DoD's $101.7M contract for Marine Charter Services awarded to U.S. Marine Management, LLC

Contract Overview

Contract Amount: $91,354,795 ($91.4M)

Contractor: U.S. Marine Management, LLC

Awarding Agency: Department of Defense

Start Date: 2004-12-16

End Date: 2007-09-30

Contract Duration: 1,018 days

Daily Burn Rate: $89.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: 200508!211110!1700!N00033!MILITARY SEALIFT COMMAND !N0003304C5301 !A!N! !Y! ! !20050308!20041216!101728280!101728280!101728280!N!3PSC LLC !405 ATLANTIS RD !CAPE CANAVERAL !FL!32920!10250!009!12!CAPE CANAVERAL !BREVARD !FLORIDA !+000005229843!N!N!000029730002!V124!MARINE CHARTER FOR THINGS !S1 !SERVICES !000 !* !488330!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!J!2!007!A! !C!N!A! ! !N!A!N!N!Z!B! ! !A!A!000!A!B!N! ! ! ! !1700!N00033!0001! !

Place of Performance

Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $91.4 million to U.S. MARINE MANAGEMENT, LLC for work described as: 200508!211110!1700!N00033!MILITARY SEALIFT COMMAND !N0003304C5301 !A!N! !Y! ! !20050308!20041216!101728280!101728280!101728280!N!3PSC LLC !405 ATLANTIS RD !CAPE CANAVERAL !FL!32920!10250!009!12!CAPE CANAVERAL !BREV… Key points: 1. The contract value is $101.7 million, with a significant portion ($89.7M) potentially spent. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract is for marine charter services, falling under deep sea freight transportation. 4. The duration is over 3 years, indicating a long-term service requirement.

Value Assessment

Rating: good

The contract value of $101.7M appears reasonable for a multi-year marine charter service, though specific benchmarks are unavailable without more detailed service scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which typically leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for necessary marine charter services.

Public Impact

Ensures continued operational capability for the U.S. Marine Corps by providing essential transportation. Supports maritime logistics and deployment readiness. Impacts the commercial shipping and charter industry through government contract awards.

Waste & Efficiency Indicators

Waste Risk Score: 80 / 10

Warning Flags

Potential for cost overruns if not closely monitored.
Dependence on a single contractor for critical services.

Positive Signals

Awarded through full and open competition.
Long-term contract provides stability for service provision.

Sector Analysis

This contract falls within the transportation sector, specifically deep sea freight. Government spending in this area supports national defense and logistical operations, with benchmarks varying based on vessel type, duration, and service requirements.

Small Business Impact

The data indicates the award was made to U.S. Marine Management, LLC. There is no specific information provided regarding small business participation or subcontracting in this award.

Oversight & Accountability

The contract was awarded by the Department of the Navy, Military Sealift Command, indicating established oversight mechanisms. However, ongoing monitoring of performance and costs is crucial.

Related Government Programs

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

Risk Flags

Contract duration exceeds 3 years.
Significant contract value ($101.7M).
Potential for cost escalation over the contract term.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.4 million to U.S. MARINE MANAGEMENT, LLC. 200508!211110!1700!N00033!MILITARY SEALIFT COMMAND !N0003304C5301 !A!N! !Y! ! !20050308!20041216!101728280!101728280!101728280!N!3PSC LLC !405 ATLANTIS RD !CAPE CANAVERAL !FL!32920!10250!009!12!CAPE CANAVERAL !BREVARD !FLORIDA !+000005229843!N!N!000029730002!V124!MARINE CHARTER FOR THINGS !S1 !SERVICES !000 !* !488330!E! !3! ! ! ! ! !202

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 $91.4 million.

What is the period of performance?

Start: 2004-12-16. End: 2007-09-30.

What is the specific breakdown of services included in the 'Marine Charter for Things' and how do they align with operational needs?

The contract details 'MARINE CHARTER FOR THINGS' and falls under PSC code 488330 (Marine Charter). While the specific 'things' are not detailed, it implies the chartering of vessels for transporting goods or equipment. This aligns with the operational needs of the Marine Corps for logistical support and deployment, ensuring necessary cargo can be moved via sea.

What are the key performance indicators (KPIs) and risk mitigation strategies in place for this long-term charter contract?

The provided data does not explicitly list KPIs or detailed risk mitigation strategies. However, standard government contracting practices would involve performance metrics related to vessel availability, timely delivery, safety, and maintenance. Risk mitigation would likely include contingency plans for vessel breakdowns, geopolitical disruptions, and adherence to strict safety and environmental regulations.

How does the awarded price compare to industry standards for similar marine charter services, considering the contract duration and scope?

Without specific details on vessel type, capacity, and exact service routes, a precise comparison is difficult. However, the contract value of $101.7M over approximately 3 years suggests a substantial service. Benchmarking would require comparing daily or monthly charter rates for comparable vessels and service levels within the commercial maritime industry.

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

Solicitation Procedures: SEALED BID

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: A.P. Møller - Mærsk A/S (UEI: 305391054)

Address: 405 ATLANTIS RD, CAPE CANAVERAL, FL, 08

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline