Transportation awards $401.7M contract for ABS services, raising questions about competition and value

Contract Overview

Contract Amount: $4,017 ($4.0K)

Contractor: American Bureau of Shipping

Awarding Agency: Department of Transportation

Start Date: 2023-11-29

End Date: 2024-12-31

Contract Duration: 398 days

Daily Burn Rate: $10/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TSFS FY24 ABS SERVICES

Place of Performance

Location: PINEY POINT, SAINT MARYS County, MARYLAND, 20674

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $4,016.75 to AMERICAN BUREAU OF SHIPPING for work described as: TSFS FY24 ABS SERVICES Key points: 1. Contract awarded via purchase order, indicating a less formal procurement process. 2. Sole-source nature of the award limits opportunities for competitive pricing. 3. The contract duration of 398 days suggests a need for ongoing services. 4. Fixed-price contract type aims to control costs, but value depends on initial negotiation. 5. The specific services provided by 'AMERICAN BUREAU OF SHIPPING' are not detailed, impacting performance assessment. 6. Geographic location in Maryland (MD) may indicate specific operational needs.

Value Assessment

Rating: questionable

Benchmarking the value of this $401.75 million contract is challenging without detailed service descriptions and comparison to similar contracts. The award is a purchase order, which typically involves less rigorous price scrutiny than a full-fledged contract. Given the 'NOT COMPETED' status, it's difficult to assess if the pricing reflects market rates or if a better value could have been achieved through competition. The firm fixed-price nature provides cost certainty, but the overall value proposition remains unclear.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates 'NOT COMPETED', suggesting that only one vendor, AMERICAN BUREAU OF SHIPPING, was considered or solicited for this requirement. This lack of competition limits the government's ability to explore alternative solutions or secure the most favorable pricing through a bidding process. The implications for price discovery are significant, as there was no market test to establish a competitive price.

Taxpayer Impact: The absence of competition means taxpayers may not have received the best possible price for these services. Without a competitive bidding process, there's a risk of overpayment compared to what could have been achieved in an open market.

Public Impact

The primary beneficiary appears to be the Maritime Administration within the Department of Transportation, receiving essential business association services. The contract supports ongoing operations and regulatory functions related to maritime activities. The geographic impact is centered in Maryland (MD), suggesting services are tied to a specific regional or operational hub. Workforce implications are not directly specified but likely involve personnel at AMERICAN BUREAU OF SHIPPING supporting these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited vendor options.
The 'NOT COMPETED' status warrants further investigation into the justification for sole-source award.
Absence of detailed service descriptions makes it difficult to assess performance and effectiveness.
Purchase order award type may indicate less stringent oversight compared to larger contract vehicles.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
The contract has a defined period of performance, allowing for planning and budgeting.
Awarding to a known entity (AMERICAN BUREAU OF SHIPPING) might imply a level of trust or established relationship for critical services.

Sector Analysis

The contract falls under Business Associations (NAICS 813910), a sector that encompasses organizations providing services related to specific industries or professional groups. The Maritime Administration's need for such services suggests a focus on industry standards, certifications, or regulatory support within the maritime sector. Comparable spending benchmarks are difficult to establish without more specific details on the nature of the 'ABS SERVICES'. However, the significant dollar amount indicates a substantial requirement within this niche.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award to AMERICAN BUREAU OF SHIPPING, a known entity in maritime classification, suggests a focus on specialized services likely provided by a larger firm. Further analysis would be needed to determine if any portion of the work could have been subcontracted to small businesses.

Oversight & Accountability

Oversight for this purchase order would primarily fall under the Department of Transportation's Maritime Administration. As a sole-source award, the justification for not competing the requirement is a key area for oversight. Transparency is limited due to the lack of a competitive bidding process and detailed public service descriptions. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Maritime Safety and Security Programs
Vessel Certification and Classification Services
Port and Facility Security
Maritime Industry Standards and Regulations

Risk Flags

Sole-source award
Lack of competition
High contract value
Unspecified services

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4,016.75 to AMERICAN BUREAU OF SHIPPING. TSFS FY24 ABS SERVICES

Who is the contractor on this award?

The obligated recipient is AMERICAN BUREAU OF SHIPPING.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $4,016.75.

What is the period of performance?

Start: 2023-11-29. End: 2024-12-31.

What specific services are included under 'ABS SERVICES' for the Maritime Administration?

The provided data does not specify the exact services encompassed by 'ABS SERVICES'. 'ABS' typically refers to the American Bureau of Shipping, a prominent maritime classification society. Their services often include plan approval, vessel inspections, certification, and technical consulting related to the design, construction, and operation of ships and offshore structures. For the Maritime Administration, these services could be critical for ensuring compliance with safety standards, regulatory requirements, and operational integrity of vessels under their purview or within U.S. waters. A detailed statement of work would be necessary to fully understand the scope and deliverables.

What is the justification for awarding this contract on a sole-source basis?

The data indicates the contract was 'NOT COMPETED', implying a sole-source award. Government agencies typically sole-source contracts when only one responsible source can satisfy the agency's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or specific statutory requirements. Without further documentation from the Department of Transportation's Maritime Administration, the precise justification remains unknown. A thorough review of the justification documentation would be required to assess its validity and ensure it aligns with federal procurement regulations.

How does the $401.75 million value compare to historical spending on similar services by the Maritime Administration?

Historical spending data for similar services by the Maritime Administration is not provided in the current dataset. However, $401.75 million is a substantial sum, suggesting a significant and potentially long-term requirement. To assess value, one would need to compare this amount against previous contracts for classification, certification, or related maritime technical services. Analyzing trends in spending, contract types, and competition levels over several fiscal years would provide context on whether this award represents an increase, decrease, or consistent level of investment in these services.

What are the potential risks associated with a sole-source award of this magnitude?

A sole-source award of this magnitude carries several risks. Primarily, the lack of competition means the government may not be achieving the best possible price, potentially leading to overspending. It also limits the government's ability to explore innovative solutions or leverage a broader range of expertise that might be available from multiple vendors. Furthermore, reliance on a single provider can create vendor lock-in and reduce flexibility in future procurements. Ensuring robust oversight and performance management is crucial to mitigate these risks and maximize the value derived from the contract.

What is the track record of AMERICAN BUREAU OF SHIPPING with federal contracts, particularly with the Department of Transportation?

The provided data indicates AMERICAN BUREAU OF SHIPPING (ABS) is the contractor, and the awarding agency is the Department of Transportation (DOT). While this specific contract is a sole-source purchase order, ABS is a well-established entity in the maritime industry, primarily known for classification and certification services. Their track record with federal agencies, especially DOT, would likely involve numerous contracts related to vessel standards, safety, and compliance. A comprehensive review would involve examining past performance evaluations, contract history, and any reported issues or successes in their federal engagements to gauge their reliability and capability.

Industry Classification

NAICS: Other Services (except Public Administration) › Business, Professional, Labor, Political, and Similar Organizations › Business Associations

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 6933A224Q000001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1701 CITY PLAZA DR, SPRING, TX, 77389

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

Financial Breakdown

Contract Ceiling: $4,017

Exercised Options: $4,017

Current Obligation: $4,017

Actual Outlays: $4,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline