Seaward Services Inc. contract for waterfront operations support valued at over $36 million

Contract Overview

Contract Amount: $36,358,149 ($36.4M)

Contractor: Seaward Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-02-15

End Date: 2018-10-31

Contract Duration: 2,084 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF THE CONTRACTOR SHALL PROVIDE SUPPORT SERVICES FOR NSWCCD CODE 23 WATERFRONT OPERATIONS.

Place of Performance

Location: FORT LAUDERDALE, BROWARD County, FLORIDA, 33316

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $36.4 million to SEAWARD SERVICES, INC. for work described as: IGF::CT::IGF THE CONTRACTOR SHALL PROVIDE SUPPORT SERVICES FOR NSWCCD CODE 23 WATERFRONT OPERATIONS. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 2000 days indicates a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The award was a delivery order, implying it was part of a larger contract vehicle. 5. The contractor, Seaward Services, Inc., has a track record with this type of service. 6. The geographic location of service is Florida, indicating a regional focus for these operations.

Value Assessment

Rating: fair

The contract value of over $36 million for engineering services over approximately five years suggests a significant investment. Benchmarking this against similar contracts for waterfront operations support is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the government pays actual costs plus a fixed fee. This can sometimes lead to higher final costs compared to fixed-price contracts if cost management is not rigorous.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific award. While competition is generally positive, the limited number of bidders might warrant further investigation into market dynamics to ensure robust price discovery.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a competitive process, potentially driving down prices and improving service quality.

Public Impact

The primary beneficiaries are the Naval Sea Systems Command (NAVSEA) and the Naval Surface Warfare Center, Carderock Division (NSWCCD), receiving essential support services. The services provided are critical for the operational readiness and maintenance of waterfront facilities and assets. The geographic impact is concentrated in Florida, where the waterfront operations are located. The contract supports specialized engineering and technical personnel, potentially impacting the local workforce in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
Limited number of bidders (2) may indicate potential barriers to entry or a niche market.
The contract duration is substantial, requiring sustained oversight to ensure continued value.
Specific details on performance metrics and quality control are not readily available in the provided data.

Positive Signals

Awarded through full and open competition, promoting a fair and accessible bidding environment.
The contractor has been awarded a significant contract, suggesting a level of trust and capability.
The contract addresses a clear operational need for waterfront support services.
The delivery order mechanism implies it was part of a pre-established, potentially competitive, contract vehicle.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting naval operations. The market for specialized waterfront engineering and support services is often niche, with a limited number of highly qualified contractors. Government spending in this area is crucial for maintaining naval readiness and infrastructure. Comparable spending benchmarks would depend on the specific nature of the waterfront operations and the complexity of the support required.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, cost tracking, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract award databases, but detailed performance reports and IG oversight specific to this delivery order are not detailed in the provided summary.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Naval Surface Warfare Center (NSWC) Contracts
Department of Defense Engineering Services
Waterfront Operations Support
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited number of bidders may indicate a concentrated market.
Long contract duration necessitates sustained performance monitoring.
Specific performance metrics and quality standards require further examination.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.4 million to SEAWARD SERVICES, INC.. IGF::CT::IGF THE CONTRACTOR SHALL PROVIDE SUPPORT SERVICES FOR NSWCCD CODE 23 WATERFRONT OPERATIONS.

Who is the contractor on this award?

The obligated recipient is SEAWARD SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $36.4 million.

What is the period of performance?

Start: 2013-02-15. End: 2018-10-31.

What is the track record of Seaward Services, Inc. in performing similar waterfront operations support contracts for the Department of Defense?

Seaward Services, Inc. has a history of performing contracts related to maritime services, including support for naval facilities and operations. Their experience often encompasses areas like vessel repair, maintenance, and logistical support for waterfront activities. While this specific contract valued at over $36 million for NSWCCD Code 23 is substantial, it aligns with the company's general area of expertise. A deeper dive into their past performance reviews, any past performance issues, and the scale of previous similar contracts would provide a more comprehensive understanding of their track record. The fact that they were awarded this significant contract suggests they met the requirements and demonstrated capability during the bidding process.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services, and what are the implications for value for money?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined, or when there is uncertainty about the costs involved, such as in research and development or complex service contracts. In this case, the government pays the contractor's actual allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but carries a higher risk of cost overruns if the contractor's costs escalate beyond initial estimates. For taxpayers, this means the final cost is less predictable. To ensure value for money, rigorous oversight, detailed cost tracking, and strong negotiation by the government are essential to manage the contractor's expenditures and ensure the fixed fee remains reasonable for the services rendered.

What are the potential risks associated with a contract duration of over 2000 days (approximately 5.7 years)?

A long contract duration, such as over 2000 days, presents several potential risks. Firstly, the needs of the government agency may evolve over time, making the original scope of work less relevant or requiring costly modifications. Secondly, market conditions, technology, and pricing for the services could change significantly, potentially making the contracted rates uncompetitive over the long term. Thirdly, maintaining consistent oversight and performance management over an extended period can be challenging for government personnel, potentially leading to a decline in service quality or value if not actively managed. Finally, long-term contracts can sometimes reduce opportunities for other contractors to compete for similar work, potentially limiting market innovation.

Given the 'full and open competition' award, what does the limited number of bidders (2) suggest about the market for these specialized waterfront operations support services?

An award under 'full and open competition' with only two bidders suggests that the market for these highly specialized waterfront operations support services may be concentrated or have significant barriers to entry. This could be due to the need for specific technical expertise, specialized equipment, security clearances, or established relationships with the Naval Sea Systems Command (NAVSEA). While competition occurred, a lower number of bidders might indicate less robust price discovery compared to a market with numerous participants. It could also suggest that only a few companies possess the unique qualifications required for this particular contract, potentially leading to higher prices than if the competition were broader.

What are the implications of this contract being a 'delivery order' rather than a standalone contract?

A 'delivery order' typically indicates that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar contract vehicle. This means that the initial competition likely occurred when the parent IDIQ contract was awarded. The current award represents a specific order for services placed against that established contract. The implications are that the terms, conditions, and potentially the pricing structure were largely set during the initial competition for the IDIQ. This delivery order signifies a specific need and commitment of funds for a defined period and scope of work within the framework of the larger contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002412R3186

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 255 EAST DANIA BEACH BLVD, DANIA BEACH, FL, 33004

Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,551,950

Exercised Options: $40,551,950

Current Obligation: $36,358,149

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4554

IDV Type: IDC

Timeline