Navy awards $22.8M for marine charter services, highlighting a 7-year contract duration

Contract Overview

Contract Amount: $22,830,578 ($22.8M)

Contractor: Transatlantic Lines, LLC

Awarding Agency: Department of Defense

Start Date: 2004-10-15

End Date: 2011-08-03

Contract Duration: 2,483 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: 200503!045138!1700!N00033!MILITARY SEALIFT COMMAND !N0003305C5500 !A!N! !Y! ! !20041015!20050930!009586962!009586962!009586962!N!TRANSATLANTIC LINES LLC !6 LINCOLN AVE !GREENWICH !CT!06830!00000! !SN!* !* !SINGAPORE !+000003984700!N!N!000000000000!V124!MARINE CHARTER FOR THINGS !S1 !SERVICES !000 !* !483111!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!J!2!005!B! !Z!N!Z! ! !Y!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! !1700!N00033!0001! !

Place of Performance

Location: GREENWICH, FAIRFIELD County, CONNECTICUT, 06830

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to TRANSATLANTIC LINES, LLC for work described as: 200503!045138!1700!N00033!MILITARY SEALIFT COMMAND !N0003305C5500 !A!N! !Y! ! !20041015!20050930!009586962!009586962!009586962!N!TRANSATLANTIC LINES LLC !6 LINCOLN AVE !GREENWICH !CT!06830!00000! !SN!* !* … Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 7 years (2483 days) indicates a long-term need for these services. 3. The firm-fixed-price contract type suggests that the price is set regardless of the contractor's actual costs. 4. The service is categorized under Deep Sea Freight Transportation, a critical component of military logistics. 5. The awardee, Transatlantic Lines LLC, is a key player in providing these specialized marine services. 6. The contract's value of over $22 million underscores the significant investment in maintaining maritime operational capabilities.

Value Assessment

Rating: good

The contract value of $22.8 million over approximately seven years appears reasonable for specialized marine charter services, especially considering the duration and the nature of military logistics. Benchmarking against similar long-term charters for naval support would provide a more precise value-for-money assessment. However, the firm-fixed-price structure generally offers predictability for the government, shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids suggests a healthy level of competition for this service. A competitive process like this typically leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and service quality for the government's needs in deep sea freight transportation.

Public Impact

The primary beneficiaries are the U.S. Navy and the Department of Defense, ensuring operational readiness and logistical support for maritime missions. Services delivered include the chartering of vessels for deep sea freight transportation, essential for moving personnel, equipment, and supplies. The geographic impact is global, as marine charter services are inherently international, supporting operations across various theaters. Workforce implications include employment opportunities within the maritime industry, particularly for vessel crewing, management, and related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise, though mitigated by the firm-fixed-price structure.
Dependence on a single contractor for a critical service over an extended period could pose risks if performance issues emerge.
Geopolitical instability or changes in international maritime regulations could impact service delivery and costs.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable and reliable service provision for the Navy.
The contractor has a track record in providing marine services, implying experience and capability.

Sector Analysis

The marine charter and freight transportation sector is vital for global commerce and military logistics. This contract falls within the broader transportation and logistics industry, specifically focusing on deep-sea freight. The Department of Defense is a significant consumer of such services to maintain its global presence and operational capabilities. Comparable spending benchmarks would involve analyzing other long-term vessel charter contracts awarded by military branches or government agencies for similar operational needs.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, the prime contractor, Transatlantic Lines LLC, may engage small businesses for subcontracting opportunities related to vessel maintenance, supplies, or specialized support services. The extent of subcontracting to small businesses would depend on the prime contractor's strategy and the nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, performance standards, and reporting requirements. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Sealift Command (MSC) Operations
Department of Defense Transportation Services
Naval Fleet Support Services
Global Maritime Logistics Contracts
Deep Sea Shipping Contracts

Risk Flags

Long-term contract duration may increase exposure to market volatility.
Firm-fixed-price contract shifts cost risk to the contractor, but could lead to higher initial bids.
Dependence on a single provider for critical logistics over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to TRANSATLANTIC LINES, LLC. 200503!045138!1700!N00033!MILITARY SEALIFT COMMAND !N0003305C5500 !A!N! !Y! ! !20041015!20050930!009586962!009586962!009586962!N!TRANSATLANTIC LINES LLC !6 LINCOLN AVE !GREENWICH !CT!06830!00000! !SN!* !* !SINGAPORE !+000003984700!N!N!000000000000!V124!MARINE CHARTER FOR THINGS !S1 !SERVICES !000 !* !483111!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is TRANSATLANTIC LINES, 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 $22.8 million.

What is the period of performance?

Start: 2004-10-15. End: 2011-08-03.

What is the historical spending pattern for marine charter services by the Department of the Navy?

Historical spending by the Department of the Navy on marine charter services has been substantial, reflecting the critical role of maritime logistics in supporting global operations. While specific figures fluctuate annually based on operational tempo and strategic needs, the Navy consistently invests significant resources in securing vessel capacity for troop and equipment transport, cargo delivery, and specialized missions. This particular contract, valued at approximately $22.8 million over seven years, represents a consistent, long-term commitment to securing these capabilities. Analyzing past contracts of similar scope and duration would reveal trends in pricing, competition levels, and the types of vessels chartered, providing context for the current award's value and terms.

How does the performance of Transatlantic Lines LLC compare to other marine charter providers for the Navy?

Assessing the comparative performance of Transatlantic Lines LLC requires access to historical performance evaluations and past performance data, which are typically not publicly disclosed in detail. However, the fact that the company was awarded this significant, long-term contract under full and open competition suggests a positive assessment of its capabilities and past performance by the Department of the Navy. Agencies often consider factors such as on-time delivery, vessel condition, crew performance, safety records, and responsiveness to requirements when evaluating bidders. Without specific performance metrics or comparative data from other bidders, it's challenging to provide a definitive comparison. However, securing such a contract implies that Transatlantic Lines met or exceeded the Navy's performance expectations during the evaluation process.

What are the key risks associated with this long-term marine charter contract?

Key risks associated with this long-term marine charter contract include potential cost escalations due to unforeseen market fluctuations in fuel prices or international maritime regulations, although the firm-fixed-price structure aims to mitigate this. There's also operational risk, such as vessel downtime due to maintenance or unforeseen damage, which could impact mission readiness. Geopolitical instability in regions where the vessels operate could pose security risks or disrupt supply chains. Furthermore, a long-term reliance on a single provider, even with competition at award, carries a risk if the contractor's performance degrades over time or if their financial stability becomes a concern. The government's ability to enforce contract terms and seek remedies is crucial in managing these risks.

What is the strategic importance of this contract for the Navy's operational readiness?

This contract is strategically important for the Navy's operational readiness by ensuring the consistent availability of deep-sea freight transportation capabilities. These services are fundamental for projecting power, deploying forces, and sustaining operations globally. Whether it involves moving essential equipment, supplies, or personnel to forward-deployed units, or supporting humanitarian assistance and disaster relief missions, reliable maritime transport is indispensable. The seven-year duration provides the Navy with long-term certainty in its logistical planning, reducing the administrative burden of frequent re-competitions and allowing for more stable resource allocation. This ensures that critical assets can be moved efficiently and effectively, supporting the Navy's ability to respond to a wide range of contingencies.

How does the pricing of this contract compare to industry benchmarks for similar services?

Determining precise industry benchmarks for this specific contract requires detailed knowledge of vessel types, charter durations, operational areas, and included services, which are not fully detailed in the provided data. However, the contract's total value of $22.8 million spread over approximately 2483 days (roughly 7 years) suggests an average annual cost of around $3.26 million. This figure needs to be contextualized by the size and type of vessels chartered and the specific services provided (e.g., crewing, maintenance, insurance). Firm-fixed-price contracts, especially for long durations, often incorporate risk premiums. A comprehensive benchmark analysis would involve comparing the per-day or per-month charter rates against publicly available data for similar commercial or government charters, considering factors like vessel capacity, age, and operational scope.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6 LINCOLN AVE, GREENWICH, CT, 04

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline