DOT Awards $3.2M for Maritime Maintenance, Funding Shoreside Staff and Crew Wages
Contract Overview
Contract Amount: $3,232,590 ($3.2M)
Contractor: Ocean Shipholdings, Inc.
Awarding Agency: Department of Transportation
Start Date: 2024-07-27
End Date: 2025-10-31
Contract Duration: 461 days
Daily Burn Rate: $7.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Transportation
Official Description: CAPELLA FISCAL YEAR (FY) 24 COST REIMBURSABLE THE PURPOSE OF THIS PROJECT IS TO PROVIDE FUNDING FOR THE MAINTENANCE PHASE SHORESIDE STAFF AND CREW WAGES.
Place of Performance
Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501
Plain-Language Summary
Department of Transportation obligated $3.2 million to OCEAN SHIPHOLDINGS, INC. for work described as: CAPELLA FISCAL YEAR (FY) 24 COST REIMBURSABLE THE PURPOSE OF THIS PROJECT IS TO PROVIDE FUNDING FOR THE MAINTENANCE PHASE SHORESIDE STAFF AND CREW WAGES. Key points: 1. Contract focuses on essential maintenance, including shoreside staff and crew wages. 2. The award is not available for competition, raising potential cost concerns. 3. A significant portion of the contract value is allocated to personnel costs. 4. The Maritime Administration is the awarding agency, supporting deep sea freight transportation.
Value Assessment
Rating: fair
The contract is a cost-reimbursable type with no fee, indicating the government will cover actual costs incurred. Benchmarking is difficult without a fixed price or more detailed cost breakdown.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', suggesting a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs.
Taxpayer Impact: Taxpayer funds are being used to cover the full cost of maintenance, staff, and crew wages without competitive bidding, which may result in a less optimal price.
Public Impact
Ensures continued operation of deep sea freight transportation services. Supports jobs for shoreside staff and maritime crew. Funding is allocated for the maintenance phase, crucial for asset longevity.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Lack of competition
- Cost-reimbursable contract type
- Potential for cost overruns
Positive Signals
- Supports critical maritime infrastructure
- Ensures operational readiness
- Funds essential personnel
Sector Analysis
This contract falls within the transportation sector, specifically deep sea freight. Spending benchmarks for similar maintenance contracts can vary widely based on vessel type and scope of work.
Small Business Impact
There is no indication that small businesses are involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine potential small business participation.
Oversight & Accountability
The contract is a delivery order under a larger program. Oversight would focus on ensuring costs are reasonable and actual work performed aligns with the contract's purpose.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Transportation Contracting
- Maritime Administration Programs
Risk Flags
- Limited competition
- Cost-reimbursable contract type
- Potential for cost overruns
- Lack of detailed cost breakdown
Tags
deep-sea-freight-transportation, department-of-transportation, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $3.2 million to OCEAN SHIPHOLDINGS, INC.. CAPELLA FISCAL YEAR (FY) 24 COST REIMBURSABLE THE PURPOSE OF THIS PROJECT IS TO PROVIDE FUNDING FOR THE MAINTENANCE PHASE SHORESIDE STAFF AND CREW WAGES.
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 $3.2 million.
What is the period of performance?
Start: 2024-07-27. End: 2025-10-31.
What is the justification for limiting competition on this contract?
The justification for limiting competition is not provided in the data. Typically, such limitations are based on factors like urgent and compelling needs, unique capabilities of a specific contractor, or if only one source is reasonably available. Without this information, it's difficult to assess if the limited competition is warranted or if it represents a missed opportunity for cost savings through a competitive process.
How are cost efficiencies ensured in a cost-reimbursable contract without a fee?
In a cost-reimbursable contract without a fee, cost efficiencies are primarily driven by the contractor's internal controls and the government's auditing and oversight processes. While there's no direct profit incentive tied to cost savings, the government scrutinizes incurred costs to ensure they are reasonable, allocable, and allowable. Effective oversight and clear contract terms are crucial to prevent cost overruns and ensure value for taxpayer money.
What is the potential impact of the contract duration on overall project cost?
The contract duration of 461 days (approximately 15 months) allows for sustained maintenance and operational support. However, longer durations in cost-reimbursable contracts can increase the risk of cost escalation due to inflation, unforeseen issues, or scope creep. Regular reviews and clear milestones are essential to manage costs effectively over this period and ensure the project remains within budget expectations.
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: $3,232,590
Exercised Options: $3,232,590
Current Obligation: $3,232,590
Actual Outlays: $3,232,353
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 693JF720G000006
IDV Type: BOA
Timeline
Start Date: 2024-07-27
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2026-03-20
More Contracts from Ocean Shipholdings, Inc.
- Benavidez FY23 M&R Drydock Odi-Ben23-1006a Task Order Issued to Give GA Consent to Solicit for DD Subject to the Availability of Funds — $12.6M (Department of Transportation)
- Gary I. Gordon FY 23 Cost Reimbursables Odi-Gdn23-Gacr1 — $8.7M (Department of Transportation)
- ROY P. Benavidez FY24 Mission Activation Fha-Jlots - Operations Issued to Fund Task Order for Mission Activation Operations Costs — $8.4M (Department of Transportation)
- Gary I Gordon FY 23 GAA Crew Costs & Mgmt Fees Odi-Gdn23-1002a, Odi-Gdn-1002b — $3.8M (Department of Transportation)
- Benavidez FY25 Crew Wages & Food Stores Issued to Incremental Fund Thru 11-30-2024 — $2.7M (Department of Transportation)
Other Department of Transportation Contracts
- Dafis UDO Reconstruct W/O Advance — $3.8B (Lockheed Martin Services, LLC)
- THE Purpose of This Delivery Order Award IS to ADD Funding for FTI Telecommunications Services — $1.9B (Harris Corporation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Leidos, Inc.)
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (THE Mitre Corporation)
- Dafis UDO Reconstruct W/O Advance — $1.5B (Harris Corporation)