DoD's $5.9M ocean freight contract awarded to US Ocean LLC for November 2025

Contract Overview

Contract Amount: $5,942,211 ($5.9M)

Contractor: US Ocean LLC

Awarding Agency: Department of Defense

Start Date: 2025-11-01

End Date: 2025-11-30

Contract Duration: 29 days

Daily Burn Rate: $204.9K/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: Defense

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

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70130

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $5.9 million to US OCEAN LLC for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS. Key points: 1. Contract value appears reasonable for specialized, short-term freight services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include reliance on a single provider for a critical month. 4. Performance context is limited to a single delivery order. 5. Sector positioning is within Defense logistics, a high-volume area.

Value Assessment

Rating: good

The contract value of approximately $5.94 million for a one-month period of deep sea freight transportation seems within a reasonable range for specialized logistics services. Benchmarking against similar, short-duration, high-demand transportation contracts would provide a more precise value-for-money assessment. However, given the nature of military logistics and the specific timeframe, the pricing appears to be a fair reflection of market conditions and service requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation might have had some exclusions, the final award was made through a broad competitive process. The data indicates 25 bids were received, suggesting a robust level of competition. This high number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The strong competition indicates that taxpayers are likely benefiting from competitive pricing, as multiple companies vied for the contract, driving down costs. This process helps ensure that the government is not overpaying for essential transportation services.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, ensuring critical transportation needs are met. Services delivered include deep sea freight transportation, vital for military supply chains. The geographic impact is primarily related to the movement of goods via ocean routes, likely supporting global military operations. Workforce implications are indirect, supporting the maritime and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruption if US Ocean LLC faces unforeseen operational issues during the critical November period.
Dependence on a single delivery order limits visibility into long-term contractor performance and reliability.
Economic price adjustment clauses could lead to cost increases if fuel or other input prices rise significantly.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
The contract is for a defined, short period, limiting long-term exposure.
The existence of 25 bids suggests a healthy market for these services.

Sector Analysis

This contract falls within the Defense logistics and transportation sector, a critical component of national security. The market for deep sea freight transportation is global and highly competitive, with numerous carriers vying for government and commercial contracts. The size of this specific contract, approximately $5.94 million for a single month, is moderate within the broader context of DoD's annual transportation spending, which can run into billions.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, there is no explicit information regarding subcontracting plans with small businesses. The award to US Ocean LLC, without further details on its size or subcontracting practices, makes it difficult to assess the direct impact on the small business ecosystem. However, large prime contracts often create opportunities for small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Transportation Command (USTRANSCOM), the agency responsible for managing and overseeing defense transportation and logistics. Accountability measures are typically embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight specifics are usually internal to the agency.

Related Government Programs

Military Sealift Command Contracts
Defense Transportation Services
Ocean Freight Services
Global Logistics Support

Risk Flags

Short contract duration may not reflect long-term contractor stability.
Economic Price Adjustment clause introduces potential for cost increases.
Limited performance data available for this specific delivery order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to US OCEAN LLC. CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS.

Who is the contractor on this award?

The obligated recipient is US OCEAN LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

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

What is the track record of US Ocean LLC in fulfilling federal contracts, particularly for the Department of Defense?

Information regarding US Ocean LLC's specific track record with federal contracts, especially for the Department of Defense, is not detailed in the provided data snippet. A comprehensive analysis would require examining their past performance ratings, any history of contract modifications, disputes, or terminations, and their success in delivering similar services on time and within budget. Reviewing their award history across various agencies and contract types would offer a clearer picture of their reliability and capability as a federal contractor. Without this historical data, assessing their suitability for this specific delivery order relies heavily on the competitive nature of the current award process.

How does the awarded amount of $5.94 million for one month of service compare to historical spending for similar deep sea freight transportation by the DoD?

The provided data indicates a single delivery order valued at $5,942,210.84 for one month of service (November 2025). To compare this to historical spending, one would need to analyze past contracts for similar deep sea freight transportation services procured by the DoD, specifically USTRANSCOM, over comparable durations. Factors such as the volume of cargo, specific routes, vessel types, and prevailing market rates at the time of those historical contracts are crucial for a meaningful comparison. Without access to this historical data, it's challenging to definitively state whether this award represents an increase, decrease, or stable spending trend. However, the presence of 25 bids suggests the price is likely competitive within the current market.

What are the primary risks associated with awarding a single delivery order for a critical month of transportation services?

The primary risks associated with awarding a single delivery order for a critical month of transportation services include potential service disruptions if the contractor, US Ocean LLC, encounters unforeseen operational issues (e.g., vessel mechanical problems, crew shortages, port congestion). There's also a risk of price escalation if market conditions change unfavorably during the contract period, especially with the Economic Price Adjustment (EPA) clause. Furthermore, reliance on a single provider for a specific, crucial timeframe limits the government's flexibility to switch providers if performance issues arise. The short duration (one month) mitigates some long-term risks but concentrates risk within that specific period.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the effectiveness of the procurement process?

The 'Full and Open Competition After Exclusion of Sources' designation implies that while certain sources might have been initially excluded from consideration (perhaps due to specific requirements or prior vetting), the final award was made through a broad, competitive process open to all responsible sources that met the established criteria. This suggests a deliberate effort to maximize competition while ensuring that only qualified bidders participated. The fact that 25 bids were received indicates that this approach was effective in attracting a significant number of interested parties, which generally leads to better price discovery and a higher likelihood of selecting the most advantageous offer for the government, thereby enhancing the procurement's effectiveness.

Are there any indications of potential cost overruns or budget concerns related to this contract?

Based on the provided data, there are no explicit indications of potential cost overruns or budget concerns. The contract is a fixed-price type with an economic price adjustment, which allows for adjustments based on specific economic factors (like fuel costs). While this clause introduces some variability, it is a standard mechanism to account for market fluctuations in the transportation industry. The total obligated amount is clearly stated as $5,942,210.84. The primary factor to monitor for potential overruns would be the impact of the economic price adjustment clause if market conditions shift significantly during the contract's short duration.

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

Address: 365 CANAL ST, NEW ORLEANS, LA, 70130

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,942,211

Exercised Options: $5,942,211

Current Obligation: $5,942,211

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71124DW023

IDV Type: IDC

Timeline