DoD awards $82M contract for Deep Sea Freight Transportation to American Overseas Marine LLC

Contract Overview

Contract Amount: $82,058,307 ($82.1M)

Contractor: American Overseas Marine CO. LLC

Awarding Agency: Department of Defense

Start Date: 2000-11-22

End Date: 2006-09-30

Contract Duration: 2,138 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Transportation

Place of Performance

Location: QUINCY, NORFOLK County, MASSACHUSETTS, 02171

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $82.1 million to AMERICAN OVERSEAS MARINE CO. LLC for work described as: Key points: 1. Contract value of $82.06 million over 2138 days. 2. Full and open competition was utilized. 3. No small business participation noted. 4. Sector: Transportation, specifically freight and logistics.

Value Assessment

Rating: fair

The contract value of $82.06 million for approximately 6 years of service suggests a moderate annual spend. Benchmarking against similar long-term freight contracts would be necessary for a precise assessment, but the duration and scope indicate a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple qualified vendors can bid.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required services.

Public Impact

Ensures critical deep sea freight transportation for the Department of the Navy. Supports military readiness and logistical operations. Potential impact on commercial shipping rates if significant capacity is dedicated.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Long contract duration could lead to price escalation risks.

Positive Signals

Full and open competition utilized.
Ensures essential transportation services.

Sector Analysis

This contract falls within the transportation sector, specifically focusing on deep sea freight. Spending in this area is crucial for defense logistics and global supply chain operations. Benchmarks for similar long-term government freight contracts would provide further context.

Small Business Impact

The data indicates no small business participation in this contract. Given the scale and nature of deep sea freight, it's possible that the requirements favor larger, specialized companies. Further analysis could explore if subcontracting opportunities were missed.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for major procurements. The duration suggests ongoing monitoring is required to ensure performance and cost-effectiveness.

Related Government Programs

Deep Sea Freight Transportation
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration.
No small business participation.
Potential for market shifts impacting cost-effectiveness over time.
Dependence on a single prime contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.1 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 $82.1 million.

What is the period of performance?

Start: 2000-11-22. End: 2006-09-30.

What was the specific nature of the services provided under this contract, and how did they contribute to the Department of the Navy's mission?

The contract provided deep sea freight transportation services. These services are essential for moving personnel, equipment, and supplies across oceans to support naval operations, deployments, and logistical requirements globally. Effective execution ensures mission readiness and operational capability.

Were there any performance issues or cost overruns during the contract's execution from 2000 to 2006?

The provided data does not contain information on performance issues or cost overruns. A thorough review of contract performance reports, payment histories, and any contract modification documentation would be necessary to assess these aspects accurately.

How does the awarded price compare to market rates for similar long-term deep sea freight contracts during that period?

Without access to detailed market rate data for deep sea freight transportation from 2000-2006, a precise comparison is difficult. However, the $82 million award over nearly six years suggests an average annual cost of approximately $13.7 million. This figure needs to be evaluated against industry standards for vessel charter, crewing, fuel, and operational costs.

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: 11

Pricing Type: COMBINATION (TWO OR MORE) (2)

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