DoD's $27.6M Marine Operations Services Contract Awarded to Metson Marine Services Inc

Contract Overview

Contract Amount: $27,644,333 ($27.6M)

Contractor: Metson Marine Services Incorporated

Awarding Agency: Department of Defense

Start Date: 2013-05-30

End Date: 2018-08-31

Contract Duration: 1,919 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ATLANTIC TARGETS AND MARINE OPERATIONS SERVICES.

Place of Performance

Location: KEY WEST, MONROE County, FLORIDA, 33040

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $27.6 million to METSON MARINE SERVICES INCORPORATED for work described as: ATLANTIC TARGETS AND MARINE OPERATIONS SERVICES. Key points: 1. Contract value of $27.6 million over approximately 5 years. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The contract was awarded by the Department of the Navy, a major component of the DoD. 5. The primary service area is Florida, suggesting a focus on regional marine operations. 6. The contractor, Metson Marine Services, has a significant contract history with the federal government.

Value Assessment

Rating: fair

The contract's total value of $27.6 million over nearly five years averages to approximately $5.5 million annually. Benchmarking this against similar marine operations and engineering services contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. While a fixed fee provides some predictability for the contractor's profit, the cost-reimbursement aspect means the government bears the majority of the cost risk. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is difficult, but the CPFF structure warrants careful oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The presence of 3 bids indicates a moderate level of competition for this requirement. A competitive process is generally favorable for price discovery and ensuring the government receives a fair price. However, the specific number of bidders (3) is on the lower side for a contract of this magnitude, which could suggest potential limitations in the market for these specialized services or specific solicitation requirements that narrowed the field.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. A moderate number of bidders suggests that while competition existed, it may not have been as robust as possible, potentially leading to a slightly higher price than if more firms had competed.

Public Impact

The Department of the Navy benefits from specialized marine operations and engineering services, crucial for its fleet readiness and operational capabilities. Services delivered likely include maintenance, repair, logistical support, and potentially engineering consulting for naval vessels and facilities. The geographic impact is concentrated in Florida, supporting naval bases and operations within that state. The contract supports jobs within the marine services and engineering sectors, particularly in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns for the government.
Moderate competition (3 bidders) may not have fully optimized price discovery.
Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
The duration of the contract (nearly 5 years) requires sustained oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could bid.
The contractor, Metson Marine Services, has a history of performing federal contracts, suggesting experience.
The contract addresses critical operational needs for the Department of the Navy.
The fixed fee component provides some predictability for contractor profit margins.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to marine operations. The federal government, particularly the Department of Defense, is a significant consumer of such services for maintaining its vast fleet and infrastructure. The market for specialized marine engineering and operations is competitive but often requires specific certifications and expertise, which can limit the number of qualified bidders. Comparable spending benchmarks would depend heavily on the precise nature of the services rendered, such as vessel repair, port management, or specialized technical support.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Metson Marine Services, a presumably larger entity given the contract value, suggests that small businesses were either not primary bidders or were not specifically targeted through set-aside provisions for this particular award. This means the direct impact on the small business ecosystem for this specific contract is likely minimal, though larger prime contractors may engage small businesses as subcontractors on other projects.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs incurred by the contractor to ensure they align with the contract's objectives and the fixed fee. Transparency is generally maintained through contract reporting requirements, but detailed public access to cost breakdowns and performance reports may be limited. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Marine Vessel Maintenance and Repair Contracts
Logistics and Support Services for Military Operations

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring to control costs.
Moderate number of bidders may indicate limited market competition for specialized services.
Long contract duration necessitates sustained performance oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.6 million to METSON MARINE SERVICES INCORPORATED. ATLANTIC TARGETS AND MARINE OPERATIONS SERVICES.

Who is the contractor on this award?

The obligated recipient is METSON MARINE SERVICES INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.6 million.

What is the period of performance?

Start: 2013-05-30. End: 2018-08-31.

What is Metson Marine Services' track record with federal contracts, particularly with the Department of Defense?

Metson Marine Services Incorporated has a substantial history of federal contracting, primarily with the Department of Defense and specifically the Department of the Navy. Reviewing their contract history reveals numerous awards across various agencies, indicating a consistent presence and capability in serving government needs. While this specific contract is for $27.6 million, their broader portfolio likely includes a range of contract values and service types. Their sustained engagement suggests a level of performance and reliability that meets federal procurement standards. Further analysis would involve examining past performance reviews, any disputes or claims, and the types of services they have provided historically to assess their overall suitability and experience for complex marine operations.

How does the $27.6 million value compare to similar marine operations contracts awarded by the Navy?

The $27.6 million value for Atlantic Targets and Marine Operations Services is a significant but not extraordinary figure for a multi-year contract supporting naval operations. Contracts for marine services, engineering, and vessel support can range widely depending on scope, duration, and specialization. For instance, major ship repair or overhaul contracts can easily reach hundreds of millions, while smaller, specialized technical support contracts might be in the low millions. This $27.6 million contract, spanning nearly five years, suggests a substantial, ongoing requirement for services like target management, operational support, and potentially maintenance or logistics within a specific geographic region (Florida). It appears to be a mid-to-large size contract within the broader category of naval operational support services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for marine operations?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government bears the risk of cost overruns. While the contractor's profit is fixed (the 'fee'), the government reimburses the contractor for all allowable costs incurred. If the contractor's actual costs exceed initial estimates, the government pays the higher amount. This structure can incentivize contractors to be less cost-conscious than in fixed-price contracts. For marine operations, risks include unexpected repair needs, material cost fluctuations, labor challenges, or unforeseen operational complexities that drive up costs. Effective oversight is crucial to scrutinize costs, ensure efficiency, and prevent scope creep that inflates the total expenditure beyond the intended value.

How effective is full and open competition in ensuring competitive pricing for specialized engineering services like these?

Full and open competition is generally the most effective method for ensuring competitive pricing, as it allows any responsible source to submit an offer. This maximizes the pool of potential bidders, increasing the likelihood of receiving competitive bids and driving down prices. However, the effectiveness is contingent on the actual number of bidders and the market dynamics for the specific service. In this case, with 3 bidders, the competition was present but perhaps not as robust as it could be for a $27.6 million contract. If the market for specialized marine engineering and operations services is inherently limited, or if the solicitation requirements were highly specific, even full and open competition might yield fewer bids than desired. Nonetheless, it remains the preferred method for maximizing price discovery.

What are the implications of this contract's duration (1919 days) on performance monitoring and value realization?

A contract duration of 1919 days (approximately 5.25 years) necessitates a robust and sustained performance monitoring framework. For the Department of the Navy, this means establishing clear performance metrics and Key Performance Indicators (KPIs) from the outset and consistently tracking the contractor's adherence to them. Value realization over such a long period depends on the contractor consistently meeting or exceeding these performance standards. It also requires proactive contract management to address any issues that arise, manage potential scope changes, and ensure the services remain aligned with evolving naval requirements. Without ongoing, diligent oversight, the risk of declining performance or cost inefficiencies increases significantly over the contract's lifespan.

How does the PSC/NAICS code '541330' (Engineering Services) inform our understanding of the contract's scope and value?

The NAICS code 541330, 'Engineering Services,' indicates that the core of this contract involves providing professional engineering expertise. This typically includes design, consultation, analysis, and project management related to engineering projects. For marine operations, this could encompass naval architecture, marine engineering design, systems engineering for vessels or port facilities, environmental engineering related to maritime activities, or technical consulting on complex operational challenges. The $27.6 million value suggests a significant scope of work, likely involving substantial engineering analysis, planning, and potentially oversight of related technical services, rather than just routine maintenance or basic operational support. It positions the contract as requiring specialized technical knowledge and problem-solving capabilities.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002412R3083

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1575 SPINNAKER DR. #205, VENTURA, CA, 93001

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $51,093,085

Exercised Options: $51,093,085

Current Obligation: $27,644,333

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4453

IDV Type: IDC

Timeline