DoD's $26.2M Deep Sea Freight Contract with Transatlantic Lines, LLC Awarded via Full and Open Competition
Contract Overview
Contract Amount: $26,228,511 ($26.2M)
Contractor: Transatlantic Lines, LLC
Awarding Agency: Department of Defense
Start Date: 2006-07-21
End Date: 2012-09-30
Contract Duration: 2,263 days
Daily Burn Rate: $11.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: CHARTER HIRE
Place of Performance
Location: GREENWICH, FAIRFIELD County, CONNECTICUT, 06830
Plain-Language Summary
Department of Defense obligated $26.2 million to TRANSATLANTIC LINES, LLC for work described as: CHARTER HIRE Key points: 1. Contract Value: $26.2 million over 6 years. 2. Competition: Awarded under full and open competition after exclusion of sources. 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk. 4. Sector: Transportation services, specifically deep sea freight.
Value Assessment
Rating: good
The contract value of $26.2 million over six years suggests a significant but potentially reasonable price for specialized deep sea freight services. Benchmarking against similar long-term, high-volume freight contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value is obtained.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the transportation services rendered.
Public Impact
Ensures critical deep sea freight transportation for the Department of the Navy. Supports military readiness and logistical operations. Provides services over an extended period, ensuring continuity. Awarded through a competitive process, promoting fairness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if market conditions change significantly over the 6-year term.
- Dependence on a single contractor for critical transportation needs.
Positive Signals
- Long-term contract provides stability and predictability.
- Firm Fixed Price contract limits financial risk for the government.
- Competitive award process suggests value for money.
Sector Analysis
This contract falls within the transportation sector, specifically deep sea freight. Spending in this area is crucial for global logistics and defense operations. Benchmarks for similar long-term freight contracts would typically consider volume, route, and vessel type.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense, implying oversight through established government procurement regulations and potentially agency-specific review processes.
Related Government Programs
- Deep Sea Freight Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for price escalation if market rates rise significantly.
- Long-term commitment to a single provider.
- Lack of transparency on initial source exclusion justification.
- Absence of specific performance metrics in the provided data.
Tags
deep-sea-freight-transportation, department-of-defense, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.2 million to TRANSATLANTIC LINES, LLC. CHARTER HIRE
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 $26.2 million.
What is the period of performance?
Start: 2006-07-21. End: 2012-09-30.
What was the specific justification for excluding other sources initially before the full and open competition?
The 'exclusion of sources' clause suggests an initial phase where specific vendors were considered or solicited before opening the competition broadly. The exact reason for this exclusion (e.g., specialized capabilities, prior performance, or specific market conditions) would require reviewing the contract's detailed justification documents to understand if it limited competition unnecessarily or was a procedural step.
How does the firm fixed price compare to market rates for similar deep sea freight services over the contract's duration?
A firm fixed price contract locks in the cost, which is beneficial if market rates increase. However, if market rates decrease significantly, the government might be overpaying. A comparison with current market rates for comparable shipping volumes, routes, and vessel types would reveal if the $26.2 million price point represents good value or potential overpayment.
What performance metrics or service level agreements were included to ensure the effectiveness of the deep sea freight transportation?
The effectiveness of the contract hinges on the specific performance metrics and service level agreements (SLAs) established. These would likely include on-time delivery, cargo condition upon arrival, vessel operational readiness, and compliance with maritime regulations. Without these details, it's difficult to assess the contractor's performance and the overall effectiveness of the service.
Industry Classification
NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 120 GREENWICH AVENUE, GREENWICH, CT, 04
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,228,511
Exercised Options: $26,228,511
Current Obligation: $26,228,511
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-07-21
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2012-06-27
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