DoD's $311M Navigational Services Contract Awarded to American Overseas Marine LLC

Contract Overview

Contract Amount: $311,661,207 ($311.7M)

Contractor: American Overseas Marine CO. LLC

Awarding Agency: Department of Defense

Start Date: 2000-06-20

End Date: 2005-03-18

Contract Duration: 1,732 days

Daily Burn Rate: $179.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIXED PRICE AWARD FEE

Sector: Defense

Place of Performance

Location: QUINCY, NORFOLK County, MASSACHUSETTS, 02169

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $311.7 million to AMERICAN OVERSEAS MARINE CO. LLC for work described as: Key points: 1. Significant contract value of over $311 million. 2. Full and open competition was utilized. 3. Potential for cost overruns or performance issues exists. 4. Contract falls within the Defense sector.

Value Assessment

Rating: fair

The award amount of $311,661,207.45 for navigational services appears substantial. Benchmarking against similar contracts for specialized maritime support is difficult without more granular data on service scope and duration. The fixed-price award fee structure suggests incentives for performance, but the total value warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process to solicit bids from multiple qualified vendors. This method generally promotes competitive pricing and ensures the government receives the best value. The existence of multiple bidders likely contributed to price discovery.

Taxpayer Impact: The use of full and open competition suggests efforts to secure competitive pricing, potentially leading to efficient use of taxpayer funds. However, the total value of the contract means any inefficiencies could still represent a significant cost.

Public Impact

Ensures critical navigational services for Department of the Navy operations. Supports maritime readiness and operational effectiveness. Impacts the maritime services industry and potential competitors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is lengthy (over 4 years).
Award fee structure can lead to uncertainty in final cost.
No small business participation noted.

Positive Signals

Awarded through full and open competition.
Fixed price contract type limits cost escalation risk.

Sector Analysis

This contract for navigational services falls under the broader Defense sector, specifically supporting maritime operations. Spending in this area is critical for national security and involves specialized equipment and expertise. Benchmarks for such niche services are often proprietary or difficult to ascertain publicly.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (sb: false). This suggests the prime contractor is likely a larger entity, and opportunities for subcontracting to small businesses were either not pursued or not applicable to the scope of work.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms. However, the duration and value necessitate ongoing monitoring to ensure performance standards are met and costs remain justified.

Related Government Programs

Navigational Services to Shipping
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration may increase risk of obsolescence or changing needs.
Award fee mechanism introduces potential for cost variability.
Lack of small business participation limits broader economic impact.
Specific performance metrics and award fee calculation are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $311.7 million to AMERICAN OVERSEAS MARINE CO. LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is AMERICAN OVERSEAS MARINE CO. LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $311.7 million.

What is the period of performance?

Start: 2000-06-20. End: 2005-03-18.

What specific navigational services are included in this contract, and how do they align with current technological standards and operational needs?

The contract details for 'Navigational Services to Shipping' (NA: 488330) are broad. A deeper dive into the Statement of Work (SOW) is needed to understand the precise services rendered, such as charting, hydrographic surveys, or aids to navigation maintenance. Ensuring these services are current and essential for the Navy's evolving operational requirements is crucial for justifying the $311M expenditure.

Given the fixed-price award fee structure, what are the key performance indicators (KPIs) and how are they measured to determine the award fee, and what is the potential variance?

The fixed-price award fee (PT: FIXED PRICE AWARD FEE) structure implies that the contractor receives a base fee plus an additional award fee based on performance against specific metrics. Understanding these KPIs, their weighting, and the range of potential award fees is essential to assess the true cost variability and the government's ability to incentivize desired outcomes effectively.

How does the $311M contract value compare to historical spending on similar navigational services, and what factors justify this specific amount?

Comparing the $311,661,207.45 contract value requires access to historical spending data for comparable navigational services within the DoD or other federal agencies. Factors influencing this amount could include the scope of services, geographic coverage, duration, technological requirements, and the competitive landscape at the time of award. A benchmark analysis would reveal if this represents a fair market price.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Navigational Services to Shipping

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 14

Pricing Type: FIXED PRICE AWARD FEE (M)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 116 E HOWARD ST, QUINCY, MA, 08

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline