Navy awards $18.4M for deep sea freight transportation, with Seaward Services Inc. securing the contract

Contract Overview

Contract Amount: $18,439,869 ($18.4M)

Contractor: Seaward Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-19

End Date: 2011-02-12

Contract Duration: 1,972 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Place of Performance

Location: DANIA, BROWARD County, FLORIDA, 33004

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to SEAWARD SERVICES, INC. for work described as: Key points: 1. The contract value of $18.4 million over its duration suggests a significant investment in specialized transportation services. 2. Competition dynamics for this contract are not detailed, but the award amount indicates a substantial market for these services. 3. Risk indicators are not explicitly provided, but the firm-fixed-price structure generally transfers cost risk to the contractor. 4. Performance context is limited, but the duration of the contract (1972 days) implies a need for sustained service delivery. 5. The contract falls within the transportation sector, specifically focusing on deep sea freight, a critical component of logistics. 6. The award to Seaward Services, Inc. highlights their role in providing essential maritime logistics support to the Department of the Navy.

Value Assessment

Rating: fair

Benchmarking the value of this $18.4 million contract is challenging without specific performance metrics or comparable service contracts. The firm-fixed-price nature suggests a defined scope, but the absence of detailed cost breakdowns or market comparisons makes a precise value-for-money assessment difficult. However, the duration of the contract (over 5 years) indicates a long-term need, potentially justifying the investment if services are delivered effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bidders (no) suggests a degree of market interest and potential for competitive pricing. This level of competition is generally favorable for price discovery and achieving a reasonable cost for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

The primary beneficiaries are the Department of the Navy, receiving essential deep sea freight transportation services. The services delivered are critical for logistical support, ensuring the movement of goods and materials via maritime routes. The geographic impact is likely global, given the nature of deep sea freight, supporting naval operations worldwide. Workforce implications may include employment opportunities for maritime professionals, logistics personnel, and support staff within Seaward Services, Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen operational challenges in deep sea freight.
Dependence on a single contractor for critical transportation services could pose a risk if performance issues arise.
Limited transparency into the specific cost components of the contract makes it difficult to assess true value for money.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that should have yielded a fair price.
The firm-fixed-price contract structure transfers significant cost risk to the contractor, Seaward Services, Inc.
The long contract duration (1972 days) indicates a sustained need and potentially a stable, reliable service provider.

Sector Analysis

The transportation sector, particularly maritime logistics, is a vital component of global commerce and national defense. Deep sea freight transportation involves the movement of goods across oceans, requiring specialized vessels, experienced crews, and adherence to international maritime regulations. This contract fits within the broader category of defense logistics support, where reliable and cost-effective transportation is paramount for operational readiness. Comparable spending benchmarks in this area are highly variable, depending on the specific cargo, routes, and vessel types involved.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, its direct impact on small businesses is likely limited to subcontracting opportunities, if any. The analysis does not provide information on subcontracting plans or performance, making it difficult to assess the extent to which small businesses may benefit from this award.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Navy's contracting officers and potentially program managers responsible for logistics. Accountability measures are inherent in the firm-fixed-price contract, which obligates Seaward Services, Inc. to deliver specified services. Transparency is generally limited for specific contract details unless publicly released, but the award itself is a matter of public record. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) transportation contracts
Military Sealift Command (MSC) chartering services
Department of Transportation maritime support programs
Strategic sealift programs

Risk Flags

Contract duration exceeds 5 years, increasing potential for scope creep or unforeseen market changes.
Firm-fixed-price structure may incentivize cost-cutting at the expense of quality if not closely monitored.
Limited public information on specific performance metrics and cost breakdowns hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to SEAWARD SERVICES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SEAWARD SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2005-09-19. End: 2011-02-12.

What is the historical spending pattern for deep sea freight transportation by the Department of the Navy?

Analyzing historical spending patterns for deep sea freight transportation by the Department of the Navy requires access to detailed procurement data over multiple fiscal years. Without specific databases or reports, it's challenging to provide precise figures. However, it's understood that the Navy relies heavily on maritime transportation for global operations, including the movement of personnel, equipment, and supplies. Spending in this area can fluctuate based on geopolitical events, deployment schedules, and the availability of government-owned versus contracted vessels. Contracts like the one awarded to Seaward Services, Inc. represent a portion of this overall expenditure, often used for specialized or surge requirements where chartering commercial vessels is more efficient than utilizing organic assets. Trends may show an increasing reliance on contracted services for flexibility and cost-effectiveness in certain scenarios.

How does Seaward Services, Inc.'s track record influence the risk assessment of this contract?

Seaward Services, Inc.'s track record is a critical factor in assessing the risk associated with this $18.4 million deep sea freight transportation contract. A history of successful performance on similar government contracts, particularly those involving maritime logistics and transportation, would indicate a lower risk profile. This includes demonstrated reliability, adherence to schedules, compliance with safety and environmental regulations, and effective cost management. Conversely, a history of performance issues, contract disputes, or safety incidents would elevate the perceived risk. While the provided data does not detail Seaward Services, Inc.'s specific past performance on this type of contract, contracting officers would typically review past performance information (PPI) and contractor capability assessments during the procurement process to mitigate potential risks before awarding a significant contract.

What are the key performance indicators (KPIs) typically used to evaluate the success of deep sea freight transportation contracts?

Key Performance Indicators (KPIs) for deep sea freight transportation contracts are crucial for ensuring the government receives the intended value and service quality. Common KPIs include on-time delivery rates, cargo condition upon arrival (minimizing damage or loss), vessel operational readiness and uptime, adherence to safety and environmental standards (e.g., zero major incidents), fuel efficiency, and compliance with all contractual terms and conditions. For a contract like this, the Navy would likely monitor the successful and timely transport of specified goods to designated locations. The firm-fixed-price nature of the contract incentivizes the contractor to meet these KPIs efficiently, as deviations could impact profitability. Regular performance reviews and reporting mechanisms are essential for tracking these KPIs throughout the contract's duration.

Can the $18.4 million award be considered a benchmark for similar deep sea freight transportation services?

The $18.4 million award to Seaward Services, Inc. for deep sea freight transportation can serve as a partial benchmark, but its applicability to other contracts depends heavily on specific contract details. Factors such as the duration of service (1972 days), the types and volume of cargo, the specific routes covered, vessel specifications, and the prevailing market conditions at the time of award significantly influence the overall cost. This contract's value represents a substantial commitment, suggesting a complex or long-term requirement. To use it as a robust benchmark, one would need to compare it against contracts with similar scope, duration, and service requirements, while also accounting for inflation and market rate fluctuations over time. Without such detailed comparisons, it provides a general indication of the scale of investment in this service area.

What are the potential risks associated with a firm-fixed-price contract for deep sea freight transportation?

While firm-fixed-price (FFP) contracts are designed to transfer cost risk to the contractor, they are not without potential risks, especially in complex service areas like deep sea freight transportation. One primary risk is that the contractor may cut corners on quality, safety, or maintenance to maximize profit if the initial price estimate was too low or if unforeseen operational challenges arise. This could lead to service disruptions, cargo damage, or safety incidents. Conversely, if the initial price was set too high due to inadequate market research or overly conservative contractor bidding, the government may overpay for the services. For deep sea freight, unpredictable factors like fuel price volatility, geopolitical instability affecting shipping lanes, or unexpected vessel maintenance needs can strain the contractor's ability to meet the fixed price without compromising performance, potentially leading to disputes or requests for modification.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 255 EAST DANIA BEACH BLVD, DANIA BEACH, FL, 25

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline