DoD awards $22.5M contract for marine charter services to Maersk Line, Limited
Contract Overview
Contract Amount: $22,549,800 ($22.5M)
Contractor: Maersk Line, Limited
Awarding Agency: Department of Defense
Start Date: 2005-10-13
End Date: 2006-01-05
Contract Duration: 84 days
Daily Burn Rate: $268.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: 200601!095882!1700!N00033!MILITARY SEALIFT COMMAND !N0003306C5403 !A!N! !N! ! !20051013!20060203!040990913!001665322!305754202!N!MAERSK LINE, LIMITED !ONE COMMERCIAL PL, 20TH FL!NORFOLK !VA!23510!00000! !KS! ! !KOREA, REP!+000006186000!N!N!000006186000!V124!MARINE CHARTER FOR THINGS !S1 !SERVICES !000 !NOT DISCERNABLE !483111!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!007!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! !1700!N00033!0001! !
Place of Performance
Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23501
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.5 million to MAERSK LINE, LIMITED for work described as: 200601!095882!1700!N00033!MILITARY SEALIFT COMMAND !N0003306C5403 !A!N! !N! ! !20051013!20060203!040990913!001665322!305754202!N!MAERSK LINE, LIMITED !ONE COMMERCIAL PL, 20TH FL!NORFOLK !VA!23510!00000! !KS! ! … Key points: 1. Contract awarded to Maersk Line, Limited for marine charter services. 2. The contract value is $22,549,800. 3. Competition was full and open. 4. The sector is transportation, specifically deep sea freight.
Value Assessment
Rating: good
The contract value of $22.5M for marine charter services appears reasonable given the duration and scope. Benchmarking against similar large-scale transportation contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers, as it encourages multiple bids and potentially lowers costs.
Public Impact
Ensures continued operation of critical maritime logistics for the Department of Defense. Supports global supply chain operations, potentially impacting the movement of goods and personnel. The award to a major commercial carrier like Maersk Line, Limited indicates reliance on established industry infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Awarded to a well-established commercial carrier.
- Contract supports essential DoD operations.
Sector Analysis
This contract falls within the transportation sector, specifically deep sea freight. Spending in this area is crucial for military logistics and global reach. Benchmarks for similar large-scale charter services would be relevant for detailed comparison.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The award to Maersk Line, Limited, a large commercial entity, suggests limited direct impact on small businesses for this specific contract.
Oversight & Accountability
The contract was awarded by the Department of the Navy, Military Sealift Command. Standard oversight mechanisms for DoD contracts would apply, focusing on performance and financial accountability.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of specific detail on 'things' being chartered.
- No explicit mention of performance metrics or KPIs.
- Potential reliance on commercial assets may not fully align with long-term strategic sealift needs.
Tags
deep-sea-freight-transportation, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.5 million to MAERSK LINE, LIMITED. 200601!095882!1700!N00033!MILITARY SEALIFT COMMAND !N0003306C5403 !A!N! !N! ! !20051013!20060203!040990913!001665322!305754202!N!MAERSK LINE, LIMITED !ONE COMMERCIAL PL, 20TH FL!NORFOLK !VA!23510!00000! !KS! ! !KOREA, REP!+000006186000!N!N!000006186000!V124!MARINE CHARTER FOR THINGS !S1 !SERVICES !000 !NOT DISCERNABLE !483111!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is MAERSK LINE, LIMITED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $22.5 million.
What is the period of performance?
Start: 2005-10-13. End: 2006-01-05.
What specific types of "things" are being chartered and what is the operational necessity?
The contract specifies "MARINE CHARTER FOR THINGS" with a Product Service Code of 483111 (Marine Charter). While the exact nature of "things" is not detailed, it likely refers to cargo, equipment, or potentially personnel transport. The operational necessity is implied by the awarding agency, Military Sealift Command, which provides ocean transportation services for the DoD, indicating a requirement for moving assets globally.
Are there any performance metrics or key performance indicators (KPIs) associated with this charter to ensure effectiveness?
The provided data does not explicitly list performance metrics or KPIs. However, standard DoD contracting practices typically include clauses for timely delivery, cargo condition, and adherence to voyage plans. The effectiveness would be measured by the successful and reliable transport of the chartered "things" as per the contract's operational requirements and any specified service level agreements.
What is the potential long-term impact of this charter on DoD's strategic sealift capabilities?
This contract represents a short-term solution for specific transportation needs rather than a long-term strategic capability investment. Relying on commercial charters, even from major carriers like Maersk, can offer flexibility but may not fully replicate the dedicated strategic sealift assets the DoD maintains for surge operations. The impact is primarily on meeting immediate operational demands.
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: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: A.P. Møller - Mærsk A/S (UEI: 305391054)
Address: ONE COMMERCIAL PL, 20TH FL, NORFOLK, VA, 03
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-10-13
Current End Date: 2006-01-05
Potential End Date: 2006-01-05 00:00:00
Last Modified: 2010-03-31
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