Typically, such justifications cite unique capabilities, urgent needs, or the unavailability of alternative sources. Without this documentation, it's difficult to assess if taxpayers received fair value or if competitive opportunities were missed.

How will the cost-plus-no-fee structure be managed to prevent cost overruns and ensure efficient use of funds?

Effective management of a cost-plus-no-fee contract requires robust oversight. This includes detailed cost tracking, regular performance reviews, and clear communication channels between the government and the contractor. Establishing strict spending limits and requiring detailed justifications for all costs incurred are crucial steps.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?

Key performance indicators should focus on the quality of the drydocking work, adherence to schedule, and compliance with safety and environmental regulations. Measuring these KPIs will involve regular inspections, progress reports, and potentially independent assessments to ensure the services meet the required standards and contribute to vessel readiness.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 16211 PARK TEN PLACE, HOUSTON, TX, 77084

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,575,174

Exercised Options: $12,575,174

Current Obligation: $12,575,174

Actual Outlays: $12,575,174

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF720G000006

IDV Type: BOA

Timeline