DOT Awards $2.67M for Crew Wages & Food Stores to Ocean Shipholdings, Inc

Contract Overview

Contract Amount: $2,665,173 ($2.7M)

Contractor: Ocean Shipholdings, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-11-01

End Date: 2025-09-01

Contract Duration: 304 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: BENAVIDEZ FY25 CREW WAGES & FOOD STORES ISSUED TO INCREMENTAL FUND THRU 11-30-2024

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.7 million to OCEAN SHIPHOLDINGS, INC. for work described as: BENAVIDEZ FY25 CREW WAGES & FOOD STORES ISSUED TO INCREMENTAL FUND THRU 11-30-2024 Key points: 1. Contract awarded to a single vendor, raising questions about price discovery. 2. Spending is concentrated within the Maritime Administration, a specialized sector. 3. The contract's value is relatively small in the context of federal spending. 4. Potential for cost efficiencies exists if pricing is benchmarked effectively.

Value Assessment

Rating: fair

The contract type is 'COST NO FEE', which typically means the government reimburses costs without an additional fee. Benchmarking against similar contracts for crew wages and food stores on vessels of comparable size and duration is crucial to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices as there is no competitive pressure to drive down costs. The lack of competition limits the government's ability to ensure the best possible price.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these services.

Public Impact

Ensures operational continuity for maritime assets by covering essential crew costs. Supports the logistics of government-operated or contracted vessels. Impacts the daily functioning and readiness of specific maritime operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-reimbursement contract type
Potential for unbenchmarked pricing

Positive Signals

Ensures essential services are provided
Supports ongoing maritime operations

Sector Analysis

This contract falls under the Maritime Administration's purview, focusing on deep-sea freight transportation. Spending in this sector is often project-specific and can be influenced by operational needs and vessel types. Benchmarks are typically tied to vessel size, duration, and specific service requirements.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract, either as the prime contractor or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight would focus on the justification for the sole-source award and the monitoring of costs incurred under the 'COST NO FEE' structure to ensure reasonableness and necessity.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Cost-reimbursement contract type
Potential for unbenchmarked pricing
Limited transparency on cost justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.7 million to OCEAN SHIPHOLDINGS, INC.. BENAVIDEZ FY25 CREW WAGES & FOOD STORES ISSUED TO INCREMENTAL FUND THRU 11-30-2024

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 $2.7 million.

What is the period of performance?

Start: 2024-11-01. End: 2025-09-01.

What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing without competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. To ensure fair pricing, the agency should conduct thorough cost analysis, compare proposed costs to historical data or industry benchmarks, and negotiate aggressively. Robust oversight is essential to validate the necessity of all costs incurred.

How does the 'COST NO FEE' contract type impact the government's ability to control overall expenditure and ensure value for money?

The 'COST NO FEE' structure means the government reimburses the contractor's allowable costs but does not pay an additional fee. While this can limit the contractor's profit margin, it places a greater burden on the government to meticulously audit and approve all claimed costs. Without strong oversight and clear cost ceilings, this structure can lead to cost overruns if not managed effectively.

What is the expected impact of these crew wages and food store costs on the overall operational budget for the vessel or service during the contract period?

The $2.67 million allocated for crew wages and food stores represents a significant portion of the operational expenses for maritime services. The duration of the contract (304 days) suggests these costs are critical for maintaining continuous operations. Understanding the breakdown of these costs and their relation to the total operational budget is key to assessing the overall financial efficiency of the service.

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 COMPETED

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: $2,665,173

Exercised Options: $2,665,173

Current Obligation: $2,665,173

Actual Outlays: $2,665,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JF720G000006

IDV Type: BOA

Timeline