DoD's $24M Deep Sea Freight Contract Awarded to Hapag-Lloyd USA for Transportation Services
Contract Overview
Contract Amount: $23,987,312 ($24.0M)
Contractor: Hapag-Lloyd USA, LLC
Awarding Agency: Department of Defense
Start Date: 2012-05-31
End Date: 2012-05-31
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Transportation
Official Description: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS
Plain-Language Summary
Department of Defense obligated $24.0 million to HAPAG-LLOYD USA, LLC for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS Key points: 1. The contract value is $23,987,312.29. 2. Hapag-Lloyd USA, LLC is the sole awardee. 3. The contract falls under the Deep Sea Freight Transportation category. 4. This is a delivery order under a larger contract.
Value Assessment
Rating: fair
The contract uses a fixed-price structure with economic price adjustment, which can lead to cost fluctuations. Benchmarking against similar deep sea freight contracts is necessary to fully assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a delivery order, the specific pricing for this instance may not reflect the full competitive landscape.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, promoting competitive pricing. The economic price adjustment clause warrants monitoring to ensure costs remain reasonable.
Public Impact
Ensures the movement of goods and personnel for the Department of Defense. Supports global logistics and supply chain operations. Impacts the efficiency of military readiness and deployment capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may increase final costs.
- Limited visibility into specific delivery order pricing.
- Potential for fluctuating fuel and operational costs.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense transportation needs.
Sector Analysis
This contract is within the transportation sector, specifically deep sea freight. Spending in this area is crucial for military logistics and global reach. Benchmarks for similar freight contracts would typically consider volume, distance, and vessel type.
Small Business Impact
There is no indication that small businesses were involved in this specific delivery order. Further analysis would be needed to determine if small businesses participated in the original contract vehicle or if subcontracting opportunities existed.
Oversight & Accountability
As a delivery order under a larger contract, oversight would likely focus on adherence to the terms of the base contract and the specific requirements of this order. Accountability rests with USTRANSCOM to ensure services are rendered as specified.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Economic Price Adjustment Clause
- Delivery Order Specifics
- Limited Contract Duration
- Lack of Small Business Participation Data
Tags
deep-sea-freight-transportation, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.0 million to HAPAG-LLOYD USA, LLC. CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS
Who is the contractor on this award?
The obligated recipient is HAPAG-LLOYD USA, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $24.0 million.
What is the period of performance?
Start: 2012-05-31. End: 2012-05-31.
What was the competitive landscape for the base contract under which this delivery order was issued?
The provided data indicates this delivery order was awarded under 'FULL AND OPEN COMPETITION'. However, it does not detail the number of bidders or the specific terms of the original solicitation for the base contract. Understanding the base contract's competition is crucial for a complete assessment of value and pricing effectiveness.
How does the economic price adjustment clause impact the final cost certainty for this contract?
The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specific economic factors, such as fuel costs or labor rates. While intended to account for market volatility, it introduces uncertainty regarding the final expenditure, potentially increasing costs beyond initial projections and impacting budget predictability.
What is the typical performance duration and scope for similar deep sea freight transportation contracts awarded by the DoD?
The duration for this specific delivery order was effectively immediate, with an award and end date of May 31, 2012. However, deep sea freight contracts can vary significantly in scope and duration, ranging from single voyage charters to long-term service agreements. Typical contracts often involve multiple shipments over extended periods, making this a very short-term or specific instance.
Industry Classification
NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HTC71108R0011
Offers Received: 20
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hamburgische Seefahrtsbeteiligung Albert Ballin Gmbh & CO. (UEI: 341016317)
Address: 401 E JACKSON ST STE 3300, TAMPA, FL, 33602
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,987,312
Exercised Options: $23,987,312
Current Obligation: $23,987,312
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71109D0036
IDV Type: IDC
Timeline
Start Date: 2012-05-31
Current End Date: 2012-05-31
Potential End Date: 2012-05-31 00:00:00
Last Modified: 2021-06-24
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