DoD's $6.17M Deep Sea Freight Contract Awarded to Farrell Lines Inc. for November 2025

Contract Overview

Contract Amount: $6,171,043 ($6.2M)

Contractor: Farrell Lines Incorporated

Awarding Agency: Department of Defense

Start Date: 2025-11-01

End Date: 2025-11-30

Contract Duration: 29 days

Daily Burn Rate: $212.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 25

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Transportation

Official Description: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to FARRELL LINES INCORPORATED for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS. Key points: 1. The contract is for deep sea freight transportation services. 2. Farrell Lines Inc. is the sole awardee. 3. The contract value is $6.17 million. 4. The period of performance is November 1, 2025, to November 30, 2025. 5. This is a fixed-price contract with economic price adjustment.

Value Assessment

Rating: fair

The contract value of $6.17M for a 29-day delivery order seems within a reasonable range for specialized deep sea freight, but without specific route and cargo details, a precise benchmark is difficult. The fixed-price with economic price adjustment structure suggests potential for cost fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process was intended. However, the specific exclusion of sources warrants further investigation to understand its impact on price discovery and overall competition.

Taxpayer Impact: Taxpayers are impacted by the $6.17M expenditure, with the economic price adjustment clause introducing potential for increased costs beyond the initial estimate.

Public Impact

Ensures critical military logistics and supply chain operations for the Department of Defense. Supports national security by maintaining essential transportation capabilities. Potential for fluctuating costs due to economic price adjustment clause impacts taxpayer burden. The specific exclusion of sources in the competition process may limit overall cost savings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could increase costs.
Small business participation is not indicated.
Specific reasons for exclusion of sources are not detailed.

Positive Signals

Awarded under full and open competition.
Supports critical DoD transportation needs.
Fixed price element provides some cost certainty.

Sector Analysis

This contract falls under the Transportation and Logistics sector, specifically deep sea freight. Government spending in this area is crucial for global reach and supply chain resilience, with benchmarks varying significantly based on routes, vessel types, and service levels.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was likely awarded to a large prime contractor, and there is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The contract is managed by USTRANSCOM, a key component of the Department of Defense responsible for global mobility. Oversight would focus on performance, adherence to contract terms, and management of the economic price adjustment.

Related Government Programs

Deep Sea Freight Transportation
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

Potential for cost overruns due to Economic Price Adjustment.
Lack of Small Business participation.
Unclear justification for exclusion of sources.
Short performance period may indicate a need for urgent services or a bridge contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to FARRELL LINES INCORPORATED. CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS.

Who is the contractor on this award?

The obligated recipient is FARRELL LINES INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

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

What specific factors justify the exclusion of sources in this full and open competition, and how did this impact the final price?

The exclusion of sources in a 'full and open competition after exclusion of sources' scenario typically implies that certain potential offerors were deemed ineligible or that specific requirements necessitated a narrowed pool. Understanding the rationale behind this exclusion is crucial to assess if it led to a less competitive environment and potentially a higher price than could have been achieved with broader participation. Further documentation would be needed to clarify the specific justifications and their pricing implications.

How is the economic price adjustment calculated, and what is the historical volatility of the index used 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. The exact calculation method and the specific index or indices used are critical. Understanding the historical volatility of these indices will help assess the potential risk of significant price increases for the government and the overall impact on taxpayer funds over the contract's duration.

What performance metrics are in place to ensure the efficiency and reliability of Farrell Lines Incorporated's deep sea freight services under this contract?

Effective oversight requires clearly defined performance metrics and service level agreements (SLAs). For deep sea freight, these might include on-time delivery rates, cargo condition upon arrival, vessel operational readiness, and compliance with safety and environmental regulations. USTRANSCOM should have mechanisms to monitor these metrics and hold Farrell Lines accountable for meeting contractual obligations, ensuring value for taxpayer money.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 25

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: A.P. Møller OG Hustru Chastine Mc-Kinney Møllers Fond TIL Almene Formaal

Address: 999 WATERSIDE DR, NORFOLK, VA, 23510

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,171,043

Exercised Options: $6,171,043

Current Obligation: $6,171,043

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71124DW005

IDV Type: IDC

Timeline