Dod's $237.7M Deep Sea Freight Contract Awarded to Tarago Shipholding Corp
Contract Overview
Contract Amount: $23,768,119 ($23.8M)
Contractor: Tarago Shipholding Corp
Awarding Agency: Department of Defense
Start Date: 2000-11-06
End Date: 2005-07-19
Contract Duration: 1,716 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $23.8 million to TARAGO SHIPHOLDING CORP for work described as: Key points: 1. Significant contract value of $237.7 million over 1716 days. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract awarded by the Department of the Navy for deep sea freight transportation. 4. Firm Fixed Price contract type aims to control costs for the government.
Value Assessment
Rating: fair
The contract value of $237.7 million over approximately 4.7 years represents a substantial investment. Benchmarking against similar deep sea freight contracts is difficult without more specific service details, but the duration and value suggest a significant operational commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing and ensure the government receives fair market value.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it promotes a level playing field and encourages cost-effective solutions.
Public Impact
Ensures critical deep sea freight transportation services for the Department of the Navy. Supports naval operations and logistics by providing necessary shipping capabilities. The long duration of the contract implies a sustained need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or quality indicators.
- Potential for cost overruns if unforeseen operational challenges arise.
- Limited visibility into the specific services provided beyond 'Deep Sea Freight Transportation'.
Positive Signals
- Firm Fixed Price contract type provides cost certainty.
- Full and open competition suggests a competitive award process.
- Awarded by a major federal agency (Department of Defense).
Sector Analysis
The transportation sector, particularly deep sea freight, is crucial for global logistics and military operations. This contract falls within a segment that requires specialized vessels and extensive operational experience, with significant capital investment typically involved.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The firm fixed price nature may reduce the need for extensive cost oversight, but performance monitoring remains crucial.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed service scope.
- Absence of specified performance metrics.
- Potential for market volatility impacting fixed price contracts.
- Limited information on small business participation.
Tags
deep-sea-freight-transportation, department-of-defense, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.8 million to TARAGO SHIPHOLDING CORP. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is TARAGO SHIPHOLDING CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.8 million.
What is the period of performance?
Start: 2000-11-06. End: 2005-07-19.
What specific types of cargo and routes are covered under this deep sea freight contract, and how do they align with current DoD logistical needs?
The provided data lacks specifics on cargo types and routes. Understanding these details is crucial to assess the contract's alignment with current DoD logistical requirements and to evaluate if the awarded services are essential and efficiently utilized. Without this information, it's difficult to determine the true strategic value beyond the general need for freight transportation.
Given the 1716-day duration and $237.7 million value, what are the key performance indicators (KPIs) and risk mitigation strategies in place to ensure successful delivery and prevent cost overruns?
The contract details do not specify KPIs or explicit risk mitigation strategies. For a contract of this magnitude and duration, robust performance metrics and proactive risk management are essential. The firm fixed price structure offers some cost certainty, but potential risks like fuel price volatility, geopolitical disruptions, or vessel maintenance issues require defined oversight and contingency plans.
How does the awarded price compare to market rates for similar deep sea freight services, and what was the competitive landscape during the bidding process?
The contract was awarded under full and open competition, suggesting a competitive process. However, without access to the bid details or market rate benchmarks for comparable services (considering vessel type, capacity, routes, and duration), a precise price comparison is not possible. The $237.7 million award over nearly five years necessitates further analysis to confirm its cost-effectiveness against industry standards.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 6550 ROCK SPRING DR, BETHESDA, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2000-11-06
Current End Date: 2005-07-19
Potential End Date: 2005-07-19 00:00:00
Last Modified: 2009-04-03
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