DOT's Maritime Administration awards $8.7M firm-fixed-price contract for Deep Sea Freight Transportation to Ocean Shipholdings, Inc

Contract Overview

Contract Amount: $8,741,087 ($8.7M)

Contractor: Ocean Shipholdings, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-05-04

End Date: 2024-12-15

Contract Duration: 591 days

Daily Burn Rate: $14.8K/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 COST REIMBURSABLES ODI-GDN23-GACR1

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21224

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $8.7 million to OCEAN SHIPHOLDINGS, INC. for work described as: GARY I. GORDON FY 23 COST REIMBURSABLES ODI-GDN23-GACR1 Key points: 1. The contract value of $8.7M is significant for this specific service. 2. Competition was not available for this award, raising potential cost concerns. 3. The firm-fixed-price structure aims to control costs, but lack of competition limits price discovery. 4. The sector is Deep Sea Freight Transportation, a critical component of national logistics.

Value Assessment

Rating: fair

The contract is firm-fixed-price, which typically offers good value if competition is robust. However, with no competition available, the pricing is less transparent and may not reflect the best possible market rate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition for this $8.7M contract means taxpayers may be paying a premium compared to a competitively bid scenario.

Public Impact

Ensures continued operation of critical deep-sea freight transportation services. Supports national supply chain resilience and maritime commerce. Potential for higher costs due to lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing

Positive Signals

Firm-fixed-price contract type
Supports critical infrastructure

Sector Analysis

The Maritime Administration's spending in Deep Sea Freight Transportation is essential for national security and economic stability. Benchmarks for similar contracts are difficult to ascertain without competitive data.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award, either as prime contractors or subcontractors.

Oversight & Accountability

The award was made under a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the justification for limited competition and the reasonableness of the price.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Lack of competition
Potential for price gouging
Limited transparency in pricing
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.7 million to OCEAN SHIPHOLDINGS, INC.. GARY I. GORDON FY 23 COST REIMBURSABLES ODI-GDN23-GACR1

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 $8.7 million.

What is the period of performance?

Start: 2023-05-04. End: 2024-12-15.

What was the justification for limiting competition on this significant contract?

The justification for limiting competition is crucial for understanding the value proposition. Without a competitive process, the government relies on negotiation and market research to ensure a fair price. A detailed justification would outline why only Ocean Shipholdings, Inc. could fulfill the requirement, potentially due to specialized assets, existing infrastructure, or unique operational capabilities.

How does the firm-fixed-price structure mitigate risk in a non-competitive environment?

A firm-fixed-price (FFP) contract shifts most of the risk to the contractor, obligating them to complete the work for a predetermined price regardless of their actual costs. While this protects the government from cost overruns, the absence of competition means the initial price might be higher than it would be under competitive pressure. The government must still ensure the price is fair and reasonable through negotiation and market analysis.

What is the long-term effectiveness of awarding contracts without competition for essential services?

Awarding essential services without competition can ensure continuity and specialized capabilities but may lead to reduced innovation and higher costs over time. Agencies should periodically reassess the need for sole-source or limited-source awards to identify opportunities for future competition. This ensures that taxpayer funds are used efficiently and that the government benefits from market advancements.

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: $8,741,087

Exercised Options: $8,741,087

Current Obligation: $8,741,087

Actual Outlays: $8,741,087

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF720G000006

IDV Type: BOA

Timeline