DOT awards $5.3M for layberthing services to two Ready Reserve Force vessels

Contract Overview

Contract Amount: $5,331,815 ($5.3M)

Contractor: Maryland Maritime, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-12-05

End Date: 2026-11-17

Contract Duration: 1,078 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LAYBERTHING SERVICES FOR TWO READY RESERVE FORCE (RRF) VESSELS CAPE WASHINGTON AND CAPE WRATH AT PORT COVINGTON PIER 6 BALTIMORE.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21224

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $5.3 million to MARYLAND MARITIME, INC. for work described as: LAYBERTHING SERVICES FOR TWO READY RESERVE FORCE (RRF) VESSELS CAPE WASHINGTON AND CAPE WRATH AT PORT COVINGTON PIER 6 BALTIMORE. Key points: 1. Contract provides essential support for critical national defense assets. 2. Maryland Maritime, Inc. is the sole awardee for this delivery order. 3. The contract duration is approximately three years, ending in late 2026. 4. Services are for layberthing, a crucial but often overlooked aspect of vessel maintenance. 5. The firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $5.3 million for three years of layberthing services for two vessels appears reasonable. While direct comparisons are difficult without more specific service details, the fixed-price nature of the contract provides cost certainty. Benchmarking against similar port services contracts would offer further insight into value for money, but the specialized nature of supporting Ready Reserve Force vessels may command a premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the process suggests a competitive environment that should have driven a fair market price. The Maritime Administration's adherence to full and open competition is a positive indicator for efficient use of taxpayer funds.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms.

Public Impact

Ensures the readiness of the Ready Reserve Force (RRF) vessels, critical for national defense mobilization. Supports the operational status of the CAPE WASHINGTON and CAPE WRATH vessels. Provides essential maritime support services in Baltimore, Maryland. Maintains the availability of strategic sealift capabilities for the U.S. military.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type helps control costs and provides budget predictability.
Contract duration of nearly three years allows for stable service provision.
Supports critical national defense assets, aligning with government priorities.

Sector Analysis

This contract falls within the broader maritime transportation and support services sector. The market for specialized vessel layberthing, particularly for government reserve fleets, is relatively niche. While general port services are a large market, the specific requirements for RRF vessels likely limit the number of qualified providers. Comparable spending benchmarks would focus on similar government contracts for vessel maintenance and support.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, Maryland Maritime, Inc., is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The focus is on ensuring the primary contractor can meet the specialized needs of the RRF vessels.

Oversight & Accountability

The Department of Transportation and its Maritime Administration are responsible for overseeing this contract. Standard contract management processes, including performance monitoring and payment verification, would be in place. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Ready Reserve Force (RRF) Vessel Operations
Maritime Sealift Command Support
Department of Transportation Vessel Maintenance Contracts
Port Services and Logistics

Risk Flags

Potential environmental risks associated with vessel layberthing.
Security risks for critical national defense assets.
Risk of vessel deterioration due to prolonged idleness if maintenance is inadequate.
Dependence on a single contractor for critical support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.3 million to MARYLAND MARITIME, INC.. LAYBERTHING SERVICES FOR TWO READY RESERVE FORCE (RRF) VESSELS CAPE WASHINGTON AND CAPE WRATH AT PORT COVINGTON PIER 6 BALTIMORE.

Who is the contractor on this award?

The obligated recipient is MARYLAND MARITIME, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2023-12-05. End: 2026-11-17.

What is the specific scope of 'layberthing services' required for these RRF vessels?

Layberthing services typically encompass the mooring of vessels at a pier or dock, along with associated support functions. For the Ready Reserve Force (RRF) vessels CAPE WASHINGTON and CAPE WRATH, this likely includes providing pier space, utilities (power, water), security, routine inspections, minor maintenance to ensure seaworthiness while idle, and potentially fire watch services. The exact scope would be detailed in the contract's Statement of Work (SOW), specifying the level of readiness to be maintained and any required preventative measures to protect the vessels during their inactive period at Port Covington Pier 6 in Baltimore.

How does the $5.3 million cost compare to historical spending on similar layberthing contracts for RRF vessels?

Direct historical cost comparisons for layberthing services specifically for these two RRF vessels are not readily available in the provided data. However, the contract value of approximately $5.3 million over nearly three years suggests an average annual cost of roughly $1.8 million per vessel for layberthing. This figure needs to be contextualized by the specific services rendered, the duration of layberthing, and the location. Without access to historical data for similar RRF layberthing contracts or broader market rates for specialized vessel berthing, a precise value-for-money assessment against past spending is challenging. The Maritime Administration would maintain internal records for such comparisons.

What are the key performance indicators (KPIs) for Maryland Maritime, Inc. under this contract?

Key Performance Indicators (KPIs) for this layberthing contract would likely focus on ensuring the vessels remain in a specified state of readiness and preservation. These could include: adherence to mooring and security protocols, timely provision of utilities, successful completion of required vessel inspections, prompt response to any emergent issues (e.g., environmental spills, fire watch requirements), and maintaining the vessels' condition to prevent degradation. The contract's performance work statement (PWS) would detail these KPIs and the metrics used to evaluate Maryland Maritime, Inc.'s performance, potentially including penalties for non-compliance or incentives for exceptional service.

What is the strategic importance of the CAPE WASHINGTON and CAPE WRATH vessels to national defense?

The CAPE WASHINGTON and CAPE WRATH are part of the Ready Reserve Force (RRF), a fleet of merchant ships maintained by the U.S. Department of Transportation's Maritime Administration (MARAD). These vessels are crucial for national defense as they provide vital sealift capability during national emergencies, such as wartime or major humanitarian crises, when the commercial maritime fleet is insufficient. They can be activated and deployed relatively quickly to transport equipment, supplies, and personnel. Maintaining these vessels in a ready state through services like layberthing ensures the United States has the necessary strategic assets to project power and respond effectively to global threats and contingencies.

Are there any specific risks associated with the layberthing of RRF vessels in Baltimore?

Risks associated with layberthing RRF vessels in Baltimore could include environmental concerns (e.g., potential for spills, impact on local marine ecosystems), security vulnerabilities (e.g., unauthorized access, potential for sabotage), and logistical challenges related to port operations and vessel access. Weather-related risks, such as severe storms or hurricanes common to the region, could also pose a threat to moored vessels. Furthermore, the long-term preservation of the vessels while idle requires diligent maintenance to prevent deterioration, and any lapse in service could impact their readiness. The contract's oversight and the contractor's adherence to safety and environmental protocols are critical to mitigating these risks.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Other Support Activities for Water Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5036 ORTEGA BLVD, JACKSONVILLE, FL, 32210

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

Financial Breakdown

Contract Ceiling: $5,331,815

Exercised Options: $5,331,815

Current Obligation: $5,331,815

Actual Outlays: $4,275,155

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF723D000015

IDV Type: IDC

Timeline