DoD awards $3.9M for Deep Sea Freight Transportation to HAPAG-LLOYD USA, LLC
Contract Overview
Contract Amount: $3,894,869 ($3.9M)
Contractor: Hapag-Lloyd USA, LLC
Awarding Agency: Department of Defense
Start Date: 2025-11-01
End Date: 2025-11-30
Contract Duration: 29 days
Daily Burn Rate: $134.3K/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.
Plain-Language Summary
Department of Defense obligated $3.9 million to HAPAG-LLOYD USA, LLC for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS. Key points: 1. Contract awarded for deep sea freight transportation services. 2. HAPAG-LLOYD USA, LLC is the sole awardee. 3. The contract has a fixed price with economic price adjustment. 4. This is a delivery order under a larger contract.
Value Assessment
Rating: fair
The contract value is $3,894,869.34. Benchmarking against similar deep sea freight transportation contracts is difficult without more specific service details and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests some competition occurred, but specific details on the exclusion and the resulting price discovery are not provided.
Taxpayer Impact: Taxpayer funds are being used for essential transportation services. The pricing structure with economic price adjustment introduces potential for cost fluctuations.
Public Impact
Ensures movement of goods and materials for the Department of Defense. Supports military readiness and logistical operations. Potential for price increases due to economic price adjustment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition information.
- Economic price adjustment introduces cost uncertainty.
Positive Signals
- Supports critical DoD logistics.
- Fixed price component provides some cost control.
Sector Analysis
This contract falls under transportation services, specifically deep sea freight. Spending in this sector is crucial for global logistics and defense operations, with costs influenced by fuel prices, geopolitical stability, and carrier capacity.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if opportunities were missed or if this is a specialized service area.
Oversight & Accountability
The contract is a delivery order, implying it's part of a larger framework agreement. Oversight would focus on the performance of HAPAG-LLOYD USA, LLC against the terms of the delivery order and the parent contract.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Limited competition details.
- Potential for cost overruns due to EPA.
- Lack of specific service details for value assessment.
- Unclear rationale for source exclusion.
Tags
deep-sea-freight-transportation, department-of-defense, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.9 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 $3.9 million.
What is the period of performance?
Start: 2025-11-01. End: 2025-11-30.
What specific services are included in this 'Deep Sea Freight Transportation' to justify the $3.9M value?
The provided data lacks specific details on the services rendered under this contract. 'Deep Sea Freight Transportation' is broad and could encompass various routes, cargo types, and associated services like port handling, customs clearance, and insurance. A more granular breakdown of the scope of work is necessary to accurately assess the value for money.
How did the 'exclusion of sources' impact the final price and competition for this contract?
The 'exclusion of sources' clause suggests that not all potential offerors were considered, potentially limiting competition. While the contract states 'full and open competition after exclusion,' the rationale for exclusion and its impact on price discovery are unclear. This could lead to a less competitive price than if all sources were allowed.
What is the anticipated impact of the 'economic price adjustment' on the final cost to taxpayers?
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. This introduces uncertainty regarding the final expenditure. The actual taxpayer impact will depend on the volatility of these underlying economic indicators during the contract period.
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: 3 RAVINIA DR, ATLANTA, GA, 30346
Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $3,894,869
Exercised Options: $3,894,869
Current Obligation: $3,894,869
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71124DW008
IDV Type: IDC
Timeline
Start Date: 2025-11-01
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2026-01-09
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