DOT awards $4.9M for vessel layberthing, with 2706 days of service

Contract Overview

Contract Amount: $4,939,144 ($4.9M)

Contractor: California Sealift Terminals, Inc

Awarding Agency: Department of Transportation

Start Date: 2025-12-01

End Date: 2030-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LAYBERTHING FOR TWO RRF VESSELS, CAPE SABLE AND CAPE STARR.

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $4.9 million to CALIFORNIA SEALIFT TERMINALS, INC for work described as: LAYBERTHING FOR TWO RRF VESSELS, CAPE SABLE AND CAPE STARR. Key points: 1. Contract value appears reasonable given the 5-year duration. 2. Full and open competition suggests a competitive bidding process. 3. No specific risk indicators are immediately apparent from the data. 4. Performance context is limited to layberthing services for two specific vessels. 5. This contract falls under 'Other Support Activities for Water Transportation'.

Value Assessment

Rating: good

The contract value of $4.9 million over five years averages to approximately $987,828 per year. Without specific details on the scope of layberthing services (e.g., frequency, duration, included maintenance), direct comparison to similar contracts is challenging. However, the duration of the contract (1825 days) suggests a steady, ongoing need for these services. The firm fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The provided data does not specify the number of bidders, but this method generally fosters a competitive environment, which can lead to better pricing and terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lowering the overall cost of the services.

Public Impact

The Maritime Administration benefits from the secure and operational layberthing of the RRF vessels Cape Sable and Cape Starr. This contract ensures the readiness and maintenance of critical sealift assets. The services are geographically focused in California, supporting maritime operations in the region. The contract likely supports jobs within the maritime support services sector in California.

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 provides cost predictability.
Long-term contract (5 years) indicates a stable and ongoing requirement.

Sector Analysis

The contract falls within the 'Other Support Activities for Water Transportation' sector, which includes services like terminal operations, stevedoring, and vessel support. This sector is crucial for the efficient functioning of the nation's ports and maritime supply chains. The value of this contract is relatively small compared to the overall federal spending in the broader transportation and logistics sector, but it addresses a specific operational need for the Maritime Administration's Ready Reserve Force (RRF) vessels.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if the prime contractor, California Sealift Terminals, Inc., chooses to engage them. Without further information on subcontracting plans, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Maritime Administration (MARAD), a sub-agency of the Department of Transportation. As a delivery order under a larger contract vehicle (implied by 'AW: DELIVERY ORDER'), oversight may also involve the contracting activity that established the base contract. Transparency is facilitated by the public nature of contract awards, but detailed performance monitoring and specific accountability measures are not detailed in this summary data.

Related Government Programs

Maritime Administration Vessel Operations
Ready Reserve Force Maintenance
Water Transportation Infrastructure Support
Federal Fleet Support Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.9 million to CALIFORNIA SEALIFT TERMINALS, INC. LAYBERTHING FOR TWO RRF VESSELS, CAPE SABLE AND CAPE STARR.

Who is the contractor on this award?

The obligated recipient is CALIFORNIA SEALIFT TERMINALS, INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

Start: 2025-12-01. End: 2030-11-30.

What is the historical spending by the Maritime Administration on vessel layberthing services?

Historical spending data for Maritime Administration (MARAD) vessel layberthing services is not directly available in the provided summary. However, MARAD manages the Ready Reserve Force (RRF), a fleet of sealift ships essential for national defense and emergency response. Layberthing is a critical component of maintaining these vessels in a ready state. Analyzing MARAD's budget allocations for fleet maintenance and operational support over the past several fiscal years would provide context. For instance, if MARAD's overall budget for RRF sustainment has been consistent or increasing, this $4.9 million contract aligns with a sustained operational requirement. Conversely, a declining trend in related budget lines might warrant further investigation into the necessity and scope of this specific layberthing award.

How does the cost per day for this layberthing contract compare to industry benchmarks?

The contract value is $4,939,144 over 1825 days (5 years). This equates to approximately $2,706 per day ($4,939,144 / 1825 days). Benchmarking this per-day cost requires specific details about the services included (e.g., security, utilities, minor maintenance, environmental compliance) and the type/size of the vessels (Cape Sable and Cape Starr). General port layberthing rates can vary significantly by location and service level. In major US ports, daily rates for basic layberthing can range from a few hundred to several thousand dollars, depending on vessel size and duration. Without more granular data on the specific services rendered and the vessels' specifications, a precise comparison is difficult. However, $2,706 per day appears to be within a plausible range for comprehensive layberthing services for medium-sized vessels in a regulated environment like California, especially considering the 5-year duration which may include volume discounts.

What is the track record of California Sealift Terminals, Inc. with federal contracts, particularly with MARAD?

Information regarding the specific track record of California Sealift Terminals, Inc. with federal contracts, especially with the Maritime Administration (MARAD), is not provided in the summary data. A comprehensive assessment would require reviewing the company's contract history, including past performance evaluations, any disputes or terminations, and the types and values of previous awards. Federal procurement databases (like SAM.gov or FPDS) would typically contain this information. If the company has a history of successful performance on similar maritime support contracts, it would indicate a lower performance risk for this award. Conversely, a history of issues could raise concerns about the contractor's ability to meet the requirements of this new contract effectively and on time.

What are the specific layberthing requirements for the RRF vessels Cape Sable and Cape Starr?

The summary data indicates the contract is for 'LAYBERTHING FOR TWO RRF VESSELS, CAPE SABLE AND CAPE STARR.' However, it does not detail the specific layberthing requirements. These requirements would typically include the duration of layberthing, the specific services to be provided (e.g., security, power, environmental monitoring, basic maintenance, periodic inspections), the location of the layberthing facility, and any specific regulatory compliance needs. Understanding these requirements is crucial for evaluating the adequacy of the contract's scope and the appropriateness of the awarded price. The RRF vessels are maintained in a reduced operating status, and layberthing ensures their preservation and readiness, implying a need for consistent, secure, and environmentally compliant mooring.

Are there any potential risks associated with the long duration (5 years) of this layberthing contract?

The 5-year duration (1825 days) of this layberthing contract presents several potential risks. Firstly, the cost of services could become uncompetitive over time if market rates decrease or if the contractor's costs increase significantly due to inflation or unforeseen operational challenges. While the contract is firm fixed-price, this protects the government from cost overruns but doesn't guarantee the best value throughout the entire period. Secondly, technological advancements or changes in MARAD's fleet readiness strategy could alter the actual need for layberthing services, potentially making the contract less relevant or requiring modifications. Thirdly, long-term contracts can sometimes reduce the incentive for the contractor to innovate or provide exceptional service beyond the minimum requirements, assuming they are confident in contract renewal or the lack of immediate competition. Robust oversight and clear performance metrics are essential to mitigate 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: $4,939,144

Exercised Options: $4,939,144

Current Obligation: $4,939,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF726D000001

IDV Type: IDC

Timeline