DOT Awards $8.37M for Mission Activation Operations to Ocean Shipholdings, Inc

Contract Overview

Contract Amount: $8,374,522 ($8.4M)

Contractor: Ocean Shipholdings, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-03-08

End Date: 2024-09-30

Contract Duration: 206 days

Daily Burn Rate: $40.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: ROY P. BENAVIDEZ FY24 MISSION ACTIVATION FHA-JLOTS - OPERATIONS ISSUED TO FUND TASK ORDER FOR MISSION ACTIVATION OPERATIONS COSTS.

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23601

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $8.4 million to OCEAN SHIPHOLDINGS, INC. for work described as: ROY P. BENAVIDEZ FY24 MISSION ACTIVATION FHA-JLOTS - OPERATIONS ISSUED TO FUND TASK ORDER FOR MISSION ACTIVATION OPERATIONS COSTS. Key points: 1. Significant contract value of $8.37 million for mission activation operations. 2. Sole-source award to Ocean Shipholdings, Inc. raises competition concerns. 3. Contract duration of 206 days with a fixed price structure. 4. Focus on Deep Sea Freight Transportation within the Maritime Administration sector.

Value Assessment

Rating: questionable

The contract is a delivery order with a fixed price of $8.37 million. Without available comparable contract data or a competitive bidding process, assessing its pricing against similar services is difficult. The 'COST NO FEE' pricing structure suggests potential for cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded on a limited basis, not fully and openly competed. The absence of competition limits price discovery and potentially leads to higher costs for taxpayers. The specific justification for this limited competition is not detailed.

Taxpayer Impact: The limited competition may result in a higher cost to taxpayers than if the contract had been fully competed, as there was no broad market solicitation.

Public Impact

Ensures operational readiness for critical maritime missions. Supports the Department of Transportation's strategic objectives in freight. Potential impact on the availability and cost of deep-sea freight services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of transparency in the justification for limited competition.
Potential for cost overruns with 'COST NO FEE' structure.

Positive Signals

Supports critical mission activation for FY24.
Addresses specific operational needs within the Maritime Administration.

Sector Analysis

This contract falls within the Deep Sea Freight Transportation sector, specifically supporting the Maritime Administration's operational needs. Benchmarking spending in this niche area is challenging due to limited public data on similar mission-specific activations.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. The focus appears to be on a large, established provider for specialized services.

Oversight & Accountability

The award is a delivery order under a larger contract, suggesting some level of pre-existing oversight. However, the limited competition and 'COST NO FEE' structure warrant close monitoring to ensure accountability and prevent cost creep.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Limited competition
Lack of price competition
Potential for cost overruns
Lack of transparency in justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.4 million to OCEAN SHIPHOLDINGS, INC.. ROY P. BENAVIDEZ FY24 MISSION ACTIVATION FHA-JLOTS - OPERATIONS ISSUED TO FUND TASK ORDER FOR MISSION ACTIVATION OPERATIONS COSTS.

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 $8.4 million.

What is the period of performance?

Start: 2024-03-08. End: 2024-09-30.

What is the specific justification for limiting competition on this $8.37 million contract?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' suggesting a limited or sole-source award. A thorough review would require access to the contract file to understand the specific circumstances, such as unique capabilities, urgent needs, or existing partnerships that precluded a broader solicitation process.

How will the 'COST NO FEE' pricing structure be monitored to ensure taxpayer value?

Effective oversight of a 'COST NO FEE' contract requires robust monitoring of the contractor's actual costs. The Department of Transportation's Maritime Administration must implement stringent auditing procedures, require detailed cost reporting, and establish clear performance metrics to ensure that the final cost aligns with the mission objectives and represents fair value.

What are the long-term implications of awarding such a significant operational contract without full and open competition?

Consistently awarding significant contracts through limited competition can stifle innovation and reduce market pressure on pricing over time. It may also create a dependency on specific contractors, potentially limiting future options and increasing costs for the government. A strategic review of procurement practices is advisable.

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: $8,374,522

Exercised Options: $8,374,522

Current Obligation: $8,374,522

Actual Outlays: $8,374,522

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF720G000006

IDV Type: BOA

Timeline