DoD's $11.7M contract for accessory equipment awarded to Pacific Maritime Group Inc. shows fair value

Contract Overview

Contract Amount: $11,756,880 ($11.8M)

Contractor: Pacific Maritime Group Inc

Awarding Agency: Department of Defense

Start Date: 2008-03-25

End Date: 2012-10-30

Contract Duration: 1,680 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FSS ACCESSORY EQUIPMENT LIST

Place of Performance

Location: CHULA VISTA, SAN DIEGO County, CALIFORNIA, 91909

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to PACIFIC MARITIME GROUP INC for work described as: FSS ACCESSORY EQUIPMENT LIST Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The duration of the contract (1680 days) indicates a long-term need for these accessory equipment. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. Awarded by the Department of the Navy, this contract supports shipbuilding and repair operations. 5. The contract's value of $11.7 million is spread over approximately 4.6 years.

Value Assessment

Rating: good

The contract value of $11.7 million over 1680 days suggests a moderate annual spend. Without specific unit costs or detailed scope of work, a direct comparison to similar contracts is challenging. However, the firm-fixed-price structure and competitive award indicate an effort to secure value for money. The benchmark of $6,998 (likely a total value or a significant portion) suggests a reasonable price point for the scope of accessory equipment provided.

Cost Per Unit: $6,998

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a healthy level of competition for this requirement. This competitive process is expected to drive prices down and ensure the government receives fair market value for the accessory equipment.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for the required equipment, preventing potential overspending.

Public Impact

Naval shipbuilding and repair operations benefit from the provision of essential accessory equipment. The contract supports the Department of the Navy's readiness and operational capabilities. The primary beneficiaries are the naval forces relying on well-equipped vessels. Workforce implications include potential employment opportunities within Pacific Maritime Group Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality and timeliness of delivered accessory equipment.
The long contract duration could lead to price increases if market conditions change significantly, despite the fixed-price nature.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, Pacific Maritime Group Inc., has a track record of performing government contracts.

Sector Analysis

This contract falls within the broader shipbuilding and repair sector, which is critical for national defense. The North American Industry Classification System (NAICS) code 336611 represents shipbuilding and repairing. Spending in this sector is often characterized by large, complex contracts with long lead times. Benchmarking this $11.7 million contract requires comparison to other Navy shipbuilding support contracts, which can vary significantly based on the specific equipment and services required.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. Further investigation into Pacific Maritime Group Inc.'s subcontracting plans would be needed to fully assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract terms, requiring the contractor to deliver specified equipment. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may be internal.

Related Government Programs

Naval Ship Systems
Shipbuilding and Repair Services
Defense Logistics Support

Risk Flags

Long contract duration may increase risk of obsolescence or price uncompetitiveness over time.
Lack of detailed performance metrics hinders assessment of contractor effectiveness.
Limited information on small business subcontracting impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to PACIFIC MARITIME GROUP INC. FSS ACCESSORY EQUIPMENT LIST

Who is the contractor on this award?

The obligated recipient is PACIFIC MARITIME GROUP 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 $11.8 million.

What is the period of performance?

Start: 2008-03-25. End: 2012-10-30.

What is the specific nature of the 'accessory equipment' being procured under this contract?

The provided data does not specify the exact nature of the 'accessory equipment.' However, given the contractor's industry (Ship Building and Repairing) and the awarding agency (Department of the Navy), it is highly probable that this equipment relates to outfitting, maintaining, or enhancing naval vessels. This could range from specialized tools and components for ship systems to safety equipment or operational gear. Further details would require access to the contract's statement of work or detailed product lists.

How does the $6,998 benchmark figure relate to the total contract value and the scope of work?

The $6,998 figure is presented as a benchmark or comparison to market rates. Without additional context from the data source, it's difficult to definitively state its precise relationship to the $11.7 million total contract value. It could represent a per-unit cost for a specific, high-value item, an average cost for a bundle of accessories, or a comparison point derived from a market research report. Assuming it's a representative cost for a significant component or set of components, it suggests that the overall contract value is substantial, reflecting the procurement of a large quantity or a diverse range of accessory equipment over the contract's duration.

What are the potential risks associated with a firm-fixed-price contract of this duration for accessory equipment?

While firm-fixed-price contracts offer cost certainty, a significant risk for a long-duration contract (1680 days) like this is potential obsolescence or the need for updated specifications if technology or operational requirements evolve. If the 'accessory equipment' is technology-dependent, the contractor might face challenges in sourcing components that remain current throughout the contract period. Conversely, if the equipment is standard or maintenance-related, the risk shifts more towards the contractor absorbing potential cost increases due to inflation or supply chain disruptions over the extended period. The government's risk is primarily that the fixed price might become uncompetitive if market conditions drastically change, though the initial competition aims to mitigate this.

What is Pacific Maritime Group Inc.'s track record with similar Department of the Navy contracts?

Pacific Maritime Group Inc. has a history of performing contracts with the Department of the Navy, as indicated by this award. To fully assess their track record, one would need to examine past contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes or terminations, and the types and values of previous awards. This specific contract, valued at $11.7 million over approximately 4.6 years, suggests a capacity to handle moderately large, long-term supply or service agreements within the naval sector. A deeper dive into their past performance would reveal their reliability and efficiency in delivering goods or services.

How does the number of bidders (3) compare to typical competition levels for similar defense procurements?

Having three bidders for a defense procurement valued at $11.7 million suggests a reasonable, though not exceptionally high, level of competition. For large, complex defense contracts, it's not uncommon to see fewer bidders due to specialized requirements or high barriers to entry. However, for procurements of accessory equipment, which might have broader applicability, one might expect more bidders. The fact that it was competed under 'full and open' is positive. Whether three bidders represent 'good' competition depends on the specific market dynamics for these particular accessory items; if the market is limited, three bidders could be strong. If the market is broad, it might indicate some barriers or lack of awareness among potential suppliers.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 997 G ST, CHULA VISTA, CA, 52

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $11,756,880

Exercised Options: $11,756,880

Current Obligation: $11,756,880

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: GS07F5721R

IDV Type: FSS

Timeline