DoD Awards $101.8M for Medium Survey Ship Services to 3PSC LLC, Raising Value Concerns

Contract Overview

Contract Amount: $60,794,287 ($60.8M)

Contractor: U.S. Marine Management, LLC

Awarding Agency: Department of Defense

Start Date: 2002-11-20

End Date: 2008-04-28

Contract Duration: 1,986 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIXED PRICE AWARD FEE

Sector: Defense

Official Description: 200302!000001!1700!G0233 !MILITARY SEALIFT COMMAND !N0003303C2100 !A!N! !N! !20021120!20060131!101728280!101728280!101728280!N!3PSC LLC !405D ATLANTIS ROAD !CAPE CANAVERAL !FL!32920!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000009962647!N!N!000022412133!M299!OPERATION/ALL OTHER NON-BUILDING FACILITIES !S1 !SERVICES !2SLR!SURVEYING SHIP MEDIUM-AGS !488390!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!M!2!008!K! !C!N!Z! ! !N!B!N!N! ! !A! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $60.8 million to U.S. MARINE MANAGEMENT, LLC for work described as: 200302!000001!1700!G0233 !MILITARY SEALIFT COMMAND !N0003303C2100 !A!N! !N! !20021120!20060131!101728280!101728280!101728280!N!3PSC LLC !405D ATLANTIS ROAD !CAPE CANAVERAL !FL!32920!66672!059!51!RESTON !FAIRF… Key points: 1. The contract value of $101.8M appears high for a medium survey ship service, warranting further scrutiny. 2. Competition was full and open after exclusion of sources, suggesting some level of market engagement. 3. The fixed-price award fee contract type introduces potential risks if not managed effectively. 4. This spending falls under the Defense sector, specifically supporting naval operations.

Value Assessment

Rating: questionable

The total contract value of $101.8M for surveying ship services seems elevated compared to typical contracts for similar vessels and durations. Benchmarking against comparable services is crucial to determine if this represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific source exclusions. The impact on price discovery is unclear without knowing the reasons for exclusion.

Taxpayer Impact: The significant contract value raises questions about taxpayer impact, emphasizing the need for cost-effectiveness and value for money.

Public Impact

Naval operations rely on accurate surveying for safe navigation and mission success. This contract supports critical infrastructure for maritime defense and intelligence gathering. The duration of the contract (over 5 years) suggests a long-term need for these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for specialized vessel services
Contract type (Fixed Price Award Fee) can lead to cost overruns if not managed
Potential for limited competition due to source exclusion

Positive Signals

Awarded under a competitive process
Supports essential naval operations

Sector Analysis

This contract falls within the Defense sector, specifically supporting the Military Sealift Command. Spending on specialized maritime services like surveying ships is benchmarked against operational readiness and national security requirements.

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 assess small business participation.

Oversight & Accountability

Oversight of this contract would involve monitoring performance against award fee criteria and ensuring adherence to the fixed-price structure to prevent cost creep. The Department of the Navy is responsible for this oversight.

Related Government Programs

Other Support Activities for Water Transportation
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

High contract value
Potential for limited competition
Contract type risks
Lack of small business participation data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.8 million to U.S. MARINE MANAGEMENT, LLC. 200302!000001!1700!G0233 !MILITARY SEALIFT COMMAND !N0003303C2100 !A!N! !N! !20021120!20060131!101728280!101728280!101728280!N!3PSC LLC !405D ATLANTIS ROAD !CAPE CANAVERAL !FL!32920!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000009962647!N!N!000022412133!M299!OPERATION/ALL OTHER NON-BUILDING FACILITIES !S1 !SERVICES !2SLR!SURVEYING SHIP MEDIUM-AGS !488390!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is U.S. MARINE MANAGEMENT, 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 $60.8 million.

What is the period of performance?

Start: 2002-11-20. End: 2008-04-28.

What is the justification for the high contract value of $101.8M for medium survey ship services, and how does it compare to industry benchmarks for similar vessels and operational scope?

The justification for the $101.8M contract value requires detailed examination of the specific services rendered, vessel capabilities, operational tempo, and any unique requirements. Benchmarking against similar contracts for medium survey ships, considering factors like age of vessel, specialized equipment, crew costs, and geographic operating areas, is essential. Without this comparative data, it's difficult to ascertain if the price reflects fair market value or if there are opportunities for cost savings.

What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and did this exclusion potentially limit competitive pricing?

The reasons for excluding specific sources under this procurement method are critical to understanding the competitive landscape. If exclusions were based on stringent, potentially narrow, qualification criteria or proprietary technology, it could have limited the number of capable bidders, potentially impacting price discovery. Conversely, if exclusions were due to non-responsiveness or inability to meet essential requirements, the remaining competition might still have been robust. Clarification on these exclusions is needed.

How effectively will the 'Fixed Price Award Fee' contract structure incentivize 3PSC LLC to deliver high-quality surveying services while controlling costs, and what mechanisms are in place to prevent

The Fixed Price Award Fee structure aims to balance cost control with performance incentives. The effectiveness hinges on clearly defined award criteria tied to service quality, timeliness, and potentially cost-efficiency. Robust oversight mechanisms, including regular performance reviews and audits, are crucial to ensure the contractor meets objectives without excessive cost escalation. The government's ability to manage the award fee payouts judiciously will be key to achieving both value and quality.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Other Support Activities for Water Transportation

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATION OF SHIPS, SMALL CRAFTS, PONTOONS AND FLOATING DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 8

Pricing Type: FIXED PRICE AWARD FEE (M)

Contractor Details

Address: 405D ATLANTIS ROAD, CAPE CANAVERAL, FL, 08

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline