Transportation Dept. Awards $3.8M for Deep Sea Freight, Limited Competition

Contract Overview

Contract Amount: $3,814,937 ($3.8M)

Contractor: Ocean Shipholdings, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-05-02

End Date: 2024-12-15

Contract Duration: 593 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: GARY I GORDON FY 23 GAA CREW COSTS & MGMT FEES ODI-GDN23-1002A, ODI-GDN-1002B

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21224

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $3.8 million to OCEAN SHIPHOLDINGS, INC. for work described as: GARY I GORDON FY 23 GAA CREW COSTS & MGMT FEES ODI-GDN23-1002A, ODI-GDN-1002B Key points: 1. Significant contract value for specialized maritime services. 2. Limited competition raises questions about price discovery. 3. Potential risk in reliance on a single provider for critical services. 4. Sector focus on deep sea freight transportation.

Value Assessment

Rating: fair

The contract value of $3.8M for crew costs and management fees appears reasonable given the duration and specialized nature of deep sea freight operations. However, without a benchmark for similar contracts or a competitive bidding process, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This lack of competition may have impacted the government's ability to secure the most favorable pricing through a robust price discovery process.

Taxpayer Impact: The limited competition may result in taxpayers paying a premium compared to a fully competitive scenario.

Public Impact

Ensures continued operation of deep sea freight services. Supports the U.S. maritime industry and associated jobs. Potential for increased costs to taxpayers due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price benchmark

Positive Signals

Supports critical maritime operations
Firm fixed price contract

Sector Analysis

This contract falls within the deep sea freight transportation sector, a critical component of national logistics and trade. Spending in this area is often influenced by global shipping rates, regulatory requirements, and the availability of specialized vessels and crews.

Small Business Impact

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

Oversight & Accountability

The award is a delivery order under a larger contract, suggesting some level of pre-award review. However, the limited competition aspect warrants scrutiny to ensure fair pricing and value for taxpayer dollars.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Limited competition
Potential for overpayment
Lack of transparency in source selection
Reliance on a single provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.8 million to OCEAN SHIPHOLDINGS, INC.. GARY I GORDON FY 23 GAA CREW COSTS & MGMT FEES ODI-GDN23-1002A, ODI-GDN-1002B

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 $3.8 million.

What is the period of performance?

Start: 2023-05-02. End: 2024-12-15.

What is the justification for limiting competition on this contract?

The justification for limiting competition is not provided in the data. Typically, such limitations are based on factors like urgent and compelling needs, unique capabilities of a single source, or specific government requirements that only one contractor can meet. Further investigation into the contract file would be necessary to understand the specific rationale.

How does the awarded price compare to industry benchmarks for similar services?

Without access to a competitive bidding process or specific industry benchmark data for comparable deep sea freight crew costs and management fees, it is difficult to definitively assess if the awarded price is optimal. The lack of competition hinders direct comparison and price discovery.

What are the potential risks associated with a sole-source or limited-competition award for maritime services?

Sole-source or limited-competition awards can lead to higher costs for the government due to the absence of competitive pressure. There's also a risk of reduced innovation and service quality if the contractor faces no direct competition. Furthermore, it can limit opportunities for other qualified businesses to compete for government contracts.

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: FIRM FIXED PRICE (J)

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: $3,814,937

Exercised Options: $3,814,937

Current Obligation: $3,814,937

Actual Outlays: $3,814,937

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF720G000006

IDV Type: BOA

Timeline