Maritime Administration contract for freight transportation services awarded to Marine Transport Lines, Inc. for over $10.9 million

Contract Overview

Contract Amount: $10,960,819 ($11.0M)

Contractor: Marine Transport Lines, Inc.

Awarding Agency: Department of Transportation

Start Date: 2006-11-02

End Date: 2009-07-27

Contract Duration: 998 days

Daily Burn Rate: $11.0K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: MTL M&R SM FIXED FEES

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $11.0 million to MARINE TRANSPORT LINES, INC. for work described as: MTL M&R SM FIXED FEES Key points: 1. The contract's fixed-fee structure suggests a predictable cost model for the government. 2. Limited competition may have impacted the final negotiated price. 3. The contract duration of nearly three years indicates a significant, ongoing need for these services. 4. Performance context is crucial to assess if the fixed fees adequately compensated for services rendered. 5. This contract falls within the deep sea freight transportation sector, a critical component of national logistics.

Value Assessment

Rating: fair

The contract was awarded at a firm fixed price, which can be advantageous for budget predictability. However, without detailed performance metrics or comparisons to similar freight contracts from the same period, it's difficult to definitively assess value for money. The total award amount of over $10.9 million for a nearly three-year period suggests a substantial service commitment. Benchmarking against industry rates for similar deep-sea freight transportation services during 2006-2009 would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. If it was competed broadly, the government likely benefited from competitive pricing. If it was sole-source or limited competition, the price may not reflect the lowest possible cost. Understanding the solicitation process and the number of bids received is essential to evaluate the effectiveness of price discovery and its impact on the final award.

Taxpayer Impact: The level of competition directly influences taxpayer value. Robust competition typically leads to lower prices, meaning taxpayer funds are used more efficiently. Limited competition can result in higher costs for the government.

Public Impact

This contract supports the movement of goods via deep sea freight, contributing to national supply chain resilience. The services delivered likely involved the transportation of essential cargo, potentially for defense or economic purposes. The geographic impact would be international, involving ports and shipping lanes across the globe. The contract supported the operations of Marine Transport Lines, Inc., impacting their workforce and business.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition process makes it difficult to assess if the best value was achieved.
Without performance data, it's challenging to determine if the fixed fee was appropriate for the services rendered.
The contract's age means current market rates and best practices may differ significantly.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
The contract was awarded to a known entity in the maritime transport sector.
The duration suggests a sustained need that was met by this award.

Sector Analysis

This contract operates within the maritime transportation sector, specifically deep sea freight. This sector is vital for international trade and national security, involving large vessels and complex logistics. Comparable spending in this sector can vary widely based on vessel size, route, and cargo type. The market is often characterized by a mix of large, established carriers and specialized operators. The Maritime Administration plays a key role in supporting the U.S. merchant marine.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Marine Transport Lines, Inc., is likely a larger entity. There is no direct information on subcontracting plans or their impact on the small business ecosystem from this data alone. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation and the Maritime Administration. Mechanisms would include contract performance reviews, financial audits, and potentially Inspector General investigations if fraud or mismanagement were suspected. Transparency is often enhanced through contract databases like FPDS, but detailed performance reporting may not always be publicly accessible.

Related Government Programs

Maritime Freight Services
Deep Sea Shipping Contracts
National Defense Transportation Contracts
Commercial Shipping Support

Risk Flags

Lack of detailed competition information
Absence of performance metrics
Potential for cost overruns if scope was underestimated
Contract awarded over 15 years ago, limiting current relevance

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.0 million to MARINE TRANSPORT LINES, INC.. MTL M&R SM FIXED FEES

Who is the contractor on this award?

The obligated recipient is MARINE TRANSPORT LINES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2006-11-02. End: 2009-07-27.

What was the specific nature of the 'MTL M&R SM FIXED FEES' services provided under this contract?

The abbreviation 'MTL M&R SM FIXED FEES' likely refers to 'Marine Transport Lines Maintenance & Repair Services - Small Vessels - Fixed Fees'. This suggests the contract covered fixed-price payments for maintenance and repair work on smaller vessels operated or managed by Marine Transport Lines, Inc. for the Maritime Administration. The 'SM' could denote 'Small' or a specific class of vessels. The 'M&R' clearly points to maintenance and repair activities, and 'FIXED FEES' indicates a pre-determined payment structure for these services, aiming to control costs for the government.

How does the $10.9 million award compare to typical spending for similar deep-sea freight transportation contracts during the 2006-2009 period?

Comparing the $10.9 million award requires context on the scope and duration. This contract ran for approximately 998 days (nearly three years). For deep-sea freight, especially if it involved dedicated vessel time or significant cargo volumes, $10.9 million over three years might represent a moderate to significant investment. However, without knowing the specific routes, cargo types, vessel capacities, and the number of vessels involved, a direct comparison is challenging. Contracts for chartering large container ships or tankers on major trade routes could easily exceed this amount annually. Conversely, contracts for smaller, specialized freight or shorter routes would be considerably less. Benchmarking against other Maritime Administration contracts for similar services during that timeframe would provide a more accurate perspective.

What were the primary risks associated with this firm fixed-price contract for the government?

The primary risk for the government with a firm fixed-price (FFP) contract, especially for services like maintenance and repair, is that the contractor might cut corners on quality or scope to maximize profit if the fixed price was set too low or if unforeseen issues arise. While FFP offers cost certainty, it shifts performance risk to the contractor. If the contractor encounters unexpected difficulties or the scope of work expands beyond what was reasonably foreseeable, they might incur losses, potentially leading to disputes, delays, or even contract termination. The government's risk is ensuring the contractor has adequate incentives and oversight to maintain quality and deliver the full scope of services despite the fixed price.

What does the contract's status as 'SC' (South Carolina) indicate regarding its operational or administrative context?

The 'SC' designation likely refers to the state of South Carolina, indicating the location of the contractor's principal place of business, a significant operational site, or the place where the contract was administratively awarded or managed. For a maritime contract, it could mean the contractor is based in a port city within South Carolina, such as Charleston, which is a major hub for shipping and maritime activities. This location might be relevant for logistical planning, vessel docking, or repair facilities. It helps contextualize the geographic footprint of the contractor's involvement with this federal award.

Were there any performance issues or disputes reported for Marine Transport Lines, Inc. on this or similar contracts during the period?

The provided data snippet does not contain information on performance issues, disputes, or contractor track records. To assess this, one would need to consult more comprehensive contract databases (like FPDS-NG archives), agency performance review systems, or legal/dispute resolution records. A thorough analysis would involve searching for any contract modifications, claims submitted by the contractor, termination notices, or negative past performance reviews associated with Marine Transport Lines, Inc. for this specific contract (Award ID not provided) or other contracts held with the Maritime Administration or Department of Transportation during the relevant period.

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 › OPERATION OF SHIPS, SMALL CRAFTS, PONTOONS AND FLOATING DOCKS

Contractor Details

Parent Company: Crowley Holdings, Inc. (UEI: 831667329)

Address: 1200 HARBOR BOULEVARD, WEEHAWKEN, NJ, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,960,819

Exercised Options: $10,960,819

Current Obligation: $10,960,819

Parent Contract

Parent Award PIID: DTDTMA8C05001

IDV Type: IDC

Timeline